Sonae Sierra and Bankinter create SOCIMI with 400 million to invest in Iberia

Sonae Sierra and Bankinter are preparing for the launch of a new SOCIMI (anonymous listed real estate investment society) with 400 million euros to invest in Iberian commercial real estate, in particular in shopping centres, supermarkets and hypermarkets, and offices.

Placed beside the main clients of this banking institution, the new vehicle should be listed on the MAB (Mercado Alternativo Bursátil) (Alternative Stock Market), within two or three months, anticipating an investment time span of seven years, with the possibility of a three-year extension.

In order to complete the creation of the SOCIMI, Bankinter will go in with a capital sum of 7.5 to 15 million euros, while the Sonae Sierra’ participation is to oscillate between 3.5 and 7,5 million. In this way, the two will be joint holders of a slice of up to 11.24% of the SOCIMI’s social capital, which should rise to 200 million euros. In order to achieve this, Bankinter will aim the subscription for this product at its most elite clients.

To this value should be further added 200 million euros, obtained by means of external financing, elevating the SOCIMI’s capacity for investment to 400 million. The aim is to apply this to purchasing real estate assets in Portugal and Spain, thus allowing their subscription with a minimum investment of 250,000 euros, with a 10% maximum of their financial assets.

The minimum investment amount per transaction will be 5 to 20 million euros, whether it is a single asset or a real estate portfolio. All acquired assets have to fulfil the requisite of a good location with a long-term contract, with a minimum time period of five years.

Although there are not yet any assets in the portfolio, the new vehicle already has ten projects under analysis and on which non-binding offers have been made. Among these stand out the purchase of a portfolio of hypermarkets at a value of 150 million euros and the acquisition of a retail park for 20 million.

The SOCIMI anticipates reaching a gross profitability, by asset value, of between 6 and 6.5% in the first two years. Or rather, above the profits received by other listed real estate societies such as a Axiare, Merlin or Realia, where, according to information supplied by Bankinter potential investors should receive profitability levels of 4.8%, 3.2% e 4.5% in 2016, respectively.