In a release, the REIT advanced that the funds obtained with this capital increase will be used to meet the growing demand for monetization on real estate savings from the owners. In this way, Almagro Capital will continue its expansion strategy and growth into Madrid’s prime areas.
Amongst the investors who participated in this capital increase were Ibervalles socimi, Preventiva Seguros and Mutualidad de la Abogacía, which considered entering this REIT’s capital, means «supporting a socially responsible project which seeks not only to profit but also to improve the quality of life for senior citizens».
In July, shareholders approved the issuing of 14 million shares at 1 euro each, with 0.14 cents prime per share (14% over the nominal value), representing a total of 16 million euro. Thus, the company’s market capitalisation surpassed 43.7 million euro less than two years after its debut in BME Growth (formerly MAB) in January 2019.
Almagro Capital currently has a portfolio with more than 8.500 sqm spread across more than 60 housing buildings with an average purchasing price of 2.972 euro per sqm. It also has an average rental occupancy close to 100% and its long-term rental methodology provides its portfolio with «significant strength during times of instability such as the one we are going through right now».
Introducing "Vivienda Inversa" (Sale and Rent Back) is part of the plans
Amongst Almagro’s growth plans is the introduction of the "Vivienda Inversa" formula on the main Spanish cities.
This model allows homeowners to remain in their homes as tenants for life, providing the most amount of capital amongst all the options which allow remaining in the house. As soon as the first stage is concluded the «company’s goal will be to increase the investment rate in order to enter the continuous market, which will add value, visibility and liquidity to the action», revealed the document.
«Since the beginning, we knew we would have to be patient to introduce a new solution for the senior segment. It is a great satisfaction to have a Vivienda Inversa model tried and tested and with great acceptance, which allows us to align the interests of senior citizens with those of our investors, to whom we thank for their trust in the project and for providing resources at a time of strong demand for solutions to monetize the owners’ savings», explained Luis de Ulíbarri, president at Almagro Capital.