The investment strategy of reverse mortgage purchase by Socimi Almagro Capital consists of acquiring real estate from older people when they decide to monetize their illiquid savings concentrated in their habitual residence, but staying in the same home for life.
In this sense, the company has an ambitious growth plan for the coming years. Currently, it has a portfolio of a portfolio of 83 homes and an investment of about 40 million. But the objective of the Socimi is to multiply the assets by 20 in the next three or five years, according to Bruno Bodega, CEO of Almagro Capital, to El Economista.
For this, the firm expects to have a capital of 500 million that will allow them to make an investment of 1,000 million in that period. From the Socimi they assure that they already have the "commitment" of some of the partners who entered the last capital increase.
However, the CEO of the Socimi points out that beyond large investors, they want many individuals to enter, because it is a good and comfortable investment. In this regard, he clarifies that «we believe that it is better to participate in 0.1% of a thousand houses than to have one». According to the manager, the share offers an annualized return of 5%.
In Spain, only Almagro Capital operates in the reverse housing model, but in Europe its use is much more widespread. For example, in England and France it is a formula that is highly developed and transactions worth around 4,000 million euros are closed.