MAB approves the entry of Home Capital Rentals Socimi

MAB approves the entry of Home Capital Rentals Socimi

Photo Collected From Home Capital Rentals' official website

The incorporation of the REIT was announced this Tuesday with an 8.36 euro reference value per share, which, according to the release sent to MAB, implies a market capitalization of around 50.2 million euro.

A value-added strategy guides this REIT, which since 2017 has been acquiring real estate assets so that after rehabilitating them, it places them on the mid-term corporate rental market.

The REITs portfolio currently has a total of 6 buildings and 4 of them should be rehabilitated. Amongst the buildings destined for the rental market are the one located at number 32 Calle Blasco de Garay in Madrid, with 1.331 sqm, spread across 19 housing units and 1 retail space. The other is located in Barcelona, at number 26 Calle Gignàs, with 9 dwellings and 2 retail spaces. The first one is estimated at 8.41 million euro and the second at 4.82 million euro.

The 4 buildings will be subjected to a process of transformation and are all located in Madrid. One of them is located at Calle General Margallo 33 and has 20 units and 5 parking spots for a total 1.678 sqm. Out of the 4, this is the highest valued asset, reaching 7.15 million euro. Two of them are located at Calle Colomer: one on numbers 8,10 and 12, with 1.581 sqm, and the other at number 9, with 1.364 sqm. While the first has a total of 28 units and 43 parking spots and is estimated at 5.57 million euro, the second only has 22 dwellings and is estimated at 4.16 million euro. The fourth building is located at number 12 Calle Farmacia in the Spanish capital. This last asset has 23 dwellings, 29 parking spots and a total 1.405 sqm and last February it was estimated at 5.39 million euro.

Aiming at «maximizing the value for the shareholders», the REIT conceived a development strategy for the next few years. First, it should follow a new investment route, which it has already started in November and which should last 3 years. Next, there should be a stabilisation and portfolio management period expected to begin in November 2022 which will last 2 years. Lastly, it plans to start a period of divestment which should begin at the end of 2024 and end after 3 years.

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