Euronext Lisbon, 2020
The listing of MERLIN Properties’ shares on the pan-European Euronext market will increase the visibility of this SOCIMI to a broader international investment community, including enhanced access to Portuguese investors.
«This entry in the Lisbon Stock Exchange is an example of the strategic value Portugal has for us. We hope that this step will allow us to increase the visibility and reputation of the brand in the country, but also a direct access at lower costs for investors to one of the largest real estate companies in Europe», commented Ismael Clemente, CEO of MERLIN Properties.
«The prospects of economic growth, the excellent fundamentals of the real estate sector and the current context of political stability just confirm the appeal of Portugal for us. As we intend to continue increasing our exposure in the country, it is essential for MERLIN Properties to be listed here», adds Ismael Clemente.
Filipa Franco, Head of Listing at Euronext Lisbon mentioned: «the listing of MERLIN Properties at the Lisbon Stock Exchange is a sign of confidence in the community of Portuguese investors and an opportunity for those investors to invest in real estate securities. Following the approval of the SIGI regime in 2019, I hope the listing of MERLIN will encourage companies within this sector to boost the financing of their investments through the capitals market. REITs can accelerate their growth with success by being listed and receive the inherent benefits in terms of reputation, without prejudice of their investment strategies or control of their businesses».
Isabel Ucha, Market Development Local Director at Euronext Lisbon, commented that: «It is a new instrument through which Portuguese investors can be more exposed to the real estate securities market. Merlin is a pioneer in this type of listing and we expect other companies to follow its example, in particular, SIGIs».
Since 2014, Merlin has followed an «ambitious financing strategy», with 3 capital increases, representing around 3 billion dollars in equity capital. «This is the example of a company that uses the capitals market with all its benefits for its growth. Euronext has a diverse group of companies listed in this sector, which gathers several types of real estate assets, such as offices, hospitals, industrial assets, on the different European markets where it is present», adds Isabel Ucha.
MERLIN Properties is the first Spanish SOCIMI to be listed on Euronext’s regulated market. With tomorrow’s listing, there will be eight Spanish SOCIMIs listed on Euronext, given that seven currently do so on the alternative Euronext Access (one of the alternative trading platforms (MTF) operated by Euronext). This process was advised by: Banco Santander Totta – Listing Agent and Linking Agent; JB Capital Market and Garrigues.
MERLIN Properties is one of the Real Estate companies listed on the Spanish Stock Exchange (market cap of 5,8 Bn euro as of 13 January), focused on the acquisition and management of commercial assets in the Iberian Peninsula.
«Merlin started its activity in 2014 with the strategic goal of becoming an Iberian company, with a strong presence in the Spanish and Portuguese markets. After 5 years and a half, we are the largest real estate company in the Iberian Peninsula. Our portfolio includes offices, dominant urban shopping centres, logistic assets. We specialise in acquiring, managing and valuing office assets. Through highly selective acquisitions, we built an asset portfolio with the highest quality in Portugal, estimated at more than 1 billion euro. We want to be innovative and differentiated, both in terms of quality and in terms of the service we offer», revealed the REIT’s CEO.
Benchmark market for the real estate sector
Euronext is a reference market for European Real Estate companies with over 100 issuers in this sector, representing a market capitalisation of around 122 billion euro. Real Estate Investment Firms listed on Euronext are specialised in various areas, namely, Industrial and Offices (39%) and Retail (34%), as well as Real Estate and Development Holding Companies (18%). Euronext offers companies access to an investor base of over 800 active institutional investors in this sector based in over 40 countries, primarily in the United Kingdom (29%), France (24%) and the United States (17%). These investors cover a wide array of investment profiles and invest across different growth phases of real estate companies and offer a unique liquidity pool. Real Estate companies listed on Euronext markets have raised an aggregated €10.3bn in follow ons and €27bn in bonds issuances since 2014.
MERLIN Properties strengthens the list of leading Real Estate companies trading on Euronext, which include major players of the likes of Unibail Rodamco Westfield, Klepierre, Gecina, WDP, Nexity and Aedifica among others.
The dual listing of MERLIN Properties, the first carried out by a Spanish SOCIMI, is the second led by a company domiciled in Spain, following the successful listing of Lleida.net in December 2018.
Press Released By Euronext Lisbon