Árima acquires offices in Madrid and starts asset rotation

Árima acquires offices in Madrid and starts asset rotation

Árima is starting to make its portfolio profitable. The socimi ended the first half of the year with a 25% increase in value over the investment made, up to 402 million euros. A figure that allows it to begin its asset rotation strategy. In addition, it has recorded a net asset value per share of 11.91 euros, which is 24% higher since its IPO in October 2018.

The Socimi has finalised the sale of its María de Molina building, a Class A asset with a gross leasable area of more than 4,000 square metres, located in the centre of Madrid. The building is fully leased and has experienced a significant increase in rental income, multiplying it by nine, thanks to the efficient management of Árima's team. After four years of growth in its value, the company has decided to sell it to realise its growth potential.

Árima has also made an acquisition, the asset called Torrelaguna, located in a consolidated area of Madrid. It is an office building with an interesting potential, acquired at a price of 30 million euros and fully leased. With this purchase, Árima increases its portfolio by more than 11,000 square metres of gross leasable area and 303 parking spaces, generating an outstanding profitability.

On the other hand, Árima has announced a lease agreement for its flagship asset, Botanic, with a leading multinational company that will establish its headquarters in this innovative building. The contract will be formalised in the last quarter of the year.

Increase in leased volume and rental income

Árima continues to pursue its strategy of acquiring and repositioning Class A buildings, driven by a shortage of quality space in Madrid.

The Socimi has reported that, in addition to the aforementioned María de Molina building, other properties that have completed their repositioning process and are fully leased are Habana, Ramírez de Arellano and the Guadalix industrial building. This generated rental income of EUR 3.9 million in the first half, an increase of 40% on a like-for-like basis compared to the same period last year. Thanks to these rents, the Socimi was able to report positive EBITDA for the period.

The Socimi is confident in the additional growth potential of its portfolio, estimating it at 110% in terms of rental income growth. During the half year, the Cadenza asset has completed its repositioning process, now offering 14,500 sqm of gross leasable area in a Class A office building, located in a consolidated submarket in Madrid. Meanwhile, the Pradillo and Dune projects, totalling 25,000 sqm of gross leasable area, continue to progress in their repositioning phase.

In total, Árima's portfolio comprises ten assets, of which nine are offices and one is an industrial warehouse. All these properties stand out for their high quality, totalling more than 113,000 square metres of gross leasable area and 1,558 parking spaces in Madrid.

Strong balance sheet and investment opportunities

The Socimi states that it continues to maintain a strong balance sheet, with a low leverage level for its sector of 22.7% LTV (Loan-to-Value), with very advantageous financing conditions and no significant maturities in the medium term.

With a long-term vision, Árima continues to monitor the market for investment opportunities and currently has a potential acquisition at an advanced stage representing a total investment of 40 million euros (including capex).

Sustainable certifications

The Socimi has reached 50% of its portfolio with LEED and BREEAM certifications and aims to have 80% of its assets LEED, BREEAM and WELL certified by 2025. All of its properties reflect its focus on sustainability and respect for the environment, both in terms of energy efficiency and the transformation process they have undergone to become sustainable.

Árima has received recognition from important organisations such as the European Public Real Estate Association (EPRA) and the Global Real Estate Sustainability Benchmark (GRESB). The socimi finances its entire portfolio through green loans and is the only real estate company in Spain with RICS (Royal Institution of Chartered Surveyors) certification.

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