Bankinter working on listing hotel REIT

Bankinter plans to list Atom Hoteles towards the end of 2018. The currently unlisted SOCIMI has already invested approximately €500 million in the acquisition of 23 hotels (with over 5,200 rooms) throughout Spain including four and five star hotels operated by brands like Meliá and Marriott.

At the end of 2017, the Spanish bank began offering its private banking clients the option to participate in this Spanish REIT which was formally established on the 5th of January. The listed fund has since completed a €247.8 million capital increase and signed a 5-year syndicated mortgage loan worth €191 million enabling it to acquire a total of 23 hotels.

The portfolio is diversified in terms of asset types, locations and operators, with 10-year minimum leases and most of the properties are fully refurbished. The objective of the fund is to offer an annual dividend close to 5% to all the Spanish REIT’s shareholders.

The property fund’s main shareholders are Bankinter itself, the REIT manager, GMA, institutional investors and private banking clients who have made a minimum commitment of €200,000. The bank, which is led by María Dolores Dancausa, invested approximately €18 million of equity whilst the REIT manager invested another €9 million acquiring minority stakes in the fund and positions on its board of directors.

Different to other Spanish REITs, Bankinter has envisioned a 7 year term until divestment, although the bank reserves the possibility of extending the fund’s life.