Silicius & LimeWork advance towards IPO

Photo of Luis Hernández de Cabanyes from ElEspanol.com

Despite 2019 being a slower listing market than the previous year, the Spanish market continues to attract new Spanish REIT (SOCIMI) listings.

The latest company to announce a new REIT listing has been Renta Corporacion who plan to launch Linkwork Properties which will focus on logistic assets and which will raise capital from institutional and qualified investors. The vehicle plans to buy logistics assets and offices in Madrid, Barcelona as well as other main Spanish cities.

As published by SpanishREIT.com last April, the group’s president, Luis Hernández de Cabanyes had announced the launch of two new investment vehicles, one for offices & logistics and another which will focus on hotels. The two will aim to reach €1billion in AUMs with a 50% leverage.

The objective in both cases is to manage the SOCIMIs, as the company already does for the residential focused REIT (Vivenio Residencial SOCIMI) which currently has a market capitalisation of €332 million with over 3,000 properties and the ability to reach a total invested volume of €1.2 billion.

Unlike Linwork, where Renta is open to having several institutional partners, the hotel REIT will only have one partner as is the case with Vivenio, where the co-investor is Dutch pension fund Stichting Pensioenfonds ABP. 

Q1 of 2019 saw Renta Corporación obtain a profit of €3.7 million euros, 6% more than in the same period of the previous year, and revenues of €22.3 million, 66% up y-o-y. Of this figure, €13.7 million come from property sales, while €7.3 million were generated by the management of real estate projects and an additional €1million from the management of Vivenio.

Another REIT which is readying its IPO is Mazabi’s Silicius which announced this week the acquisition of 2.485sqm property on nº 12 of Eduardo Dato in the Basque city of Vitoria. The property is rented to Spain’s second bank, BBVA, on a long-term contract and has a valuation of over ten million euros.

Silicius’ acquisition meets the investment requirements set by the shareholders and represents another step in the growth phase of the Spanish REIT before making its debut on the stock exchange.

The company recently completed a contribution of five assets to the REIT valued at €40 million euros. Silicius specializes in the acquisition and management of assets that generate long-term stable income for investors.

The SOCIMI has a core profile and makes conservative investments with a low level of debt. Currently, the company has 22 assets under management €160 million euros in AUMs.