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Lar España Distributes Dividend 10 Months After Launch

Posted by: In: Real Estate 29 Apr 2015 Comments: 0 Tags: , , , , , , , , , , ,
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29 April 2015 – Cinco Días

The Socimi will rely on a possible extension or issue of promissory notes to raise funds.

It will also make purchases that will increase its asset volume to €800 million.

Yesterday, the Socimi Lar España held its first shareholders’ meeting, at the historical stock exchange building in Madrid, where a dividend of €0.033 was approved. The distribution will be made in cash within the next 30 days. Moreover, it ratified the company’s accounts to December 2014, which reported profits of €3.5 million.

During a session with journalists after the meeting, the managers of the Socimi, managed by Grupo Lar, welcomed the success. “It is noteworthy that after just ten months of operation, given that we launched the Socimi in March, and taking into account the initial costs, we have ben able to generate profits in the period to December and distribute dividends” said José Luis del Valle, Chairman of Lar España’s Board of Directors.

In addition, the shareholders’ meeting approved the authorisation (required) to issue debt securities (promissory notes) or increase capital by up to 50%, if necessary, which would result in new resources of around €200 million. “We are going to have to go to the market in the coming months”, admitted Valle.

Thus, Lar España joins other Socimis, such as Hispania and Merlin, which have already used the mechanism to increase their capital during their short lives. Lar España already launched a 7-year bond issue amounting to €140 million at the beginning of the year, which accrues interest at an annual rate of 2.90% and is listed on the Irish stock exchange.

Currently, the company has a margin of between €200 million and €300 million to invest in future agreements, according to its managers.

This type of listed real estate investment company has been operating in Spain since last year. They are listed vehicles, created for the acquisition and development of urban real estate assets for rental. They benefit from tax advantages and are obliged to distribute dividends.

The initial objective of this listed company was to secure real estate assets amounting to between €750 million and €800 million within its first 24 months of life, although the managers shortened those deadlines yesterday. “Our objective is to close the plan much earlier than expected”, said Miguel Pereda, CEO of the Grupo Lar.

Pereda explained that this listed vehicle has no intention of specialising (in a certain type of asset), but rather will seek to diversify in terms of its assets and geographical areas.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

The post Lar España Distributes Dividend 10 Months After Launch appeared first on Aura Real Estate Experts.

Source:: AURA Real Estate Experts

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