The latest sign that the Spanish property market is on the road to recovery has come from the stock market. The value of shares in two Real Estate Investment Trusts (REITs) that floated on the stock market in the last month have increased – leading experts to interpret this as a positive indicator of growing confidence in the property market in Spain.
In early March Hispania Activos Inmobiliarios ‘began trading on stock exchanges in Madrid, Barcelona, Bilbao and Valencia after it raised €500 million in an initial public offering’ and Lar España Real Estate also began to trade after raising €400 million¹. Neither of the two REITs own any property, but are ‘cash box’ companies that will use the funds raised through the sale of shares to buy real estate in Spain. Lar España states that it intends to invest ‘up to €800 million within two years primarily in office buildings in Madrid and Barcelona, and shopping centres across the country’. Hispania, on the other hand, remarks that it plans to invest some ‘€900 million mainly in office buildings in Madrid and Barcelona, in residential real estate across the country and in hotels in the Balearics and the Canary …read more
Source: Property show rooms