13 June 2018 – Eje Prime
VBare is embarking on a new phase and is branching out beyond Madrid. The Socimi is finalising the purchase of its first assets outside of the Spanish capital, in Málaga, and is continuing to expand its portfolio in Madrid, according to explanations provided by Fabrizio Agrimi, Director General of VBare, speaking to Eje Prime. Moreover, last week, the group closed a capital increase through which it raised €3.2 million to finance new purchases.
The Socimi, which ended the first quarter of the year with 210 assets under management, has set itself the objective of expanding its portfolio to include 261 residential units under management. To this end, the company is on the verge of signing the purchase of two assets, one in Málaga, which will be VBare’s first venture outside of Madrid, and the other in the Spanish capital.
“We hope that the asset in Málaga will be incorporated into our portfolio before the end of June”, says Agrimi. The asset is situated “in a central location” and comprises fourteen residential units. VBare is going to pay around €1.5 million for the asset, including the cost of the renovation that it will undertake before putting it on the market.
The second property is located in the centre of Madrid, and although sources at the Socimi are not able to provide many details about that acquisition, they say that it will comprise around 35 units located “in the city centre”. Currently, 91% of VBare’s portfolio is occupied and “if it weren’t for the renovation projects underway, the occupancy rate would be 95%”, according to the director.
In order to undertake all of these purchases, VBare recently completed a capital increase that could have amounted to €14 million, as disclosed by Eje Prime, but which ended up raising €3.2 million, with the sale of 240,457 new shares.
“It will not be long before we carry out another capital increase given that, due to the timings, several shareholders, possible investors close to the Socimi and other new players missed out on the opportunity to contribute capital this time around”, explains Agrimi (…).
With that capital increase now completed, VBare is going to study the acquisition of “whole buildings, portfolios of dispersed assets and portfolios of assets in single complexes, with the aim of maintaining a balanced portfolio to avoid concentration risks, and obtaining a competitive advantage over the other players in the market consistent with the identification of opportunities with little competition and at below market prices”.
Moreover, the company’s route map includes acquiring assets with a net direct yield of “no less than 4%, as well as properties for which we can obtain an acquisition price with an average discount on the market value of no less than 10%”.
In March, the company acquired a package of assets comprising twelve homes and a commercial premise at number 5 Calle Concordia in the Madrilenian town of Móstoles, according to a statement filed by with group with the Alternative Investment Market (MAB).
Of the twelve homes that it acquired from the Eureka business group, five have tenants and the others are “in optimal conditions for their immediate rental”. The net yield of these assets is estimated to amount to 5.9% once they reach fully occupancy.
VBare is a real estate investment vehicle specialising in the acquisition and management of residential assets for rent. The company was constituted in March 2015 with the aim of generating high returns for its shareholders through the implementation of a value-added strategy and to take advantage of opportunities in the Spanish residential market, which is showing clear signs of recovery.
Original story: Eje Prime (by C. Pareja)
Translation: Carmel Drake
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Source:: AURA Real Estate Experts