SOCIMI (Spanish REIT)

Solventis

At Solventis, we have the necessary experience to accompany and advise you throughout the process to create, incorporate, and mantain the REIT at the MAB.

REITs are Spanish Real Estate Investment Trusts (REITs), know in Spanish as "Sociedades Anónimas Cotizadas en el Mercado Inmobiliario" (SOCIMI).

Presentation: REITs as an Investment Vehicle

 

  • What are REIT's?

    REIT's are companies whose main activity is the direct or indirect investment in real estate property for rental purposes.

  • What is the aim of the REIT's?

    1. Promote the rental market in Spain. This sector has a very low volume in comparison with the rest of  Europe  (15% in Spain compared to 50% in Germany).
    2. Provide liquidity to real estate investments.
    3. Offer investors stable return.

     

  • How are they Regulated?

    • Law 11/2009 26th October (See Law)
    • Amended by Law 16/2012 27th December  (See PDF)

     

  • Who are REIT's aimed at?

    All individual or corporate owners, that own or wish to develop real estate for rent whose aggregate value exceeds 5 millons euros. (a REIT can comprise a single property).

    Valuations of non-monetary contributions of property to incorporate a REIT or increase its capital will require a valuation mandate made by an independent expert.

  • Which assets are deemed to qualify to form part of a REIT's assets?

    For a company to be considered a REIT, at least 80% of it’s assets must be considered as Qualified Assets

    Qualifying assets are as follows:

    • Urban Real Property (buildings, commercial premises, hotels, offices, shopping malls, warehouses, etc. ..) acquired or promoted to be leased.
    • Land plots acquired for lease, provided development is started whitin three years as from their acquisition date.
    • Holdings in other SOCIMI, REIT, non listed REIT's and Real Estate Collective Investment funds and companies.

     

  • What requirements must I meet for my company to be considered a REIT?

    FEATURES OF PROPERTIES Law 2009 Law 2012
    Minimum holding period for property 7 years 3 years
    Properties required 3 1
    Maximum relative weight 40% 100%

     

    FINANCIAL REQUIREMENTS 
    Minimum share capital 15 Million 5 Million
    Maximum leverage 70% No limit
    Minimum Free Float 25% Minimum between 2.000.000 and 25% of share capital
    Classes of shares - Nominative
    Trading market Regulated Markets only Regulated or multilateral trading systems
    % Profits to dividends (rental income) 90% 80%
    % Profits to dividends (property sales) 50% 50%
    % Profits to dividends from dividends of other REIT's 100% 100%

  • What are the tax benefits of REIT's?

    For more information, please contact us and we will answer you as soon as possible.