The company dedicated to renting rooms for young people will be quoted at a price of 1.40 euros per share.
The society will make its debut with a portfolio of 28 homes, with a total of 181 rooms to rent, all of them located in the centre of Madrid.
The property firm, founded in 2015, aims to invest in urban properties located in central areas of Madrid, Barcelona or any of the main Spanish cities, which are suitable for renting their rooms to students and young professionals after undergoing renovation and decoration.
At present, the socimi is looking to extend its activity from the capital to cities with “strong demand and low supply of this type of assets to lease”, including Barcelona, Seville, Valencia, Malaga, Bilbao and Santiago de Compostela, as detailed in the explanatory leaflet of its jump to MAB.
The company is controlled in about 40% by Excem, a group owned by the Hatchwell family. In fact, the company is chaired by David Hatchwell, who began his professional career at Goldman Sachs and HSBC before joining the group.
In order to undertake its investment and growth strategy, Excem’s company assures that it has been undertaking various capital increases since 2016 and has mortgaged the 28 homes in its portfolio.
It currently has a debt equivalent of 38.5% of the value of its assets, well below the leverage limit of 70% that the company has self-imposed. “HOMIII.COM.”
The company markets the rental of its homes through its own internet platform (www.homiii.com) or through subcontracting with other specialised companies. Since September last year it has had an agreement with Uniplaces, a UK firm specialising in booking student accommodation in various European cities.
According to the brochure, at the close of March, the firm had 175 room leases (96.7% of its portfolio) with different tenants.
Under the contracts, tenants pay a monthly rent and a contribution for common supplies (water, electricity, gas, internet and heating), after depositing a monthly rent of both items as security.
Excem aims to achieve a gross return on each asset of between 4% and 6%, calculated as gross rental income on the investment made in the asset.
The socimi was created with the possibility of setting an expiry date, given that it does not rule out the possibility of selling real estate once the minimum period of three years established for the system of socimis has expired, or of dissolving the company from the seventh year onwards,’as agreed by the shareholders on the basis of the company’s evaluation,
Replicated in Expansion