Housing liquidation. social Galil Capital closed the sale of three buildings in Madrid and Barcelona for 18.29m euros., as reported to regulator BME Growth. This Real Estate Investment Limited is 59.11% owned by Gil Avraham Shwed, founder of Israeli cybersecurity firm Check Point. While the buyer and the capital gain from the operation are unknown, the Socimi regime forces Galil Capital to pay an extraordinary dividend of 50%, which will be announced in the coming days.
According to El Periódico de España of Prensa Ibérica, on Tuesday, uninvested properties Located in the two most important cities of Spain. On the one hand, it is located on Calle Béjar at number 23 in Madrid and has 21 apartments, 4 buildings and a storage room. This building was purchased by Galil Capital in December 2017. The remaining two are located in Barcelona: 14-16 on Calle Bretón de los Herreros and 4-6 on Calle Aulestia i Pijoan. The first has 11 houses and 4 buildings purchased in October 2016; the latter has the same number of units and were purchased on the same dates. According to the documents submitted, the Barcelona City Council and the Generalitat de Catalunya rejected the option to exercise their preferential purchase right.
In parallel, the former Alternative Exchange traded company, making small home sales individually. It sold eight flats in its building located at 12 Calle Granada in Madrid and Córsega 689 in Barcelona, without the need for permission from the Shareholders’ Board. Galil Capital did not specify the amounts of these transactions, only conveyed them to the market.
What is the Capital of Galilee?
This Socimi is completely unknown and not always noticed in the Spanish real estate market. According to the last asset valuation on 31 December 2021, Real estate worth 65.39 million euros, spread over 10 residential assets and one logistics-industrial asset in a town near Valencia. At the end of last year, it had a controlled debt total of 22.78 million (34.83%). credit to value). The company was founded in 2015 and was listed on the MAB at the beginning of 2018. According to the most recently reported business results for 2021, it generated revenue of €1.46 million, very similar to 2020. Galil Capital posted a loss of €132.00, compared to the approximately €150,000 it lost in 2020.
So far, the listed company has not closed any divestments.. His last purchase, corresponding to the only industrial asset he owns, a warehouse in Valencia, for which he paid 9m euros, took place in 2021. Previously, it closed several residential purchases between 2018 and 2020. When the bell rang, he had four buildings in Barcelona and two in Madrid. In the same year, it closed a capital increase of 8 million Euros to return the 2 million Shwed loaned to the company to Gil Avraham and continue with its acquisition policy.
Corporate housing market
The corporate-grade housing market is experiencing a turbulent moment. The European Central Bank’s rapid rise in interest rates has accelerated several related moves in the rental home owners sector in Spain. This is the case of supporters of Neinor Homes and Vía Célere who have chosen to divest their portfolios. build to rent. The first had created a special section for it, but ordered its sale considering the macroeconomic climate; the plans of the latter already included organizing the process of listening to proposals. Another corporate fund that has decided to arrange the sale is the TPG fund, which wants to divest itself from former Sareb broker Socimi Témpore Properties. In addition, Dutch fund Barcino and various partners authorized Colliers to sell 50% of the Socimi Barcino Property.
The explanation for all these movements also has to do with the peculiarities of the rental housing business. Because it is a very safe investment, it provides very low returns below 7% in most cases. With the increase in interest rates and thus the cost of financing, differential surrender reduction between the cost of loans and the revenue generated. On the other hand, the political climate does not improve the investment climate, with the prohibition of updating rents to CPI and limiting increases to 2% until the end of the year.
investment living roomBetween January and September of this year, a sector that includes traditional housing, student residences and the elderly, it was 3,300 million euros. According to real estate consultancy JLL, this is 28% more than in the first nine months of 2021 and represents a third of all registered purchases in national real estate. While the numbers are generally positive in the segment, Rental housing investment fell 60% in the third quarter compared to the same period of 2021 and 76% compared to the second quarter of this year. This may indicate that operations have stalled as we wait for the economic uncertainty to dissipate.