Large international real estate investment funds have long been central to the Socimi regime. This institutional framework was created during the Zapatero era and rolled out under Rajoy to attract investment after the 2007 global crisis. The impact has been substantial. These funds represented 91% of asset value traded on different exchanges in 2022. A core obligation of the Socimi regime is to list on a regulated market within two years in exchange for 0% corporate tax, provided that at least 80% of profits are distributed as dividends. Last year, ten real estate investment companies were listed publicly, five on BME Growth and five on Euronext Access. Although both markets hosted listings, Euronext Access accounted for 76% of asset value, a point underscored by Armanext, a boutique advisor on IPO activity. Two newer venues, Portfolio Exchange and Securitize, have also emerged alongside these traditional routes.
Spain stands as the second country globally in the number of SOCIMIs, totaling 110 as of 31 December 2022. This count excludes the two SOCIMIs already listed on Ibex-35 or on the Perpetual Market. Over the last decade, 100 real estate companies joined BME Growth and 32 joined Euronext Access; 20 were delisted from the primary market and two from the secondary market. The years with the most activity were between 2015 and 2019, when companies with assets ranging from 3.65 to 5.05 billion euros went public. In total, 25.444 billion euros of real estate assets have been made public since the Socimi regime began to take shape.
Families take responsibility for funds
Currently, family assets contribute only about 8% of listed assets, yet their influence is set to rise in 2023. At least 35 Socimis are expected to go public in 2023 and 2024, according to Antonio Fernández, president of Armanext. Of the ten major listings anticipated, possibly rising to fifteen, about half are controlled by family assets or private investors. This profile often aligns with seasoned business leaders who have sold previous holdings and are now investing in real estate. A key advantage of this shift is greater transparency, enhanced professionalization of processes, improved management efficiency, easier asset restructuring, and the benefits a family business model brings to governance and long-term strategy, as noted by Armanext.
One of the standout trends of 2022 is the strong appetite for housing as a driver of new Socimis. The study highlights that 58.5% of assets now relate to residential properties, up from 33.5% in 2021. The rental housing segment has become more established, which helps explain a modest decline in aggregate asset values and a reduction in liabilities as Socimis mature on listed markets, according to Armanext.
Another area of uncertainty for this market is Wealth Tax, introduced at the end of the previous year. The new tax requires foreign companies with more than half of their assets in real estate in Spain to pay on total assets, even when part of their capital is outside Spain. Armanext notes that this provision could dampen the flow of foreign capital into the Spanish market.