Alternative real estate assets have not only captured the eyes of investors this year thanks to their profitable returns, but will also increase the amount of real estate in the hands of SOCIMIS (Spanish REITS) currently listed on the stock exchange. There are already plans for the debut of a student residence.
The real estate investment company Student Properties Socimi already has the approval of the Alternative Stock Market (MAB) to debut. If there are no last minute changes, it will do so in the coming days at a price of 1.15 euros per share and with a market value of about 12.65 million euros.
According to official data, this SOCIMI has a single asset in its portfolio: it is a building that it bought in December 2016 for 13 million euros. The property is located in Don Ramón de la Cruz street in Madrid, in the Salamanca district, and although it has had different uses, it will reopen as a student residence.
The document of incorporation to the market explains that “the asset sits on a rectangular plot that occupies an area of 577 m2, although the surface of the building exceeds 5,500 m2 built on seven floors plus ground floor and a basement. Additionally, the building has a walkable roof. It is a unique corner building, with two interior patios that allow use of the surface to maximize the number of rooms available for its intended use as a student residence. The building was built at the end of the 50s and at first its use was residential. However, it has undergone several transformations: its last use was a medical clinic.”
To be able to convert it, the investment vehicle has budgeted an investment of around 3 million euros, of which it has already spent a third part, in order to be able to open the doors of the residence in the first quarter of 2018. The property will be managed by Elcano Real Estate and its tenant will be HUBR.
The HUBR website is already advertising the residence, and already offers a reservation service with special prices ranging from 790 euros to 979 euros, depending on the type of accommodation. It is a chain of residences that promises to adapt to the needs of 21st century students.
Source: Idealista, Image: El Confidencial