Spanish REIT Ready to Test IPO Market

Madrid (1024 x 684)Axia plans to invest the funds in “undermanaged” high-quality commercial real estate, primarily in Madrid and Barcelona, Bloomberg reports.

Property companies have formed REITs and launched IPOs as a route to raise money and strengthen their tax status as they seek to buy assets in Spain’s property market. The REIT public offerings allow investors to gamble on the property rebound with relatively small investments, while spreading the risk across the REIT’s portfolio of property.

Axia is one of several REITs raising money in the public markets. Merlin Properties’s IPO is scheduled to begin trading shares next week. In March Lar Espana Real Estate Socimi SA and Hispania Activos Inmobiliarios raised more than €900 million through IPOs.

Shares in the Axia REIT are expected to begin trading July 9. Axia plans to issue 40 million shares with an initial offering price of €10. The REIT announced it has already received commitments valued at €247 million, including 10.5 million shares to Perry European Investments SARL, and 4 million shares to Taube Hodson Stonex LLP, the wire service reports.

Axia is headed by Luis Alfonso Lopez de Herrera-Oria, who was executive director of Prima Inmobiliaria form 1986 to 2002. More recently he was chief executive of Azla Real Estate.

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SPI News Feed provides general news about the Spanish property market and related articles translated from the Spanish press. For more in depth news, analysis, and opinion, see Mark Stücklin's blog.

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