The new Seguro Rental Socimi debuts on BME Scaleup, the emerging companies exchange

This incorporation will mean twentieth to BME Scaleup, a market that is especially aimed at ‘scaleups’, companies with a proven business model, in the development phase. accelerated growth for at least three years, with a minimum turnover of one million euros and/or an investment of at least that amount. In order to be listed on this market, a company must be public limited companyhave a board of directors, be accompanied by a registered advisor in the market and publish the audited annual accounts. It will not be necessary to have any liquidity provider, nor to comply with a minimum ‘free float’.

Regarding the birth of ASAM, the decision to launch the company by Rental Insurance is based on the solid successes in profitability and growth that they obtained with Quid Why (QPQ), its previous Socimi that ended up absorbing Ktesiosanother SOCIMI linked to the Spanish fund RKS, and which debuted in the Alternative Stock Market (MAB) in July 2018.

Given the turbulence that SOCIMIs are currently going through, caused by the government’s proposal to eliminate the special tax regime to which they benefit, ASAM is presented as a response to the need for accessible housingaffordable and in high demand areas.

The owners have already warned that the government plan puts investments of 15,000 million euros at risk, and discourages the offer of rentals. The two largest socimis in Spain, Merlin Properties and Colonialrecently threatened to move their headquarters outside of Spain if the tax proposal goes ahead. For its part, the National Securities Market Commission (CNMV) harshly criticized the government’s proposal, warning of the serious consequences that this leak would entail.

Taking into account the need that this new SOCIMI covers, Rental Insurance argues that the residential market in Spain has suffered a significant transformation in recent years. Although the majority model of access to housing has been ownership since 2007, currently, according to their data, more than 20% of families living in a rental regimethe preferred option for young people and emerging families.

However, they point out that the current rental market is atomized and unprofessionalizedin the hands of multiple small owners with one or two homes and without a rental vocation. They consider that there is a clear maladjustment between the supply and demand of rental housing, and the need for professionalization of real estate ownership for leasing is urgent.

In this panorama of housing in Spain, Seguro Rental sees an opportunity for the birth of Rental Insurance Asset Market (ASAM), taking advantage of the important tax advantages that the use of a SOCIMI as an investment vehicle implies, as well as the accumulated experience of Rental Insurance.

The SOCIMI is focused on the management of scattered housing affordable rental. It currently offers an average rental price of 749 euros per month, 32% below the average price in Spain, located in 1,106 euros according to the latest data from the Rental Observatory. Likewise, the REIT’s portfolio is mainly made up of homes located in areas of greater demand. The largest size of these is two rooms, and the contracts that ASAM plans to offer are for a minimum of seven yearsin compliance with current legislation.