The Spanish REIT (known locally as a socimi) Gavari Properties is to be floated on the Spanish stock exchange in the coming days. As Idealista News reported late last week, it won’t be the first company of its kind to float in the middle of a global pandemic that has seen Spain rank among the worst-hit countries in the world. Fellow socimi Home Capital Rentals went public in late March just as the worst of the crisis hit Spain.
There has been a real proliferation of socimis in the Spanish market over the last 5 years and it seems that the model, which is limited by Spanish law to invest a minimum of 80% of capital in urban real estate destined for the rental market, is still attractive to investors despite the current economic climate.
As uncertainty abounds in many European real estate markets which had been bullish before the onset of the pandemic, investors are increasingly looking for signs that the underlying demand which underpinned them has not withered. The fact that real estate companies still have the confidence to go to an IPO can only be a good sign.