Published in La Vanguardia on April 2018
Excem’s residential REIT launches Homiii, a vehicle specialised in the professional rental of shared apartments to millennials
Excem Real Estate, which is about to turn two with an asset value of €30 million and share capital of €12 million, has launched the Homiii brand for the professional rental of shared accommodation to students and young professionals.
Excem’s REIT is estimating an IPO price of €1.40 per share, which would imply a return on investment of 40% for its existing shareholders. Its most recent equity issue (€4.1 million raised in March) was endorsed by a total of 40 investors.
Homiii (www.homiii.com) buys residential properties which are characterised by their location in city centres, their quality (refurbished, decorated and fitted out) and design (seeking comfort and user-friendliness).
This professional approach to rental management in the segment has initially concentrated on the Madrid market. In its scant 20 months in existence, it has acquired 40 apartment buildings with over 7,000m2 and 252 rooms under management for the academic year 2018-2019; they are located in Madrid’s Moncloa, Chamberí, Centre and Salamanca districts.
The CEO of HOMIII and the head of Excem’s residential REIT, Antonio Mochón, tells us they are “very pleased” with the results achieved so far. “We have built up a project from scratch and brought in 40 highly qualified investors who have injected over €12 million”, says Antonio.
He underscores the fact that they have serviced “over 400 customers with a level of satisfaction with property quality and value-added of 80%”. “Our young tenants feel part of the HOMIII community because we have offered them far more than they came looking for. We are specialists in generating value for our investors and customers in a market in which we see more demand than quality and professionally-run supply”, he adds.
The idea is to build the portfolio to over 3,000 rooms across Spain’s main cities, including Madrid, Barcelona, Seville, Valencia, Bilbao, Malaga and Santiago de Compostela. The business plan calls for investing €70 million by year-end 2019 and €300 million in the years to come by expanding the business model nationwide.
Antonio Mochón tells us that one of his challenges has been to create certainty for his investors: “a gross yield of 6%; share price gain of 40%, 0% default rate and occupancy rate of 100%”.
“Our approach to the business is to build a highly specialised business model and this is why we are managing to generate value for shareholders and offer professional management to our tenants. We have created highly stable rental income and a sense of certainty for our investors”, he concludes.