EXCEM’s residential Socimi obtains a gross ROI of 7.5%

12 meses ago  •  By  •  0 Comments

Homiii, the brand name for the EXCEM Socimi SIR management company dedicated to the rental of shared apartments for students and young professionals, has had a 97.2% occupancy rate and a 0% late payment of rent delinquency rate in its two years of operations, according to official documents filed with the Alternative Stock Market (MAB), where SIR listed on July 19, 2018.

Over these first two years, Homiii has bought 42 apartments totalling around 8,000 square meters and 300 rooms for the 2018-2019 academic year. All the apartments are located in strategic, central areas of Madrid like Moncloa, Chamberí, Centro and Salamanca. Company sources indicated that Homiii is the first MAB listed co-living project in Spain that is based on the shared apartment model.

Socimi SIR has obtained a gross ROI of 7.5%, excluding the possible market appreciation of the portfolio of assets acquired. SIR’s goal is to have more than 4,000 rooms under management in areas both preferred by millennials and with high growth potential. To reach this goal, EXCEM Socimi SIR would require an investment of 300 million euros. “In these first two years of operations, Homiii has managed to position itself in Madrid as a sector leader of professional shared apartment rentals,” according to the company.

Exporting the Business Model

The SIR project will export it’s business model to the main Spanish cities in the coming years. In-house market analysis shows that 400,000 students and young professionals come to Spain every year, with around 90% looking for shared accommodation.

EXCEM Socimi SIR buys apartments and then renovates them “with high quality materials and a modern design”, equips them with WiFi and Netflix, and then rents the apartments by room. In a survey carried out by the Homiii brand, the client satisfaction rating for their shared apartments has been 90%.

Antonio Mochon, CEO of SIR and the man behind the business model, refers to EXCEM Socimi SIR as a safe and stable investment. “Our ability to generate income, even in a bearish real estate cycle, is very solid. Our model always draws attention because it is not a traditional residential investment and, for this reason, it is very safe. In our case, the student is a young person for whom both tuition and accommodation is a family expense that is fully covered and thus there are no unpaid bills,” he explains.

 

Original article: https://valenciaplaza.com/la-socimi-residencial-excem-alcanza-una-rentabilidad-bruta-del-7-5