A SOCIMI or Listed Real Estate Investment Companies) is a listed anonymous company whose main objective is to purchase, promote and rehabilitate real estate assets for lease.
SOCIMIs are a legal figure intended to operate in the real estate sector. If we resemble or compare it with other legal forms, SOCIMIs have similar features to SICAVs :
- as it presents the idea of collective investment for small investors in large-scale large investment projects,
- for being securities companies,
- most are publicly traded, although they have no obligation to do so.
This figure is regulated through the SOCIMI Law as a general rule, some issues being framed in the Public Limited Companies Law and the Securities Market Law.
Its name in the Anglo-Saxon world is the Real Estate Investment Trust (REIT) , which was born in the United States in 1960 with the aim of diversifying large-scale investors in real estate assets, thus being able to operate small investors in the real estate industry as if it were from any other industry through the purchase of securities.
Fundamental characteristics of SOCIMI
- They must be listed on the Spanish or European market.
- The minimum share capital must be at least 5 million euros and have at least 50 investors(shareholders).
- In the distribution of benefits, they must dedicate to the distribution of dividends at least 90% of the income from the leaseof real estate assets, 50% of capital transfers ( real estate ) and 100% of profits from the interests in other SOCIMI’s and industries.
- They have their own tax regime defined in the Corporation Tax.
- These companies must invest at least 80% of their assets in urban properties destined for rental under ownership, and must obtain at least 80% of their rental income, forcing them to remain in the assets for a few years (from 3 to 7 years). ) and where the external financing cannot exceed 70%.