ADVERO Properties Socimi

Sector: Real Estate
Market: Spain
Founding Date: 2017

Trading Ticker: BME:YADV

Spain’s financial crisis in 2008 was instigated by the financial institutions’ loose lending policies, which left banks with unprecedented volumes of non-performing assets (NPAs) in their balance sheets from developers who had defaulted on their loans.

Historically, Spain’s culture of home ownership and easy access to mortgage financing prompted the population to acquire homes with over-indebtedness instead of renting them. However, as a result of the crisis, banks tightened their financing requirements. Young adults suddenly found themselves in an economy with poor employment quality and little savings to access mortgage options, coupled with significant increase in acquisition prices as a result of foreign investment into city’s central locations. These factors progressively caused them to relocate to outskirts of major cities and rent homes instead. The resulting demographic shift in Spain propelled rental rates to increase due to a lack of supply, and property acquisition prices to fall. Furthermore, Spanish banks still needed to divest NPAs from their balance sheets, and thus could not position them for rent, in order to meet capital requirements from investors and regulators.

Considering all these trends, Adequita took advantage of the arbitrage opportunity in the residential buy-to-let space in suburban areas of capital cities and established ADVERO Properties, a SOCIMI (Spanish REIT with numerous tax benefits), in August 2017 specialized in providing affordable rent from properties acquired from financial institutions.

In its growth trajectory, ADVERO went public on the BME Growth (Spanish secondary stock exchange) on November 8, 2019 at a reference price of €6.50 per share under the trading ticker YADV. 

Adequita currently serves as a promoter and manager for ADVERO Properties, handling property investments, investor relations, and asset management for the company.