Case Study; SOCIMI acquisition of the Plaza España building in Madrid

Del Canto advises an international client on a SOCIMI acquisition of the Plaza España building in Madrid.

The Commercial Driver

We acted for an international client who wished to invest in Spanish real estate. The client also wished to consolidate a number of different investments into one corporate vehicle.

How Del Canto Chambers delivered value

We were in charge of structuring an investment platform that mitigated any tax liabilities and acted as a value-add operation.

We advised our client, as part of a group of international inves-tors, on becoming a shareholder using a SOCIMI to acquire the Plaza de España building in Madrid.

SOCIMIs are public limited investment companies, created to encourage long-term investment in the Spanish property market through investment in Spanish urban real estate for rent such as hotels or commercial premises.

We helped clarify the legal position and were in charge of struc-turing the investment within the SOCIMI, creating a corporate vehicle that was sound from a taxation point of view.

The Result

Our client was part of the successful investment team who acquired this iconic €160m Madrid’s skyscraper: This commercial area has an area of 15,000 square meters distributed over four floors and is now part of a commercial revitalization of the Gran Vía in Madrid.

Our client gained many benefits from the SOCIMI investment including:
– consolidation of multiple Spanish investments under the same corporate vehicle
– substantial tax breaks on transaction costs and profits allowing our client to maximise their investment and create significant tax savings
– acquisition of a commercial asset and liquid investment that is relatively low risk
– the convenience of an investment platform where there are no legal restrictions regarding the transfer of shares

De Canto Chambers continues to act for this client and advise on their interests and investments.