The ‘French-style’ real estate model was upheld by EUR 1.2 billion of fresh capital in 2019, explicitly seeing listed companies with little liquidity and sticky strategic shareholders being very successful in financing their growth through the stock market. Despite the growing level of uncertainty surrounding the capital markets, there are signs that this trend might continue in 2020.
One could also claim that a ‘French-style’ property model exists; this model involves core shareholders, business profiles that are often diversified and a ‘value-added’ dimension through the development and management of assets on behalf of third parties. To go even further, one might say that 2019 marked the beginning of a new era in the development of the SIIC sector. Several companies that went public when the SIIC regime was first created in 2003 (Argan, Foncière Inéa and Selectirente) have well and truly taken on a new dimension.
We noted eight equity issues in 2019, enabling SIICs to raise EUR 1.2 billion of fresh capital (capital increases in cash, contribution in kind paid in new shares and scrip dividends).
Finally, 2020 should see Covivio rising equity from its shareholders. The company offers its shareholders the opportunity to receive their dividends in the form of new shares.