DOMO ACTIVOS completed its first year of trading on the Alternative Stock Market (MAB), with an increase in share price of over 10% and good economic prospects. With construction on its first residential development in Madrid underway and a second capital increase meeting the company’s expectations, DOMO ACTIVOS begins its second year of trading by planning to buy new plots in which to develop residential buildings for rent.
DOMO ACTIVOS was founded in 2015 under the auspices of the real estate project manager DOMO GESTORA, and was the first REIT on the Spanish market to develop residential properties. Unlike other companies of this type, which earn profits through rentals and, where appropriate, with the subsequent sale of the property, DOMO makes it possible for investors to add to this the profits that can be obtained in the initial phases of the real estate cycle, when the land is purchased and the property is constructed. In short, to partake in the profits from development.
Before going public on the MAB, in September 2017, this REIT purchased its first asset, a plot of land in Madrid to build 80 rental homes with the option to purchase. The development is currently in the construction phase and will be completed in the first half of 2019.
Last July, Domo Activos agreed to increase its share capital by 5,025,000 euros by issuing and putting into circulation 2,512,500 ordinary shares with a face value of 2.00 euros each, of the same class and series as those currently in circulation, plus an issue premium.
The REIT has already subscribed 2,471,300 shares of the 2,512,500 that will be issued for its capital increase, equivalent to over 98% of the total issue. Specifically, during the Preferential Subscription Period of the increase, the subscription of these shares entails a total capital increase in Domo Assets of 5,090,878 euros, of which 4,942,600 euros correspond to the face value and 148,278 euros to the issue premium.
The preferential subscription phase ended on 10 September and DOMO ACTIVOS has entered the second tranche of the expansion, which ends on September 28, 2018, following excess demand for the remaining shares.