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MarketScreener Homepage  >  Equities  >  Bolsa de Madrid  >  VBARE Iberian Properties SOCIMI SA       ES0105196002

VBARE IBERIAN PROPERTIES SOCIMI SA

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VBARE Iberian Properties SOCIMI : Presentación Corporativa e información relativa a la ampliación de capital

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06/25/2019 | 04:01pm EDT

Madrid, 25 de junio de 2019

En virtud de lo previsto en el artículo 17 del Reglamento (UE) nº 596/2014, sobre abuso de mercados y en el artículo 228, del texto refundido de la Ley del Mercado de Valores, aprobado por el Real Decreto Legislativo 4/2015 de 23 de octubre y disposiciones concordantes, así como, en la Circular 6/2018 del Mercado Alternativo Bursátil (MAB), VBARE Iberian Properties SOCIMI, S.A. (la "Sociedad" o "VBARE"), pone en conocimiento el siguiente:

HECHO RELEVANTE

Por la presenta, se adjunta presentación dirigida a inversores en el marco de la ampliación de capital publicada en el BORME el pasado 21 de junio de 2019 por la que se emitirán 2.238.339 acciones por un valor nominal de cinco euros (5€) más una prima de emisión de ocho euros con cuarenta céntimos (8,4€).

Quedamos a su disposición para cualquier aclaración que pueda ser necesaria.

D. Íñigo Sánchez del Campo Basagoiti

Secretario No Consejero del Consejo de Administración

VBARE Iberian Properties SOCIMI, S.A.

1

CORPORATE PRESENTATION AND

SHARE CAPITAL INCREASE INFORMATION

June 2019

DISCLAIMER

This document has been prepared by VBARE Iberian Properties SOCIMI, S.A. (the "Company") and its subsidiaries (the "Group").

This Presentation does not constitute or form part of, and should not be construed as, any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any purchase of or subscription for securities of the Company should be based solely on each investor's own analysis of all public information, the assessment of risk involved and its own determination of the suitability of any such investment. No reliance should be placed and no decision should be based on this Presentation.

This Presentation may not be copied, distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient to any other person, for any purpose other than the above. In addition, this Presentation may not be distributed, disseminated, published, or in any other way taken or transferred to any jurisdiction where it would be contrary to applicable law. Distributing this Presentation in other jurisdictions may be subject to restrictions according to applicable law and the recipients of this Presentation must find out for themselves the restrictions and their fulfilment. Not complying with the restrictions may be a breach of applicable law.

The information contained in this Presentation does not purport to be comprehensive or to include all information that may be required to fully analyze the issues referred to therein. Accordingly, no representation or warranty, express or implied, is made as to the truth, accuracy or completeness of the information in this Presentation. None of the Company, any of its subsidiaries, or any of their respective directors, officers or employees accepts any responsibility or liability whatsoever for any loss howsoever arising from any use of this Presentation or otherwise arising in connection therewith.

The information and opinions contained in this Presentation are provided as at the date of the Presentation and are subject to verification, correction, completion and change without notice. In giving this Presentation, no obligation to amend, correct or update this Presentation or to provide the recipient with access to any additional information that may arise in connection with it is undertaken.

This Presentation may include forward-looking statements relating to, among others, the Company's financial position, operating results, strategy, plans, targets or goals. Forward-looking statements are subject to risks, uncertainties and factors beyond the Company's control that may result in actual results materially differing from prospective results or the results implied in the forward-looking statements. Therefore, the results and actual performance may materially differ from those expressed or implied in the forward-looking statements. In the same way, the forward-looking statements must not be deemed to entail any statement, promise or warranty of the accuracy or completeness of the assumptions or hypotheses on which the forward-looking statements, expectations, estimations or provisions are based or, in the case of assumptions, of their full inclusion in the Presentation. No undue reliance should be placed on the forward-looking statements.

The Company and its employees, managers, directors, advisors, representatives, agents or affiliates accept no liability (for fault or negligence, whether direct or indirect, contractual or non-contractual) for damages caused by using this Presentation or its content or that, in any manner, relate to this Presentation.

When receiving or attending the Presentation, the recipient declares that he or she agrees with and thus is subject to the above restrictions.

INDEX

  1. EXECUTIVE SUMMARY
  2. COMPANY OVERVIEW
  3. STRATEGY
  4. PORTFOLIO OVERVIEW
  5. SHARE CAPITAL INCREASE
  6. PIPELINE
  7. ANNEX

-MARKET INFORMATION

-BOD AND MANAGEMENT TEAM CVS -Q12019 FINANCIAL INFORMATION

-SHARE CAPITAL INCREASE OPERATIVE DETAILS

-TERMS AND CONDITIONS

3

1. EXECUTIVE SUMMARY

4

EXECUTIVE SUMMARY

RESIDENTIAL MARKET

Attractive opportunityto invest in the Spanish Residential Market

Continued rent growth driven by strongdemand-supplyimbalances, especially in Madrid Increased interest from institutional investorsto invest in this asset class

SPONSORS AND TEAM

VALUE-ADD STRATEGY

  • Well-renownedsponsors withproven expertise in Real Estate and Capital Markets
  • In-houseexperienced team withproven track-recordto identifybelow the radar investment opportunities
  • Strong alignment of interestthrough an investor-friendlysuccess feeand significant sponsors' equity commitment in the Socimi
  • Diversified investor basewith more than 40 investors and no controlling shareholder
  • Acquisition and refurbishment of residential buildings in themain Spanish cities(with a special focus on Madrid) with strong demographic trendsand limited supply
  • Focused onmid-sized(<€10mn acquisition price) and not stabilized assets(capex requirement, broken structure, tenant repositioning, etc.) to limit competition and improve profitability
  • Active managementto "fix" the asset creating a sound portfolio withstable cash-flowandsignificant capital gains

5

EXECUTIVE SUMMARY

SOLID PORTFOLIO AND STRONG PIPELINE

  • Well-located€57.4mn portfolio generating astrong net yield (6.32%) withhigh rent growth potential (+€1.2mn) and significantreversionary yield (7.51%)
  • Major portfolio revaluation (+49% vs. Total Capital Invested)
  • +€24mn stabilized assetsready to be sold, to boost distributions to shareholders increasing dividend yieldgoing forward
    (in excess of 3% initial company's commitment)
  • Important pipeline ofidentified investment opportunities(~€80mn) with compelling target returns
  • Attractive expected performancewithconservative financing structure (current LTV ~35%)

SHARE

CAPITAL

OPPORTUNITY AND NEXT STEPS

€30mn Share Capital Increase currently open at €13.4 per share (19,4% discount on EPRA NAV)€14-16mn "hard circled" by existing and new investors

Commitment to belisted on the Stock Exchange by Q12020

Focus on providing liquidity to shareholdersand increase Company's size to a minimum NAV of €100mn

VEHICLE

Structured as a Socimi "REIT", a very tax efficient vehicle Listed on the MABsince December 2016

Net and reversionary Yield calculated over stabilized assets

6

Stabilized Assets are those assets that do not require significant capex investments and are mostly leased at market rents

2. COMPANY OVERVIEW

7

RENOWED SPONSORS WITH STRONG

EXPERIENCE IN THE REAL ESTATE SECTOR

VALUE BASE

  • Leading Investment Bank In Israel
  • Established in 2013 by Victor Shamrich and Ido Neuberger, previouslyCo-CEOs Of Meitav Dash, second largest Investment House In Israel
  • Offering full spectrum of Investment Banking And Advisory Services For Both Privately Held And Listed Companies
  • Strong Shareholders' Base comprised of Institutional Investors and Large Family Offices

AURA REE

  • Spanish leading advisor on NPL & REO portfolio valuations
  • +€75 billion assets worth valued in 2018 from all asset categories in more than 130 projects
  • Unique real estate tech platform with over 80 million comparable and more than 2.5 million transaction prices
  • >70 professionals and offices in Spain, Portugal, Italy and Greece

8

VERTICALLY INTEGRATED TEAM

  • Management team with more than11 professionals exclusively dedicated to the Socimi
  • Multidisciplinary team withmore than 100 years of experience
  • In-housecapabilityto cover the whole investment process (acquisition, refurbishment, repositioning, letting, selling) enhancing assets' value

GENERAL

MANAGER

FINANCIAL

PORTFOLIO

INVESTMENT

MANAGEMENT

PROPERTY

TECHNICAL

COMMERCIAL

MANAGEMENT

& WORKS

9

BOARD OF DIRECTORS

FERNANDO ACUÑA

JUAN MANUEL SOLDADO

JUAN JOSÉ NIETO

YAIR EPHRATY

IDO NOUBERGER

YESHAYAHU MANNE

FOUNDER & CEO OF AURA REE

CEO AT AURA ASSET MANAGEMENT

CEO AT NK5 & PALMERA CAPITAL

HEAD OF INVESTMENT, VALUE BASE

CEO & CO-FOUNDER, VALUE BASE

DIRECTOR OF ZAFIRO TECHNOLOGIES

Former Deutsche Bank & McKinsey

Former Nuphar Gestión Inmobiliaria

Former Arcano, Goldman Sachs & Telefónica

Former Meitav Dash & McKinsey

Founder of Apex & Co-CEO of Meitav-DS

Founder of numerous companies

BA, Anglia Polytechnic University of Cambridge

BA, Economics, Sciences & Marketing, CEADE

BA, ICADE, London Business School & Stanford

MBA, University of Michigan

M.A. & B.A. in Economics, Tel Aviv University

BD, Electrical Engineering, Ben Gurion University

MANAGEMENT TEAM

FABRIZIO AGRIMI

ALBERTO GARCÍA DE NOVALES

JOSÉ LUIS RUIZ

GENERAL MANAGER

FINANCE DIRECTOR

PORTFOLIO MANAGER

Former Altan Capital & Aguirre Newman

Former Autonomy Spain Real Estate SOCIMI & PwC

Former CBRE & Vastned & Ferrán

MBA, ESADE Business School

Executive MBA, IE Business School

Degree in Economics, University of Valladolid

10

STRONG ALIGNEMENT OF INTEREST

  • Management Company shareholder´s own approximately17% of the share capital of the Company
  • Success fee to be paid to the Management Companyentirely linked to the share price evolution:
    • Annual hurdle rate of 6% withcatch-up over a minimum of €15.7 per share
    • High water mark mechanism
    • To be paid fully in shares

11

FIRST LEVEL PARTNERS TO CREATE VALUE AND

TRANSPARENCY TO OUR INVESTORS

AUDITORS

INDEPENDENT PORTFOLIO

QUARTERLY AUDITED FINANCIAL

APPRAISER

STATEMENTS

QUARTERLY RICS APPRAISALS

SECRETARY OF THE

REGISTERED ADVISOR

BOARD OF

AND LIQUIDITY

DIRECTORS

PROVIDER

LEGAL & TAX ADVISORS

CORPORATE

SOCIALRESPONSABILITY

PARTNERS

12

3. STRATEGY

13

VBARE'S INVESTMENT STRATEGY

CLEAR STRATEGY TO CREATE LONG TERM VALUE

VALUE ADD

NO

METROPOLITAN

DEVELOPMENT

AREAS IN TOP

RISK

CITIES IN SPAIN

TARGET

MINIMUM 4%

ACQUISITION

PRICE: 10%

NET YIELD

BELOW MARKET

VALUE

14

INVESTMENT STRATEGY FOCUSED ON A VERY

SELECTIVE APPROACH

INVESTMENT ACTIVITY SINCE INCEPTION

OPPORTUNITIES OFFERED

771 / €3.7bn

ADVANCED ANALYSIS

256 / €794mn

DUE DILIGENCE 29 / €82mn

CLOSED DEALS

20 / €35mn

2018-2019

OPPORTUNITIES OFFERED

324 / €2.1bn

ADVANCED ANALYSIS

25 / €165mn

DUE DILIGENCE

5 / €19.4mn

CLOSED DEALS

5 / €19.4mn

Information as of June, 2019

15

MARGARITAS 15 - CASE STUDY (I)

Construction Year:

1930

Acquisition Date:

22/12/2016

Location:

Madrid

Typology:

Entire Building

District:

Tetuán

Horizontal Division:

No

Total Units:

16

Total SQM:

615 sqm

Residential Units:

16

Residential sqm:

615 sqm

Acquisition Price:

€1,079,108

RICS Valuation Q1-19:

€2,373,500

€/sqm:

€1,755

€/sqm:

€3,859

€/unit:

€67,444

€/unit:

€148,344

Initial Annualized Rent:

€52,111

Current Annualized Rent:

€124,486

Monthly Rent/sqm:

€11.30

Monthly Rent/sqm:

€17.79

Monthly Rent/unit:

€434

Monthly Rent/unit:

€692

NET YIELD

7.18%

6.08%

5.70%

3.78%

INITIAL

dic-17

dic-18

CURRENT

ACCUMULATED CAPEX & ANNUALIZED RENTS (€)

124,486

105,456

93,734

52,111

497,156

468,474

364,760

INITIAL

DEC. 2017

DEC. 2018

CURRENT

ACCUMULATED CAPEX

ANNUALIZED RENT

Information as of June 2019

16

MARGARITAS 15 - CASE STUDY (II)

AT ACQUISITION

AFTER REFURBISHMENT

VALLEHERMOSO 94 - CASE STUDY

Construction Year:

1940

Acquisition Date:

08/01/2019

Location:

Madrid

Typology:

Entire Building

District:

Chamberí

Horizontal Division:

No

Total Units:

29

Total SQM:

1,517 sqm

Residential Units:

27

Residential sqm:

1,308 sqm

Commercial Units:

2

Commercial sqm:

209 sqm

Total Acquisition Price:

€5,504,709

Valuation RICS Q119:

€6,821,000

€/sqm:

€3,629

€/sqm:

€4,496

€/unit

€189,818

€/unit

€235,207

Current Annualized Rent*:

€124,132

Potential Annualized Rent:

€296,761

Average Monthly Rent/sqm: €9.50

Average €/sqm:

€20.72

Average Monthly Rent/unit: €461

Average €/unit

€988

NET YIELD (Estimated)

4.70%

4.82%

4.03%

3.28%

2.38%

jun-19

dic-19

dic-20

dic-21

dic-22

Information as of June 2019 *Without old leases

ESTIMATED CAPEX & ANNUALIZED RENTS (€)

288,148

296,761

236,922

187,373

131,560

626,305

647,685

369,864

202,931

15,158

CURRENT

ACCUMULATED CAPEX

ANNUALIZED RENTS

18

4. PORTFOLIO OVERVIEW

19

PORTFOLIO OVERVIEW

301 units

€595 average lease

rent

per rented unit

€38.4mn

total invested

capital

17,717 sqm (GLA)

56 sqm per unit

€10.6 average lease

rent per sqm per

unit

€2,051 invested capital per sqm

92% average yearly

occupancy rate

9.39%

EPRA like for like

rental growth in 2018

€57.4mn GAV

€1.76mn

current

passing rent

€2.95mn

potential rent

€3,239

GAV per sqm

Information as of March 31st, 2019

20

Total invested capital includes acquisition price, transaction costs and capex

PORTFOLIO OVERVIEW

MAJORITY OF THE PORTFOLIO LOCATED IN ASSETS WITH >50% OWNERSHIP, IN

MADRID CITY CENTER AND WITH THE APPROPRIATE SIZE TO LEASE

TYPE OF OWNERSHIP

17%

Entire Building

8%

Scattered asset

6%

Units in the same building

(>50%)

69%

Units in the same building

(<50%)

UNITS BY SURFACE

10%

19%

0-35 sqm

35-50 sqm

29%

50-75 sqm

>75 sqm

42%

PORTFOLIO LOCATION

68.77%

22.35%

5.65%

3.23%

Inside M30

Outside M30

Metropolitan Area of

Other Cities

Madrid

NUMBER OF BEDROOMS

1%

13%

12%

Studio

1 Bedroom

2 Bedrooms

29%

3 Bedrooms

45%

4 Bedrooms

Information as of March 31st, 2019

21

PORTFOLIO LOCATION

91% OF THE PORTFOLIO LOCATED IN THE CITY OF MADRID AND

69% INSIDE MADRID M30

Entire buildings or units in the same building

Scattered assets

22

SOME OF OUR ASSETS

JUAN PASCUAL

BARILOCHE

SANTA JULIA

VICENTE CARBALLAL

CARNICER

ANTONIA RUIZ SORO

23

PORTFOLIO RENTAL GROWTH

IMPRESSIVE RELETTING SPREAD AND STRONG RENTAL GROWTH WITH

SIGNIFICANT UPSIDE POTENTIAL

QUARTERLY RELETTING SPREAD AND LEASES SIGNED

25%

35

21.37%

20%

29

30

16.73%

16.10%

25

22

15%

22

20

20

10%

11

15

7.03%

10

5%

3.17%

5

0%

0

Q1 18

Q2 18

Q3 18

Q4 18

Q1 19

RELETTING SPREAD

# LEASES SIGNED

MARCH 2019

BELOW MARKET

VACANT UNITS

UNITS UNDER

REVERSIONARY

RENTED UNITS

REFURBISHMENT

GRI

Information as of March 31st, 2019

24

PORTFOLIO YIELD GROWTH

SOLID YIELD GENERATED BY STABILIZED ASSETS WITH

EXCELLENT GROWTH PERSPECTIVES

Information as of March 31, 2019. Yield calculation based on annualized rents at the end of each period

Reversionary Yield is based on estimated ERV as of March 31st, 201925Stabilized Assets are those assets that do not require significant capex investments and are mostly leased at market rents

PORTFOLIO FINANCING

MODERATE FINANCIAL LEVERAGE WITH LOW RISK INTEREST RATE FLUCTUATIONS

LOAN TO VALUE

LOAN TO COST

35.1%

33.5%

22.5%

51.4%

35.9%

52.5%

• Average interest rate 1.75%

Average maturity 16.8 years

Financing partners:

2017

2018

Q1 2019

LOAN PRINCIPAL OUTSTANDING (€mn)

20.1

16.8

2017

2018

Q1 2019

MORTGAGE LOANS INTEREST RATE

9%

- Banco Sabadell

- Bankinter

- Banca Pueyo

48%

6.4

43%

2017

2018

Q1 2019

Variable MIX FIX

26

5. SHARE CAPITAL INCREASE

27

SHARE CAPITAL INCREASE

  • €30mn share capital increasesubject to a minimum €12.5mn subscription
  • Between€14mn-€16mn"hard circled"by current and new investors
  • 19.4% share price discountvs EPRA NAV
  • Commitment to investors to adapt the management agreement to fosteralignment of interest through a success fee 100% linked to share's price evolution*
  • To enhance shares' liquidity, commitment to investors to achieve (a) a significant size of the Company(minimum net equity of the company of at least €100mn according to IFRS consolidated annual accounts as at 31 December 2021) and (b) a meaningful trading volume(minimum average daily volume during 2021 of €75k). If those two targets are not achieved by the respective deadlines, start of a liquidation process of the company's asset portfolio
  • Commitment to do thebest effort to be listed in the Main Market by Q12020

28

6. PIPELINE

29

PIPELINE

STRONG PIPELINE WITH MORE THAN €80M UNDER NEGOTIATION & UNDER ANALISYS

Gross Yield

Levered

Deal

City

Location

Status

Sqm built

Asking price

Estimated capex

Current

Potential

IRR

Multiple

1

Madrid

Inside M-30

Exclusivity agreement

1.300-1.600

€6.3mn-€6.9mn

€1.0mn

0.66%

5.00%

12.00%

1,70x

2

Madrid and Málaga

-

Bilateral Negotiation

10.000-11.000

€13mn-€15mn

€1.0mn

4.25%

6.25%

-

-

3

Madrid

Inside M-30

Under Negotiation

2.000-2.500

€10mn-€11mn

€300k

2.60%

5.10%

10.00%

1,60x

4

Madrid

Inside M-30

Bilateral Negotiation

3.500-4.000

€5.5mn-€6mn

€1.5mn

0.00%

8.50%

14.60%

1,60x

5

Madrid

Inside M-30

Under Negotiation

2.400-2.900

€6.5mn-6.9mn

€350k

2.70%

5.50%

10.00%

1,60x

6

Alcobendas

-

Under Analysis

800-900

€2mn-€2.2mn

-

0.00%

6.00%

11.00%

1,75x

7

Madrid

Inside M-30

Under Analysis

900-1.000

€3mn-€4mn

€700k

0.00%

7.00%

10.00%

1,60x

8

Madrid

Inside M-30

Under Analysis

1.000-1.200

€3.7mn-€5mn

€250k

4.40%

5.80%

12.00%

1,73x

9

Madrid

Inside M-30

Under Analysis

1200-1300

€100k/year

€750k

-

-

-

-

10

Madrid

Inside M-30

Under Analysis

800-1000

€1.5mn-€2mn

€700k

-

6.50%

-

-

11

Madrid

Inside M-30

Under Analysis

1.300-1.500

€8.6mn-€9.2mn

€500k

2.30%

5.00%

13.20%

1,85x

12

Madrid

Inside M-30

Under Analysis

3.000-3.500

€11mn-€13mn

€3mn

-

-

-

-

30

7. ANNEX

31

MARKET INFORMATION

32

ECONOMIC OUTLOOK

DESPITE ECONOMIC, TRADE TENSION AND

POLITICAL INSTABILITY SPANISH GDP CONTINUES

UNEMPLOYMENT IN SPAIN CONTINUES

GROWINGALTHOUGH AT MODERATE BUT

DECREASING RESULTING INSALARY INCREASE

SIGNIFICANT LEVELS

GDP GROWTH

UNEMPLOYMENT RATE AND SALARY INCREASE

4.00%

20.00%

2.50%

16.00%

2.00%

3.00%

12.00%

1.50%

8.00%

1.00%

2.00%

4.00%

0.50%

1.00%

0.00%

0.00%

Spain

Madrid

United

Germany

France

United

Italy

2017 Q1

2018 Q1

2019 Q1

Expected 2020

States

Kingdom

Unemp. Rate in Spain (left)

Unemp. Rate in Madrid region (left)

2018

Expected 2019

Salary increase in Spain (right)

European Commission and BBVA Research

INE

DESPITE THE UNCERTAINTY, FAVORABLE ECONOMIC TRENDS

33

SOCIODEMOGRAPHIC TRENDS

ROBUST DEMOGRAPHIC GROWTH,ESPECIALLY IN

THE MADRID REGION

POPULATION GROWTH

6.7

47.2

6.7

6.6

47.0

6.6

46.8

6.5

6.5

46.6

6.4

6.4

46.4

6.3

46.2

6.3

6.2

46.0

2014

2015

2016

2017

2018

Expected

Expected

2019

2020

Madrid region (left)

Spain (Right)

INE

''Madrid has become

a very attractive place to live in, specially for young people, who decide to rent because the majority do not meet the minimum requirements to

purchase''.

34

RESIDENTIAL FOR SALE

ROOM FOR GROWTHFOR THE PRICES COMPARED TO

PEAK LEVELS

TRANSACTION PRICE EVOLUTION (€/sqm)

€ 4,000

€ 3,500

15% POTENTIAL

€ 3,000

GROWTH

€ 2,500

€ 2,000

€ 1,500

€ 1,000

€ 500

€ -

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Spain

Madrid city

AURA RE

NUMBER OF TRANSACTIONS IN SPAIN GROWING

EACH YEAR SINCE 2012, ALTHOUGHT STILL

REPRESENTS ONLY 61% OF PEAK

TRANSACTIONS EVOLUTION (in thousands)

39%

240

POTENTIAL

INCREASE

180

120

60

2006

2007

2008

2009

2010

2011

2012

2013 2014 2015 2016 2017 2018

AURA RE

PRICES IN SPAIN ARE STILL BELOW PRE-CRISIS LEVELS

35

RESIDENTIAL FOR SALE

STARTING FROM THE CRISIS

AND STILL VERY REDUCEDGOING FORWARD

VERY LIMITED NEW SUPPLY

BUILT STOCK BY YEAR (in thousands)

700

600

500

400

300

3% STOCK BUILT

COMPARED TO

PEAK LEVEL

200

100

-

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

NEW CONSTRUCTION PERMITS FOR RESIDENTIAL USE

(in thousands)

1,000

900

800

LEVELS

700

GROWTH

600

3x TIMES

PEAK

MORE

500

SINCE THE

BOTTOM

FOR

400

BUT STILL

88% LESS

300

88%

THAN IN

200

THE PEAK

100

-

2006

2014

2018

CATASTRO

MINISTERIO DE FOMENTO

STRONG UNBALANCE BETWEEN DEMAND AND SUPPLY OF NEW HOUSES

36

RESIDENTIAL FOR RENT

STRONGRENTAL MARKET GROWTHIN SPAIN AND

SPANISHRENTAL MARKET ISBELOW EU LEVELS

MADRID

AND THE TREND IS TO BE EACH YEAR CLOSER

RENT PRICE EVOLUTION (€/sqm/month)

POPULATION BY TENANCY

13.6 €

14.8 €

80.1%

76.7%

80.7%

15.4 €

73.0%

11.6 €

12.2 €

9.6 €

7.6 €

8.5 €

9.5 €

7.1 €

23.3%

27.0%

19.9%

19.4%

Rent

Owners

Rent

Owners

2015

2016

2017

2018

2019

Spain

Madrid region

Spain

City of Madrid

2007

2012

2017

AURA RE

INE AND WORLD POPULATION REVIEW (2017)

RENTAL MARKET VERY ATTRACTIVE FOR YOUNG PEOPLE, WHO DO NOT MEET THE MINIMUM REQUIREMENTS TO PURCHASE THEIR PROPERTY AND AT THE SAME TIME DO NOT WANT ANY PHYSICAL ATTACHMENT 37

BOD AND MANAGEMENT TEAM CV

38

BOARD OF DIRECTORS

Fernando Acuña - Board of Directors and Management team

Founder & CEO of Aura Ree

CEO of Mortgage & Consumer Finance Bank - Deutsche Bank Credit (former) McKinsey & Company, engagement manager, Madrid and New York (former) Over 10 years of experience in the Spanish real estate market

BA, Universidad Complutense

BA, Anglia Polytechnic University of Cambridge

Juan Manuel Soldado - Board of Directors and Management team

Former CEO of Nuphar Gestión Inmobiliaria (RE developer firm) Former partner at Proyconsol, RE land management company Over 12 years of experience in the Spanish real estate market BA, Economic, Sciences & Marketing, CEADE

Juan José Nieto - Board of Directors (Independent)

  • Independent Director
  • Founder and CEO at NK5
  • Founder and CEO at Palmera Capital y Servicios
  • Currently Director at 'La información', Norfin, Uralita, Banco Sabadell Este and Havas Media
  • Worked for Goldman Sachs in London and Bankers Trust managing M&A department
  • Former General Manager at Telefónica, and CEO at Antena 3, and Telefónica Media. Former Director at Onda Cero Radio, Endemol y Pearson Recoletos
  • Former President of Service Point. Founder partner and CEO of Arcano, CEO at Arcano Capital
  • BA, ICADE, London Business School and Standford University

39

BOARD OF DIRECTORS

Yair Ephrati - Board of Directors and Management team

Head of investment Banking of Value Base M&A and director in various private and public companies, with over 20 years of investment banking and corporate finance experience

CEO of Meitav-DS Mergers & Acquisitions, a leading firm in the Israeli investment banking industry (former) McKinsey & Co. In London and New York leading teams advising Fortune 100 companies on new market development, acquisitions, and strategy

MBA (High Distinction) from the University of Michigan and a BA in Economics and Business from Tel Aviv University

Ido Nouberger - Board of Directors and Management team

CEO & Co-Founder, Value Base Ltd. With more than 20 years of experience in the financial sector.

Prior to founding Value Base, Mr. Neuberger served as Co-CEO of Meitav-DS and oversaw the investment management activities and the operational functions of the firm

founded Apex (which later on became Meitav-DS) in 1993, and through organic, as well as M&A activity,

grew it to become the second largest investment house in Israel with more than $40B assets under management M.A and a B.A. in Economics from Tel Aviv University

Yeshayahu Manne - Board of Directors (Independent)

Independent Director

Director of Zafiro Technologies a Spanish company focused on technologic and engineering solutions More than 25 years' experience in business development and strategic implementation Founded numerous companies in Israel, Spain, Cuba and the Dominican Republic in the fields of IT, telecommunications, energy, infrastructure and real estate

BD in electrical engineering , Ben Gurion University

40

MANAGEMENT TEAM

Fabrizio Agrimi - General Manager

Managing Director and Partner in Altan Capital (real estate arm of the Altamar Group, leading alternative asset manager in Spain)

Investment Team at Aguirre Newman (2004-2006)

Worked in Milan and London in the law firm Vita Samory, Fabrini e Associati (now part of Orrick) as part of the M&A, Private Equity and Financial Services team

Wide knowledge of real estate industry and extensive experience in investment operations, mergers and acquisitions, not only in Spain but also in the United Kingdom and Italy

MBA AT ESADE BUSINESS SCHOOL BARCELONA (SPAIN) Degree in Law(University of Trento - Italy)

Alberto García de Novales - Finance Director

Financial department at Autonomy Spain Real Estate SOCIMI, S.A

Auditor at PwC for more than 6 years within the Construction and Real Estate sector in Madrid and Luxembourg.

EXECUTIVE MBA AT IE BUSINESS SCHOOL MADRID (SPAIN)

Degree in Business Administration (Pablo de Olavide University, Seville Spain)

Jose Luis Ruiz - Portfolio Manager

Financial Controlling, Legal & Quality Director (Asset Services) of CBRE during 3 years Financial Director for Spain and Portugal of Vastned during 13 years (Dutch REIT) Investments Deputy Director in Ferrán (Real Estate Consultancy firm)

Head of Asset Management in Mutualidad de la Abogacía Degree in Economics (University of Valladolid)

41

Q1 FINANCIAL INFORMATION

42

Q1 2019 FINANCIAL PERFORMANCE

OUTSTANDING GAV AND NAV EVOLUTION

  • +15% GAV increase vs. December 2018
  • +1% revaluation of 2018 portfolio
  • €5.5mn invested in Q1 2019 acquisitions
  • +24% revaluation of assets acquired in Q1 2019
  • 2% nav increase vs. December 2018
  • 19% share price discount vs EPRA nav per share
  • €0.45mn share premium distribution in Q1 2019
  • €1.1mn net profit in Q1 2019
  • 7% GRI increase vs. December 2018
  • Increase net rental income margin from 61.6% up to 70.1%

Key Financial Figures according to International Financial Reporting Standards as adopted by the European Union (IFRS -EU) as of March 31st, 2019

GAV

ASSETS

REVALUATION OF

REVALUATION

GAV MARCH

DECEMBER

ACQUIRED IN

CAPEX 2019

ASSETS ACQUIRED

2018 ASSETS

2019

2018

2019

IN 2019

NAV DECEMBER

SHARE PREMIUM

OWN SHARES

Q1 2019 PROFIT NAV MARCH 2019

2018

PAID

TRADING

43

SHARE CAPITAL INCREASE INFORMATION

44

SHARE CAPITAL INCREASE DETAILS

AND STOCK INFORMATION

SHARE CAPITAL INCREASE AMOUNT:

€29,993,742.60

SHARE PRICE:

€13.4 (19.5% Discount vs. EPRA NAV)

SUSCRIPTION RIGHT PERIOD:

June 24 - July 24

SUSCRIPTION RIGHT LISTING PERIOD:

July 11 - July 24

DISCRETIONARY PERIOD:

July 31 - August 1

DISBOURSEMENT:

August 2

CONVERSION RATE:

1 share / 1 subscription right

18 subscription rights / 17 new shares

RIGHTS ISIN: ES0605196932

New shares ISIN: ES0105196044

STOCK EXCHANGE: MAB

Ticker: YVBA

45

TERMS AND CONDITIONS

46

TERMS AND CONDITIONS*

MANAGEMENT COMPANY: VBA Asset Management 3000, S.L.

MANAGEMENT COMPANY SHAREHOLDERS:Value Base Ltd & Aura Asset Management

TERMINATION DATE:31 December 2024 unless the Company starts before such date its liquidation. In this case this agreement will be extended two additional years

MANAGEMENT FEE:Quarterly Management Fee based on the total assets as per the consolidated financial statements multiplied by:

RELEVANT QUARTER TOTAL ASSETS ( MILLION EUROS)

PROGRESSIVE MANAGEMENT FEE %

0 TO 60

1%

60.01 TO 120

0.9%

120.01 TO 250

0.8%

250.01 TO 500

0.7%

ABOVE 500

0.6%

SUCCESS FEE:16% of the annual share price increase subject to an annual 6% hurdle rate and based on a catch-up and high water mark mechanism and subject to reach a minimum share price of €15.7

PAYMENT METHOD:

Management feepaid in cash in a quarterly basis

Success feepaid in ordinary shares of the company, except for the applicable value added tax that will be paid in cash

* SUBJECT TO A MINIMUM SUSCRIPTION OF €12.5M

47

COMPANY

INFORMATION

AND CONTACT

VBARE Iberian Properties SOCIMI, S.A.

C/ Almagro, 3 - 5º Izq. 28010 Madrid (Spain)

Website: www.vbarealestate.com

FABRIZIO

ALBERTO GARCÍA

AGRIMI

DE NOVALES

GENERAL MANAGER

FINANCE DIRECTOR

+34 91 277 75 78

+34 91 277 75 78

+34 607 734 783

+34 607 817 553

fabrizio.agrimi@vbarealestate.com

alberto.novales@vbarealestate.com

48

Disclaimer

VBARE Iberian Properties SOCIMI SA published this content on 25 June 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 June 2019 20:00:04 UTC

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Managers
NameTitle
Fernando Acuna Chairman
Juan M. Soldado Huertas Secretary & Director
Juan José Nieto Bueso Independent Director
Yeshayau Manne Independent Director
Yair Ephrati Director
Sector and Competitors