Corporate strategy and positioning

Who are we?

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Lar España Real Estate SOCIMI, S.A, (hereinafter Lar España) is a SOCIMI (Listed Real Estate Investment Company) that has been listed on the Madrid Stock Exchange since 5 March 2014.

It was founded at an ideal juncture in the Spanish property cycle, when real estate prices had just bottomed out at record lows and the real estate market was entering a new cycle. Lar España also ushered in a change of trend for the Stock Market, as it was not only the first Spanish SOCIMI to be floated, but it was also the very first listing to take place following a three-year dearth, and the first listing of a real estate company in seven years.
 

The objective set out for the Company when it was first created was to invest in the Spanish real estate market under a long-term asset management plan. A plan, aimed at generating high returns for its shareholders, via the payment of considerable annual dividends, and creating value by increasing the Company’s EPRA NAV/NTA.
 

Lar España is exclusively managed by Grupo Lar, a real estate company whose extensive experience in the sector is of particular note. It boasts a large team of professionals that actively manage and work to diversify the portfolio in order to maximise its operational efficiency, as well as each asset’s yield.
 

The Group’s investment strategy focus is now entirely on retail properties, after a disinvestment process of the considered as non-strategic assets:

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• Shopping centres and retail parks: Retail unit and retail warehouse lettings. Its strategy is focused on identifying assets that are poorly managed and that have strong upside potential, especially centres where there is an opportunity for repositioning or extending them.

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During 2018 and 2019, Lar España carried out the divestment of logistics and offices assets, to focus the investment strategy on retail assets.

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Lar España also made an unprecedented investment in the residential sector through a joint venture with PIMCO, taking a 50% stake in luxury housing development Lagasca99. All apartments delivery in this new complex were completed and delivered in 2020.

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The Company’s investment policy is mainly focused on:

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• Strategic assets, shopping centres and retail parks, with strong growth potential.

• Investment opportunities in dominant retail assets in their catchment area that offer significant upside via management, avoiding the segments where there is greater competition.

• Risk diversification, expanding in Spain and primarily investing and developing in retail spaces.

​The Company’s pipeline remains solid, allowing it to continue to comfortably meet its forecast investment targets. Risk diversification, expanding in Spain and primarily investing and developing in retail spaces.

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Responsible business model
 

Lar España’s business model is based on the guiding principles, commitments, objectives and lines of action of the United Nations Global Compact, the principles of the Organisation for Economic Co-operation and Development (OECD), the contents of the United Nations Universal Declaration of Human Rights, and the International Labour Organisation (ILO) Declaration.

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Furthermore, it is conscious of its role within its activity, endeavouring to carry out its operations and decision-making in an ethical, responsible and sustainable manner in order to make a positive contribution to society and the environment, while providing financial return for investors.

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