Lionel Messi's €223 Million Real Estate Portfolio Listed as REIT in Spain
Lionel Messi, the Argentine football legend, has made a strategic move in the real estate sector by listing his €223 million property portfolio as a real estate investment trust (REIT) in Spain. The new REIT, Edificio Rostower Socimi, includes a diverse r
Lionel MessiReal EstateReitSpainTax IncentivesReal EstateDec 31, 2024
He has listed his diverse portfolio of properties, valued at €223 million ($232 million), as a real estate investment trust (REIT) in Spain.
The newly-formed REIT, named Edificio Rostower Socimi, encompasses a variety of assets, including seven hotels, commercial real estate for retail and office spaces, and residential properties.
While Messi’s name adds a prestigious touch to the venture, the company has faced some challenges, reporting losses in both 2022 and 2023.
However, the move to establish Rostower as a REIT is seen as a strategic decision, particularly due to Spain’s favorable tax regime for real estate investment trusts.
Spanish REITs often enjoy minimal tax on income provided they distribute the majority of their profits to shareholders.
The shares of Rostower, priced at €57.40 as of December 30, were listed on the Portfolio Stock Exchange, a relatively new digital-only platform in Spain.
This choice is noteworthy, as most Spanish REITs prefer to list on the more traditional BME Growth index.
The decision to list on the smaller exchange adds a unique element to Messi’s real estate venture, making it stand out in the market.
This move comes on the heels of a significant event in the Spanish real estate sector.
The government’s proposal to increase taxes on real estate investment trusts was successfully blocked, which would have adversely affected many REITs in Spain.
The favorable tax environment in Spain has made REITs an appealing option for investors, and Messi’s listing is part of this growing trend.
Interestingly, Rostower does not have free float requirements, indicating that the REIT may not initially be seeking to raise capital through its listing.
Instead, it appears to be leveraging the tax incentives provided by the Spanish government.
However, Santiago Navarro, CEO of the Portfolio Stock Exchange, has stated that Rostower plans to open up to new investors in the future.
Despite Rostower’s shares not currently trading, the exchange has clarified that companies listed on the platform can only begin trading once they aim to sell shares or raise capital.
This has created a sense of anticipation around Messi’s real estate project, with the potential to evolve into a significant player in the Spanish REIT market.
With this new venture, Messi is not only enhancing his legacy off the football field but also tapping into the lucrative world of real estate investment.
Listing Rostower as a REIT is a smart financial move, leveraging Spain’s tax incentives while opening the door for future investments and growth.
Frequently Asked Questions
What is a REIT?
A REIT, or Real Estate Investment Trust, is a company that owns, operates, or finances income-generating real estate. REITs allow individuals to invest in large-scale, income-producing real estate.
What properties are included in Messi's REIT?
Messi’s REIT, named Edificio Rostower Socimi, includes seven hotels, commercial real estate for retail and office spaces, and residential properties.
Why did Messi choose to list his REIT on the Portfolio Stock Exchange?
Messi chose the Portfolio Stock Exchange, a relatively new digital-only platform in Spain, to list his REIT, adding a unique element to his venture and potentially benefiting from the platform’s growing reputation.
What are the tax benefits of listing a REIT in Spain?
Spanish REITs often pay minimal taxes on income as long as they distribute the majority of their profits to shareholders, making them an attractive option for investors.
What are the future plans for Rostower?
Rostower plans to open up to new investors in the future, according to Santiago Navarro, CEO of the Portfolio Stock Exchange, despite not currently trading its shares.
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