Data center SOCIMI (spanish REIT)
The explosive growth of the digital economy has increased the demand for data centers, critical infrastructures for global connectivity. If you have invested or own this type of assets, structuring them as a SOCIMI can provide an efficient way to maximize their profitability.
Why structure a SOCIMI for data centers?
- Tax optimization: Exemption from Corporate Tax under the SOCIMI regime (0%).
- Visibility to institutional investors: Facilitates access to capital markets or the future sale of assets.
This article explores how wholesale and hyperscaler data centers can be structured as SOCIMIs and why Portfolio Stock Exchange is the best venue for their listing.
Types of data centers suitable for SOCIMI
1. Wholesale Data Centers (Colocation)
If the data center is leased to multiple operators under contracts subject to the Spanish Urban Leasing Law (LAU), the company owning the asset could qualify for the SOCIMI tax regime and benefit from its fiscal advantages.
To structure a wholesale data center as a SOCIMI, the following key aspects should be considered:
- Ownership and management of the property: The SOCIMI must own the building and basic infrastructure (electricity, cooling, general connectivity...) but not the hardware or equipment of its tenants.
- Modular leasing model: Whether leasing the entire building or renting by racks, private rooms, or technology suites, it is essential to ensure that the contract’s objective is strictly the use of physical space, excluding additional services such as infrastructure maintenance or technical support.
- Long-term lease contracts: The contracts must have a minimum duration of three years to comply with SOCIMI regulations.
2. Hyperscaler Data Centers
Although hyperscaler data centers (AWS, Microsoft, Google, etc.) are typically built for their own use, separating property ownership from operations results in a more efficient financial structure.
To structure a hyperscaler data center as a SOCIMI, the following elements are recommended:
- Separation of ownership and operation: The SOCIMI must own the building and lease it to the hyperscaler, which will manage and operate the data center.
- Triple Net Lease contracts: These contracts ensure stable long-term income, as the hyperscaler assumes the costs of maintenance, taxes, and insurance.
- Long-term lease contracts: The contracts must have a minimum duration of three years to meet SOCIMI requirements.
Why list on Portfolio Stock Exchange?
Since its launch in January 2023, Portfolio Stock Exchange has become the reference market for SOCIMI listings, differentiating itself from traditional exchanges by offering cost and time efficiency, eliminating intermediaries, and providing tailored service for each client.
Key benefits of listing with us:
- Shareholder distribution and maximum capitalization flexibility: Portfolio has no minimum free float requirement, allowing sole shareholder companies to list. Additionally, there is no maximum capitalization limit for SOCIMIs.
- Shareholder's agreements may remain in force after the listing: Portfolio allows pre-existing shareholder agreements to remain valid and facilitates lock-up clauses, preemptive acquisition rights, or mandatory adherence of new investors to existing shareholder agreements.
- Time-to-market: Listing a SOCIMI on Portfolio takes approximately 50-120 days, compared to 7-8 months on a traditional market. This results in significant cost and time savings.
- Direct investor access: Portfolio acts as a broker and custodian/subcustodian of its own market, enabling investors (both buyers and sellers) to place orders directly through the Portfolio web trading platform.
- Protection against NAV deviations: Unlike traditional markets, SOCIMIs listed on Portfolio Stock Exchange do not experience deviations between NAV and market capitalization, ensuring fairer pricing.
If you own or invest in data centers, do not hesitate. Contact us or share this post with your tax advisors for further review.
