New IPO indicate bottom of Spanish real estate market?

[Nicholas Wallwork]

Merlin Properties, a Spanish real estate investment trust, has today announced plans for a €1.5 billion flotation. If successful this would be Europe’s largest ever property IPO and most certainly indicate the bottom of the Spanish property market? On the surface it would seem to be the wrong time to be floating a Spanish real [...]

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[RPotticary]

Merlin's share price initially dipped but has now climbed back to around EUR10 per share - the original flotation price. Part of the reason for the increased recent foreign investment in Spain is not only the state of the property market, but the reduction in taxes for Real Estate Investment Trusts. Let's wait and see if the Spanish government will abolish the dreaded Wealth Tax in this December's budget. This tax is currently putting off many wealthy private individuals from investing directly.