Lionel Messi, renowned football star and global icon, has taken a significant step into the financial world. Messi´s real estate investment company, Edificio Rostower Socimi, with five hotels in Spain, has officially debuted on the European Portfolio Stock Exchange with an initial valuation of €223 million.
Edificio Rostower Socimi boasts an impressive array of assets, including six MiM hotels managed by Majestic. These luxury properties are located in prime destinations such as Andorra, Baqueira, Ibiza, Mallorca, Sitges, and Sotogrande, with an additional hotel in the Valle de Arán. Beyond hospitality, the company owns a six-storey building in Barcelona’s city centre, featuring 4,000 square metres of office space, retail units, and parking facilities.
Additional assets include a 2,500-square-metre warehouse in Sitges leased to a supermarket chain, a high-end restaurant in Castelldefels, and multiple luxury residential properties in Sarrià-Sant Gervasi, Castelldefels, Cala Tarida, as well as in international hubs like Paris and London.
The journey to public listing
The decision to go public was finalised during a shareholder meeting on December 11. In this meeting, Edificio Rostower transitioned into a public limited company and opted for Spain’s special tax regime for real estate investment trusts (SOCIMIs). Trading under the ticket ‘ERTW,’ the company set an initial share price of €57.40, signaling confidence in its market position and future growth.
Financial performance: a mixed picture
Messi’s investments generate substantial revenue. However, profitability remains a challenge. In 2023, the company’s assets brought in over €7.4 million, slightly below the €7.7 million reported in 2022. Furthermore, losses have more than doubled, reaching €1.78 million compared to €784,410 the previous year.
This financial strain highlights the complexities of operating a diverse portfolio in competitive markets. Despite these setbacks, the company’s leadership remains optimistic. According to Santiago Navarro, CEO of the Portfolio Stock Exchange, this move “enhances our value proposition by eliminating intermediaries and improving efficiency through better technology and service, a combination that clients truly appreciate.”
The strategic outlook
By listing on the stock exchange, Edificio Rostower Socimi aims to attract new investors and leverage its assets more effectively. This strategy aligns with Messi’s broader vision of expanding his business empire, complementing his illustrious sports career.
Headache file
Messi’s real estate adventures in Spain have not been entirely without problems. His beachfront boutique hotel in Sitges, purchased in 2017 for over €30 million, is under threat of partial demolition due to planning violations. Structural irregularities have cast a shadow over the football star’s investment. The controversy stems from oversised balconies built without proper permits in 2009, which violate local planning laws. The Sitges City Council has ruled they must be removed. However, their integration into the building’s structure complicates matters, potentially necessitating significant demolition. Further issues, including a non-compliant fire emergency plan, exacerbate the legal woes.
Messi, reportedly unaware of the irregularities at the time of purchase, was assured by the previous owner, Francisco Sánchez Rodríguez, that no urban planning violations existed. Sánchez denies the allegations but faces evidence suggesting otherwise. The Sitges municipality, however, has confirmed the demolition order.
Other football players in real estate
Messi is not the only football player who sees opportunities in property investments. Cristiano Ronaldo, David Beckham, Sergio Ramos, and Álvaro Morata have all ventured into Spain’s lucrative real estate market. Ronaldo has diversified his portfolio with residential and commercial properties, while Beckham, though not Spanish, has invested in hotels and residential buildings across the country. Ramos has backed various projects, including housing developments and commercial spaces, and Morata has focused on residential properties, cementing his place among footballers-turned-property investors.