industrial Market News: Spanish Real Estate Intelligence

Wizink’s Owner Acquires Real Estate Funds with Assets of €187 Million in Portugal
26 November 2018 The investment company Värde Partners has acquired the Portuguese real estate fund manager Imopólis and the real estate fund ImoDesenvolvimento. The value of the assets in the real estate portfolio acquired by the North American company amounts to 186.6 million euros. The investment company Värde Partners announced on Monday that funds managed by the firm acquired Imopólis - Sociedad Gestora de Fondos de Investimento Imobiliário and FIIF ImoDesenvolvimento, a closed-end real estate investment fund. According to the statement, "the real estate portfolio acquired includes business parks, offices and urban buildings used in commerce in Greater Lisbon and has a gross equity value of 186.6 million euros." Värde, which already has a presence in Portugal through its control of Wizink, noted that the operation is aimed at investing in Portugal and "cementing its position in the local real estate market." "The rise in the price of rents associated with a low percentage of unoccupied properties and a shortage of supply, especially for quality office space, led to an imbalance between supply and demand in the office market in Lisbon and contributed to an environment favourable to investment," it stated. "This is the beginning of an exciting chapter for Imopólis. Värde will be a phenomenal partner, providing capital and techniques for improving and expanding our portfolio in and around Lisbon," said Ricardo Valente, CEO of Imopólis, said in the statement. Francisco Milone, a partner and real estate director for Europe at Värde Partners, noted that "we are going to implement a strategy to take advantage of the opportunities created by Portugal's promising economic recovery and growth." "Värde is an active investor in the real estate market in southern Europe and this strategic investment in Portugal is in line with our country-specific local approach," he adds. Värde Partners is a global, $14-billion alternative investment company that recently indicated that it would acquire the 49% of Wizink, a bank specialised in credit solutions in Portugal and Spain, that it does not already own. Imopólis’s assets include the Adamastor building in the Parque das Nações in Lisbon, the Alto da Barra Galleries in Oeiras, the Parque Holanda in Carnaxide, Parque Suecia, also in Carnaxide, the Pousos warehouse complex, next to Leiria, and the Terraços de Bragança, designed the architect Siza Vieira, at Rua do Alecrim, in Lisbon. Original Story: Jornal de Negócios - Pedro Curvelo Photo: Miguel Barreira Translation: Richard Turner  
Lisbon Jumps from 10th to 1st Place for Real Estate Investments in Europe
8 November 2018 The annual report, published jointly by the Urban Land Institute (ULI) and PwC, revealed that the city of Lisbon jumped from 10th to 1st place in terms of real estate investment in Europe in 2019. The report, Emerging Trends in Real Estate Europe 2019, bases the ranking on the opinions of more than 800 real estate professionals in Europe, including investors, developers, financiers and consultants. Respondents to the survey praised the quality of life and political leadership of the city, as Lisbon jumped from tenth to first place in the annual ranking of emerging trends in European real estate. German cities dominate the ranking’s top ten, with Berlin taking second place, followed by Frankfurt, Hamburg and Munich. However, some believe that the continuing popularity of these cities is starting to negatively affect many respondents, considering the high cost of investments in these places. The rest of the ranking, which assesses real estate fundamentals and also the quality of life, connectivity, innovation and attractiveness for talent, includes other cities like Madrid, Amsterdam, Vienna and Dublin. While investment volumes and demand for offices have stayed high in London, Brexit continued to haunt London's short-term outlook, with 70% of Europe's senior professionals believing that the UK's ability to attract international talent will fall after the March 2019 deadline. About 28% of respondents believe that the amount of capital available for new investments will increase, compared to 50% last year. However, confidence last year was particularly high, and there are currently few concerns about liquidity, except for the retail sector, and the majority (54%) of respondents stated that they believe that the availability of capital will be maintained. One of the main barriers to investment remains the availability of adequate assets as capital continues to flow to Europe, with strong increases expected from Asia. This is putting pressure on the core of the market, with 70% of respondents agreeing that core assets are above price. The study also shows that residential area is still in focus, with seven of the top ten preferred sectors for investment and development including a residential aspect, ranging from student residences, to social housing and assisted living and regular residential housing. In addition to the residential sector, logistics and niche sectors, such as data centres and flexible offices (co-working), ranked in the top ten. Logistics continues to benefit the growth of e-commerce. Traditional formats such as urban and suburban central offices and retail continued at the lower end of the ranking. The report also examined the growing influence of social capital alongside financial returns for real estate investment. Almost 60% of respondents believe the industry is adopting a broader range of non-financial measures to assess the value of real estate and real estate deals. 59% agree that non-financial metrics are increasingly important in measuring returns. The current result of this trend is a greater focus on the combination of uses such as collaborative, logistics, retail and mixed-use spaces, and focuses on affordable housing projects, community centres, public spaces and day care centres. Original Story: Diário Imobiliário Translation: Richard Turner
Turkish Firm OYAK Acquires Cimpor and InterCement
26 October 2018 The Turkish OYAK Group (Ordu Yardımlaşma Kurumu) signed a contract with Cimpor and InterCement to acquire all of the two group’s assets included in their Portugal and Cape Verde Business Unit. In a statement, the two companies announced that the transaction is part of InterCement (formerly Camargo Corrêa Cimentos) and Cimpor’s publicly announced debt reduction plan, which the firm created in response to adverse conditions in South America, especially Brazil. The Turkish OYAK Group is Turkey's first and largest pension fund, founded in 1961, and the leading investor in such profitable sectors growth industries as cement and concrete, mining and metallurgy, automobiles, energy and the chemical sector, agriculture, logistics, finance and specialised aluminium. The group currently employs around 30,000 people in 19 countries, had a turnover of USD 10.2 billion in 2017 and operates in a range of industries (cement and concrete, mining and metallurgy, automotive, energy and chemical) and services (financial and logistics). Its subsidiary OYAK Cement has seven integrated cement plants and three mills with an annual production capacity of 12 million tons per year, 45 concrete plants and one paper bag factory. The market leader in Turkey, OYAK Cement is a reference in the development of innovative solutions for the use of cement based on efficiency, creativity and profitability, as well as by its sustainability and dedication to the environment and community. OYAK Cement identified the potential to integrate Cimpor Portugal and Cape Verde into its portfolio of assets, in particular by highlighting its know-how, potential operational, scale, geographic positioning and export capacity. The transaction is subject to approval by the competent Competition Entities. The acquisition will allow OYAK to add the three factories and two cement grinding mills, the 20 quarries and 46 concrete plants located in Portugal and Cape Verde to its portfolio. The current management structures for Cimpor's production areas and central services in Portugal and Cape Verde will remain in place. Original Story: Diário Imobiliário Translation: Richard Turner