89
77
38
126
82
50
107
457
98
159

alternative Assets News: Spanish Real Estate Intelligence

BNP Paribas: RE Investment Rose by 8% in 2018 to €11.6bn

9 January 2019 - El Periódico

The volume of annual investment in the Spanish real estate sector amounted to €11.63 billion in 2018, which represented an increase of 8% compared to 2017. If we add the corporate operations with underlying real estate to that volume, then the figure increases to €19 billion, which represents an investment record since the end of the crisis, according to the latest report from BNP Paribas Real Estate in Spain. The report highlights that interest from investors in the Spanish real estate sector in 2018 was at its highest level for a decade.

During the fourth quarter of the year, the volume of direct investment in real estate assets – offices, logistics warehouses, hotels, retail and residential – amounted to €3.7 billion in total, which represented an increase of 58% YoY. The evolution of investor activity, therefore, exceeded the expectations of the sector at the beginning of the year.

“The good times that the fundamentals of the market are enjoying, with occupancy levels at maximums and rents that are stable or expanding in the most consolidated markets, together with the surplus capital and the limited alternatives offered by other financial products, have fostered a frenetic pace of activity in the investment market”, explains the report.

By type of asset, the commercial sector (retail) was the star of the year. The volume invested in commercial assets during 2018 amounted to €4.28 billion, which represents an increase of 23% compared to 2017. During the fourth quarter, investment reached €1.26 billion, and so the sector achieved a quarterly market share of 35%. The largest operation during the final quarter of the year was the purchase of a portfolio of three shopping centres – Max Center, Gran Casa and Valle Real – by Sonae Sierra and Perter Varbacka for €485 million.

Commercial yields

Demand from investors for high street retail assets was high, given that they consider them to be a very stable product. Similarly, there was a high interest in land for the development of retail parks, in light of the scarce supply of this type of asset. The yields continued at 3.00% for prime premises; between 5.00% and 5.25% for prime shopping centres; and at 5.75% for prime retail parks.

In terms of the office market, the investment volume recorded during the fourth quarter was €986 million taking the total figure for the year to €2.228 billion. That represented a slight YoY decrease of 4%. The shortage of products for sale meant that fewer operations materialised in 2018 than in 2017. The prime yield in the office market remained at 3.25% in Madrid and 3.50% in Barcelona.

The logistics market continues to rise. The increase in e-commerce and the strong performance of the consumer sector and the economy, in general, have encouraged investment in this type of asset. The investment volume registered during the fourth quarter of the year amounted to €400 million, whilst the total figure for the year (€1.3 billion) represented a new investment record, and an increase of 30% compared to 2017. The shortage of products, combined with the high investment pressure resulted in a considerable adjustment in yields, which amounted to 5.30% in the prime logistics market in the fourth quarter of 2018.

Investors

Investment funds were the great stars of the market, representing 61% of the total volume transacted in 2018. Socimis have been very present in the investment market, both on the buy and sell sides in the main land transactions to develop new products. Finally, the presence of family offices (private investors) stood out, with acquisitions, in general, for volumes of less than €50 million.

Alternative investments remained in the spotlight of investors, who were mainly attracted by student residences, clinics and nursing homes for the elderly. The cumulative volume invested in those types of assets amounted to €600 million in 2018.

Original story: El Periódico (by Max Jiménez Botías)

Translation: Carmel Drake

 
Healthcare Activos Closes 2018 with Purchases in Ciudad Real, Murcia & Madrid

8 January 2019 - Eje Prime

Healthcare Activos closed 2018 by adding some new real estate assets to its portfolio. The investment fund led by the former CEO of the residential group Sarquavitae, Jorge Guarner, ended the year by making acquisitions in Ciudad Real, Murcia and Madrid.

The company closed the purchase of the Las Cármenes residence, located in the town of Poblete, in Castilla-La Mancha, which has a surface area of 6,161 m2 and 201 beds available. Similarly, the investment platform specialising in the health and dependency sector also purchased the San Pablo de Ceutí Residence (Murcia), with a surface area of 6,785 m2 and 172 beds.

After its purchases in Ciudad Real and Murcia, Healthcare Activos also bought the MiraMadrid residence, located in the town of Paracuellos de Jarama. That centre has a surface area of 6,221 m2 and 170 beds distributed over three floors.

In parallel, Healthcare Activos has also started work on the renovation of the El Carmen residential centre, located in Baracaldo (País Vasco). That property, which has 70 beds and a surface area of 2,650 m2, will be operational from 2020, as will the Amézola residence, located in Bilbao.

Since its creation at the end of 2016, the firm has acquired more than twenty assets, with a total committed investment of approximately €200 million. It now has a portfolio comprising more than 40 assets in different stages of development including nursing homes for the elderly, hospitals and clinics, some of which are fully operational, others of which are to be renovated and launched and others of which are land development projects.

First incursion into the hospital and office sectors in Madrid  

In October, Healthcare Activos entered the hospital sector in Spain with the acquisition of Hospital Campo de Gibraltar in Palmones (Cádiz) from the Quirón group. The property has a surface area of 12,300 m2 and the plan is to expand the facilities to reach 120 beds in total.

Also, during the second half of the year, the company conquered the centre of Madrid with the opening of a commercial office on Paseo de la Castellana. That property, which is located at number 45, will respond to the expansion plans that the company is preparing for the country as a whole. The facility joins the central offices that the group has on Calle Pau Casals in Barcelona.

To carry out new plans, Healthcare Activos has recruited a new financial director (…). Guarner’s firm has appointed Juan Pedro Vergara as the new person responsible for that area.

Vergara has developed his professional career in the financial entity Natixis, a company created in 2006 (…).

Original story: Eje Prime (by Alberto Escobar)

Translation: Carmel Drake

 
Approval Granted for Socimi Arrienda Rental's Debut on the MAB

21 December 2018 - La Vanguardia

The Coordination and Incorporations Committee of the Alternative Investment Market (MAB) has issued a favourable report ahead of the stock market debut of Arrienda Rental Properties Socimi, with a reference value of €2.74 per share, after the company was valued at €56.4 million.

The MAB has reported that the stock trading code for Arrienda Rental will be YARP and that it will be governed by the fixing system, with prices being fixed twice in each session, at 12 noon and 16h.

Arrienda Rental is a real estate company that has adopted the Socimi framework and which is dedicated to the acquisition and development of urban properties for their rental.

The Socimi owns 239 assets, all of which are located in the Community of Madrid: 2 hotels (Clement Barajas and Täch), 3 plots of land, 4 offices, 18 retail premises, 40 homes and 172 garages.

Before its stock market debut, the Socimi had 51 shareholders, including Francisco García Rubio, who owns 21% of the capital.

Arrienda Rental has 4 managing directors who are also owners, namely: José García Sánchez, Luis Miguel Gutiérrez Abella, Víctor García Rodríguez and Juan Francisco García Muñoz.

Arrienda’s valuation has been performed by the appraisal company Gesvalt.

Original story: La Vanguardia

Translation: Carmel Drake