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hospitality Market News: Spanish Real Estate Intelligence

Colonial, Merlin and Lar Rotating Assets Worth €2.5 Billion
20 August 2019 Spain’s largest socimis have all been taking advantage of the benign economic climate to implement a strategy of asset rotation, selling off non-strategic assets to raise funds for further investments. Colonial, Merlin and Lar España have completed more than 2.5 billion euros in divestments over the past two years. Of the four, Colonial has been most active in this regard. The socimi has sold assets worth approximately €1.5 billion in the last two years, more than half stemming from its acquisition of Axiare. In October 2018, Colonial sold seven office buildings to Tristan Capital Partners and Real IS, as well as a development under construction in Madrid to Grupo Catalana Occidente, for 441 million euros. Of the seven properties sold, five originated with Axiare. Colonial also recently sold a portfolio of 18 logistics assets, covering an area of 473,000 square meters, to Prologis for an estimated €425 million. What’s more, the socimi sold an office building in Paris for €450 million in mid-2017. The firm is investing the proceeds of some of its sales, allocating €468 million in twelve projects under development in Madrid, Barcelona and Paris, the three markets where the company operates. Merlin, for its part, sold its 17% stake in Testa to Blackstone last September for €321 million. The firm also sold its portfolio of hotels to Foncière des Regions for €535 million. Lar has also sold €425 million of assets in the last 18 months. Of that, €120 million stemmed from the sale of a logistics portfolio to Blackstone, while another €190 million resulted from the sale of four office buildings in Madrid and Barcelona and some small retail assets. Original Story: Expansión - Rebeca Arroyo Adaptation/Translation: Richard D. K. Turner
 
Metrovacesa to Develop Offices and Hotels on 1.2 Million Square of Land by 2023
20 August 2019 Last year, Metrovacesa revealed that its holdings include a gigantic, 6-million-m2 portfolio of land, enough to build 40,000 new homes. That total also 1.25 million square meters of land slated for the construction of offices, hotels and logistics assets. The firm announced its intention to "sell or develop" most of the 1.25 million square meters by 2023. Metrovacesa revealed plans for four major developments, accounting for 60% of the land bank, in a total investment of almost €390 million. The projects include La City and Loinsa in Barcelona and Clesa and Valdebebas in Madrid. Spain’s two biggest cities account for 86% of the portfolio, and 94% of those lands already have urban planning permits. The largest of the four is City Metropolitana, in Barcelona’s L'Hospitalet de Llobregat, with a buildable area of ​​135,000 m2. The property company plans to build mostly offices on the site, along with up to 20,000 m2 for hotels. Metrovacesa also has 58,131 m2 of buildable land in Madrid, where it plans to build Valdebebas. That project will likely consist of a 4-building office complex. Original Story: Cinco Días Adaptation/Translation: Richard D. K. Turner
 
Bilbao-Based Kategora Acquires Office Building in Valencia for Conversion into Apart-Hotel
16 August 2019 The Basque investment firm Kategora has acquired the building that houses the headquarters of Valencia’s PSPV party from the Valencian families Nebot Oyanguren and Pascual. The new owners have given the socialist political party and other tenants one year to vacate the property, which Kategora plans on converting into an aparthotel. The building, located at Avenida Oeste, 28, in Valencia, is an office building whose owners opted to sell a few months ago. While the building has a market value of 25 million euros, the parties declined to reveal the negotiated sales price. The socialists already had to leave their historic headquarters on Calle Blanquerías de València after having sold it to the Valencian chain Myr Hoteles for 5.8 million euros. Kategora, which was founded in the Basque Country thirteen years ago by Kepa Apraiz, manage an €80-million portfolio of properties. Its assets include residential properties, tourist apartments and student residences. Original Story: Levante-EMV - Ramón Ferrando Photo: E. Ripoll Adaptation/Translation: Richard D. K. Turner