industrial Market News: Spanish Real Estate Intelligence

11 April 2019 - El Periódico 

The company Zaragoza Alta Velocidad is going to receive at least €15,972,060 from the sale of a plot of land in the future AVE neighbourhood. That is the highest price offered in the auction for the plot, known as block 6, which is located next to the Delicias intermodal station in Zaragoza.

Assuming no last minute surprises, the winner of the auction will be the company SPV Reoco 1, which is the firm behind which one of the giants of the residential property sector in Spain likes to hide, namely Aedas Homes. It will be the listed company’s first venture into Zaragoza, although it already has a presence in Madrid, Sevilla and Valencia, amongst others.

Nevertheless, according to sources close to the operation, the auction has not been closed yet, and the other two competing firms Refacleta S.L. and Innovación and Desarrollo Asistencial (de Logroño) are still in with a real chance.

The plot measures 5,821.2 m2 and has a buildability of 27,956 m2, with capacity for 198 flats. Construction on the site, the second real estate development to be built in the AVE neighbourhood, is expected to begin later this year.

Original story: El Periódico (by D. López)

Translation/Summary: Carmel Drake

10 April 2019 - Las Provincias

According to the real estate consultancy CBRE, logistics investment in the province of Valencia rose by 90% YoY in 2018 to €80 million. Nevertheless, it warned that speculative projects have also increased, namely those that are built without a prior contract or guarantee in place for their subsequent sale or rental. Having said that, the market has been readily absorbing the new properties, so far at least, given the rise in demand for logistics warehouses.

According to Javier Muñoz (pictured above, left), Head of Industrial and Logistics at CBRE in Valencia, more high-quality products need to be constructed, given that only 27% of the warehouses in the province currently comply with logistics requirements.

In terms of the type of operations completed last year, the largest deals involved turnkey projects, whilst the number of speculative projects increased. In total 22 transactions of both types were completed in 2018 compared with 10 turnkey projects in 2017. The total stock increased by 24% as a result to reach 2,832,850 m2, and the availability rate at the end of Q1 2019 was 5.9%.

Rental prices continued to rise, with prime rents reaching €4.50/m2/month, in line with those observed in other European cities such as Rome, Amsterdam and Milan. Yields on logistics assets in Valencia currently amount to 6.7% thanks to the strong performance of the sector and interest from large international and smaller local players alike.

Original story: Las Provincias (by Elísabeth Rodríguez)

Translation/Summary: Carmel Drake