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market Market News: Spanish Real Estate Intelligence

Real Estate Investment Cycle Undergoes Change in Profile
20 July 2019 – Richard D. K. Turner The real estate investment cycle in Spain is beginning to change as the funds that first acquired land and homes for rent from Sareb and the banking sector start to finally unload those initial acquisitions. The new investors are generally conservative investment funds looking for large portfolios of long-term rental properties in Spain. These more conservative funds, such as the Dutch fund APG and AXA IM, seek returns of between 3.5% and 5%. The capital entering the market is often being deployed by insurers and pension funds, which look for stable, long-term income flows from their investments. Another changing aspect of the market is the increased interest in turn-key projects. Such a structure allows investment funds to accelerate their business plans and improve results. Aedas Homes and Metrovacesa are considered two of the major players in the market. Original Story: El País - Inmaculada de la Vega  
 
Insur Refinances €100 Million in Outstanding Debts
20 July 2019 – Richard D. K. Turner Inmobiliaria del Sur (Insur) took advantage of favorable market conditions to refinance its outstanding debt this week. The firm refinanced 100 million euros of debt, equal to 60% of its total net liabilities, at significantly better conditions, freeing up over 35 million euros over the next five years. Insur owns rental properties, including offices, commercial premises and car parks. Insur Patrimonial arranged the refinancing in an operation involving a total of 11 banks, led by Santander. Those banks include Caixabank, BBVA, Unicaja, Sabadell, Bankinter and Novo Banco. In addition to the €100 million, the firm also borrowed another €10 million to acquire an office building in Seville for redevelopment into a hotel to be leased to Hotusa. Original Story: El Confidencial - Carlos Pizá de Silva Photo: F. Ruso
 
The Sometimes Overrated Boom of Spain’s Socimis
20 July 2019 – Richard D. K. Turner BME and JLL recently presented a study of the state of Spain’s 73 socimis. From 2016 to 2018, a total of 54 socimis, 70% of the current total, debuted on the market. Last year, those same socimis paid an average dividend yield of 3.8%. The firms distributed €879 million in dividends in 2018, up from €581 million in 2017, +51.4% year-on-year. While the total stock market capitalisation of the socimis increased by 19.6% last year, compared to the IBEX 35’s fall of 15%, the Spanish market is still relatively small compared to the rest of Europe.  Only four of the socimis listed on the continuous market. The Spanish market ranks fourth out of eleven, behind the United Kingdom, France and Holland. Moreover, while Spain accounts for 31.5% of the total number of socimis in the EU, their assets represent just 12% (26.740 billion dollars at the end of March). The average socimi in Spain is valued at 371 million dollars; compared to €1.371 billion in the United Kingdom; €1.99 billion in France and a whopping €5.35 billion in the Netherlands. Foreigners also accounted for the lion’s share of investment in Spanish socimis. According to the study, 75% of the investment in the office sector came from outside of the country, 85% of that in logistics and 80% of the investment in retail. Original Story: ABC Inmobiliário