offices Market News: Spanish Real Estate Intelligence

RGA Rural Vida Acquires Office Building on c/Velázquez, 108 from Spanish Family Office

26 April 2018 - Press Release

The real estate consultancy firm Lassen Global has advised both the sale and rental of an office building in Madrid, on c/Velázquez, 108.

The property in question is very emblematic, located in the heart of the Salamanca neighbourhood. It comprises a surface area of 3,700 m2 and has 50 parking spaces in total. The consultancy firm has advised the vendor, a Spanish family office, throughout the sales process. The buyer is the insurance company RGA Rural Vida.

Following the acquisition of this asset by RGA Rural Vida, Lassen Global has also advised that firm regarding the rental of the building’s total available surface area, comprising approximately 3,000 m2 plus 39 parking spaces, which has been leased to the law firm Andersen&Tax Legal.

Lassen Global

Lassen Global is a boutique consultancy founded by Luis Cocero and Pablo de Luque Moreno-Luque. “It was created with the aim of providing a more transparent, personal and professional service to the real estate market”, explain its founding partners, both of whom have extensive experience in the provision of real estate services in the domestic market and who have carried out operations and provided consultancy services in various segments of the market, such as offices, retail and residential (…).

The company’s core business centres on the office and retail markets in Madrid and Barcelona (…).

Original story: Press Release

Translation: Carmel Drake

Colonial Will Increase its Share Capital by €180M to Finance Merger with Colonial

21 April 2018 - Expansión

The merger between Colonial and Axiare is moving ahead. The Socimi chaired by Juan José Brugera is expected to approve a capital increase at its next General Shareholders’ Meeting, scheduled for 24 May, to absorb the 13% stake in Axiare that it does not control yet. The capital increase will take place through the issue of 19.27 million new shares, which at current prices corresponds to a monetary value of around €181 million.

On 10 April 2018, the Boards of Directors of Colonial and Axiare approved the project to merge the two Socimis, which will give rise to a real estate giant with a portfolio of assets worth around €11 billion, which will place the new group very close to its rival Merlin, with assets of €11.254 billion.

This operation will go ahead after Colonial successfully completed its takeover of Axiare in February to acquire 87% of its share capital. The operation will involve the termination due to dissolution of Axiare and the block transfer of the Socimi’s assets to Colonial.

According to the approved exchange ratio, each existing shareholder of Axiare will receive 1.8554 shares in Colonial. To this end, the Catalan real estate company will submit to a vote by its shareholders the issue of a maximum of 19.27 million new ordinary shares with a nominal value of €2.50 each to pay for the merger exchange.

This operation will also be subject to a vote by the shareholders of Axiare, whose General Meeting is due to be held on 25 May on the first call and on 28 May on the second call, if the necessary quorum is not reached on the first call.

New Board

The items on the agenda for that General Shareholders’ Meeting include the appointment of Javier López Casado as a proprietary director, as a representative of Finaccess, which will then have two representatives on the Board after taking control of 18% of the group’s share capital. In this way, Axiare’s most senior governance body will comprise 11 members: four independent directors, two executive directors and five proprietary directors – two to represent the sovereign fund of Qatar, two to represent Finaccess and one to represent the Colombian firm Santo Domingo-.

On the other hand, Colonial is going to approve the distribution of a dividend amounting to €0.18 per share, up by 9%. The company is thus going to increase the remuneration to its investors with a third dividend payment after recovering it in 2016, following ten years of not paying the shareholders anything.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Thor Equities Buys Gran Vía, 30 in Madrid for €75M

18 April 2018 - Mis Oficinas

The US firm Thor has purchased the building located at number 30 Gran Vía, in the heart of Madrid, for €75 million. The property, which was constructed between 1919 and 1924 to house the Teatro Fontalba, was converted into offices, over time, for Telefónica.

The US firm already owns four other properties in Madrid. It purchased the first one in August 2015, specifically, number 9 Puerta del Sol. That same year, in December, it successfully acquired number 11 on the same square. In February 2017, it also purchased number 5 for around €50 million. Its most recent purchase was number 16 Calle Fuencarral.

The strategy of the US firm is to look for properties in the best areas of Madrid and to convert them into flagship stores for major brands.

Original story: Mis Oficinas

Translation: Carmel Drake