Real estate investment in Spain is on track to smash all records this year. During the first nine months of 2015, investors spent €10,800 million on the purchase of offices, commercial and logistics assets, hotels and residential properties. This figure represents a 57% increase with respect to the same period last year, and is €600 million more than was spent during the whole of 2014, according to the consultancy CBRE. (…)
Between July and September, investment in real estate assets amounted to €2,300 million, after a very active summer in the sector. (…).
Operation highlights during Q3 included: Axa Real Estate’s purchase of its own headquarters in Madrid and of the Can Ametller business park in Sant Cugat del Valles (Barcelona) for €100 million; and GreenOak’s acquisition of four office buildings located in the Avalon business park in the capital – the US fund paid Santander €40 million for these properties. “There have been several large operations, such as the sale of a portfolio of Día and Carrefour supermarkets to Kennedy Wilson and the purchase of 33 Caprabo supermarkets for €100 million by the Socimi Merlin Properties”, added CBRE.
Between January and September 2015, 15 operations worth more than €100 million each were closed.
The strong performance during the third quarter (traditionally quiet months) came after an equally strong first half of the year, during which time investment grew by 51%, thanks to the star operation of the year: the purchase of the real estate company Testa by Merlin Properties.
As these figures show, the Spanish real estate market is heading for a record year after five years of very low investment levels. In this way, the €10,800 million invested during the first nine months of the 2015 exceeded the amount spent during the same period in the last three years: €6,574 million in 2014; €2,765 million in 2014; and €1,234 million in 2012. “We are already in a record year, even if no more operations are closed during the last quarter. Our perception is that the pace will continue, we expect to see more investment (of between €2,000 million and €2,500 million) during the fourth quarter, which would mean closing the year with an investment of between €12,000 million and €13,000 million”, says the head of CBRE.
By type of assets, offices and shopping centres continue to be the most sought after. Offices alone have accounted for investments amounting to more than €4,600 million so far this year, the vast majority in Madrid.
By type of investor, the large Socimis continue to be important players, whilst the US funds have lost weight in favour of European investors. (…).
Of the €10,800 million invested in 2015, 32% came from US investors, compared with 53% in 2014. Funds from France have increased, from 13% of the total last year to 25% in 2015, and financing from the UK has also increased, from 5% of the total to 20%.
Spanish Socimis, whose largest shareholders are international funds, accounted for 46% of the capital invested, followed by (normal) funds, with 31%.
Original story: Expansión (by Rocío Ruiz)
Translation: Carmel Drake
Translation/Summary: Carmel Drake