Where to Buy a House for Less Than 1.000 Euros per Square Meter & Where for More Than 4.000

Research conducted by idealista.com on a sample of 300.000 dwellings shows that prices of the pre-owned houses in Spain have slowed the slide down by screeching at 7.4%, which equals to a average price of 1.734 €/m2.

Thus, the year ends at drop in the housing prices all over the country. (…) Only two provinces, Lugo and Orense, and sole capital (Lugo) managed to close the year with increases in comparison to the end of 2012.

(…) “The year 2013 does not provide data that could make us think the prices will touch the bottom and the sector recovery is on its way. The stock does not diminish, the national demand reduces and it does not receive financial support. The foreign investor is scarce due to the legal certainty´s volatility and deprived of any guarantee of high profits. By the time these factors do not improve, the prices will continue to be the only lever that could raise the market”, says Fernando Encinar, the research director of idealista.com. (…)

Despite the prevailing trend of reductions in price, there are autonomous communities where average discounts already mark 3.9% in case of Madrid or oscilate between 5% and 6% like on the Balearic Islands and in the Basque Country. The situation stands in contrast with the slumps of 14% recorded in La Rioja, or those of 11% in Castilla-La Mancha and Cantabria.

The sharpest and the slightest falls

Different behaviors result in diverse average prices on the regional, as well as on provincial and capital cities level. Among the autonomous communities, the Basque Country leads for consecutive year, with prices reaching 3.000 Euros per square meter (precisely 2.883), followed by Madrid with 2.641 €/m2 and Catalonia with 1.918 €/m2. At the other end we find Castilla-La Mancha (1.065 Euros), then Murcia (1.088) and Extremadura (1.090).

In the province ranking, two out of three are Basque: Gipuzkoa and Biskay with 3.221 and 2.930 Euros respectively. Then there is Madrid with mentioned 2.641 Euros. Meanwhile the three least expensive provinces are located in Castilla-La Mancha: Cuenca, Ciudad Real and Toledo, yet none of them reaches 1.000 €/m2.

If it comes to the provincial capitals, San Sebastian boasts of 3.922 euros, Barcelona of 3.183 and the Madrid city of 3.107 and they happen to be the most expensive. These houses oppose the ones found in Cuenca (1.199 euros), Ávila (1.165) and Lérida (988), designated as the cheapest capitals in Spain.

Another relevant information provided by the study is that there are already 9 capitals witnessing the housing prices shrinking by more than 40% since the real estate bubble burst, as their houses cost now practically a half of their price before the crisis. They are: Lérida (-53,5%), Zaragoza (-47,6%), Guadalajara (-47,6%), Huesca (-46,8%), Ávila (-45%), Castellón (-45%), Valencia (-44,3%), Cuenca (-43,2%) and Gerona (-42,9%).

In turn, such cities as Lugo (-13%), Orense (-15%), Palencia (-19,1%) and La Coruña (-19,8%) were the only ones not to register falls higher than by 20%.

Source: Cinco Días

Where to Buy a House for Less Than 1.000 Euros per Square Meter & Where for More Than 4.000

Research conducted by idealista.com on a sample of 300.000 dwellings shows that prices of the pre-owned houses in Spain have slowed the slide down by screeching at 7.4%, which equals to a average price of 1.734 €/m2.

Thus, the year ends at drop in the housing prices all over the country. (…) Only two provinces, Lugo and Orense, and sole capital (Lugo) managed to close the year with increases in comparison to the end of 2012.

(…) “The year 2013 does not provide data that could make us think the prices will touch the bottom and the sector recovery is on its way. The stock does not diminish, the national demand reduces and it does not receive financial support. The foreign investor is scarce due to the legal certainty´s volatility and deprived of any guarantee of high profits. By the time these factors do not improve, the prices will continue to be the only lever that could raise the market”, says Fernando Encinar, the research director of idealista.com. (…)

Despite the prevailing trend of reductions in price, there are autonomous communities where average discounts already mark 3.9% in case of Madrid or oscilate between 5% and 6% like on the Balearic Islands and in the Basque Country. The situation stands in contrast with the slumps of 14% recorded in La Rioja, or those of 11% in Castilla-La Mancha and Cantabria.

The sharpest and the slightest falls

Different behaviors result in diverse average prices on the regional, as well as on provincial and capital cities level. Among the autonomous communities, the Basque Country leads for consecutive year, with prices reaching 3.000 Euros per square meter (precisely 2.883), followed by Madrid with 2.641 €/m2 and Catalonia with 1.918 €/m2. At the other end we find Castilla-La Mancha (1.065 Euros), then Murcia (1.088) and Extremadura (1.090).

In the province ranking, two out of three are Basque: Gipuzkoa and Biskay with 3.221 and 2.930 Euros respectively. Then there is Madrid with mentioned 2.641 Euros. Meanwhile the three least expensive provinces are located in Castilla-La Mancha: Cuenca, Ciudad Real and Toledo, yet none of them reaches 1.000 €/m2.

If it comes to the provincial capitals, San Sebastian boasts of 3.922 euros, Barcelona of 3.183 and the Madrid city of 3.107 and they happen to be the most expensive. These houses oppose the ones found in Cuenca (1.199 euros), Ávila (1.165) and Lérida (988), designated as the cheapest capitals in Spain.

Another relevant information provided by the study is that there are already 9 capitals witnessing the housing prices shrinking by more than 40% since the real estate bubble burst, as their houses cost now practically a half of their price before the crisis. They are: Lérida (-53,5%), Zaragoza (-47,6%), Guadalajara (-47,6%), Huesca (-46,8%), Ávila (-45%), Castellón (-45%), Valencia (-44,3%), Cuenca (-43,2%) and Gerona (-42,9%).

In turn, such cities as Lugo (-13%), Orense (-15%), Palencia (-19,1%) and La Coruña (-19,8%) were the only ones not to register falls higher than by 20%.

Source: Cinco Días

Soros Buys from Esther Koplowitz 3% of FCC

Esther Koplowitz, the shareholder controlling 50% of FCC has sold a big part of 3.8% of the construction company put on auction last Friday to investor George Soros. According to the financial sources, the U.S. magnate could have bought more than 3% priced at 15 Euros per share (in total 55 million Euros). Soros, who will have to declare oficially his real position in the company to CNMV in the forthcoming hours, he will thus become the third great individual shareholder of FCC, just after the Koplowitz family and Bil Gates who bought 6% of the company in October.

Soros´s investment shows the returned trust of the international investors in Spanish market, offering the best quality assets at attractive prices. (…)

Soros Fund Management, the company originating from Hungary, hired in the last months Spanish consultants whose first emblematic operation has been the purchase of 3% of FCC. Soros has had bad experience with the Spanish real estate bubble through a company of large touristic complexes. Famous for taking down the pound sterling at the beginning of 70s, the businessman´s fortune is estimated at 20.000 million Dollars, according to Forbes.

Esther Koplowitz, (…) closes complex refinancing of her personal debt associated with the company, around 900 million Euros borrowed from Bankia and BBVA and the operation is a part of pact made with the banks.

(…) Koplowitz is obliged to put the direct shares as a guarantee. In turn, Bankia and BBVA, hiring the advisors from Pérez Lorca office, have extended the expiration of the debt by 2018, the deadline by which Esther believes to recover the FCC dividend. (…)

(…) The sources close to talks claim that the negotiations about FCC´s debt are satisfactory, after more than 75% of banking creditors (about 50) signed the solicitation of proposals where the debt postponement is set in 2017.

Source: Expansión

Axa Sells 30 Properties Occupied by Telepizza for 22 Million Euros

Eneas´s real estate branch, Eneas Real Estate, chaired by José Luis Contreras, by 2011 in office of the real estate corporate director of Grupo Santander, has coordinated the sale of 30 establishments occupied by Telepizza, a large number in Madrid, to national investors for 22 million Euros.

The sale has put a lock on Axa´s real estate subsidary, Axa Real Estate. The property has been grouped and transferred to Ataulfo Inversiones. They cover a space of between 180 and 220 square meters. (…).

Eneas Real Estate took part in the sale of Bankia´s premises in Miami. In the middle of the year the company announced buying 100% shares of the Espacio Coruña shopping center from Dutch Multi Development. (…).

 

Source: Cinco Días

Sareb Issues 10.481 Million Euros in One-Year Bonds

Sareb launched on Friday bond issues for the amount of 10.480 million Euros “without prejudice of their possible enlargement”. With this operation, the bad bank tries to refinance 11.008 millions that expire on December 31st, according to financial sources. The difference between the amounts, 528 millions, derives from the company´s decision to cover this part with the cash box which gathers the income from the real estate sales.

Sareb paid for the assets of the entities with bonds with the Government´s endorsement at the euribor interest rate of three months and a differencial that will never exceed 200 basic points. In total, it has carried out 7 issues, total volume of 50.000 million Euros at terms of 1, 2 and 3 years in return to the share transfer of the Group 1 and 2 in December last year and in February this year. All of them have been launched as variable interest type, this year, however, applying the Interest Rate Swaps (IRS), a hedge meant to protect from the future rises of euribor.

The company chose the short term for its issues in order to amortize its debt (…).

By mid November, it has sold more than  6.400  properties. In its first year, the firm overcame the gross earnings of 2.ooo million Euros, as its chairwoman Belen Romana has highlighted recently.

Source: Expansión

Hipoges Receives the Real Estate Manager Title

Standard & Poor’s (S&P) has awarded Hipoges Iberia with “above average” rating as a residential mortgage asset manager. This is the first qualification that a Spanish company has received by a credit rating agency.

Hipoges is one of the main independent platforms managing toxic assets in Spain, holding 2.600 million Euros in mortgage and consumer credits administered. Such companies are more and more popular due to banks and Sareb´s need to externalize the management of the assets allocated because of the crisis.

According to Juancho Vizcaíno, the managing director of Hipoges Iberia, “thanks to Sareb´s activity, the investors got a guarantee of interesting assets flow in the future”.

  Source: Expansión

Sareb & Caixabank Reduce by 71 Million Euros Price of Assets Preceding from The Bank of Valencia

Sareb and Caixabank gave the Bank of Valencia a 71 million Euro discount at the sale of assets. The assets value, once modified, fell down to 1.889,9 millons.

Sareb informed the Spanish National Stock Market Commission (CNMV) that last Friday the quoted contract was corrected. Caixabank has been subrogated in all the rights and obligations of the Bank of Valencia for universal succession by virtue of the fusion by absorption of the first by the second.

The total amount of the assets in correction rised up to 71,7 million Euros. (…) The amount of the assets preceding from the Bank of Valencia, once conducted with the present correction, rises up to 1.889,9 million Euros.

Sareb also points out that last Friday the correction via partial early amortization was made  effective, on the part of Sareb, senior bonds: 215 certified as 2012-1, 322 as 2012-2 and 179 as 2012-3. (…)

The paid coupon calculation was conducted in cash for each series of the bonds and interest rate of the payment was calculated to compensate Sareb the disbursement made.

Source: EuropaPress

Axa Buys More Real Estate Assets; Tiffany & Escada Change Landlord in Milla de Oro

For the last few years, the month of December has been marked by frantic activity in the real estate sector. Thus, a businessman Amancio Ortega bought the Madrid skyscraper Torre Picasso from FCC in December 2011, a year later, a Mexican magnate Carlos Slim closed the acquisition of 439 branch offices of BBVA.

Awaiting a megatransacion before the year 2013 ends, investors carry out operations like the purchase of 1.000 square meters in the best Madrid´s commercial zone, known as Milla de Oro. Like it occured in the majority of the transactions in 2013, the buyer is an international investment fund, a real estate branch of the insurance company Axa. The company paid about 35 million Euros, divided between two establishments. The transaction has been advised by Aguirre Newman. Both locals are unbeatably situated and have tenants of proven solvency: fashion firm Escada and Tiffany jeweller´s shop, settled down in Spain in 2008.

The bought property is situated at 10 Ortega y Gasset Street in Madrid. The shops cover in total 1.000 square meters (500 square meters each). It was owned by a Spanish real estate company Neinver, the second outlet store manager in Europe chaired by José María Losantos, who acquired the building in 2006. Two years later Tiffany stood in for Versace on an exclusive artery of Madrid, where also bright such brands as Chanel, Gucci, Hermés, Dolce & Gabbana and Valentino.

Axa´s purchase is located on one of the highest earning power streets, reaching up to 6%. The tenants will pay 170 Euros per square meter per month, thus, the French investor will gain 2.04 million Euros per annum.

This is not the first operation that the company conducted in Spain. In June, the real estate manager bought a portfolio of 3 buildings from Generalitat de Catalunya for 172 million Euros. Through the acquisition, it manages a real estate portfolio in Spain worth 1.300 million Euros. At a global level, it holds assets valued at more than 45 million Euros (data from March).

Neinver is focused on development of its centers in Europe. This year it presented five projects in Spain, France, Germany and the Netherlands, with the management target by 2016 to control 19 outlet centers of 400.000 square meters.

 

Source: Expansión

Popular Gains 415 Million Euros by Selling its Real Estate to Two Funds

After four weeks of intense negotiations, Popular and the two funds, Värde Partners and Kennedy Wilson, practically have closed the operation of transferring Aliseda, the real estate company belonging to the Spanish bank. The entity will earn 415 million Euros, out of which between 300 and 350 millions form the capital gains.

With the disbursement, the foreign funds buy 51% of the company adjacent to Popular which will hold 49% of shares.

The company will be responsible for the foreclosed assets and credits destined for Popular development management. At the moment, the total value of the properties in charge aims at 6.500 million Euros and of the loans at 9.350 million Euros. (…)

Aliseda premises will continue to be found on the Recoletos Street in Madrid, where the old offices of Banco Pastor have been located before. The real estate company hires about 300 people.

On the side of Popular, the advisory companies KPMG and Lazard were involved, and on the side of Värde Partners and Kennedy Wilson – PwC and Clifford Chance.

Another 25 foreign funds have been interested in the operation, like Centerbridge, Cerberus, Fortress, Lone Star or WL Ross.

Via the purchase Värde Partners and Kennedy Wilson became pacesetters of the bank dwellings management in Spain, as they have bought also Catalunya-Caixa Inmobilaria in summer, for between 30 and 60 million Euros. (…)

Popular is about to achieve the capital gains amount targeted for the year 2013 in its strategic plan set for 600 millions. In the first quarter the bank earned 370 millions and now the mentioned 300 thanks to the sale of Aliseda.

Source: Expansión

Melia Buys its Part of the Isora Palace From EBN & Sabadell

The new Melia Hotels International transaction is at the edge of closing. This time the chain made a double movement.

On one hand, Melia became the sole owner of the Hotel Gran Mélia Palacio de Isora (on Tenerife), a 5-star category hotel with 579 rooms, opened in June 2008.

Melia bought the 50% which it had not been controlling in the company of the Hotel Investments La Jaquita, the owner of the establishment, and was divided between Sabadell Bank (which inherited about 45% with the CAM) and EBN (controlled by Unicaja, Ibercaja, Ceiss, BMN and Sabadell itself). By bounding itself with CAM, Sabadell gained 6% of Melia´s capital but it sold its shares in March for 61 million Euros.

(…) Hotel Investments La Jaquita will have a part in the scope of consolidation of Melia, where the Isora Palace is considered strategic. At the finalization of the transaction, the company´s debt is equal to 78 millions and EBIDTA to 10 millions.

On the other hand, Melia sold its properties in Mexico within the framework of its asset rotation policy. For example, Hotel Melia Mexico Reforma, situated in Mexico DF and disposing of 489 rooms. The transaction amounting to 43.8 million Euros will involve the capital gain of 9.8 million Euros in the EBIDTA of Melia.

 

Source: Expansión