Acciona Puts On Sale Bestinver & Transmediterranea

10/02/2014 – El Confidencial

The Entrecanales family braces for compensating its last non-strategic assets sale. Recent electrical reform hit straghtly into Acciona´s accounts. The infrastructure and service firm took ahead accepting offers for both Bestinver and real estate managing affiliate. The sale is a part of a partial divestment plan in its energy business.

(…) Acciona is perfectly aware that it will have to shed the said branches to neutralize almost €350 million budget hole, digged by various regulatory measures taken up by the Ministry of Industry. Last year, the company had to absorb a €137  million blow and in 2014 it will probably be much stronger, around €200 million (…).

The divestment plan foresees between €500 and €1.000 million income. Acciona has already managed to transfer renewable energy assets in South Korea (€82 million) and in Germany (€150 million), as well as a concession in Canada and several real estate assets for about €100 million. In total, it earned €370 million.

In April 2013, Acciona hired Lazard and Maquerie to sell 30% of its renewable energy segment, however the execution failed due to constant changes introduced into law. No investor wanted to acquire the glut of wind farms and thermosolar plants because of incertainty about their future. (…).

Lazard appraises mostly assets outside of Spain, principally in the United States, where Acciona holds 30% of capacity. The company decided, however, to accept offers for Bestinver, manager of the family fund, having under its office around €8.000 million fortune. (…).

The most interesting part is the sale of around €1.600 million in gross real estate assets owned by the group, out of which 30% corresponds to heritage buildings or rented, in up to 90% occupied. Overall real estate business of Acciona is valued at around €500 million, land in and outside Spain exluded.

Battles for Realia or Colonial have woken up stong interest on the side of domestic and foreign funds, thus offers for Acciona´s real estate shall not seem surprising. Precisely, there they arrived for Transmediterranea, a shipping line put on sale many times before, and a service affiliate. (…).

 

Original article: El Confidencial (Agustín Marco)

Translation: AURA REE

Acciona Puts On Sale Bestinver & Transmediterranea

The Entrecanales family braces for compensating its last non-strategic assets sale. Recent electrical reform hit straghtly into Acciona´s accounts. The infrastructure and service firm took ahead accepting offers for both Bestinver and real estate managing affiliate. The sale is a part of a partial divestment plan in its energy business.

(…) Acciona is perfectly aware that it will have to shed the said branches to neutralize almost €350 million budget hole, digged by various regulatory measures taken up by the Ministry of Industry. Last year, the company had to absorb a €137  million blow and in 2014 it will probably be much stronger, around €200 million (…).

The divestment plan foresees between €500 and €1.000 million income. Acciona has already managed to transfer renewable energy assets in South Korea (€82 million) and in Germany (€150 million), as well as a concession in Canada and several real estate assets for about €100 million. In total, it earned €370 million.

In April 2013, Acciona hired Lazard and Maquerie to sell 30% of its renewable energy segment, however the execution failed due to constant changes introduced into law. No investor wanted to acquire the glut of wind farms and thermosolar plants because of incertainty about their future. (…).

Lazard appraises mostly assets outside of Spain, principally in the United States, where Acciona holds 30% of capacity. The company decided, however, to accept offers for Bestinver, manager of the family fund, having under its office around €8.000 million fortune. (…).

The most interesting part is the sale of around €1.600 million in gross real estate assets owned by the group, out of which 30% corresponds to heritage buildings or rented, in up to 90% occupied. Overall real estate business of Acciona is valued at around €500 million, land in and outside Spain exluded.

Battles for Realia or Colonial have woken up stong interest on the side of domestic and foreign funds, thus offers for Acciona´s real estate shall not seem surprising. Precisely, there they arrived for Transmediterranea, a shipping line put on sale many times before, and a service affiliate. (…).

 
Original article: El Confidencial (Agustín Marco)
Translation: AURA REE

Clifford to Deliver Sareb´s Property Valuation In February

Valuation of the property of the biggest real estate company in Spain, Sareb, required full-time work of over a thousand of people. The process took a year, almost double period of time estimated for the task in February 2013. (…) Also, double as much assets have been appraised during that time.

As Clifford Chance, the law firm leading the appraisal, informed that it has negotiated a new deadline with Sareb – the end of February.

The deadline for the real estate Richard Ellis to hand over the last valuations expired on Friday. Now, the time came for the auditor KPMG (…).

Although the official numbers will not have be known by the end of the process, a year ago Sareb´s portfolio was estimated to be worth about €55.000 million. That transformed the bad bank not only into the largest real estate firm in Spain but also as the most ambitious one in terms of property appraisal. (…)

Clifford coordinated the work, and has been assisted by other law companies like: Cuatrecasas, Gómez Acebo, Pérez-Llorca or Broseta Abogados.

Original article: Expansion (Sergio Saiz)
Translation: AURA REE

Madrid Redesigns Its Hotelier Offer

The year 2014 brought Madrid a rude awakening in the hotel sector, with appearance of new establishments and a great number of ongoing projects foreseen to be finished in the next years. The tendency is growing, despite the continuous decline of the tourists in the capital. Their number fell by 30% since 2008, according to data provided by the Institute for Tourist Studies.

Francisco Arroyo, sales manager of the hotel Indigo, says that “recovery peeps in”. “(…) We target at a high aquisition power 25-45 year-olds. 80% of them is usually foreign, principally they are British and then the Northern Americans”, he adds.

(…) Among the hotels to be opened in Madrid there are: the Intercontinental Indigo Gran Vía on the Silva Street, the Meliá Inside Suecia at the 4 Marqués de Casa Riera Street, the Four Seasons in the Canalejas complex, the VP Plaza de España at 3, 4 and 5 Plaza de España Square (squattered by 2012), the Ayre Estación de Atocha in the corner of the Infanta Isabel and the Alfonso XIII streets, the One Shot at 4 Salustiano Olózaga Street and the NH Villa de Madrid at 8 Mejía Lequerica Street. (…).

We shall add several projects to the hotel list above. One of them is the hotel at 200 Castellana Street (currently in hands of Sareb, BBVA, Santander, Banco Sabadell and Reyal Urbis and on sale for €150 million), three buildings in Plaza de España Square (Torre de Madrid owned by Metrovacesa, Edificio España that is managed by Banco Santander´s real estate, the old premises of the Compañía Asturiana de Minas possessed by Teatro 1898 S.L group) and the property located at 10 Gran Vía Street.

The majority of the buildings are the subsidized ones and they need special permissions for redesign. (…).

Original article: Expansión  (Daniel J. Ollero)

Translation: AURA REE

Chinese Obtain Visas In Return For €500.000 Housing Investment in Spain

The Asian giant entrepreneur contacted the Emmigration Center of the Shanghai International Studies University (SISU) offering help in property acquisition out of the country. Then the institution sought Spanish lawyers (in this case Roca Junyent office), who in turn ran procedures to facilitate the entrance of the foreign investors into the shuttered Spanish real estate market.

Jaime Espejo from the lawyer office and an expert in the world´s second largest economy foresees closing “more than 100 transactions of this type in 2014, without doubt involving amount of at least €50 million”.

It seems a promising beginning for the Law for Entrepreneurs that came into force on September 29 last year. The regulation predicts an express residence granting in case of more than half a million investment in Spain. (…).

Where the Money Flows From?

W.R.´s payment, €520.000, as it is commonly accepted for the accounts from outside the Continental China, came from an offshore account, created in order to transfer amounts of money greater than those set by the Communist Government.

In order to prevent suspision of the money flowing from illicit sources, Spanish banks require a filled-in questonnaire and a legally submitted declaration. (…).

 Growing interest of the Chinese in Spanish real estate market is said to bring more investments, assisted by Spanish and Chinese lawyers, in the future (…).

 
Original article: Expansión
Translation: AURA REE

Purchase vs. Rent: Which Is Best in Each City?

As the price is close to hit the bottom (although Fitch has been recently assuring of the adjustment by 2015), many Spaniards ask themselves which is the best alternative nowadays: buying or renting a house.

First, one must decide upon the city and the area for living. According to Tecnitasa´s (Técnicos en Tasación S.A.) research, generally, it is more profitable to rent rather than buy in the most expensive zones of a city (up to €1.500 of savings), whereas in the places with minimum prices it is better to buy a home. 

Tecnitasa analyzed data from the principal Spanish areas in and out the cities, basing on an example of a 96 m2 flat type.

In these terms, the report reveals that the difference rate between purchase and rent is found in Madrid, Santander and Barcelona (between €1000 and €1700 more in case of buying, per month), while the smallest difference is estimated in Castellón, Huesca, Zamora and Ceuta, where the prices practically are the same (view the graph).

Better to Rent

For instance: “a property rent on the Serrano Street in the capital would cost €3.302 monthly, while pruchase €4.992, so it is more profitable to rent (€1.690 difference)”, says the study.

Other cities where it is better to rent rather than buy are: Barcelona (the Paseo de Gracia Street) and San Sebastian (Avda. Libertad, Boulevard, Plaza Guipúzcoa and the Hernani Street), with monthly savings of €1.094 and €1.018 respectively. Also, rent is more profitable in Bilbao, Barakaldo, Valladolid, Santander, Murcia and Seville. (…). In Badajoz, Lérida, Tarragona or Teruel the prices´difference is lower than €150.

Better to Buy

Seville´s the Dos Hermanas Street is a real exception, where buying a house is cheaper than renting it (-€19). Other areas, less extreme though, are Castellón (behind Estadio), Ceuta (outside Barriadas) or Huesca (Perpetuo Socorro area).

 
Original article: Expansión (B.Amigot)
Translation: AURA REE

Housing: Number of Finished Houses Falls 43.7% by November 2013

Between January and November 2013, 59.581 dwellings have been finished in Spain. This means a decline by 43.7% comparing to the same period a year before (105.827 units), according to the data from the Ministry of Development gathered by Servimedia.

In 2012, their number shrank by 28.4% (120.206), linking 6 years of continuous fall. Since the 2007 peak (641.419 finished houses), the overall drop-off is equal to 81%.

Out of all  dwellings completed in the first 9 months of 2013: 99.2% (59.097) refers to private developers and 0.8% (484) to public administrations. In regard to 2012, the numbers dipped down by 43% and 76.6% respectively.

When it comes to private enterprise, 33.555 units were finished by trading companies (annual fall of 47%), 19.471 by legal persons and housing associations (-33.5%), 4.482 by cooperatives (-45%) and 1.589 completed by other type of private developers.

On the other hand, the value of building material liquidation performance went down by 42.7%, to €7.575 million.

 
Original article: El Economista
Translation: AURA REE

CatalunyaBanc Hastens Sales of Six Assets to Gain €400 Million

8/02/2014 – El Confidencial

The Bank Restructuring Fund (FROB) prepares a quickened sale of lot in CatalunyaBanc to clear its balance up. A fistful of operations could bring it up to €400 million and improvement in the image of recently auctioned minority bank based in Catalonia.

The alienation process involves all types of assets, from loans to stakes and business units pushed for sale by Brussels´requirements. (…) Although the bank itself refuses commenting on the sale, it is said that they are the six following assets that could be acquired without the EPA in the future:

1. About €1.500 million in unpaid credits – real estate loans for less than €100.000 that could not have been assumed by Sareb. The interested funds, like Blue Crest, Centerbridge, Fortress or Elliot Associates, are handing over proposals for purchase with up to 50% discounts. (…)

2. The real estate management firm CX – after not reaching an agreement with Kennedy and Wilson, the bank puts its real estate on sale again. It could earn around €30 million for CX. Among the funds ready to pay there are Apollo, Cerberus or Magic Real Estate.

3. 10% of Applus+ – a vehicle inspection and certification company which is at the verge of appearing on the stock market. For the 10% holding the bank could receive up to €160 million. (…).

4. Credit portfolio for €6.500 million – in this case, they are not mortgage loans but credits for the low-income clients, (…). Again, vulture funds are smelling opportunity in it, calling for 30% discounts.

5. Office network outside Catalonia – Brussels imposed closing 140 sales points. CatalunyaBanc hopes to receive at least €100 million for the most attractive of them.

6. Fund management firm – it administers about €12.000 divided among funds, pension funds and SICAVs. Sale will be led by GBS Finanzas and will possibly bring a €50 million income. Anbanc is the favorite.

 

Original article: El Confidencial (Marcos Lamelas)

Translation: AURA REE

Low Cost Dwellings´Boom

The utopian vision of houses for less than €100.000 became a reality due to the long price adjustment on the market. As portal Globaliza.com informs, up to 30.8% of property advertisements concern dwellings at five-digit price, ten times more than before the recession.

During 2007 peak, (…) only 2.9% of the houses published on the website cost less than €100.000. Fernando Pinillos from the real estate portal claims that “some of the cheaper dwellings´prices have declined by 50% since first published”.

As Lazaro Cubero from Tecnocasa Group informs, “On average 64% of our transactions involve houses under six digits, also those carried out in large cities, for example in Zaragoza (76% of them), Sevilla (68%), Madrid (63%) and in Barcelona (32%)”.

In Madrid, according to data from Globaliza.com, 13.9% of the dwellings are below €100.000, whereas in 2007 their number represented a mere 0.09%. (…).

In the south of the capital, in such districts as Puente de Vallecas, Vicálvaro and Villaverde, almost half of the houses is low cost, while in the central areas their number hardly reaches 1% (in Chamartín, Salamanca, Chamberí and Moncloa-Aravaca) and 1.4% (in Hortaleza). “The most frequent flat has got 3 rooms and covers 64 square meters”. (…). Most of them need complex or partial renovation.

Cubero gives examples of houses which cheapened by about €45.000 in 3 months only and points out the districts with prices starting at €28.000.

(…) “In cities like Zaragoza, Valencia, Malaga and Sevilla mean property price is already lower than €100.000”.

Original article: El Mundo (Jorge Salido Cobo)
Translation: AURA REE

Apollo Looks For Insurance & Real Estate Companies in Spain

7/02/2014 – Cinco Dias

Apollo wants to invest in Spain. After buying Altamira from Santander and EVO Banco from Novagalicia, the U.S. fund aspires to purchase an insurance company and a real estate one, apart from credits. (…)

Before the large transactions mentioned above, Apollo bought an affiliate in Spain of Bank of America, MBNA. In September 2012 the fund acquired Citibank consumer credits and in March 2013 it bought FinanMadrid (Bankia´s branch).

Apollo Global Management undertook a threefold strategy, based on its three companies: Altamira, specialized in the real estate property, EVO Banco in credits and the still unknown insurance company. The plan is to reach €6.000 million in 5 years. To fulfill it, Apollo will also need more offices, for example in Galicia. (…).

 

Original article: Cinco Días (Ángeles Gonzalo Alconada)

Translation: AURA REE