Month: March 2015

Carlos Slim Joins Realia’s Board

2 March 2015 – Expansión

Gerardo Kuri Kaufmann will take on the role as Slim’s representative.

Carlos Slim is taking a role on the highest management body of the real estate company Realia, after he became a shareholder of FCC and it (FCC) decided to suspend the sale of its stake in Realia. Carlos Slim’s ‘vocal representative’ will fill the vacancy resulting from the departure of FCC’s former Chairman, Rafael Montes.

In February, FCC decided to suspend the sales process of the real estate company (Realia), in which it holds a 36.88% stake, as it wanted to rethink its strategy. The company, chaired by Esther Alcocer Koplowitz, took this decision after the Mexican acquired a stake in FCC and expressed his own interest in the real estate company.

In November 2013, FCC and Bankia announced their intention to sell Realia and since then, the company has received interest from a number of investors, including Pontegadea (the real estate company owned by Amancio Ortega), Juan Abelló, Colonial (owned by the Villa Mir Group) and several international funds.

In this regard, Hispania launched a takeover bid for 100% of the group in November last year and reached an agreement with three funds who are currently (the real estate) company’s primary creditors. Nevertheless, this transaction is currently pending approval by the CNMV.

Original story: Expansión

Translation: Carmel Drake

Intu Will Invest €425m In Its Shopping Centre In Málaga

2 March 2015 – Expansión

The British company Intu Properties confirmed yesterday that it plans to invest €425 million in the construction of a new shopping centre in Málaga, as part of its plan to create a large network of leisure and retail complexes in Spain.

In March, as a preliminary step, the group is going to ask its shareholders to approve the purchase of land close to Torremolinos for €42.1 million, where it will build the centre, which will have a gross leasable area of 175,000 square metres. The shopping centre is expected to open in 2018.

Since 2013, Intu has acquired two operational shopping centres in Spain: Parque Principado (in which the Canadian fund CPPIB holds a 50% stake) in Asturias, for €162 million and Puerto Venecia, in Zaragoza, for €451 million.

As well as the project in Málaga, the company is also considering developing centres in Valencia, Vigo and Palma de Mallorca. It expects to make its largest investment in the Oceania de Valencia complex, which could amount to €750 million.

In its results for 2014, Intu increased the valuation of its 50% stake in Parque Principiado from €81 million to €106 million. The firm is now looking for a financial partner for Puerto Venecia.

Original story: Expansión (by Roberto Casado)

Translation: Carmel Drake

Reyal Urbis’s Losses Decrease By 14% In 2014

2 March 2015 – Expansión

The real estate company, Reyal Urbis, recorded net losses of €694 million in 2014, i.e. a reduction of 14% on the losses of €807.42 million it recorded in the previous year, according to reports by the company, which has filed for bankruptcy.

Original story: Expansión

Translation: Carmel Drake

Colonial Repeats Its Sales And Records A Profit Of €492m In 2014

2 March 2015 – Expansión

An extraordinary year for Colonial.

The real estate group closed 2014 with a profit of €492 million, following the loss of €547 million it recorded in 2013. The key driver behind the turnaround in its results was the deconsolidation of Asentia, the subsidiary into which the company grouped its toxic assets. Colonial’s assets were also revalued, by 9.6% in comparable terms, to €5,757 million, which also had an effect on the income statement.

The group’s turnover amounted to €211.48 million, down 0.8%, although in comparable terms, revenues increased by 3.2%.

Colonial’s share price decreased by 2.53% in trading on Friday, to close at €0.655.

Original story: Expansión

Translation: Carmel Drake

Who’s Who In The ‘Operación Chamartín’ Project?

2 March 2015 – Expansión

Madrid / The most important real estate project to be undertaken in Spain in recent years is being driven by BBVA and the San José group, which together own the development company; three public bodies are also participating in the project, as well as companies such as Renfe.

On 30 January, a swarm of photographers surrounded tens of public figures including distinguished representatives from the financial world, such as Francisco González, Chairman of BBVA, and Spanish businessmen and politicians. It was not a chance encounter, but rather a meeting to formally present of one of the largest real estate developments ever planned in Spain and one of the most important in the world today: the Castellana Norte project.

The official presentation of the development, known until now as Operación Chamartín, put the finishing touches to more than two decades of negotiations and collaborative work between public and private companies.

The project, which will require an investment of almost €6,000 million for the development of almost 3 million square metres (of land), has required consensus from the developers, BBVA and the constructor group, San José, as well as the Town Hall of Madrid, the Community of Madrid, the Ministry of Development and executives at Renfe. But, which role will each party be taking on?

“This would not have been possible without the support of BBVA”, announced one of the real estate experts who has worked, together with 31 professional teams from more than twenty countries, on the preparation of the Castellana North project. The financial entity owns 75.5% of the plan’s developer, the Castellana Norte Madrid company (formerly Dutch), having inherited the stake from Argentaria following its acquisition in 1999. The company is the owner of the rights of 61.6% of the land (amounting to almost two million square metres).

Its partner in this (development) company is the construction group San José. The company owned by Jacinto Rey had to divest its real estate assets during the last refinancing process it underwent. Nevertheless, it managed to retain its stake in the former company Dutch, showing its commitment to this project, which is expected to be executed over 20 years.

After the Castellana Norte company, the Town Hall of Madrid owns the next largest plot of land, with a 5.3% stake. On 19 February, the Council approved the revision of the Partial Plan for the Interior Reform of Operación Chamartín (Plan Parcial de Reforma Interior de la Operación Chamartín), which will organise the 3,114,336 square metres under development.

In that document, the Town Hall has committed to carrying out the construction works of the Nudo Norte (North Junction) and Nudo Fuencarral (Fuencarral Junction) set out in the plan, although the expenses incurred will be borne by the developer.

Renfe

62% of the land owned by the company Castellana Norte was transferred from Renfe. This land is partly occupied by the train tracks that converge at Chamartín station. The railway company, which reports to the Ministry of Development, will receive €1,250 million for the transfer of this land over a 20 year period.

Furthermore, Renfe, which owns 1.4% of the land, together with Adif, will take responsibility for the execution of the remodelling of Chamartín Station; the construction of the new tunnel to connect the high speed line between Atocha and Chamartín; the construction of the stations in Fuencarral; and the construction of the structure that will cover the tracks.

Meanwhile, the Community of Madrid will be responsible for the design and execution of the construction of the new metro line that will run through the area, but the cost of that will be borne by the management company.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

‘Dear Hotel’ Overtakes Wanda In Plaza de España

2 March 2015 – Expansión

In Madrid’s Plaza de España, the hubbub of construction work is accompanying tourists as they journey into the commercial heart of the capital: Gran Vía. The Edificio España remains in tact (for the moment), as Wang Jianlin, the owner of Dalian Wanda, finalises the designs for his megaproject, which will include a hotel, shopping centre and homes.

The site that will house the future Hotel VP Plaza de España remains empty, but scaffolding is now up on the Torre Madrid, where Metrovacesa is refurbishing the building that will house a Barceló hotel – on one of the corners that Plaza de España shares with Gran Vía.

Plaza de España is also where the first of the hotels that is intended to revitalise the area will be opened. The area has been in decline since 2005, when Intercontinental closed its Hotel Crowne Plaza, which was located into the Edificio España building. Now, work is nearing completion on the Dear Hotel, a property that the Sebrango family acquired in 2012, after exercising a call option that Renta Corporación held over the building. The Sebrango family, which also owns the Hotel Chiqui (in Santander) have designed a four star hotel, with 162 rooms and it is scheduled to open on 15 May, on the day of San Isidro, one of the most important fiestas in the Spanish capital.

Roof terrace

The Dear Hotel project, which will have its entrance on Gran Vía, 80, has required an investment of €30 million – including the purchase of the building and the work required to refurbish it. Previously, the property housed homes and offices.

The hotel will have 12 floors and there will be a roof terrace and restaurant on the top floor, which its owners hope will become an iconic space for the hosting of special events in the capital. The style (of the property) will be elegant and modern, and in terms of prices, the average room will cost between €150 and €160 per night. The price of the suites will range between €250 and €300 per night and the hotel will create between 70 and 80 new jobs.

“It will be a four star hotel due to the individuality of the building, but the service and quality will be on a par with a luxury establishment”, explains its director, Francisco Sebrango. According to the owner’s forecasts, more than 60% of the hotel’s guests will be foreigners.

Since purchasing the building, the Sebrango family has received numerous offers to sell or transfer the operation of the hotel. Nevertheless, they have decided to pursue their original strategy and operate the hotel themselves. “We considered the option of a franchise agreement, but in the end we ruled that out. We want to create a unique hotel and we believe that it has the most value in our hands”.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake