GreenOak Acquires 720,000 m2 of Logistics Space in Spain and France

25 September 2018 – Eje Prime

GreenOak is on the hunt for logistics assets in Europe. The fund manager has purchased 720,000 m2 of industrial space in France and Spain. These latest acquisitions increase the company’s logistics assets and projects under development to 1.8 million m2.

GreenOak’s Spanish investments comprise two cold storage facilities in Barcelona and Valencia, leased in their entirety to Spanish companies in the food logistics sector.

In France, the manager has acquired twenty warehouses and cold storage facilities, located mainly around the principal nuclei along the logistics corridor between Paris, Lyon and Marseille. Its tenants include Carrefour, Easydis, CDiscount and Dachser.

GreenOak owns a portfolio of logistics assets in France, the Netherlands, Italy and Spain. Most of its assets are facilities with an average size of 37,000 m2.

The fund is present in almost all of the markets of the Spanish real estate sector. One of its main assets is Las Mercedes Business Park, one of the largest business parks in Madrid.

Original story: Eje Prime

Translation: Carmel Drake

Torre Sevilla Shopping Centre Opens its Doors

26 September 2018 – Eje Prime

Torre Sevilla has been completed, six years on. The shopping centre, promoted by CaixaBank, will open its doors to the public today, whereby culminating an urban development program that began to take shape in the 1990s. The complex alone, located in the centre of Sevilla, has involved an investment of €100 million, a third of the total amount spent on the macro-project.

Torre Sevilla is opening its doors at the height of the Retail Apocalypse and at a turbulent time for the sector in Sevilla: Palmas Altas announced last week that it has changed its name to Lagoh, whilst the Alcora shopping centre project has been cancelled.

The new complex in Sevilla is a mixed development that includes, as well as a shopping centre, an office building, a Eurostars hotel, CaixaForum Sevilla and Parque de Magallanes. The shopping centre, designed by the Argentinian architect César Pelli, comprises two large buildings with a gross leasable area (GLA) of 26,700 m2 and a constructed surface area of 43,000 m2.

The complex will open its doors with a 95% occupancy rate, and with Primark, Fnac and Ikea as the drivers. “People don’t go shopping anymore, they go for a walk, and formats such as hypermarkets are no longer the drivers”, explains Antonio Cayuela, President of BuildingCenter and sole administrator of Puerto Triana (the company that controls the complex).

In this sense, Cayuela emphasises the location of Torre Sevilla, in the heart of the city, and its integration with the office building and hotel, which ensures footfall “every day of the week”.

“Shopping centres are changing, just like retail: the trend is now returning to local businesses, with smaller but very accessible formats, close to the city”, says the executive. The property developer forecasts that the centre will receive around 8 million visitors per year.

Torre Sevilla’s offer includes, amongst others, the first stores from Ikea, Primark and Xiaomi in the city centre, as well as restaurants and services such as a gym and a catering facility – a cross between a supermarket and a restaurant – serving homemade food to take away.

“Hypermarkets are no longer the drivers”, says Cayuela. “We have ruled out cinemas, because they occupy a lot of space, because there are lots of them and because in the era of Netflix, they are no longer attractive”, he says.

“Omnichannel” corner to compete with the internet 

In this sense, Torre Sevilla is also planning to incorporate new concepts over the medium term to encourage omnichannel integration and attract footfall to the complex at a time when the online channel is gaining more and more traction.

In this sense, the company will launch a space called Omni Tech, which will integrate different omnichannel tools, such as click and collect. “We want to be a leader in the implementation of new ideas in terms of omnichannels; although I do not think that the online channel will ever completely substitute a physical purchase, it is important to have a good experience in person to attract people to stores”, says the executive.

Original story: Eje Prime (by Iria P. Gestal)

Translation: Carmel Drake

Four Seasons to Invest €600M in a New Resort in Marbella

27 September 2018 – Diario Sur

The Four Seasons hotel chain, one of the world’s leading luxury tourism companies, is preparing to make its debut on the Costa del Sol with a resort in which it plans to invest €600 million. Although this will be the brand’s second project in Spain, given that it has been working on the construction of a 22-room hotel in Madrid since last year, this latest initiative is much more ambitious, both in terms of volume and location.

The resort is going to be built on a plot measuring around 400,000 m2 on the beach front and which occupies land on both sides of the A-7 motorway. It is the last plot of its kind that has not been built on yet in one of the most sought-after parts of Marbella, in the Los Monteros area.

The plot is owned by Villa Padierna, which is, in turn, owned by the Málagan businessman Ricardo Arranz, who has teamed up with the US firm Fort Partners for this development and the Brussels-based real estate firm Inmobel. Four Seasons will participate not only in the management of the hotel, it will also lend its name to the whole development, which will include private residences and villas in addition to a 200-room hotel. The complex will also include restaurants operated by international brands, which will make their debuts in Spain with this project.

It is expected that the urban developments will occupy approximately one quarter of the 400,000 m2 land. The project will be developed by the architect Richard Meier and construction work will begin as soon as the execution has been completed of a partial plan that has already been approved, according to explanations from Arranz.

One of the most notable features being planned is a tunnel underneath the road, which will allow the hotel and the homes that are going to be built to the north of the motorway to have sea views. The corresponding permits for that piece of work have already started to be processed.

Arranz highlighted the transcendence that the arrival of a leading brand such as Four Seasons has for Marbella and the Costa del Sol as a whole. It will be the first firm of its standing to operate in Andalucía and it will play an important role in the battle against seasonality given the large portfolio of clients that it enjoys (…).

Original story: Diario Sur (by Héctor Barbotta)

Translation: Carmel Drake

Hispania Signs €340M Financing Agreement with BNP Paribas

26 September 2018 – Hosteltur

Hispania Activos Inmobiliarios has signed an agreement with BNP Paribas to open a financing line amounting to €340 million to finance and/or refinance its debt, according to a statement filed by the Socimi today with Spain’s National Securities and Markets Commission (CNMV).

In the relevant fact, the company reports that on 25 September 2018, it signed the aforementioned agreement with the entity “under market terms, amounting to €340,000,000, to finance and/or refinance debt held by the group’s entities upon their maturity, plus commissions, costs and expenses”.

This new financing arrangement will expire on 16 February 2020, although it may be extended twice by the company for one year each time.

Hispania recorded a net profit of €71.9 million during the first half of this year, 55% less than during the same period in 2017 when it earned €161.4 million. That decrease was basically due to the recognition of a provision for the fees to be paid to Azora, the former manager of the group. As Hosteltur reported, the relationship between the two entities was terminated on Monday, with Concha Osácar and Fernando Gumuzio, the owners of Azora, leaving the Board of Directors of the Socimi.

Blackstone, the new owner of Hispania, has paid €224 million to the manager by way of compensation for the early termination of Hispania’s asset management contract, which covered its hotels, offices and residential buildings. The indemnity amount was calculated on the basis of the manager’s base fees (€33.6 million) and success fees (€190.8 million), according to the terms specified in the “Termination Letter”, following the success of the takeover bid launched by the US fund for 100% of the Socimi.

Nevertheless, in terms of the results during the first half of the year, Hispania’s operating profit grew by almost 16%, to €57.1 million, whilst its revenues amounted to €85.3 million, which represents an increase of 9.8%.

Revenues from rental income amounted to €80.9 million, up by 14%. Of that amount, €67.9 million corresponded to hotels, €11.3 million to office buildings and €1.7 million to homes.

At the end of the first half of the year, the gross value of Hispania’s assets amounted to €2.818 billion, which represents an increase of 60.8% with respect to their acquisition price and of 43.3% compared to the total investment.

Original story: Hosteltur

Translation: Carmel Drake

Corpfin Capital Real Estate will Debut 5 Socimis on the MAB in 2019

26 September 2018 – Voz Pópuli

Corpfin Capital Real Estate Partners is planning to debut five new Socimis on the Alternative Investment Market (MAB) under the name Inbest before September 2019.

By the time they make their debuts, the Inbest Socimis will have an investment volume of almost €400 million. The Socimis intend to carry out investments with an average volume of between €50 million and €60 million to acquire properties located in commercial areas of Madrid and Barcelona, as well as in the main provincial capitals, and to provide them with added value and convert them into retail premises and flagship stores for major brands.

The management company of Inbest Socimis is currently in the process of becoming a management company that will be regulated by Spain’s National Securities and Markets Commission. It is chaired by Javier Basagoiti (pictured above), founding partner of the firm together with Carlos Lavilla and Patrick Gandarias. Basagoiti founded Corpfin Capital Real Estate in 2008 in conjunction with Felipe Oriol. Ana Granado, who joined the firm as the Managing Director last year, after working at Santander, Aguirre Newman and Deloitte, will lead the Inbest team, which will comprise 13 professionals in total.

Inbest will finish this year having raised €200 million during the year from various investors and plans to end its investment period in December 2021.

Corpfin Capital Real Estate’s real estate operations include the rental to Apple of its store in Valencia, a residential building that was renovated and whose use was modified to commercial, which was subsequently acquired by Pontegadea, the investment company owned by the Zara founder, Amancio Ortega; the renovation of a old bank branch in San Sebastián, which has now been converted into a shopping arcade that is home to major fashion labels; and the purchase of the premises that used to house the former Nebraska cafeterias in Madrid, establishments that are now occupied by McDonalds and VIPS.

Through Inbest, Corpfin Capital Real Estate wants to take advantage of the boom in the commercial real estate sector, which reported record investment figures in 2017.

The trend of the major brands is to occupy large retail spaces in the main shopping areas of cities, leaving smaller establishments and those set away from the prime areas, whereby opening a niche in the market in which Inbest is specialising. The consolidation of the e-commerce sector has also influenced this change in trend.

Original story: Voz Pópuli (by Alberto Ortín)

Translation: Carmel Drake

Azaria Rental Debuts on the MAB with a €125M Investment Plan

25 September 2018 – Eje Prime

Azaria Rental made its debut on the stock market today with the clear intention of expanding its asset portfolio. The Socimi, specialising in the rental market and managed by Drago Capital, started trading at a price of €5.40 per share, which means that its valuation amounts to €45 million, according to a statement filed by the company with the Alternative Investment Market (MAB).

On its first day on the MAB, the Socimi confirmed its plan to search for new investment opportunities to increase returns for its shareholders. Specifically, according to Mayte Medina, CEO of Drago Capital, the firm’s future acquisitions are expected “to amount to €125 million in total”.

Currently, Azaria Rental owns just one asset: a 100% stake in Bifur Investments, the owner of the industrial and office complex located at number 40 Calle Miguel Yuste in Madrid, which houses the headquarters of the El País newspaperThe property spans a surface area of 46,480 m2 and comprises five buildings, leased to the Prisa group until 2033 for €4.9 million per year, according to Expansión.

Azaria Rental is the 19th Socimi to debut on the MAB so far this year. The objective of the company is to create a real estate investment vehicle to generate returns of between 4% and 5%, “from rental contracts with a net triple income profile over the long-term”.

Meanwhile, Drago Capital is a real estate asset management company that operates in the Spanish market as well as in the United States of America. Founded in 2001 by a group of professionals from the sector, it has offices in Madrid, Lisbon and Miami.

Original story: Eje Prime

Translation: Carmel Drake

Three New Tenants Move into Torre Espacio

25 September 2018 – Eje Prime

Torre Espacio is almost completely full. The Spanish group Villar Mir has added three new tenants to its property on Paseo de la Castellana in Madrid. The companies have leased 3,019 m2 in the property.

Thanks to this operation, the Spanish group led by Juan Miguel Villar Mir has leased 94% of the total surface area of Torre Espacio, the fourth tallest skyscraper in all of Spain. The supermarket cooperative Coviran, the application design firm Mobetia and the fibre optic operator Ufinet are the three companies that will now carry out their activity in the building.

The property is distributed over 57 floors and is currently owned by the Philippine group Emperador. Its tenants include several embassies, such as those of Australia, Canada and the United Kingdom, as well as the Spanish Banking Association (AEB) and firms such as Red Bull and Equifax.

The arrival of the new companies in Torre Espacio comes in the middle of the divestment plan in which Villar Mir is immersed. A few months ago, it sold 12.2% of its shareholding in OHL, reducing its stake to 38.2%. The main reason for that move was to decrease the group’s debt.

In August, Villar Mir sold the 32.5% stake that it held in the share capital of Project Canalejas to OHL, the construction firm owned by the holding company, for €50 million, according to a statement filed by the company with Spain’s National Securities and Market Commission (CNMV).

Original story: Eje Prime

Translation: Carmel Drake

Redevco & Ares Invest €45M in the Renovation of Parque Corredor

26 September 2018 – Eje Prime

Redevco and Ares are pampering their new asset. Redevco Iberian Ventures, the joint venture between the two companies, is going to spend €45 million on the renovation of Parque Corredor, the retail complex in Torrejón de Ardoz (Madrid) that it purchased at the beginning of the year.

The owner expects the work to completely renovate the asset, which spans a surface area of 123,000 m2, to begin in 2019. Moreover, the company has already signed the renewal of Primark’s rental contract in the centre and is closing agreements for the incorporation of new chains.

The project will focus initially on the fashion area, creating new façades and accesses. It will also modernise the parking lot, which contains 4,000 parking spaces, and will renovate the common areas and the lighting.

The new design has been created by the architecture studio Chapman Taylor. The execution of the project will be led by the architecture studio Arpv and coordinated by Gleeds. Cushman&Wakefield is managing and marketing the retail spaces.

Redevco Iberian Ventures acquired 70% of Parque Corredor in February for €140 million. Another 20% is controlled by Alcampo and the remaining 10% is in the hands of small owners. Over the last twelve months, the complex has received 11 million visitors, 4% more than during the same period in the previous year. Its offer includes several Inditex chains, H&M, Mango, Kiabi and C&A.

Original story: Eje Prime

Translation: Carmel Drake

Tritax Purchases Mango’s Logistics Centre from VGP for €150M

26 September 2018 – Expansión

Less than two years is the time that Mango’s logistics platform has been in the hands of the Belgian group VGP. In December 2016, the Brussels-based firm paid €150 million for the logistics complex that Mango had built in Lliçà d’Amunt (Barcelona) and which has a surface area of 250,000 m2 together with some adjoining land on which an additional 100,000 m2 may be built.

According to sources speaking to Expansión, VGP has just sold the asset to the British group Tritax Big Box, a firm listed on the London Stock Exchange.

The buyer of the complex, which Mango inaugurated in the middle of 2016, is a real estate investor specialising in the logistics market. Some of its largest properties include logistics platforms leased to large companies such as Amazon, Unilever, Kuehne+Nagel, L’Oréal, Hachette, Whirlpool, Kellogg’s, Tesco and DHL.

At the end of 2017, Tritax’s portfolio was worth GBP 2.61 billion (€2.92 billion at current exchange rates), 38.1% more than the previous year. Tritax has been advised by the law firm Ashurst in what has been its first operation in the Spanish market. VGP has been advised by the real estate consultancy firm JLL.

Last summer, Tritax raised €300 million through a public offer for sale on the London Stock Exchange. The objective of its managers is to use that money, together with external financing, to acquire logistics properties in Continental Europe.

“Barcelona is the second largest city in Spain and its logistics market is one of the strongest in Europe, with high demand and a limited supply of buildings and land, especially for logistics assets of this kind”, said Nick Preston, manager of Tritax Eurobox, in a statement.

The lease contract for the logistics centre, which has a surface area of 186,138 m2, has a 30-year term, until 2046, although Mango has the option to cancel it in 2036, 2039 and 2042. According to Tritax, the annual rent that Mango pays will allow it to obtain an annual yield of 5%.

Isak Andic decided to build this logistics platform in response to the increase in sales that the fashion chain was experiencing, although that growth has slowed in recent years.

Last year, Mango recorded losses of €33 million, down by 46% compared to 2016, the year in which the company recorded negative results for the first time in its history, with losses of €61 million. In 2017, sales decreased by 2.9%, the same drop as the previous year, and amounted to €2.194 billion.

Divestment

The sale of the logistics centre was the first divestment that Andic made after investing a large proportion of his profits in the real estate sector in previous years. But it was not the last, given that a year later, in December 2017, he sold the chain’s headquarters, located in Palau-solità i Plegamans (Barcelona) to the British group Invesco for €100 million.

Original story: Expansión (by M. Anglés, S. Saiz & R. Casado)

Translation: Carmel Drake

BBVA & Cerberus Name Their Real Estate Macro-Alliance ‘Divarian’

14 June 2018 – La Información

Cerberus and BBVA have put a name to their macro-alliance. The partners have chosen ‘Divarian’ as the name of the corporate entity into which they will deposit and through which they will manage the sale of the €13 billion gross in property proceeding from the bank. The logo mimics the images of the two partners given that it is blue in all its tones and shades.

The brand was registered by Promontoria Marina, the subsidiary of the US fund that will be used to close the transaction, in April in the Official Gazette of Industrial Property (Bopi), and BBVA has just extended it to two of its subsidiaries, renaming the asset holding company BBVA Propiedad as Divarian Propiedad, and the property developer Anida as Divarian Desarrollos Inmobiliarios. In the case of the latter, the change of name comes into force immediately given that instructions have already been given internally for it to be used in all operations signed from now on.

The recent name dance is fueling expectations that these two subsidiaries of BBVA will end up under the umbrella of a macro-holding company or, even, carrying out promotion activity, although that activity was covered by the US fund with the acquisition of the Burgos-based Inmoglacier. Owner of the property developer and servicer – Haya Real Estate – Cerberus will complete the real estate puzzle when it formalises the transaction with the bank because it will also become the owner of the assets.

BBVA, which had always moved against the tide of the financial sector when it came to the sale of businesses and subsidiaries, surprised everyone last year by putting the bulk of its property on the market. Cerberus was the successful buyer of the portfolio, and so it signed a deal to transfer €13 billion of the total €17.8 billion in gross exposure to a company in which the fund will control 80% and the bank will retain the remaining 20%. BBVA is following in the footsteps of Santander, which removed €30 billion gross (€10 billion net) from its balance sheet inherited from Popular, and transferred it to a subsidiary in which Blackstone purchased a 51% stake and Santander retained the remaining 49% (…).

Cerberus has focused on documenting and selecting assets with the intention of generating some plots of land for Inmoglacier, dedicating some assets to rent and, even, packaging up certain other properties likely to offer maximum returns into Socimis, and divesting the rest through portfolios or as independent units. The teams are working against the clock, with the support of staff from Anida who are working from Cerberus’s offices in Madrid, according to sources close to the process (…).

Original story: La Información (by Eva Contreras)

Translation: Carmel Drake