Advero Properties Receives Green Light for Stock Market Listing on Spain’s MAB

8 November 2019 – Advero Properties has been approved for its stock market debut by the Alternative Stock Market (MAB). The firm’s board of directors set an initial share price of 6.5 euros, valuing Advero at 10.6 million euros.

The firm will trade under ‘YADV’. Solventis is the registered advisor of the company and will also act as a liquidity provider.

Original Story: La Vanguardia

Adaptation/Translation: Richard D. K. Turner

Javier Faus Launches the Meridia IV Real Estate Investment Fund

8 November 2019 – Javier Faus, the president of Meridia Capital and the Múrcia-based Círculo de Economía, announced the launch of his fourth investment fund, Meridia IV. The fund will start with an initial investment capital of 250 million euros and is forecast to invest more than 500 million euros in real estate assets during the coming years.

Meridia IV is likely to acquire between 10 and 15 real estate assets, principally offices, industrial warehouses and hotels. Faus added that the fund would focus on Madrid and Barcelona, though he is also slating 10% for investments in Portugal.

Original Story: Economia Digital

Adaptation/Translation: Richard D. K. Turner

Tightened Lending Standards Put Drag on New Developments

8 November 2019 – Developers are complaining of a lack of financing in the sector due to tightened lending standards and the high cost of alternative financing. Spain’s banks are looking to reduce their exposure to the real estate market, at a time when many of them still have extensive amounts of NPLs and REO on their balance sheets. At the same time, alternative financing vehicles often have interest rates reaching up to 10%, making many potential developments economically unviable.

A conference on financing and alternative investment in the real estate sector, organised by the IE Real Estate Club and the Urbanitae real estate investment platform, saw market sources discuss the problems facing the sector.

Developers argued that banks should provide more financing to that they can build the 150,000 homes a year the country requires. Currently, sources say that banks will only extend financing to only the largest developers who can 30% to 40% of the financing using equity. Smaller firms with less access to capital are often unable to get 100% for new developments.

Original Story: Expansión – Carlos Lospitao

Adaptation/Translation: Richard D. K. Turner

Colonial Profits Soar by 40% Due to Asset Rotation Strategy and Increased Rents

8 November 2019 – Colonial posted a taxable net profit of 393 million euros in the first nine months of the year, an increase of 40% y-o-y. The firm stated that revenues went up because of its policy of asset rotation and growth in office rental prices, principally in Madrid and Barcelona.

The socimi reported that new office lease contracts this year reflect an 8% increase in prices, compared to the end of 2018. Contract renewals in the third quarter saw increases of up to 36% in Madrid and 24% in Barcelona.

Original Story: Expansión

Adaptation/Translation: Richard D. K. Turner

Dazia Capital Acquires Building in Chamberí for New Luxury Development

8 November 2019 – The Spanish investment firm Dazia Capital has finalised the acquisition of the building located at Calle de Santa Engracia 3, in Madrid where it intends to build nine luxury flats.

Located in one of the capital’s most sought-after neighbourhoods, Chamberí, Dazia Capital will transform the 19th-century building into a luxury residential development. The firm’s €14-million investment will result in nine luxury flats with common areas including a spa, indoor pool, gym and wine cellar. The flats will have up to five bedrooms, some with private pools and large terraces.

Original Story: Expansión – Rocío Ruiz

Adaptation/Translation: Richard D. K. Turner

Forcadell Reports That Take-Up of Logistics Assets Up 33% Y-o-Y in Catalonia

8 November 2019 – Between July and September of this year, operators snapped up 132,509 square meters of logistics assets in the province of Catalonia, an increase of 33% year-on-year. Operators took up a total of 465,352 square meters of surface area in the first nine months of the year, comparable to the year before, according to a new report by the Spanish real estate consultancy Forcadell.

Prime logistics assets have provided an average yield of seven euros per square meter per month. Second and third-tier assets paid six and 3.5 euros, respectively.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Mazabi to Invest €40 Million in New Co-Living Development in Madrid

8 November 2019 – The Spanish asset management Mazabi intends to invest a total of €40 million in converting the properties located at Calle de los Madrazo, 6, 8 and 10 into 25 luxury co-living flats with a total of between 60 and 80 rooms.

Mazabi is currently negotiating with potential partners to operate the development. The firm is looking to focus on three-to-twelve month rental contracts, with the development opening in the second half of 2020.

The building, which the firm acquired three years ago, has 8,000 square meters of surface area for flats, with another 2,300 m2 for stores. Of the latter, Mazabi is looking to create a flexible workspace, stores and restaurants.

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Áurea Homes to Invest €500 Million to Build a Total of 2,700 Homes in Spain

8 November 2019 – Áurea Homes stated that it is committing to investments of 500 million euros to develop 30 new projects with a total of 2,700 homes. In each case, the firm will provide 15% of the project’s total need for investment, while looking for investors to contribute the remaining 85% in each case.

Half of Áurea Homes’ developments are in the Community of Madrid, while the rest are in Navarra (approximately 400 homes under construction), Castilla y León, (270 homes), the Basque Country and the province of Seville (200 homes each) and Catalonia (120 homes).

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Terralpa Acquires the General Martínez Campos 19 Luxury Development in Madrid

8 November 2019 – Terralpa, a fund created by Ramón Hermosilla and the Mexican investors Rodrigo Lebois (Unifin) and José Ramón Liñero (Terrafondo), has acquired the General Martínez Campos 19 luxury development for €20 million.

The development, which the British fund Europa Capital (The Rockefeller Group) sold, will consist of 27 flats in a 7-floor building. The homes would have between 120 and 310 square meters of surface area, along with 57 parking spaces and storerooms.

Terralpa is planning to invest a total of 250 million euros within three to five years in the General Martínez Campos 19 development and other works in progress.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Merlin Properties Extends €129-Million Loan to San José

6 November 2019 – Merlin Properties has extended a €129.10 million loan to the San José construction group, part of a recent transaction which saw the Spanish socimi acquire a 14.4% stake in Operation Chamartín. The socimi agreed to pay €168 million as well as grant the loan to San José.

The loan is structured into two tranches, the first, worth 86.39 million euros, has a 20-year maturity and an interest rate of 2%.

The second, €42.72-million tranche, also pays 2%. Merlin structured the loan as a cash deposit to guarantee working capital financing that San José has until October 31. The second tranche will mature on December 2.

Original Story: Expansión

Adaptation/Translation: Richard D. K. Turner