Commodus Acquires Spotahome’s HQ in Madrid from Persépolis

16 January 2020 – Eje Prime

Commodus has purchased an office building located on Calle Vizcaya, 12 in Madrid from the Socimi Persépolis Investments, in an operation that represents the German investment fund’s first foray into Spain.

The property, located in the Atocha-Méndez Álvaro area of the Spanish capital, has a total surface area of 4,410 m2, spread over 7 floors, 2 basements and 15 parking spaces. It is currently leased in its entirety to the Spanish start-up Spotahome.

Commodus specialises in commercial properties, especially offices, and has delegations in Munich, Berlin, Paris and Madrid. Its property portfolio is worth more than €1.5 billion.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

APCE: Residential Development in Barcelona Plummeted by 55% During YTD Sept 2019

16 January 2020 – Eje Prime

House building in Barcelona is on the decline. The obligation, approved recently by Town Hall, to dedicate 30% of land to social housing, has resulted in a 55.3% drop in the construction of new flats during the 9 months to September 2019, according to data compiled by the Association of Property Developers of Cataluña (APCE).

In fact, Cataluña was the only autonomous region where construction fell during the first three quarters of 2019. Across Spain as a whole, the figure rose by 8.7%.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Former Corpfin Director Launches New €30M Real Estate Fund

15 January 2020 – Expansión

Two former rivals, Juan Olivié and Javier Fernández, have joined forces to create a new fund with a clear focus: the purchase of medium-sized plots of land or commercial premises, measuring between 2,000 m2 and 4,000 m2, to convert into single-operator commercial spaces for the restaurant, supermarket or DIY sectors.

Olivié (pictured above, right), Investment Director at Corpfin until now, and Fernández (pictured above, left), a director of the Germany group Ten Brinke, have created Omo Retail, a manager that seeks real estate investments with returns of between 14% and 16%.

They launched their first fund, Omo Retail Invest, in March 2019, with a €30 million investment budget, and have already closed three operations amounting to €7.5 million in total, all located in Madrid.

Original story: Expansión (by Rocío Ruiz)

Translation/Summary: Carmel Drake

UBS Sells Pepsico’s Southern Europe HQ to Aberdeen for €60M

14 January 2020 – Expansión

The Swiss bank UBS has sold an office building in the WTC Almeda Park in Cornellà de Llobregat (Barcelona) to the British fund manager Standard Life Aberdeen for €60 million.

The property has a surface area of 25,000 m2 and is partially leased to Pepsico, which recently set up its headquarters for Southern Europe there.

Original story: Expansión (by Marisa Anglés)

Translation/Summary: Carmel Drake

Kennedy Wilson Sells 10 Carrefour Supermarkets to Barings for €73.4M

14 January 2020 – El Confidencial

The US fund Kennedy Wilson has sold 10 supermarkets that are currently leased to the French retailer Carrefour to the British fund Barings for €73.4 million.

The stores are located in Madrid (2), Barcelona (4), Bilbao (1), Salamanca (1), Cádiz (1) and Almería (1), and together span a surface area of 38,800 m2 with 1,100 parking spaces. All of them are situated in central locations with good public transport links.

Kennedy Wilson will reportedly generate almost €30 million from the sale, which it plans to reinvest in new opportunities in Europe as well as in other projects already underway.

Original story: El Confidencial (by EC)

Translation/Summary: Carmel Drake

Nitsba Spain Acquires the Correos Building in Málaga for €23.5M

2 December 2019 – El Confidencial

Nitsba Spain, a company owned by the Israeli magnate Haim Tsuff, has purchased the former Correos headquarters in Málaga from the Junta de Andalucía for €23.5 million.

The property has been boarded up for a decade and, based on its current urban planning classification, its future use will be restricted to some kind of “communal residence” (for the elderly, students or children) or for other “social purposes”.

Nevertheless, a change of use could be approved to allow it to be converted into a hotel or offices, depending on the wishes of the purchaser.

Original story: El Confidencial 

Translation/Summary: Carmel Drake

Acciona & Tristán Capital Join Forces to Invest €100M in the Construction of New Offices in 22@

14 January 2020 – Eje Prime

The investment arm of the energy company Acciona has joined forces with the fund Tristán Capital to invest €100 million in the construction of an office complex in the 22@ district of Barcelona.

The companies plan to build four Leed Gold office buildings spanning a combined surface area of 31,000 m2. The construction work is expected to be completed by the end of 2021.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Dazia Plans to Invest €120M in Madrid & the Costa del Sol

14 January 2020 – Eje Prime

Dazia is planning to invest €120 million over the coming years in the residential market in Madrid and the Costa del Sol. The real estate group led by Daniel Mazin is also looking at entering the market in Barcelona, but it cautious about the regulatory challenges it would face there.

Dazia’s main focus is on residential properties ripe for renovation, buildings with and without tenants, and plots of land on which to build new real estate assets through its property development subsidiary Darya Homes. It also has a limited interest in the office segment.

Original story: Eje Prime (by Marc Vidal Ordeig)

Translation/Summary: Carmel Drake

Spain’s Banks Prepare for a Mass Sale of Refinanced Mortgages Ahead of a European Regulatory Change

14 January 2020 – Expansión

Spain’s large banks are preparing for the mass sale of refinanced mortgage portfolios to opportunistic investment funds over the course of this year, ahead of a European regulatory change that will come into effect from January 2021. The new rules will require most refinanced debt to be classified as non-performing loans, which will impose more onerous capital requirements on the entities holding those assets.

Refinanced mortgages are those whose borrowers are currently up to date with their repayments but whose terms (economic conditions or duration) have been adjusted to avoid defaulted payments.

In the year to September 2019, Spain’s eight listed banks (Santander, BBVA, CaixaBank, Bankia, Sabadell, Bankinter, Unicaja and Liberbank) removed problem loans amounting to almost €37 million from their balance sheets. No detailed figures are compiled about refinanced mortgages, but sources in the sector estimate that a new market worth thousands of millions of euros could be generated as a result of the upcoming legislative change.

According to the new criteria to be introduced by the European Central Bank, refinanced loans will be classified as non-performing if the associated income generated by them falls by more than 1% as a result of the new terms of the loan. With such a strict threshold, almost all such loans will, therefore, be classified as non-performing.

In this context, a new market is expected to emerge whereby the banks try to divest portfolios of refinanced mortgages that are still considered healthy, but at lower prices.

The likely winners will be opportunistic funds, such as Cerberus, Blackstone and Lone Star, which typically buy doubtful assets with average discounts of 70%, and go on to generate double-digit returns through a combination of synergies and economies of scale.

Original story: Expansión (by R. Sampedro)

Translation/Summary: Carmel Drake

Árima Buys an Office Building in Madrid for €37.75M

14 January 2020 – Expansión

Árima Real Estate has acquired an office building in the Campo de las Naciones area of Madrid for €37.75 million.

The property, which has a surface area of 14,000 m2, represents the Socimi’s eighth purchase and takes its total investment figure since making its stock market debut a year ago to €216 million.

Árima now plans to remodel the building, and to this end has engaged the architecture studio Lamela. The renovation work is expected to be completed at the beginning of 2021.

Original story: Expansión (by Rocío Ruiz)

Translation/Summary: Carmel Drake