The Pace of NPL Sales Falters in Spain

6 December 2019 – Spanish banks have reduced their pace of sales of NPLs this year, as CaixaBank, Sabadell, Bankia, Bankinter, Unicaja and Liberbank unloaded a total of just 4.9 billion euros in the first nine months of 2019. Those financial institutions wrapped up the quarter with €35.006 billion of such assets on their books, 12% less than at the beginning of the year. In contrast, Spain’s banks in sold off €90 billion in non-performing loans and REOs in 2018.

Standard & Poor’s, on the other hand, published a report in February estimating that Spain’s banks should rid themselves of €30 billion in NPLS between 2019 and 2020. That figure would have lowered their collective NPL ratio to below 4% compared to 7% at the time. Both S&P and Spain’s central bank also argued that the banks needed to increase the pace of sales to prepare for a potential slowdown in the economy.

Original Story: El Economista – Eva Díaz

Adaptation/Translation: Richard D. K. Turner

 

Sire Acquires Portfolio of Logistics Assets in Zaragoza

5 December 2019 – Strategic Industrial Real Estate (Sire), a joint venture managed by Arrow Capital Partners, has acquired a portfolio of logistics assets in Zaragoza. The deal, in conjunction with Cerberus, includes 38,536 square meters of gross leasable area worth 20 million euros. Savills Aguirre Newman and Latham & Watkins advised on the acquisition.

Sire has €2 billion to invest in European logistics and industrial assets.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

AliExpress Intent on Acquiring Land to Build a Logistics Platform in Seville

5 December 2019 – AliExpress, the international subsidiary of the Chinese e-commerce giant Alibaba, is looking to enter the fray in Europe by acquiring land for a major logistics centre in Spain. Just a year ago, the firm partnered with El Corte Inglés to open its first brick-and-mortar store on the continent, in Madrid. Now AliExpress, whose second-largest overseas market is Spain, is looking to develop a new logistics centre in the metropolitan area of ​​Seville.

The firm is following in the footsteps of its principal competitor, the US behemoth Amazon. AliExpress is now looking to build a 120,000-m2 logistics platform in the Megapark Business Estate, where its rival has a 200,000-m2 facility.

AliExpress’s immediate needs include an approximately 60,000-m2 warehouse, with the possibility of further expansion. Megapark benefits from easy access to rail, road and maritime transport links.

Original Story: El Confidencial – Carlos Pizá de Silva

Photo: Reuters

Adaptation/Translation: Richard D. K. Turner

Zaka Investments and Evok Hotels to Open Luxury Hotel Designed by Philipe Starck in Madrid

4 December 2019 – The consultancy Savills Aguirre Newman announced that it had sold the office building located at Gran Vía 20 in Madrid on behalf of Cajalmendralejo to the French firm Zaka Investments for 44 million euros.

The property, which was home to offices of the regional government, will be converted into a luxury hotel designed by Philipe Starck. The Parisian firm Evok Hotels Collection will take over the management of the hotel, its first in Spain.

Cajalmendralejo originally acquired the building, which has eleven floors and 4,500 square meters of above-ground surface area, in 2014, when it paid 20 million euros for the asset at a public auction.

Original Story: La Vanguardia / Europa Press

Adaptation/Translation: Richard D. K. Turner

Amro Real Estate Acquires Land in Valencia for New Student Residence

4 December 2019 – Amro Real Estate has finalised the acquisition of a plot of land in Valencia where it plans to build student housing. The residence, the firm’s fourth in Spain, will have 5,000 square meters of constructed surface area, with 170 beds.

The project, which includes a rooftop pool and gym, will be located a short distance from the Catholic University of Valencia (UCV). Construction is set to begin in 2020 and open to students in the summer of 2022.

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Atom Hoteles Acquires Hotel in Cádiz for €15 Million

4 December 2019 –

The socimi Atom Hoteles has finalised the acquisition of a hotel in Cádiz for 15 million euros. The four-star hotel is located in the city’s historic centre.

The socimi funded the operation using equity but is also studying possible debt financing. Atom Hoteles will also sign a ten-to-twenty year management contract with Hoteles Playa group.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Cerberus and Tilden Park Each Look to Acquire Lezama Portfolio

4 December 2019 – Cerberus and Tilden Park are vying to acquire Kutxabank’s last large portfolio of bad debts. The two investment funds are looking to buy €400-million portfolio of non-performing loans, called Lezama. Kutxabank’s sale would put its NPL-ratio at less than 2.5%.

The acquisition would be Tilden Park’s first in the Spanish market. Josh Birnbau, a former executive at Goldman Sachs, founded the firm after he became famous for taking a large bet against sub-prime mortgages, one that earned his former company €2.277 billion.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Unemployment to Fall to Pre-Crisis Levels in Madrid

3 December 2019 – The Community of Madrid has had a series of years of growth above the average for Spain as a whole. According to the forecasts by BBVA Research, Madrid had the highest regional growth in 2018 and will continue to do so in 2019 ad 2020. Thus, in 2020, unemployment in Madrid is expected to fall to pre-crisis levels, which, until now, had only been done in the Balearic Islands and the Canary Islands.

BBVA Research stated that GDP in the Community of Madrid is expected to grow by 2.6% this year, a significant reduction in the pace of growth compared with last year (3.7%). The regional average for the country as a whole, however, only reached 1.9%. Next year, growth in Madrid is expected to fall to 2.2%, compared to the Spanish economy at 1.6%.

Original Story: Expansión – Pablo Cerezal

Adaptation/Translation: Richard D. K. Turner

Idom Hires Savills to Sell its Headquarters in Madrid and Bilbao

3 December 2019 – The Basque engineering firm, Idom, has given a mandate to the consultancy Savills Aguirre Newman to sell its headquarters in Madrid and Bilbao. The firm intends to stay on in the offices, in what is known as a sale and leaseback operation.

The firm’s headquarters is located in the neighbourhood of Montecarmerlo in Madrid, while the property in Bilbao is on the Deusto canal in front of Zorrotzaurre.

Idom is reportedly negotiating with two investment funds. The sale could potentially be worth more than €80 million.

Original Story: Expansión – Rebeca Arroyo / Marian Fuentes

Adaptation/Translation: Richard D. K. Turner

Madrid Budgets €21 Million to Buy Land for Public Use

3 December 2019 – The political parties PP and Cs’ new budget for the Madrid City Council’s includes €21 million to acquire new land for additional housing and other public needs. The budget increases the Municipal Housing and Land Company’s budget by 16.19% to 180 million euros.

These new lands would consist of new facilities around the airport, a new residence for senior citizens in Puente de Valleca. The municipal company would also acquire land in Campo de las Naciones to add to the Metropolitan Forest.

Original Story: La Vanguardia

Adaptation/Translation: Richard D. K. Turner