Celsa Sells Land In Santander To Ratisbona For €1.1M

3 May 2016 – Expansión

Celsa is selling land in Cantabria. The steel group owned by the Rubiralta family, which began negotiations to refinance its bank debt (€2,700 million) a few weeks ago, is finalising an agreement to sell off some land owned by its subsidiary Global Steel Wire (GSW) in Santander. The land in question is assigned for non industrial use. The plot is located on the Nueva Montaña industrial estate and has a total surface area of 3,167 m2.

According to sources close to Celsa, the sale is expected to be completed before the end of the month, for a consideration of €1.1 million. The purchaser is Ratisbona, a German company – with a subsidiary in Spain – which is dedicated to the promotion, construction and sale of warehouses assigned to supermarkets and retail parks, and which has carried out projects for chains such as Aldi, Lidl, Mercadona and Aki.

Background

This is not the first time that Celsa is selling land in Santander. In 2014, it sold another plot in Nueva Montaña, where the chain Bricomart built a centre. In 2015, the group commissioned Aguirre Newman to sell a portfolio of real estate assets owned by GSW in Santander, Castellbisbal and Sant Andreu de la Barca (Barcelona) and Toledo.

In the context of its negotiations with the banks, Celsa has submitted an industrial plan to its lender entities, which features a lamination factory in Bayone (France) as its star project, with an investment of up to €60 million.

Original story: Expansión (by J.Orihuel)

Translation: Carmel Drake

Segro Acquires Coslada II Logistics Centre From Royal Premier

27 April 2016 – Press Release

The British company Segro has acquired the Coslada II Logistics Centre, located on Avenida de la Cañada in Coslada, from Royal Premier in an operation advised on the buy-side by Proequity and on the sell-side by CBRE.

Through this acquisition, Segro becomes the owner of one of the most emblematic industrial parks in the Corredor de Henares: the industrial, business and residential hub located between Madrid and Guadalajara. The asset, one of the most flexible parks in the prime market in Madrid, has a constructed surface area of 16,202 m2, divided into four platforms measuring approximately 4,000 m2 each. Currently, the property is leased to several tenants occupying modules with a minimum surface area of around 1,000 m2 each.

Marco Simonetti, Business Director at Segro for Southern Europe said that: “This is a major operation for Segro, in line with our strategy for expansion in Southern Europe. We believe in the potential and growth of Spain, and so we have acquired this industrial park, which has an ideal location, in one of Madrid’s most important hubs”.

Segro will carry out an improvement plan at the park this year to upgrade the existing facilities and offer better services to the property’s current and future tenants.

Original story: Press Release

Translation: Carmel Drake

Redevco Iberian Ventures Buys 6 Retail Parks From Bogaris For €95M

27 April 2016 – Expansión

The shopping centres are located in Extremadura and Andalucía and have a combined surface area of 84,250 m2.

Redevco Iberian Ventures, the joint venture created between Redecvo and the funds managed by Ares Management, has acquired six retail parks located in Extremadura and Andalucía from the property developer Bogaris for approximately €95 million.

The parks, which have a combined surface area of 84,250 m2, are leased almost in their entirety to tenants such as the supermarket chains Mercadona, Aldi and Día, the fashion brands C&A, Kiabi and Merkal Calzados, and operators Burger King, Media Markt, Sprinter and Aki Bricolaje.

Specifically, the parks are: Mejostilla, in Cáceres; Kinepolis Pulianas, in Granada; Marismas del Polvorín, in Huelva; La Heredad, in Mérida; Retail Park, in Motril; and La Serena, in Villanueva de la Serena.

Ares and Redevco announced the creation of Redevco Iberian Ventures in September 2015 and following this operation, the total capital invested by the joint venture now exceeds €200 million. JLL and Deloitte acted as advisors to Redevco Iberian Ventures in the operation.

Original story: Expansión

Translation: Carmel Drake

SEA Sells 43,141m2 Of Industrial Land For €2.1M

25 April 2016 – El Economista

The public company Suelo Empresarial del Atlántico (SEA), owned by the Ministry of Development, through Sepas, has sold 43,141 m2 of industrial land as the result of a public tender that was convened at the beginning of the year.

According to the Ministry of Development, a new public auction was convened at the beginning of the year whose result has involved the sale of 15 new plots of land for €2.1 million.

The company has just approved its annual accounts for 2015, with a positive net result of €431,044.

According to the data published, the company has sold 28 plots in total, spread across 10 business parks, with a combined surface area of 81,087.96 m2, for €3.6 million.

Original story: El Economista

Translation: Carmel Drake

Manchester City’s Owner Buys 8,300ha Estate In Extremadura

18 April 2016 – El Mundo

Mansour Al Nayhan (pictured above), the owner of the English football club Manchester City, for which he paid more than €300 million, is a different kind of sheikh. Far from setting his sights on Marbella or Ibiza, like other wealthy Arabs, one of the 19 siblings of the emir of Abu Dhabi has been seduced by the Extremaduran countryside. Last Friday, it was revealed that he has acquired Los Quintos de San Martín, an 8,300 hectare estate in the small Extremaduran town of Valencia de las Torres, which has been owned until now by the Mora-Figueroa family. The price: almost €55 million. (…).

Specifically, the member of the Emirati royal family has done business with Ramón Mora-Figueroa Domecq, from Jerez, one of the most important landowners in Andalucía, who has managed the family estate until now. According to Forbes’ rich list for 2015, Ramón and his siblings (Silvia, María and Fernando) have a combined fortune worth more than €7,000 million. The four manage an extensive network of estates, land, vineyards, properties, industrial warehouses and concessions – Los Guadares, Canteruelas, Agriculturas Diversas and Netco are the largest ones – which makes them one of the most influential families in the south of the peninsula. (…).

Mansour’s fortune comes from black gold (his father, the sheikh Zayed bin Sultan Al Nahyad discovered oil in the UAE in 1958 and was the first President of the country). The sheikh plans to improve sheep farming on the estate, through which the Matachel river runs, to include another 8,000 heads (there used to be 12,000) and to export thousands of lambs each year (…).

Original story: El Mundo (by Borja Ruiz)

Translation: Carmel Drake

Adveo Sells An Industrial Warehouse In Cornellà For €4M

17 March 2016 – Diario Vasco

Through its subsidiary Monte Urgull, Adveo has completed the sale of an industrial warehouse in Cornellà de Llobregat (Barcelona) to Rentauro for €4 million. The consideration has already been received in full by the office supply company.

The operation, which forms part of Adveo’s new strategic plan, has generated a loss of more than €1 million for the group, according to a statement made by the company to Spain’s National Securities Market Commission (CNMV).

No debt was associated with the asset and so the net amount from the operation will be recorded directly as cash and will contribute to reducing the company’s net debt, which, amounted to €305 million as at 31 December 2015.

The property, acquired by Monte Urgull in 2002, has been leased since its purchase to the entity Saint Gobain Idaplac, but that lease contract is due to end in May this year.

Original story: Diario Vasco

Translation: Carmel Drake

Evo Buys GE’s Spanish Mortgage Business For c. €300M

14 April 2016 – Expansión

As a result of this operation, involving Evo’s acquisition of almost €400 million in mortgages from GE Capital, Apollo’s subsidiary expects to increase its balance sheet by 10% and its loans to customers by 25%.

(…). The Spanish subsidiary of the US fund Apollo is acquiring General Electric’s mortgage business in Spain: almost €400 million in loans to individual borrowers, according to financial sources consulted by Expansión. According to the same sources, Evo will pay almost €300 million for the portfolio.

This operation brings the bank led by Enrique Tellado closer to its objective of achieving critical mass to emerge from the red in 2016.

Since Apollo acquired Evo, the former subsidiary of NCG Banco, the entity has registered three consecutive years of losses: €3.6 million in 2013, €78 million in 2014; and €13 million last year, according to the latest figures published, as at September, according to the Spanish Banking Association (AEB).

GE Capital Bank, the financial arm of GE, launched this divestment last year, as part of Project Zágato, advised by PwC. The portfolio, worth €400 million, contains 5,000 mortgage contracts and mainly contains loans that the US entity granted through APIs (real estate agents).

With this sale, GE Capital Bank is virtually shutting down its business in Spain, following the transfer of its leasing portfolio to Incus Capital, at the end of last year; and the repayment of the majority of its consumer loans.

This departure is the response to a change of strategy for the multinational company at the global level. At the beginning of 2015, GE decided to divest the majority of its financial business to focus on its industrial turbine, aircraft engine and medical equipment businesses, amongst others. It did so because of the risk posed by this financial exposure following the outbreak of the subprime mortgage crisis in 2008. At the time, the group had financial assets worth $500,000 million (€438,400 million).

Since then, GE Capital has been selling off parts of this business through different agreements in different countries, such as those signed with Evo and Incus in Spain.

This subsidiary reached its peak in Spain with partnerships that it signed with CAM and BBK before the crisis.

In 2008, it recorded losses and has remained loss-making ever since.

Quantitative leap

Project Zágato allows Evo Banco to make a significant quantitative leap. The portfolio acquired represents around 10% of its current balance sheet, which according to data from AEB as at November amounted to €4,000 million. The growth in terms of loans to customers is greater, almost 25%, given that it held €1,771 million last November.

Apollo’s standard strategy since it arrived in Spain has been to make purchases of entities, such as Evo Banco, which it acquired in 2013. Evo’s loan portfolio comprises purchases such as Finanmadrid, from Bankia; Bank of America’s credit card business; and portfolios of consumer credit and mortgages from Citi.

In the last few months, Evo Banco and Apollo have looked into other acquisitions in Spain, such as the BarclayCard sale, where it was pipped to the post by Bancopopular-e, the subsidiary of Värde Partners and Banco Popular, which is now in exclusive negotiations.

Original story: Expansión (by J. Zuloaga)

Translation: Carmel Drake

BBVA Puts Logistics Warehouse Portfolio Up For Sale

13 April 2016 – Expansión

BBVA has put 441 properties on the market, primarily warehouses and logistics plots, which have a combined surface area of more than 500,000 m2.

BBVA has launched one of the largest operations involving the sale of industrial assets in the Spanish market. The entity has appointed BNP Paribas Real Estate to coordinate the divestment process of a portfolio covering a surface area of more than 500,000 m2 and containing primarily warehouses and logistics plots. The entity wants to tap into the investor appetite that exists in the market for this kind of asset, in the context of rising rents and the forecast recovery in demand.

According to sources, BBVA wants to close the sale of this portfolio, known as Detroit, by July. BNP Paribas Real Estate will be responsible for coordinating the whole process and for selling the assets. For the sale, all possible options will be accepted, ranging from the sale of the entire portfolio to a single investor, to the sale of different sub-portfolios to several interested parties. In addition, the sale of individual assets will also be considered. As such, potential interested parties include large international real estate funds, listed Socimis and several Spanish family offices.

Cataluña and Andalucía

The Detroit portfolio comprises 441 properties that currently sit on BBVA’s balance sheet, having been repossessed from borrowers in the past. 65% of the assets are located in Cataluña, the region in which the entity chaired by Francisco González took over six of the former savings banks. Another 20% of the assets are located in several provinces in Andalucía.

Other assets are also located in Galicia, Extremadura, Murcia, Baleares, Castilla y León, Valencia, Cantabria, Canarias and Castilla-La Mancha.

Of the 441 properties now up for sale, 327 are industrial warehouses, 28 are industrial or logistics plots and 86 are parking spaces. 376,000 m2 of the total surface area (550,000 m2) correspond to industrial warehouses.

Investor interest

“This is a great investment opportunity, given that industrial warehouses are becoming a sought-after asset in the market once again, due to the expected recovery in demand and the gradual absorption of the existing stock”, say sources at BNP. According to the real estate consultancy, rents for this type of asset are currently on the rise and yields are higher than those earned on other real estate assets, such as offices, shops and homes.

In 2015, tenants leased almost 1,000,000 m2 of logistics warehouses, up by 37% compared with a year earlier. The increase was particularly marked in Cataluña, where a historical record was broken for warehouse rentals, with 564,000 m2 of surface area leased, an increase of almost 80%, according to figures from JLL. The largest operations were closed in the fashion and automobile sectors, although the e-commerce sector also played an important role leasing facilities for the distribution of products purchased online.

In parallel, investment in the industrial and logistics sector amounted to €734 million in 2015, up by 25%. The main players were Socimis and overseas funds. The widespread interest caused yields to be compressed from 8% to 6.5%.

Original story: Expansión (by Sergi Saborit)

Translation: Carmel Drake

CBRE: Inv’t In Industrial & Logistics Assets Totals €386M In H1 2015

15 July 2015 – Misnaves.es

Investment in industrial and logistics assets in Spain amounted to €386 million during the 6 months to June 2015. This figure is considerably higher than the one recorded during the same period in 2014, when only €113 million was invested, according to data from CBRE, the leading global consultancy and real estate service company.

Several factors have contributed to this increase, including the greater ease of access to financing and the expectation that rents will rise.

International investors are continuing to see Spain as an attractive market, based on their analysis of location and type of asset. Investment funds and Socimis have been the main purchasers.

Madrid and Guadalajara accounted for the majority of the activity, although one-off transactions were also recorded in other Spanish cities. These include Merlin Properties’ purchase of Testa’s portfolio, spread across several regions, with a total surface area of 209,000 m2. They also include Rockspring’s purchase of two logistical warehouses, still under construction, in Montepino and Torrejón de Ardoz, with a surface area of 49,000 m2, which will be completed during the first quarter of 2016.

Two transactions were also recorded in Barcelona, including Baraka Global Invest’s purchase from Inbusa of Alstom’s facilities in Santa Perpetua de Mogoda, with a surface area of 370,000 m2 and a price of €60 million.

Both the increase in liquidity and purchasing activity, as well as the scarcity of supply in the market, has led to the compression of prime rental yields since 2012, to their current levels of between 6.5% and 7%.

Original story: Misnaves.es

Translation: Carmel Drake

DIA & Blackstone Close Largest Industrial RE Transaction Since 2013

11 March 2015 – ABC

The two companies have signed a contract for the rental of logistics buildings covering 30,000 square metres.

Logicor, the logistics platform owned by Blackstone, has signed a long-term rental agreement with the supermarket chain DIA for 30,000 square metres of space, which makes it the largest lease transaction in the industrial sector since 2013.

The rental contract covers a substantial part of a 37,000 m2 warehouse in the Miralcampo Logistics Park (in Corredor de Henares), a building that was acquired by Logicor at the beginning of 2014, according to JLL, the real estate consultant that has advised this transaction.

Logicor is the largest owner of logistics warehouses in the Iberian Peninsula, with a portfolio of 960,077m2. According to Logicor’s director general for Southern Europe, the positive changes in the real estate investment market in Spain are starting to be reflected in occupancy rates in the logistics sector.

That, combined with the limited availability of large, modern logistics warehouses in Madrid, has meant that tenants are under more pressure to hire the highest quality products, he added.

The CEO and Chairman of Logical, Mo Barzegar, highlighted that this transaction reflects the company’s investment strategy to purchase functional warehouses, close to urban areas, that are attractive to clients. JLL España advised Logicor in this transaction.

Original story: ABC

Translation: Carmel Drake