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All Market News: Spanish Real Estate Intelligence

MK Premium Acquires First Property in Madrid

12 December 2017 - Eje Prime

MK Premium has arrived in Madrid. The family office has acquired a property measuring 728 m2 in the Chamberí neighbourhood, in which it will invest €2.4 million in total between the purchase and subsequent planned renovation. The company will close 2017 with more than 95 assets in its portfolio.

MK Premium’s first building in the Spanish capital, located at number 10 Calle Santísima Trinidad, is around fifty years old. Inside, the property contains four homes, one per floor, with a surface area ranging between 66 m2 and 99 m2, as well as a penthouse flat with a terrace, measuring 107 m2.

Founded by the brothers Daniel and Sergio Leiva, the real estate company MK Premium started its real estate activity five years ago in Barcelona, where just a few weeks ago, it acquired two more properties. Now, it is working on its expansion across Spain, which has led to the opening of an office in Madrid. With its first asset in the capital, the real estate company’s portfolio now contains almost 100 assets (95, to be specific).

The company expects to close 2017 with revenues of almost €25 million, after recording turnover of €14 million during the first half of the year, and profits of around €1.7 million.

Original story: Eje Prime

Translation: Carmel Drake

 
Armabex: The MAB's 44 Socimis Have a Combined Asset Value of €12.2bn

12 December 2017 - Eje Prime

The Socimis are still a major talking point in the Spanish real estate sector. Together, the more than forty Socimis that are listed on the Alternative Investment Market (MAB) own assets with a combined market value of €12.221 billion, according to the report Armabex Analysis II. This year alone, seventeen new Socimis have been incorporated onto the MAB.

According to the findings of the report, the average market capitalisation of all of the Socimis currently listed on the MAB amounts to more than €155 million and their average own funds represent 62%. “The Socimi has become a fundamental element in the growth of the real estate market”, explains Antonio Fernández, President of Armabex.

Of the Socimis currently listed on the MAB, 31 have offices and homes amongst their properties available for rent and their market value represents 42% of the total. In 2017, nine of the seventeen new Socimis that debuted on the MAB held both types of assets in their portfolios.

Nevertheless, shopping centres, gas stations, hotels and industrial warehouses have also found the perfect vehicle to list on the MAB in the form of Socimis. In fact, in 2017, there was an increase in the number of shopping centre Socimis (five more in 2017); the first Socimis to include warehouses made their debut (also five in 2017); and the first gas station Socimi made its debut on the MAB along with three new hotel Socimis, amongst others.

By investment destination, Madrid has consolidated its position as the Spanish province in which Socimis invest the most in 2017. In this sense, thirteen of the seventeen new Socimis that started to trade in 2017 own real estate assets in Madrid. In this way, the 32 Socimis listed on the MAB that own assets located in the capital, have real estate assets worth €5.684 billion, which account for 46% of the total asset valuation.

Meanwhile, the evolution in Barcelona has been less satisfactory than expected; the portfolio of assets located in that province owned by the Socimis account for 11% of the total asset valuation, or €1.364 billion. Only five of the seventeen new Socimis that joined the MAB in 2017 own real estate assets in the Catalan capital.

Original story: Eje Prime

Translation: Carmel Drake

 
Inditex Puts 16 Stores in Spain & Portugal up for Sale for €400M

12 December 2017 - Eje Prime

Inditex is getting rid of some of its property portfolio. The Galician giant has put 16 retail premises up for sale, of which fourteen are located in Spain and the other two in Portugal. The buyer will have to commit to leasing the stores to the retail group for twenty years.

The retail group is looking to raise USD 472 million (€400.5 million) from this operation, through which it is seeking to harmonise its leasing strategy, according to Bloomberg. Inditex has only confirmed the sale of the premises.

The Spanish company ended the first half of this year with an 11.5% increase in sales and a 9% rise in its net result, percentages that were similar to those recorded during the first six months of 2016. The company chaired by Pablo Isla recorded turnover of €11.671 billion, whereby exceeding the €11 billion threshold for the first time during the first six months of the year.

The net result of the company that owns Zara amounted to €1.366 billion during H1 2017, compared to €1.256 billion during the first half of last year. Its EBITDA also grew at a rate of 9%, from €2.112 billion to €2.292 billion.

Original story: Eje Prime

Translation: Carmel Drake