All Market News: Spanish Real Estate Intelligence

18 July 2018 - Diario de Sevilla

The Urban Planning Department has sent the Ministry of the Environment the necessary documentation for the regional entity to prepare the mandatory report about the area surrounding La Gavidia. With this step, the process has been started to change the use of the former police station, which will become a tertiary use asset, as approved by the Town Hall.

The manager for Urban Planning, Ignacio Pozuelo, explained this morning that the change in La Gavidia’s classification will allow it to be used for a number of purposes, including for small and medium-sized businesses, offices, hotels, recreational use, cinemas, gym and public services.

The ownership and management of the venue are open to three formulae. They may both be public or private. The second option would involve the sale of the rationalist-style building. A third option would involve ceding only the management of the property to a private entity.

The environmental report is expected to be completed by the end of 2018. Once it has been approved by the Regional Government, the PGOU will have to be modified to reflect the new classification, a long and complex process that will coincide with the local elections in 2019 and the start of the new mandate.

The current General Plan for Urban Planning (PGOU) classified Las Gavidia police station as a Service of Public and Social Interest (SIPS). Zoido’s majority government began the steps to change that classification into a large retail space. The elections in 2015 and the loss of the mayoral office by the PP put a halt to the process. Espadas’s team is now looking to classify the property for tertiary use, which would allow for it to be used in any of the ways mentioned above.

Original story: Diario de Sevilla (by Diego J. Géniz)

Translation: Carmel Drake

18 July 2018 - Idealista News

One of the deals of the year in the shopping centre sector is on the verge of completion. The South African fund Vukile, through its Spanish real estate vehicle Castellana Properties Socimi, is in the process of buying four shopping centres from the European giant Unibail-Rodamco for €489 million. Castellana Properties, which also acquired the Habaneras shopping centre in May, is going to add the Bahía Sur, El Faro, Los Arcos and Vallsur complexes to its asset portfolio in Spain, all of which are currently owned by the French company specialising in shopping centres.

Vukile will acquire these assets in a block purchase, although Unibail-Rodamco had been negotiating their sale with other groups, such as Lar España and Klépierre, on an individual basis. The French group, which completed its integration with the Australian firm Westfield in June, has signed a binding offer agreement with Castellana Properties for €489 million. According to sources familiar with the operation, that amount may decrease before the final sale is signed.

From now on, Castellana Properties Socimi will have the following shopping centres in its portfolio: Bahía Sur, which spans 59,300 m2 and is located in Cádiz, close to Puerto Real and San Fernando; El Faro, which spans 66,300 m2 and is located in Badajoz; Los Arcos, located in Sevilla, with a surface area of 44,000 m2; and Vallsur, located in Valladolid with a surface area of 36,000 m2.

The sale of these four assets forms part of the operation carried out last year with Barnasud, the complex acquired by Meridia Capital, a Catalan fund owned by the businessman Javier Faus, who paid Unibail-Rodamco €35 million for the asset (…).

Currently, the group led by Christophe Cuvillier has a portfolio in Spain worth €3.556 billion and receives 126.2 million visitors per year. Those assets account for 10% of its global portfolio.

Castellana Properties, on a mission to acquire shopping centres in Spain

Since its creation, Vukile has been increasing its portfolio of assets in Spain through Castellana Properties in a frenetic way. In July last year, Vukile purchased nine retail parks from Redevco Iberian Ventures, the joint venture between the real estate company specialising in retail Redevco and the funds managed by the global alternative asset management company Ares Management, for €193 million.

Before the end of the year, Castellana Properties formalised the purchase of two retail spaces located in Granada and Murcia for €65 million (…).

The only operation signed by Vukile and Castellana Properties so this year has been the purchase of the Habaneras shopping centre for more than €80 million (…).

Original story: Idealista News (by Custodio Pareja)

Translation: Carmel Drake