Axiare’s Portfolio Appreciates By 15% To €859M In 2015

3 February 2016 – Expansión

Axiare Patrimonio’s portfolio of real estate assets is worth €858.8 million, which represents an increase of 15.3% compared to the purchase price of the assets contained therein, according to a report submitted by the Socimi yesterday (Tuesday) to Spain’s National Securities Market Commission (CNMV).

The valuation has been performed by the independent consultancy firm CBRE Valuation Advisory, in accordance with the RICS (Royal Institution of Chartered Surveyors) guidelines, as at 31 December 2015.

The firm attributes this “significant” increase in the value of its assets to: the investor appetite that has evolved during 2015; the increase in rents in the market in general; the composition of its portfolio, which allows it to benefit from this trend in rents; and the professionalisation of the active management of its team, which has included the remodelling of some of its buildings.

According to the Socimi, the improvement in the Spanish economy has resulted in an increase in demand for offices and logistics assets, especially for Class A products in established areas of Madrid and Barcelona, which in turn has produced, an upwards trend in rents for prime buildings.

“CBRE’s valuation confirms that our strategy of value creation is sustainable for our shareholders, and so we will continue working in the same vein”, said the CEO of Axiare Patrimonio, Luis López de Herrera-Oria. “We are now starting work on the remodelling of several buildings, the fruits of which will be seen during the course of 2016”, he added.

Axiare Patrimonio’s current portfolio, which includes its recent acquisition of an office building in Madrid, comprises 29 buildings with a total leasable surface area of 558,000 m2. By asset type, the portfolio contains offices (73%), logistics platforms (15%) and other commercial assets (12%).

As at the valuation date, the assets in the office segment had increased in value by 13.1% compared with their purchase value, with those buildings located in the CBD of Madrid – 38% of the portfolio – experiencing the greatest increase in value, up by more than 15%.

In terms of Axiare Patrimonio’s other strategic segment, logistics, those assets increased in value by almost 23% and the rest of the portfolio increased in value by 19.7%.

In similar comparative terms (i.e. like-for-like), the 16 assets that were in the portfolio as at 31 December 2014 had increased in value by 11.8% as at 31 December 2015.

By segment, the company’s like-for-like office portfolio increased in value by 11.3% during 2015; the like-for-like logistics segment of the portfolio increased by 15% and the rest of the portfolio, which comprises other commercial assets, increased by 7.4% in one year.

Original story: Expansión

Translation: Carmel Drake