CBRE: RE Inv’t Amounted To €2,100M In Q1 2016

4 April 2016 – Expansión

After a record year in 2015, real estate investment in Spain has recorded its second best start to the year since 2008.

Real estate investment in Spain amounted to €2,100 million during the first quarter of 2016, which represents the second best start to the year since the start of the crisis in 2008, and exceeded only by 2015, when activity was “exceptionally” high and investment volumes exceeded €3,000 million, according to conclusions from preliminary data published by CBRE.

Of the total investment, 78% came from international investors, which confirms that Spain is continuing to generate interest as a destination for overseas investors, according to sources at the consultancy firm.

By sector, retail and residential led the ranking, with total investments of €750 million and €645 million, respectively. CBRE highlights major operations such as the purchase of the Festival Park shopping centre in Mallorca for €100 million, and the acquisition of a portfolio of supermarkets by Invesco for €350 million.

And in the residential segment, the operation involving Blackstone’s purchase of a portfolio of 4,500 homes from Banco Sabadell for €450 million alone exceeded investment in this business segment in 2015. Other highlights included the acquisition of assets for conversion into homes, such as the former headquarters of the news agency Efe, on the Madrilenian street of Calle Espronceda and the building located on the corner of Gran Vía and Balmes in Barcelona.

In total, €365 million was invested in the hotel segment, with the purchase of Hotel Villa Magna in Madrid for €180 million representing the most significant transaction. The logistics segment also performed well with investment of €142 million, which represents an increase of 39%. The most significant transaction was Neinver’s purchase of a portfolio comprising 23 assets for €87 million.

By contrast, investment in offices declined by 70% during the period, to €178 million, due to the scarcity of available products in the segment.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake