Elix Vintage Acquires Two Buildings in Madrid

14 October 2019 Elix Vintage, a socimi controlled by the investment firms KKR and Altamar, has acquired two residential buildings, both currently leased, located on the Fomento and Ave María streets in Madrid.

Elix Vintage paid 8.425 million euros for the two assets and will invest more in renovations.

Original Story: Expansión – Rocío Ruiz/ Marisa Anglés

Adaptation/Translation: Richard D. K. Turner

TM Real Estate Sells Out Almost All of its Luxury Sidi by TM Development

14 October 2019 The Torrevieja-based company TM Real Estate Group has sold almost all of the 162 properties that make up its Sidi by TM project in Alicante. Sidi, a luxury residential development built on the site of the old Hotel Sidi, on the San Juan beach, is still in the second phase of its construction and work is only expected to resume next week.

TM decided to temporarily halt construction in August to avoid any problems when delivering the keys to the new residents of the first 102 flats completed. The start of the second phase of construction, with another 59 homes, was delayed until March of this year due to a complex approvals process given its beachfront location.

Original Story: Alicante Plaza – Raúl Navarro

Adaptation/Translation: Richard D. K. Turner

Dark Clouds Gather Over Spain’s Real Estate Market as Housing Sales Fall by 21% in August

14 October 2019 Market watchers have been issuing warnings recently regarding a potential slowdown in Spain’s residential real estate market. After years of rapid growth, and after prices have reached new heights due to constrained supply, talk has turned to a moderation in growth or even some level of stagnation.

Last week, the country’s National Institute of Statistics (INE) released data on the sale of homes in August that seemed to confirm such fears. A total of 35,371 housing sales occurred in Spain in the month, the lowest figure since August 2015. The retrenchment affected both the sales of new (-21%) and existing homes (-21.1%), the latter of which accounts for approximately eight out of every ten sales. Monthly sales took a bigger hit, falling by 26.1% from July to August, the biggest decline for that month of the last five years.

Original Story: El Mundo – Marcos Iriarte

Adaptation/Translation: Richard D. K. Turner

Developers in Spain Need to Build 2.5 Million New Homes to Satisfy Demand

14 October 2019 Foreign and domestic investors have recently poured a larger and larger amount of money into Spain’s residential rental market. In the last two years, large investment funds and developers like Blackstone, Ares, Greystar, TPG, Aedas, Quabit, Metrovacesa, Vía Célere have invested in the sector, going after the relatively high yields available.

The increasing investment in the sector is due to a series of factors. The last few years have seen major price increases, for both home sales and rentals, in Spain’s biggest cities, particularly in Madrid and Barcelona. The high cost of buying a home is also leading many Spanish families to forgo potentially buying a home, as they would have in the past when prices were more affordable.  Those families are now in the market for rentals.

Considering that the rising prices are due to an imbalance between supply and demand, common sense would suggest that a relatively easy solution would be to great increase the supply of homes for sale and rent. The total number of homes for rent in Spain is equivalent to 23% of the total housing stock, 9% lower than the European average of 34%.

To reach the European average, therefore, developers would have to build another 2.5 million homes, taking the total for Spain to 8.5 million homes. Building that many homes in the next fifteen years would require that developers construct approximately 167,000 houses per year during that period. That amount of development would require a total investment of roughly €300 billion, or 25% of Spain’s current GDP.

The need for that kind of investment in affordable rental homes to help curb rising prices is beginning to be addressed in a series of measures by some political parties, such as the PSOE. One of the proposals includes a law that would facilitate the transfer of the surface rights for public lands to developers which agree to building affordable housing, a measure that developers have demanded for years.

One of the biggest obstacles to such large-scale development is the complexity of managing and aligning interests between the municipal, regional and central governments. Market sources recommend common regulatory frameworks to facilitate the creation of greater legal certainty and the agility to obtain the necessary licensing and permits.

Original Story: El Confidencial – Elena Sanz

Adaptation/Translation: Richard D. K. Turner

Locare & Tectum to Launch New Fund as Rental Market Heats Up

14 October 2019 Locare RE and Tectum Real Estate Investments are preparing to launch a new €240-million fund aimed at the affordable rental housing market. The new fund, Tectum II, comes hot on the heels of a similar, €120-million fund the two firms launched just a few months ago. The investments come at a time when foreign investment and rising real estate prices, especially in Spain’s major cities, are driving families further out of city centres.

The first fund allowed the two firms to acquire seven plots of land, enough to build 1,000 affordably priced rental homes in the Community of Madrid. The plots of land are located in Torrelodones, Villalba, Móstoles, Arroyomolinos, Valdemoro (two plots) and Alcalá de Henares. The fund expects monthly rents to cost between 500 and 900 euros per month.

Short-term plans for Tectum II aim to start advertising approximately 1,500 new rental homes already in 2020.

Original Story: El Confidencial – E. Sanz / C. Hernanz

Photo: Locare

Adaptation/Translation: Richard D. K. Turner

Aldara Building Three New Student Residences in Oviedo, Salamanca and Barcelona

14 October 2019 Aldara, a Spanish developer, is building three new student residences in Oviedo, Salamanca and Barcelona. The three new developments will add a total of 983 new beds to the company’s portfolio in a combined investment of sixty million euros.

The development in Oviedo is in the early stages of construction, with plans for 317 beds to be ready by May 2021. The complex consists of three buildings, with an area of 2,739 square meters and parking for 77 vehicles.

The project in Salamanca will have 270 rooms (July 2021), while the one in Barcelona will have room for 400 students (July 2022).

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Exxacon Acquires Plot of Land from Banco Sabadell in Debut in Valencia

14 October 2019 The Andalusian developer Exxacon has acquired an 18,123-square-meter plot of land in Valencia from Banco Sabadell. The firm will invest a total of €20 million in the new development, which will have 157 100-to-110 m2 flats. The acquisition is the Exxacon’s first in Valencia.

Currently, Exxacon has 19 ongoing projects, building a total of 1,200 homes at the cost of 400 million euros. This year, the firm expects to deliver one 23-home development in Malaga city. Next year, the developer will deliver another 130 homes in three different projects.

Original Story: Eje Prime – Marta Casado Pla

Adaptation/Translation: Richard D. K. Turner

 

Invesco Real Estate Acquires Casa Oller in Barcelona

14 October 2019 Invesco Real Estate has acquired the building at Gran Vía 658, in Barcelona. The real estate investment management company will convert the modernist property, known as Casa Oller, into luxury flats.

The firm intends to build a total of eleven two- to three-bedrooms flats, including a penthouse, with surface areas exceeding 150 m2. The development will include common areas with an outdoor pool, gym and spa. The flats, which will be ready in 2020, are already on sale by Colliers International, with prices starting at €1.5 million.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Vivenio to Issue New Shares Worth €149.9 Million

14 October 2019 Vivenio, the Spanish socimi controlled by the Renta Corporación and the Dutch fund APG, has launched a €149.9-million capital increase. The socimi will issue 127.1 million new shares with a value of one nominal euro each and an issue premium of 1.18 euros per share. Should investors fully subscribe the capital increase, the company’s total share capital would rose to €564.6 million.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Aedas Reaches Building Target Well Before Year-End

10 October 2019 – The real estate developer Aedas Home announced that it had practically reached its target of building 1,055 homes in 2019, three month ahead of schedule. Aedas has already received the certificate of the end of construction for 1,033 homes.

Additionally, the developer currently has another 2,200 homes under construction, at various stages of progress, compared to Aedas’s forecast of delivering 1,986 homes in 2020. Of those, 65% have already been pre-sold.

Original Story: El Confidencial – Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner