Amro Real Estate Acquires Land in Valencia for New Student Residence

4 December 2019 – Amro Real Estate has finalised the acquisition of a plot of land in Valencia where it plans to build student housing. The residence, the firm’s fourth in Spain, will have 5,000 square meters of constructed surface area, with 170 beds.

The project, which includes a rooftop pool and gym, will be located a short distance from the Catholic University of Valencia (UCV). Construction is set to begin in 2020 and open to students in the summer of 2022.

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Silicius Starts Spending: Buys Four Buildings in Central Madrid

2 December 2019 – The socimi Silicius Inmuebles has finalised the acquisition of four properties in central Madrid for more than 35 million euros. The socimi, which is controlled by the Spanish financial group Mazabi, intends to renovate the four buildings for the residential rental market. The assets have a total surface area of ​​7,466 m2, including 5,000 m2 for 25 flats, 1,635 m2 for four stores and an 829-m2 pavilion.

The acquisition is Silicius’s first of residential assets in Spain. The firm is looking to increase and diversify its asset portfolio to reach the optimal size for its expected IPO early next year.

Original Story: Merca2 – J.R.

Adaptation/Translation: Richard D. K. Turner

Haim Tsuff Acquires Correos Building in Málaga for €23.5 Million

2 December 2019 – Haim Tsuff, the president of the Israeli petroleum firm Isramco, was the sole bidder at an auction for the Correos building in Málaga, paying 23,555,180 euros for the property, well above the base price of €16.8 million. The government of Andalusia auctioned a total of 22 properties valued at 47 million euros. Tsuff acquired the asset through Nitsba Spain, which is based in Barcelona.

The asset failed to attract other bidders due to zoning limitations. The property is zoned for public and social interest services. The permitted uses under the local zoning plan (PGOU) include homes for the elderly, student residences and care facilities for children.

The building’s new owner could potentially request a change in the zoning for the asset, to convert it into a hotel or offices. Nitsba would be required to compensate the government for the change by ceding nearby plots of land to the government for future use.

Original Story: Diário Sur – José Luis Piedra

Adaptation/Translation: Richard D. K. Turner

Patrizia Launches €650-Million Fund Targeting Residential Sector in Europe

2 December 2019 – The German fund Patrizia has launched a €650-million, pan-European investment vehicle to invest in the residential sector in Europe’s main cities. The fund also plans to invest more than €1 billion just in 2020.

Patrizia intends to focus on long-term investments, allocating 20% of the capital to the acquisition of alternative residential assets, such as co-living spaces and homes for students and the elderly (though probably not together…).

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Centricus Rethinks its Potential Acquisition of Haya Real Estate

2 December 2019 – Softbank’s Centricus investment fund is rethinking its expected acquisition of Haya Real Estate from Cerberus. The US firm originally valued Haya at one billion euros, though it dropped its asking price due to doubts regarding Haya’s contract with Sareb.

Despite Haya’s success in renewing its management contract with the bad bank, Haya’s revenues could still be reduced by 50%. Sareb also reduced the agreed-upon fixed fees and payments in return for variable payments. At the same time, Softbank as recently needed to inject large amounts of funds to save its investment in the troubled WeWork.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Patrizia Looks to Invest Up to €500 Million in Spain and Portugal

2 December 2019 – The German investment fund Patrizia plans to invest up to 500 million euros in the Spanish and Portuguese real estate markets over the coming years. The fund currently intends to divide its investments between offices (40%), residences (40%) and logistics (20%) though the relative weight of each sector could vary. The firm is first looking to enter the market for student housing in 2020, either by building new facilities or acquiring in and will enter the market for student residences in 2020. Regardless, the firm would lease the facilities to outside operators.

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Growth of Socimis Expected to Fall by Half in 2020 from High in 2019

2 December 2019 – The director of Business Development at Gesvalt, Luis Martín Guiraldo, believes that approximately 19 new socimis will be created in 2019, up from 15 last year. That figure, however, is expected to fall by half in 2020.

The future of the investment vehicle has become somewhat less certain with the formation of a left-leaning government coalition by the PSOE and Podemos political parties. In his report, Mr Guiraldo notes how concentrated investments by socimis are in Madrid and  Barcelona, with only two listed socimis based in other cities (Valencia and Marbella). Total investments follow a similar pattern, with small groups of foreign investors behind the majority of the firms. Government regulators are now expected to take a closer look at the market, dampening the enthusiasm for the sector.

Original Story: Idealista – Carlos Lospitao

Adaptation/Translation: Richard D. K. Turner

Merlin Properties Prepares New Offer for Operation Chamartín

28 November 2019 – Merlin Properties has finalised an agreement with BBVA and the San José construction group to give it the right of first refusal for a stake in the North Castellana District (DCN), where the San José holds a 10% stake and the bank 75.54%. The socimi, however, intends to make an offer right away.

Merlin Properties currently has a 14.46% stake in the Operation Chamartín development and is looking for greater control. Merlin had already offered to trade control of 700 offices that it currently rents to the banking group for the operating rights to Operation Chamartín. The bank, however, is seen to be more interested in taking a stake in Merlin Properties itself, possibly of 2%.

Original Story: OK Diário – Borja Jiménez

Adaptation/Translation: Richard D. K. Turner

ASG Homes to Invest €40 Million in New Rental Flat Project in San Sebastián de los Reyes

25 November 2019 – The Spanish subsidiary of the German developer ASG, ASG Homes, through its Fund VI investment vehicle, has finalised a deal to acquire enough land in San Sebastián de los Reyes (Madrid) to build more than 300 loft-style homes. The new rental housing project will involve a total investment of approximately 40 million euros.

With the acquisition, ASG Homes now boasts a 1,500-unit portfolio of rental flats, which it has built up in roughly a year and a half.

Original Story: El Economista – Alba Brualla

Adaptation/Translation: Richard D. K. Turner

Adriano Care Acquires Six Homes for the Elderly for €76 Million

25 November 2019 – Adriano Care has agreed to acquire six homes for the elderly, with a total of 750 beds, and a plot of land in Madrid for building 350 more. Adriano Care, Azora’s investment vehicle, paid a total of 76 million euros for the assets.

Four of the assets are located in Vizcaya: the Olimpia and Kirikiño residences (Bilbao), Barrika Barri (Barrika) and Otxartaga (Ortuella). The other two are in A Coruña (Matogrande Residence – 150 beds) and the Residence Health Bath in Palencia, with 188 beds.

After the deal, Adriano Care will now be the fifth-largest private group in Vizcaya by number of beds while Clece and DomusVi will continue to operate the residences in A Coruña and Palencia, respectively.

The market for geriatric care in Spain is highly fragmented, where the ten largest operators control just 25% of the 375,000 available beds in 5,800 residences.

Original Story: El Economista – Alba Brualla

Adaptation/Translation: Richard D. K. Turner