Category: Residential

Testa Buys 135 Homes From CaixaBank

26 September 2017 – Eje Prime

Testa Residencial has acquired a package of 135 homes located in the Community of Madrid from Buildingcenter (which forms part of Caixabank). The package contains 67 homes located in the municipality of Las Rozas, 51 in Getafe and 17 in Madrid capital, all areas where demand for rental housing is booming, according to the company.

“The operation has been completed after Testa Residencial emerged victorious from the competitive process established by Buildingcenter and managed by Servihabitat”, said the company in a statement. The acquisition has been financed with available cash from the company.

In this way, and following the recent operation to integrate a package of homes from Acciona Real Estate, Testa Residencial has now expanded its portfolio of assets to include 9,219 homes, whereby strengthening its position of leadership in the residential rental market.

According to the company, its portfolio of homes currently has an occupancy rate of more than 90% and is located in areas with the highest demand, led by the Community of Madrid, San Sebastián and Cataluña, which account for 65%, 5% and 5% of turnover, respectively.

Original story: Eje Prime

Translation: Carmel Drake

Quabit Buys 8 Plots Of Land For €52M

25 September 2017 – Quabit

Quabit Inmobiliaria is stepping on its investment plan accelerator, redoubling its strategic commitment to the Costa del Sol with the completion of nine operations involving residential land in Málaga, and opening a new area of growth in the Balearic market.

Specifically, the company chaired by Félix Abánades has closed 8 operations involving buildable land amounting to €52 million, with a buildable surface area of 123,000 m2 to construct between 720 and 740 homes.

Quabit is going to finance 70% of the purchase with financial support from funds advised by the investment firm Avenue Capital Group, and the remaining 30%, with shares in the company, through one or more non-monetary capital increases.

“For the second time” – explains the Chairman Félix Abánades – “Quabit is using this formula to secure new land, given that at the same time as barely diluting the shareholders’ stakes and helping to grow and strengthen the company, it allows us to consolidate our real estate assets and collaborate in the reinvigoration of the sector”.

Malaga and Costa del Sol: 178,500 m2 of buildable land for 1,600 homes.

Quabit has also just closed a new portfolio of 7 buildable residential plots of land, the majority of which are located in Malaga capital, with a combined investment of €31.3 million, and a buildability of 48,000 m2 for the construction of 450 homes.

That large operation comes just a week after another involving land in Mijas for the construction of 674 homes and is in addition to the purchases made by Quabit in Málaga capital and the Costa del Sol during the first half of the year.

Overall, Quabit has 178,500 m2 of buildable land in total in the province of Málaga for the construction of more than 1,600 homes.

Moreover, the company is already marketing Phases 1 and 2 of another promotion of 100 homes on the Casares Golf course and is preparing to launch 2 developments in Málaga capital later this month, in the Puerto de la Torre area.

New land in the Balearic Islands

The company has completed another operation amounting to €21 million in the Balearic Islands to build a tourist and residential development with a buildability of almost 75,000 m2.

Visibility of the Business Plan for 2017-2021

The execution of Quabit’s Business Plan is continuing to gain visibility and its portfolio of land is gaining in value through all these important purchases of high-quality buildable land.

To date in 2017, the company has closed operations in Madrid, Corredor del Henares, Málaga and the Balearic Islands amounting to €114.7 million, with a buildable surface area of 321,500 m2 for the construction of almost 2,500 homes.

Altogether, adding to this figure the 1,226 homes to be developed in the portfolio, Quabit now has a portfolio of residential land on which to build 3,700 homes, which represents 90% of its target development between now and 2021 (4,090 homes) and demonstrates its vocation for growth and its commitment to take advantage of the opportunities currently available in the Spanish residential market.

Original story: Quabit

Translation: Carmel Drake

Aedas Homes Will Make Its Stock Market Debut Before Year End

25 September 2017 – Expansión

A new real estate company will debut on the stock market before the end of the year. On Friday, the property developer Aedas Homes confirmed its intention to debut on the stock market during the fourth quarter of the year.

The company, which specialises in the construction of homes, has not revealed the price at which the placement of its shares will take place. Nevertheless, market sources forecast that its market capitalisation will be higher than its Gross Asset Value, estimated at €1,345.8 million.

Aedas Homes was created by the US fund Castlelake, after that firm invested several hundreds of millions of euros in buildable residential land in Spain. After creating a portfolio containing 1.3 million m2 of buildable land, worth €1,000 million, Castlelake turned to the team at the Socimi Merlin Properties to design a business plan that would allow it to maximise the returns on its investments. For this project, the fund recruited David Martínez, a director with experience in real estate developments, such as Valdebebas and Castellana Norte, both in Madrid.

Castlelake’s intention is to place between 40% and 60% of the company’s shares on the stock market, through a primary offer and then a secondary offer amongst qualifying investors. The primary offer is expected to raise funds amounting to approximately €100 million.

Investors

“The stock market debut of Aedas Homes will allow us to access funds from a diversified base of investors, which will be used to finance the company’s expansion and development plans”, explains David Martínez, CEO of the property developer. Citigroup and Goldman Sachs are acting as the global coordinating entities of the placement; Banco Santander and UBS as the joint bookrunners; BBVA, CaixaBank and Sabadell are the co-lead managers; and Deloitte is the financial advisor.

Currently, Aedas owns a portfolio of land worth €1,370.5 million, distributed across sight Spanish provinces – including Madrid, Barcelona, Málaga and Valencia–, which will allow it to build more than 13,000 homes. These magnitudes place it amongst the top four property developers in Spain. The company is currently working on 11 projects, involving 576 homes. Its business plan forecasts the investment of between €200 million and €250 million on new acquisitions over the next 2.5 years to deliver 3,000 homes per year from 2022 onwards.

With this move, Castlelake is following in the footsteps of Lone Star, which was the first international fund to list its company, Neinor Homes, on the stock market, after investing in assets in the Spanish market.

The debut of Lone Star’s real estate company took place in March, with a valuation of €1,340 million. Since then, the company has appreciated in value and its market capitalisation now exceeds €1,420 million. Lone Star placed 60% of its company’s share capital in the stock market debut. Last week, it divested another 27%, to raise €394 million. On Monday, the fund Wellington acquired an 8.5% stake.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Domo’s Socimi Debuted On The MAB On 21 September

22 September 2017 – Eje Prime

The countdown has started for the debut of Domo Activos, the socimi of the cooperative manager of the same name. The company will make its debut on Thursday 21 September on the Alternative Investment Market (MAB), where it will list at €2 per share, a price that represents a market valuation for the company of €7 million, according to the BME.

The company, which is the 41st to make its debut on this market under the Socimi framework, owns just one asset, a plot of land in Madrid, located in El Ensanche de Vallecas, which it purchased in March from Sareb for €6.55 million. The land has a maximum buildability of 9,348 m2 and the firm plans to build 80 homes on the site, plus six ground floor commercial premises and parking.

For the next two years, the firm will focus on developing this project, according to details contained in the information brochure that accompanies its stock market debut. It estimates that the homes will be ready to lease “from September 2019”.

Domo has a business plan that includes taking on new land purchases to develop real estate assets, with the aim of subsequently making cash from them by leasing them out “for at least three years”, and ultimately, selling them.

This strategy includes the development of homes, hotels and tourist apartments, primarily in the Community of Madrid, Cataluña, País Vasco, Málaga, Sevilla, Granada, Córdoba, the Community of Madrid, the Balearic Islands and the Canary Islands.

The Socimi chaired by Feliciano Conde Anguita (pictured above) plans to pay for this business plan through capital increases, in such a way that the firm will undertake operations of that kind, “to the extent that investment opportunities arise”. Current shareholders will have preferential subscription rights in future capital increases.

Original story: Eje Prime (Original article dated 19 September 2017)

Transltion: Carmel Drake

Vía Célere To Build 1,700 Homes In Sevilla Este

21 September 2017 – ABC de Sevilla

The construction of new homes is recovering with a vengeance in the Andalucían capital, after years of stagnation. The revitalisation, which started with small developments in city centre neighbourhoods, has taken a leap with several million-euro investments to acquire land, such as the deal announced yesterday by the property developer Vía Célere. The Madrilenian based firm is planning to build 1,700 homes on the more than 150,000 m2 of land that it has acquired in the city, the largest operation of this kind since the crisis.

Sources at the company confirmed to ABC that this land is located in Sevilla Este, where an ambitious urban project is going to take shape between now and 2023. The property developer, which has been reluctant to reveal the exact location details, has spent €26.5 million to acquire plots of land, close to the Aquópolis aquatic park, which were once owned by the real estate company Osuna and which ended up in the hands of several banking entities.

This package forms part of a much larger plan that also includes land acquisitions in Getafe and Valladolid. Nevertheless, the project in Sevilla will be the largest. The negotiations have been quick, according to the company itself, which began conversations in July and sealed the deal just a few days ago.

Not a single VPO property

The intention is to build private housing blocks only on this land over a five-year timeframe. In fact, the acquisition of these plots is accompanied by a commitment to build homes (…).

The President of Vía Célere, Juan Antonio Gómez-Pintado, said in a statement that the company will continue to grow its land bank “at a sustainable pace, in line with demand”. He also revealed that since the beginning of the year, his firm has added 393,000m2 of buildable land to its portfolio, which will allow it to build up to 3,800 homes over the next few years right across Spain.

Interest from the USA

The capital that has motivated this welcome resurgence in the real estate sector in Sevilla has come from the other side of the Atlantic. The US fund Värde Partners, which acquired this Madrilenian company just a few months ago, will finance the construction with contributions from its shareholders.

The gigantic Hacienda Rosario project, involving more than 1,000 homes, has been presented under very similar conditions. It is being promoted by Aedas Homes – in whose share capital the US investment fund Castlelake holds a stake – on land located to the south of the Torreblanca neighbourhood, between the A-8028 road and Calle Parsi (…).

Original story: ABC de Sevilla (by Elena Martos)

Translation: Carmel Drake

Vía Célere Buys Land In Madrid, Sevilla & Valladolid For €36.1M

21 September 2017 – Expansión

Vía Célere, the real estate company acquired by the fund Värde Partners in February, has completed a new land purchase. Specifically, the property developer led by Juan Antonio Gómez-Pintado has bought three new plots of land, located in Getafe (Madrid), Sevilla and Valladolid, for a combined total of €36.1 million.

The greatest investment has been made in the Andalucían capital, where Vía Célere has acquired 150,000 m2 of buildable land, which will allow it to construct 1,700 family homes. It has spent €26.5 million on those plots.

In the case of Madrid, Vía Célere has paid €7.6 million for 21,000 m2 in Getafe, with the aim of building 158 family homes, whilst in Valladolid, the company has bought 4,400 m2 of land, for €2 million, where it will construct up to 39 homes.

With these latest purchases, Vía Célere has now spent €130 million buying up land in 2017, which has allowed it to expand its portfolio by almost 400,000 m2. Currently, the real estate company backed by Värde owns around 1.35 million m2 of residential land, making it one of the largest owners of this kind of asset in Spain.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Sareb Appoints Azora To Manage Its First Socimi, Témpore Properties

21 September 2017 – El Confidencial

Sareb has chosen one of the largest experts in the management of rental housing in Spain to commandeer its first Socimi. The expert in question is Azora, an independent firm with almost 15 years experience and more than €3,000 million of assets under management. Azora’s key milestones include the creation and management of Hispania, one of the largest Socimis in Spain.

After organising a competitive process between several candidates, the entity chaired by Jaime Echegoyen (pictured above), has chosen the management firm founded by Concha Osácar and Fernando Gumuzio to take the reins at Témpore Properties, the name that Sareb has given to its first Socimi. The appointment is still pending the final approvals.

Sareb’s new vehicle will own around 1,500 rental properties, worth almost €200 million. The entity wants to place the assets, which have been valuedby CBRE, on the market before the end of the year.

Having engaged Renta 4 as the registered advisor and Clifford Chance as legal counsel, the next major challenge for Sareb will be to convince the greatest possible number of investors about the virtues of the Socimi, given that, although its market debut will be made on the MAB – the Alternative Investment Market – Echegoyen’s aim is to sell the highest percentage of share capital possible.

In this way, Azora will play an important role, given that over the course of its history, it has managed more than €1,700 million from institutional investors through its five funds, as well as having a cover letter from Hispania, whose illustrious shareholders include none other than George Soros.

Nevertheless, in recent times, the management firm has been focusing on the divestment of the bulk of these vehicles, given that they are now reaching maturity.

In fact, this week, the firm closed the sale of Resa, the largest student hall of residence company in Continental Europe, which formed part of Lazora, a vehicle with which the manager started when it focused exclusively on rental homes.

Moreover, since the spring, the firm has been actively working on the liquidation of the fund Azora Europa 1 as well as of the Socimi Hispania, which is on the verge on selling its entire office portfolio to the insurance firm Swiss Life.

Azora is also behind the sale of 3,000 homes in the Community of Madrid to Goldman Sachs, which now comprise the company Encasa Cibeles, and of the purchase of four Consell Comarcal de Barcelonés developments from several Catalan town halls, assets that it has just debuted on the MAB through its Socimi Colón Viviendas.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Aelca Makes Its Debut In Valencia With 192 Homes

21 September 2017 – Levante EMV

The property developer Aelca has arrived in Valencia with the launch of two developments containing 192 homes in Patraix and Nou Campanar. The development in Patraix is owned by the property developer itself, whilst the one in Nou Camapanar is owned by Sareb.

Aelca is one of four large Spanish property developers linked to a US investment fund (known in the sector as the “big four”) that has backed Valencia heavily in the face of the shortage of new-build homes and the rise in the price of land in Madrid and Barcelona. The other three large property developers are Neinor Homes (which is going to build 450 homes in Malilla), Vía Célere (which is working on a development in La Petxina) and Aedas Homes (which is going to build homes in Cuatre Carreres).

Aelca was founded in Madrid in 2012 and in the middle of 2016, the US fund Värde Partners acquired a stake in the firm. The investment fund headquartered in Minneapolis is one of the players that has most heavily backed the recovery of the sector in Spain, as demonstrated by the fact that it has also invested in Vía Célere. With the financial muscle that it enjoys from having Värde Partners as a shareholder, Aelca plans to continue buying land.

Aelca’s own development in Valencia is called Residencial Llum, a complex containing 120 homes with 2, 3 and 4 bedrooms, in a private urbanisation between Avenida Tres Cruces and Calle Campos Crespo in Patraix. The prices of the homes there start at €125,000 including a parking space and storeroom.

Aelca’s second project in Valencia is called Residencial Sonet, a building with 72 homes that is being promoted by Sareb and marketed by Solvia. The urbanisation has a communal outdoor swimming pool, the homes have between two and four bedrooms and the development is located on Avenida Pío Baroja. The homes there are on the market for prices starting at €190,000.

Aelca recorded turnover of €103 million in 2016 having sold more than 600 homes. The company expects its revenues to increase by 49% this year (to reach €154 million) and for it to sell around 1,000 homes. The property developer currently has more than 2,220 homes under construction across Spain.

In addition to the four large property developers linked to US investment funds, there is another player in the market, Metrovacesa. That entity owns land for the construction of 5,550 homes in the Community of Valencia after it received plots from Santander, Popular and BBVA.

Original story: Levante EMV (by Ramón Ferrando)

Translation: Carmel Drake

Aquila Capital & Momentum Reim Join Forces To Build Homes In Barcelona

20 September 2017 – El Mundo

The investment fund Aquila Capital and the property developer Momentum Reim have reached an agreement to jointly develop residential projects in Barcelona. The first investment as a result of this partnership has involved the acquisition of 13,000 m2 of buildable land in an area known as La Catalana, in Sant Adrià de Besòs, for the construction of 120 homes.

This residential project is located 600m from Port Forum beach and one kilometre away from Diagonal Mar, in a very good location thanks to La Ronda and public transport links (Tranvía and Metro).

The future development (www.jardinsdelforum.com) will contain two-, three- and four-bedroom homes, with double orientation for better ventilation and large terraces. The master bedroom in each home will have a dressing room and ensuite bathroom, and there will be a communal area with a solarium and pool on the roof.

Aquila Capital is headquartered in Hamburg and currently manages investments amounting to more than €6,000 million around the world. It is one of the most active institutional investors in the real estate sector in Spain, where it is currently constructing more than 1,500 homes, as well as several hotels, in Madrid and Barcelona, with various local partners.

Meanwhile, Momentum Reim is currently building more than 1,200 homes, worth more than €500 million, from its offices in Madrid, Málaga and Barcelona.

Original story: El Mundo 

Translation: Carmel Drake

# Of Estate Agents Grow With A Vengeance In The Community Of Madrid

19 September 2017 – Real Estate Press

The resurgence of real estate activity in Spain, and in particular, in the Community of Madrid, has given rise to a significant increase in the number of companies in the sector, which have grown by 18.5% since 2014. Currently, the Community of Madrid has 31,384 real estate companies and 33,616 real estate related premises. In other words, one for every 192 inhabitants.

So far this year, 41,641 homes have been sold in Madrid, up by 17% compared to a year ago, and up by 30% compared to two years ago. Moreover, prices rose by 10.9% in the second quarter of 2017 with respect to the previous year. In addition, rental prices have risen by 11% over the last year.

Jaime Cabrero, President of the Official College of Real Estate Agents in Madrid, says that “Normally, when the sales market is strong, the rental market is weaker, and vice versa, but now both sectors are booming”. He added that “Naturally, we are seeing an increase in (the number of) real estate companies (…); there are 33,616 estate agent premises”, which is a high number of establishments dedicated to real estate activity.

According to figures from the Central Directory of Companies, compiled by Spain’s National Institute of Statistics (INE), over the last three years, the number of estate agent premises has risen by 5,377. The increase in the number of companies, many of which have more than one branch, amounts to 4,912. Logically, this activity has an impact on employment. During the second half of 2017, the sector provided work to 29,300 people, according to the INE’s Active Population Survey, 8,800 more than in 2014 and the highest figure for the last decade.

In fact, the real estate activity category includes all companies dedicated to the sale, purchase or rental of all kinds of properties, including “lessors, agents and brokers”, as well as other key services, such as appraisal. The category also includes companies dedicated to construction, which then carry out the maintenance and rental of buildings, as well as managers of real estate properties. The sub-category containing the latter – “real estate activities on behalf of third parties” – grew by 1,773 companies between 2014 and 2017, to exceed 10,000 in total.

Original story: Real Estate Press

Translation: Carmel Drake