Category: Retail & Shopping Centers

The Socimi Al Breck Sold All of its Assets between January and April for €4.7 Million

The company has sold all of the assets that made up its portfolio, whereby generating a profit of €845,000.

The Socimi Al Breck, owned by the American giant Lennar, sold all of the assets in its portfolio between January and April for a total of €4.7 million, according to a report filed by company with the Alternative Investment Market (MAB).

The company has explained that “within this period, taking advantage of market opportunities, the Company formalised the sale of homes and premises, together with storage rooms and parking spaces, for an approximate amount of €4.7 million, whereby generating a profit of approximately €845,000”.

Footfall in Shopping Centres Plummeted by 93% in March and April

This collapse in footfall has caused more than 30% of shopping centre tenants to ask for their rental payments in March and April to be waived, according to MGVM.

The company MGVM has published a study about the impact of Covid-19 on the real estate management sector. It reveals that the footfall of people in shopping centres decreased by 93% in March and April of this year compared to the same period in 2019.

Activity in shopping centres has been all but suspended and is down by 95%, on average. Only those stores offering basic products and services are allowed to open. The report reveals that some premises are taking advantage of the lockdown to carry out work inside, such as deep-cleaning and stock counts; meanwhile, others are processing online orders, and so the premises have become their focal point for preparing and distributing shipments.

Madrid Wants to Replace Urban Planning Licences with Sworn Declarations

The Community of Madrid is going to begin the process of amending the Land Act, to eliminate most of the urban planning licenses that have been mandatory until now and replace them with sworn declarations.

The President of the Community of Madrid, Isabel Díaz Ayuso, announced on Tuesday that she will abolish urban planning licenses in favour of a sworn declaration, to “reduce the bureaucratic procedures” and “promote flexibility of hours and commercial openings”, in a clear hint not only to housing, but also to the opening of commercial premises.

In this way, the President is following in the footsteps of Madrid City Council, which has also decided to apply this statement as an express option for first occupancy licenses. In fact, the City Council has already created a specific team for this.

Business and Premises Spanning Less than 400 sqm Can Now Serve Customers with Appointments

From Monday, the first phase of the end of lockdown begins. Shops and service premises spanning less than 400 square metres may open by appointment, but large stores are excluded.

The extraordinary BOE published at the weekend lifts some of the prohibitions established during the State of Emergency. It came into effect on Monday 4 May and it represents the first phase of de-escalation. The new measures allow people to go to the shops and to service premises by appointment, pick up take-out food from bars and restaurants, train professional athletes and consult archives. All of these activities can be performed, although with limitations.

These measures will be applied throughout the country, although on the islands of Formentera, El Hierro, La Graciosa and La Gomera, which entered phase 1 last Monday, other activities will now also be allowed.

Lar España Launches a Plan to Reduce Costs in its Shopping Centres

The Socimi has explained that its specific plan to minimise expenses at its shopping centres has reduced the amount by 35%.

The Socimi has explained that its specific plan to minimise expenses at its shopping centres, following the situation caused by the pandemic crisis, has reduced the amount by 35%.

In a statement sent to the National Securities Market Commission (CNMV), Lar España has explained that it has applied the principle of austerity to its ongoing activities and has adapted its expenses to the new situation.

Shopping Centres Ask the Government to Open from 11 May

The AECC considers that this decision will have a serious impact on the recovery and employment in the sector, which creates 740,000 direct jobs.

The Spanish Association of Shopping Centres and Retail Parks (AECC) has asked the Government to include the opening of these commercial assets in the first phase of the de-escalation plan.

According to the plan announced on Monday by the Prime Minister Pedro Sánchez, during Phase 2, shopping centres and retail parks will be able to reopen to the public those areas that have been closed during the State of Emergency. However, restrictions will remain in place in the common areas and recreational spaces. During Phase 3, those restrictions will also be lifted, however, restaurants, cafes and bars may operate only at a maximum capacity of 50%, to ensure physical separation between customers.

Tenants Request a 50% Discount in their Rents After the Reopening of Shopping Centres

Small and medium-sized operators are asking shopping centre owners to share the impact of coronavirus through a 50% reduction in their rents until the first quarter of 2021.

More than six weeks after the State of Emergency was decreed in Spain, activity in shopping centres is still practically at a minimum, following an unprecedented decrease in footfall and sales.

To alleviate this situation, most of the owners of these establishments have agreed with their tenants to postpone rental payments for the duration of the lockdown period. They are relying on the Royal Decree that the Government approved to apply a moratorium on the rental payment for those businesses affected by the Covid-19 crisis. Such is the case of the large owners of shopping centres in the country such as Merlin Properties and Temprano Capital. Meanwhile, Castellana Properties has chosen to waive the rent for April.

When Will Hotels and Shopping Centres Open Again?

The Government has designed a plan to return to the “new normal” in four phases, which will run until the end of June and which will vary by region.

On Tuesday, the Spanish government presented its so-called ‘Plan for the transition to a new normality’. It is a roadmap for the next 2 months to reactivate the economy, which has essentially been shut down to curb the Covid-19 pandemic.

Unlike other countries, the Executive led by Pedro Sánchez has preferred not to set specific dates for the reopening of businesses such as hotels and other tourist accommodation, which are waiting to know when they might return for the vital summer season. Rather, it has established a four-phase plan comprising the phases 0,1,2 and 3.

Silicius Hires Mayte Forján as the Asset Manager for its Shopping Centres

Mayte Forján has more than 25 years of experience in the management and administration of shopping centres in companies such as Merlin Properties, Unibail Rodamco and CBRE.

The Socimi Silicius, which specialises in the management of rental properties, has recruited Mayte Forján as the property manager (Asset Manager) for the shopping centres that it has under its administration. Its portfolio includes the Bahía Plaza in Los Barrios (Cádiz), the Thader in Murcia and La Fira in Reus (Tarragona).

Mayte Forján has more than 25 years of experience in the management and administration of shopping centres. She has worked for several leading companies in the sector, including Merlin Properties, Unibail Rodamco, CBRE and Cushman & Wakefield, amongst others.

Merlin Clings to its Office Business to Protect itself from the Impact of Coronavirus

The largest Spanish Socimi forecasts a maximum decrease of 9% in its annual income from its shopping centres after it waived their rental payments, something it has not done with its offices and logistics assets.

The large Spanish real estate companies are beginning to take stock of the impact of the Covid-19 coronavirus epidemic on their businesses. Such is the case of Merlin Properties. The Socimi with the largest number of rental assets in the Spanish market has revealed, in a call with analysts, that the closure of non-essential commercial establishments decreed by the State of Emergency will result in a decrease in its annual income from that type of property.

Specifically, Merlin, whose shopping centres generate 23% of its gross income, points out that only 23% of the stores in its commercial establishments are currently open. The company has given those tenants a 100% payment holiday on their rents for as long as the State of Emergency lasts.