Tag: 22@ district

UK Fund Shaftesbury Buys Plot Of Land In 22@ District

31 March 2017 – Eje Prime

The UK fund is satisfying its investment appetite in the Spanish market by making acquisitions. In this vein, it has just added a plot of land in the 22@ district of Barcelona to its portfolio of assets. The plot is located at number 66 on Calle Cristóbal de Moura, according to Frédéric Mangeant, the Director General of the fund in Spain. Following this purchase, the group plans to construct an office building on the site.

Although the company did not want to make a statement about the amount of the operation, sources close to the deal say that the fund must have paid around €10 million. According to the same sources, Shaftesbury has purchased the plot of land from “a bad bank”, and is now waiting to receive all of the necessary licences from the Town Hall of Barcelona before it starts construction of the property.

Shaftesbury is thereby committing itself to one of the areas that is expected to grow by the most in the Catalan capital. The 22@ district is attracting a large number of companies, both from within Spain as well as from overseas, wanting to open offices in Barcelona. In the same way, a large number of real estate companies are committing themselves to the construction of new office buildings to satisfy demand (…).

Shaftesbury’s purchase of this plot of land forms part of the group’s plans to grow in the Spanish market. Headquartered in Luxembourg, the fund’s leader in Spain is Frédéric Mangeant, an executive who previously served as a managing partner of the international real estate consultancy Knight Frank and who is a member of the Board of Directors of Real Valladolid Football Club.

Shaftesbury’s Spanish subsidiary began its expansion in Spain in 2014, with the purchase of a building at number 48 on Calle José Abascal in Madrid, which it acquired from Sareb for €26.5 million. The fund has converted that property into a luxury residential building. According to sources in the sector, the 17 homes cost around €8,500/m2, and are set to become a benchmark for the multiple high-end projects that are currently underway in the capital (…).

The Shaftesbury Asset Management group manages more than €1,700 million of real estate assets and created the fund Shaftesbury Real Estate Partners 1 in 2015 with the objective of investing approximately €300 million.

Original story: Eje Prime

Translation: Carmel Drake

Deloitte: Spain’s Office Sector Gets A Makeover

3 March 2017 – Expansión

The office markets in Madrid and Barcelona are getting ready to unveil their new image. They are preparing themselves to attract tenants that want not only good locations, but also new, high-quality products that meet the demands of today’s professionals.

At the end of 2016, the stock of offices in Madrid had a combined surface area of 12.9 million m2, whilst in Barcelona, the stock amounted to 5.9 million m2. Although still below the peaks seen before the crisis, the volume of new supply registered in Madrid and Barcelona grew by 56% during 2016 and the market is expected to recover over the next few years.

In this way, the office market will see more than 420,000 m2 of new office space opening up in these two cities between now and 2018, in addition to the 155,000 m2 of space that was added in 2016, thanks to new builds and renovations, according to a report compiled by Deloitte.

Projects underway

Specifically, this year, 180,000 m2 of new office space is expected to become available in Madrid, almost twice as much as last year. For example, Infinorsa, the main owner of Torre Europa, launched a complete overhaul of the building last year, following KPMG’s departure, which, until it moved to Torre de Cristal in March 2016, was the property’s main tenant.

The building – constructed in 1985 – is joining the league of smart skyscrapers, which are tailored to suit the needs of clients in the 21st century.

And just few metres away, on Paseo de la Castellana 77, the real estate group GMP is working on the complete renovation of Torre Ederra, with the renewal of its facilities and the transformation of all 18 of its floors.

What’s more, Madrid is not only renewing its existing supply, it is also welcoming new developments. One of the projects under construction is the property located on c/Estébanez Calderon, which is owned by Colonial. The building, which will have a surface area of just over 10,000 m2, is due be completed in the second half of 2017.

Colonial has also launched another construction project in the business district of Madrid, Specifically, the property located on Príncipe de Vergara will have a surface area of 11,300 m2 and 109 parking spaces.

Also in the capital, the family office Mazabi is restoring a building. The property located on Calle Velázquez 123 has a surface area of 2,346 m2 and benefits from a prime location in the heart of the Salamanca neighbourhood. Meanwhile, Mapfre is renovating a property on Plaza de la Independencia. The building, acquired in July 2015 from the Mutualidad Notarial for €82 million, has a total surface area of 12,000 m2, of which 4,000 m2 corresponds to three underground parking floors with more than 100 parking spaces.

In the same way, Barcelona is also reactivating its new office supply in response to the lack of available space.

According to Deloitte’s report, in addition to the six construction and renovation projects that were launched in 2016, the Catalan Capital expects to see two new projects in 2017, covering a surface area of 37,000 m2 and eight new projects in 2018, covering a surface area of 93,000 m2.

Amongst the new developments underway, the Castellví Group has initiated the construction of a new business complex on the corner of Calles Tánger and Badajoz in the 22@ district. (…).

Also in Barcelona, Colonial has launched a project next to Plaza de las Glòries and adjacent to Avenida Diagonal. (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Amazon Negotiates Rental Of 13,000 m2 Office Space In Barcelona

27 February 2017 – Expansión

The distribution giant Amazon is preparing to make its debut in the 22@ technological district of Barcelona. The company is negotiating the rental of 13,000 m2 of office space in the future Luxa building, which is being promoted by the Castellví group. If the agreement is signed, it will represent the latest chapter in the company’s recent offensive to expand its presence in Cataluña.

Sources close to the negotiations indicate that the agreement between the two parties may be signed within the next three weeks. Meanwhile, spokespeople for Amazon and Castellví have declined to comment on the information.

The Luxa building is going to be split into two units: the main section will have a surface area of 9,920 m2, whilst the second building will add another 6,494 m2 of space. Between the two, there will be almost 17,000 m2 of office space, which means that Amazon will occupy 75% of the total.

The likely arrival of Amazon in 22@, which was revealed by the website Ejeprime, confirms the boom times that the area is enjoying. Another recent high-profile operation involved the technology company Schibsted, which last week announced its plans to move into an office building promoted by the real estate firm Colonial.

In recent months, Amazon has made a strong commitment to Cataluña. The company led by Jeff Bezos will open a 60,000 m2 logistics centre in El Prat de Llobregat (Barcelona) in the autumn, following a €200 million investment. And a few months ago, the giant inaugurated another logistics centre, measuring 28,000 m2, in Castellbisbal (Barcelona). Meanwhile, at the beginning of last year, the firm opened a collection point in el Eixample.

Original story: Expansión

Translation: Carmel Drake

Colonial To Build 24,500 m2 Office Skyscraper In 22@

16 February 2017 – La Vanguardia

Colonial has started construction of the largest turnkey office building in the Catalan capital in recent years in the 22@ district of Barcelona. The office will have a surface area of 24,500 m2, distributed over 17 completely open-plan floors – there will not be any pillars – measuring around 1,800 m2 each. The real estate company will invest €77 million in the project and construction is expected to be completed by the middle of 2018.

At a press conference on Monday, Colonial’s Director of Business, Alberto Alcober, explained that this building will seek to offer the highest qualities in terms of spatial and environmental design – it will become the first office building in the city of Barcelona to receive the LEED Platinum certificate – whereby allowing it to differentiate itself from the existing supply of office buildings in the city.

The property is located on Calle Ciutat de Granada, 150, next to Plaza de Glòries; it will have a 100m long façade covered with ceramic tubes in green and natural tones, and the façade that overlooks the interior of the block will be covered with vegetation to help it blend in with a municipal park that is due to be built there.

The property, whose design is being led by the studio Batlle i Roig Arquitectura, will also have garden terraces. It is being marketed exclusively by Cushman & Wakefield, which has already secured a pre-lease contract with the Norwegian group Schibsted to occupy 10,200 m2 – 9,400 m2 of office space and 800 m2 of terrace – spread over six floors, to house between 700 and 800 employees.

Schibsted will hereby bring together the workforce that currently occupies three buildings in the Barcelona area – two in the capital and one in Sant Cugat de Vallès – and increasing its surface area by 30%. To this end, it has signed the largest pre-lease agreement in the city in the last 10 years for a building under construction. (…).

Besides Schibsted, which owns websites such as Infojobs, Vibbo, Fotocasa, Habitaclia, Milanuncios and Coches.net, the future office building is receiving lots of interest from other potential tenants, according to its promoters.

This project forms part of the investment plan announced by Colonial in 2016. The real estate group acquired it from the fund Benson Elliot for €45 million and will spend €32 million on the construction work.

Original story: La Vanguardia

Translation: Carmel Drake

Torre Rioja Builds Large Office In Julián Camarillo Area (Madrid)

7 February 2017 – Cinco Días

Madrid is going to have a new large building in the Julián Camarillo area of the capital, where many cutting edge companies and technology divisions of large businesses are choosing to concentrate their operations. “The neighbourhood is becoming an area similar to the 22@ district in Barcelona, full of innovative companies” said José Miguel Setién, Director of Offices at the consultancy firm JLL. (…).

The new building, on Calle Julián Camarillo (number 31) is being constructed by the property developer Torre Rioja, which is led by the businessman Ángel Soria. The property, which is currently in the initial phases of construction, will have a surface area of 36,000 m2 spread over six open-plan floors, measuring 8,000 m2 each. The property is expected to house around 3,500 employees. (…).

Now that Torre Rioja has started the initial phases of construction, the search has begun to find a company to move into the property. JLL and possibly one other agent have been engaged to this end. (…). The design may be modified slightly to suit the needs of the future tenant. (…). In any case, the property developer expects construction to be completed within two years. Moreover, the building will have a retail area, with more than 1,000 parking spaces, as well as service areas. (…).

The JLL Director believes that this property in the Julián Camarillo area will primarily be of interest to technology, engineering and communications companies, as well as to back office divisions of large companies and banks.

The Julián Camarillo industrial estate was created between the 1950s and the 1970s as a base for industrial companies. (…). But, it has gradually transformed into an area for offices and even homes. Certain divisions of firms such as IBM, Tecnocom, Atos, the German firm ABB, the engineering firm Eptisa and the University Alfonso X el Sabio have their offices there.

In recent months, Torre Rioja been overseeing renovation work at two of its major office buildings in an area adjoining the A-2 motorway. The insurance company Axa will move into a 23,600 m2 property and the bank BNP will move into an adjoining 20,000 m2 building, now owned by the real estate company, which previously housed the R&D division of Telefónica. Meanwhile, the property developer has seen its sales decrease in recent years, from €27.8 million in 2010, compared with €18.7 million in 2014 (the most recent accounts filed in the registry).

The main drawback for the property developer in this operation in attracting a high profile tenant to the area, given that the building is located relatively far away from the city centre and the industrial estate lacks the services on offer in the centre. Nevertheless, tenants pay considerably lower rents here. Whilst along Paseo de la Castellana, rents in the best buildings can be as high as €25/m2/month, they cost less than €10/m2/month on this industrial estate.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Altamira Sells New Office Building In 22@ District To Family Office

1 February 2017 – Real Estate Press

BNP Paribas Real Estate has advised a Catalan family office on the purchase of a new office building located on Avenida Diagonal, 131 in Barcelona.

The property, which has a surface area of 3,150 m2 and 36 parking spaces, has been acquired from the real estate arm of the Santander Group, Altamira Asset Management, market leader in the sale of properties and in the valuation and construction of real estate developments.

The new building has been built in accordance with the highest quality requirements and has received an “A” energy rating, making it the only building with these characteristics in the 22@ district, the area marketed as the continuation of Barcelona’s Prime area. The family office behind this purchase will now put this new office building up for rent; it will make an ideal corporate headquarters in the Catalan capital.

This operation is further proof that the office market is experiencing one of its busiest periods since the start of the crisis. The purchase of newly constructed office buildings for rent is establishing itself as one of the preferred options for investors. This activity is expected to evolve continuously during 2017.

In addition to this deal, BNP Paribas Real Estate advised numerous high profile transactions during 2016, including several in the Catalan office investment market, such as the sales of the Gran Vía, 583 and Pere IV, 289 office buildings.

Original story: Real Estate Press

Translation: Carmel Drake

CBRE: A Third Of Barcelona’s New Homes In 2017 Will Be Luxury Properties

20 December 2016 – La Información

One third of the 764 new homes that are going to be built the city of Barcelona in 2017 will be luxury, according to data from the real estate consultancy CBRE, which reveals that most of the property development activity in the city will be centred around: El Eixample (439 homes), Sants-Montjüic (126) and Sant Martí (100). The consultancy also forecasts a gradual increase in prices.

The Director of the CBRE office in Barcelona, Anna Esteban (pictured above), explained at a press conference on Monday that the new luxury homes are not only being constructed in the upper area of the city, but also in the centre and along the sea front, in line with the significant demand from international investors.

The Vice President of CBRE in Spain, Enrique Martínez Lagun, noted that this demand for high standing homes is linked to the attraction of international companies, which consider that Barcelona offers a very good price-quality relationship.

Esteban revealed that “several large multinational companies will announce that they are moving some of their operations to Barcelona” in 2017, although she pointed out that they will have trouble finding the large spaces that they need. As such, she predicts that there will be some major renovation projects in the Catalan capital to meet demand, given that there are insufficient plots of land available to build from scratch.

The city is planning to build around 200,000 m2 of office space over the next few years, although 100,000 m2 of that space has already been committed to clients, which means that the other half is still available. The area that is expected to see the most significant growth is the 22@ district, where 65,000 m2 of space is under construction, one project is due to be started and four others are being assessed. The current stock of office space there is practically full and rents are similar to those charged in the city centre. (…).

Essential renovations along La Diagonal

Esteban also said that Paseo de Gràcia has lost 80,000 m2 of office space over the last few years, due to changes in the use of properties towards more profitable activities, such as retail, residential and hotels. She calculates that more than 60% of the office buildings on the Avenda Diagonal thoroughfare require major renovations to adapt them to current demand and ensure that they do not become obsolete. She also predicts that the Plaza Europa and Almeda Park area will see higher occupancy rates and rents once the 22@ area has become more established.

The lack of supply to meet the high demand for offices has meant that Barcelona has seen the highest increase in rental income in Spain in recent years, up by 21% since 2014. Rents are forecast to grow by a further 7% in 2017, making it the second European market in terms of forecast rental growth, behind Madrid.

For the Catalan logistics sector, CBRE forecasts a 5% increase in rents in 2017, following growth of 8% since 2014, making it the highest ranking European market in terms of rental growth in this segment. (…).

Original story: La Información

Translation: Carmel Drake

Benson Elliot Buys Hotel Silken In Barcelona For €80M

7 October 2016 – Expansión

A major operation and better gains for Bank of America Merril Lynch in Barcelona. The US entity is finalising the sale of Hotel Silken Diagonal for €80 million to a group of investors led by the British fund Benson Elliot. Bank of America will generate capital gains of €50 million from the property in just one year, given that it took over the hotel in 2015 when it foreclosed the debt relating to the property, amounting to €27 million.

According to sources close to the operation, the sale has not been signed yet, although the vendor has entered into an exclusivity period with the purchaser group.

Bank of America Merril Lynch ended up with the mortgage loan following the crisis of the Urvasco group, the parent company of the Silken hotel chain, after it filed for bankruptcy.

The property has 240 rooms and a four-star rating. It is located in the 22@ district of Barcelona, next to the Torre Agbar, and it has a management contract with Silken. The operation has been advised by JLL, which declined to comment on the operation yesterday.

The amount (€80 million) that Benson Elliot has paid together with another investor group, whose name has not been revealed, has been described as exorbitant by several sources in the real estate sector, who point out that the building is located away from the city centre in Barcelona, in an area that suffered a lot at the beginning of the crisis.

Nevertheless, the same sources also indicate that the hotel moratorium applied in Barcelona last year by the mayoress Ada Colau, together with the strong investor appetite for assets in the Catalan capital and the shortage of buildings on the market, have driven up the price of the few properties that have come onto the market. Bank of America put this asset on the market a few months ago and several international investors submitted bids for it.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

Insurance Companies Have Unrealised Gains Of €2,400M From RE

26 August 2016 – Expansión

Mapfre, Mutua Madrileña and Catalana Occidente own the majority of the real estate in the insurance sector, whose total portfolio amounts to €4,475 million.

Insurance companies in Spain are accumulating a cushion of unrealised gains in their real estate investments amounting to €2,433 million, according to data from the Director General of Insurance and Pensions.

This amount is the difference between the value that the companies assigns these assets on their balance sheets and the market price of these assets, according to the mandatory appraisals that have to be performed periodically by independent appraisers.

These latest gains in the insurance sector are still well below the threshold of €4,226 million achieved in 2009, at the beginning of the burst of the real estate bubble.

Unrealised gains are recognised in the accounts of entities if the properties are sold at a profit. They are also included in the calculation to measure the solvency margin of the entities, which measures the firms’ strength to deal with unforeseen events using their uncommitted assets.

Insurance companies have traditionally invested in properties, given that they are a particularly appropriate asset for the long term over which they conduct their activity. They also generate regular income in the form of rental payments.

In addition, insurance companies have had to diversify their portfolios following the decrease in interest rates in recent months, which makes the investment strategy of these entities more complicated; they have traditionally focused on public debt, primarily in Spain.

Purchases

Insurance companies are risk averse in their investments and in the face of this new panorama, they have made several purchases that have increased their real estate portfolios, particularly important for the Spanish capital firms Mapfre, Mutua Madrileña and Catalana Occidente, which own the majority of the sector’s total portfolio of €4,475 million, according to data from the Director General of Insurance and Pensions. In recent months, these three entities have been involved in several real estate purchases amounting to more than €250 million. (…).

The Mapfre Group, which has a presence in fifty countries, reported latent gains of €975 million in its accounts for 2015 on the basis of the book value of its total real estate portfolio (€2,267 million) and the market price (€3,242 million). Most (56% or €1,835 million) correspond to real estate investments, whilst the rest (44% or €1,406 million) are properties used by Mapfre. (…).

Meanwhile, Mutua has accumulated a piggy bank of unrealised real estate gains amounting to €462 million, with total assets worth €1,443 million at market prices and €981 million on the balance sheet. Its assets are concentrated in Madrid, where historically it has owned a handful of individual buildings on Paseo de la Castellana. (…).

Grupo Catalana Occidente’s investment in real estate amounts to €1,024 million, which includes unrealised gains amounting to €465 million. The insurance company, which has a presence in more than fifty countries, acquired a building measuring almost 4,000 sqm in the 22@ district in Barcelona in July.

Original story: Expansión (by E. del Pozo)

Translation: Carmel Drake

A Revamp Of Avenida Diagonal Would Boost RE Inv’t

4 August 2016 – Mis Locales

With the debate raging over whether or not to reform Avenida Diagonal, between Paseo de Gracia and La Plaza de las Glorias, real estate investments are firmly under the spotlight. Following the approval of the proposal by the municipal council, planned for next summer, at a cost of around €11 million, the door has been opened to the extension of the prime area, currently centred around the commercial thoroughfares of Rambla de Catalunya and Paseo de Gracia, to other areas of the city centre.

The renovation includes increasing the width of the pavements by up to 40%, moving the tramlines to the middle of the avenue and restricting private traffic to just two lanes in each direction. Those are the main changes of the reform, which would generate 1,000 new jobs, 500 direct and another 500 indirect.

“The renovation of La Diagonal would turn it into one of the state of the art thoroughfares not just in Spain, but in Europe. Moreover, it would generate lots of business opportunities for an area that has historically been regarded as a transit route”, said Gerard Marcet, Founding Partner at Laborde Marcet. The renovation would give priority to citizens and would boost businesses in the area. On the stretch between Paseo de Gracia and Paseo San Juan alone, 100 premises are either vacant or in a precarious situation, which could see their fortunes turned around thanks to this refurbishment.

The project has been prepared on the basis of the city’s urban mobility plan, which forecasts a 20% reduction in private traffic by 2018, which would allow the space designated for bicycles and pedestrians to be increased, and the stretch of La Diagonal between Paseo de Gracia and La Plaza de las Glorias to be converted into a pedestrianized area. (…)

“Investing in La Diagonal means attracting investment and businesses from all over the world, as well as to another main focal point: Diagonal Mar”, said Marcet. The main commercial focus of attraction in the 22@ district has a surface area of 88,000 sqm, contains 200 shops, 40,000 employees and more than 4,800 parking spaces.

Companies such as Sara Lee, ADP, Henkel Ibérica, ISDIN, RBA, Microsoft Ibérica, Telefónica, Indra and Sanofi are some of the companies that are already located in the area.

Original story: Mis Locales

Translation: Carmel Drake