ABC Serrano’s Owners’ Socimi Gets Green Light for MAB Listing with €105 Million Valuation

28 March 2018

The socimi Serrano 61 is controlled by Banca March, which holds 19.2% of its capital. 40.8% is in the hands of minority shareholders, and another eight partners hold 5% each.

There’s going to be a new socimi debuting on the alternative market. Serrano 61, controlled by Banca March and owner of the ABC Serrano shopping centre in Madrid, will be listed on the Alternative Stock Market (MAB) at 21.10 euros per share, valuing the socimi at 105.5 million euros, according to BME.

The complex is located in the capital’s golden mile, the main commercial area of ​​the city, and is located in a historic building dating to the beginning of the last century. The asset has a lettable area of ​​about 15,000 square meters spread over seven above-ground floors, together with four floors of underground parking.

The Socimi Serrano 61, which has the complex as its sole asset, is controlled by Banca March, which holds 19.20% of its capital. 40.8% is in the hands of minority shareholders, and another eight partners hold 5% each.

The firm is listing itself on the MAB to attract capital and undertake a strategy designed to “maximise” the income generated by the centre “in the medium term”, to “monetise their investment,” according to a prospectus regarding the listing on the MAB.

At the end of 2017, ABC Serrano had an occupancy rate of 86.2% of its total surface area, with fifteen of its 46 stores vacant. Last year, the centre registered losses of 990,000 euros, after taking in 5.30 million euros in rents. Its owners expect to reverse the losses this year, forecasts profits of €2.4 million. To do this, the investors plan to increase revenues to €5.6 million and reduce expenses and amortisations.

Original Story: EjePrime

Translation: Richard Turner


IBA Capital & CBRE GI Sell Preciados 9 to Generali

15 March 2018 – Eje Prime

A new prime retail operation has been closed in the capital. The fund manager IBA Capital, together with CBRE Global Investment, has closed the sale of number 9 Calle Preciados in Madrid to the real estate vehicle of the insurance company Generali, Generali Real Estate. The Italian group has paid €100 million for the asset, which is going to be home to the future Pull&Bear store on that street, one of the most expensive in Spain for opening a store.

The property, which has a surface area of more than 3,000 m2, was the first building that El Corte Inglés sold in the Spanish capital and fired the starting gun for the policy of real estate divestments by the distribution group.

The asset, located in the so-called Golden Triangle of Madrid, was built in the 1940s. The building overlooks the confluence of the areas of Sol, Preciados and Gran Vía, and has a commercial surface area of more than 2,100 m2, distributed over six floors.

The operation, which has been brokered by the real estate consultancy Colliers, has been in the pipeline for six months, but the parties have not signed the agreement until now. In this way, IBA Capital is continuing to transform its asset portfolio in Spain.

Founded in 2013, IBA Capital is headed by Thierry Julienne and Jesús Valderrama, founders of the investment vehicle. The group has the capacity to manage all kinds of real estate assets and, currently, manages assets with a value of approximately €1 billion.

IBA Capital’s activity is divided into three lines of business. The company is continuing to acquire new assets following a phase of “prior selection of opportunities and a process of internal analysis”, according to sources at the company. IBA Capital also manages and sells assets, as well as controls the Socimi Zambal.

Its current portfolio comprises more than a dozen assets situated in prime locations of Madrid and Barcelona for the most part. They include number 18 Gran Vía and the ABC Serrano shopping centre, which have been acquired for their subsequent renovation and enhancement.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Deutsche Bank Negotiates Purchase Of L’Aljub Shopping Centre

9 November 2017 – Expansión

The real estate sector is heading for a new investment record this year and shopping centres are one of the star segments on the rise. Deutsche Bank, which marked a milestone in 2016 with its purchase of Diagonal Mar, wants to strengthen its position in this market and to this end, is negotiating the acquisition of the L’Aljub shopping centre, located in Elche. The operation could be closed for a price of more than €170 million, according to market sources.

L’Aljub is currently owned by the fund Seva (Southern European Value-Add Mandate), managed by TH Real Estate for the investors TPG Real Estate – the real estate platform of the international manager TPG – and Partners Group. The consultancy firm Cushman & Wakefield is advising the vendor and CBRE the buyer.

This investment vehicle, which also owns two other retail assets in Italy, has a combined value of €300 million. The three assets were acquired a year ago from TH Real Estate for €250 million.

In addition to the retail and leisure premises, L’Aljub also houses an Eroski hypermarket on the ground floor. TH Real Estate purchased that store from Eroski a month ago through this investment vehicle for €18.7 million.

This investment in L’Aljub includes the hypermarket, which has a surface area of 9,900 m2, as well as the space leased by Primark (4,500 m2) and the gas station (200 m2), operated by Eroski.

The shopping centre was inaugurated in August 2003 and has a surface area of more than 60,000 m2, spread over two floors, as well as an extensive underground car park. The centre is home to 120 stores and 3,200 parking spaces (free of charge). Some of its most high profile operators include Inditex, H&M, Primark, Mango and Cines ABC.

If the negotiations prove fruitful, Deutsche Bank would strengthen its position in the retail segment in Spain. Last year, the company purchased the Diagonal Mar shopping centre (Barcelona) for almost €500 million. After the purchase of Xanadú, that operation was the second largest ever closed in the shopping centre segment.


Another example of the interest in this type of asset was the purchase of Xanadú by Intu Properties in March for €530 million. Subsequently, the British created a company with TH Real Estate to share ownership of the Madrilenian shopping centre.

Banca March has also decided to back this kind of asset with the purchase of the ABC Serrano shopping centre in Madrid this summer for €130 million, debt included. Meanwhile, Klépierre acquired Nueva Condomina in Murcia for €230 million earlier this year.

In this way, investment in the segment during the 10 months to October amounted to €2,300 million, which suggests a high volume year, behind only the historical maximum, recorded last year, of €2,700 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

C&W: RE Inv’t Amounts To €5,500M During YTD Sept 16

30 November 2016 – Expansión

Change in the trend / Investment fell by 25% during the first nine months of the year, excluding Merlin’s purchase of Metrovacesa’s assets.

During the first nine months of 2016, real estate investment in Spain (excluding the purchase of residential and corporate assets) amounted to €5,500 million, down by 25% compared to the same period last year, but in line with the first three quarters of 2014.

If we include Merlin’s integration of Metrovacesa’s assets, this figure increases by €1,000 million, explain sources at the consultancy firm Cushman & Wakefield (C&W) in their latest report.

By type of buyer, international funds lead the investor ranking, accounting for 57% of all investment, however, Spanish firms, led by the Socimis and in some cases privately owned firms such as Pontegadea, are starting to bring domestic capital into line with overseas capital as we head into the final month of the year. In 2015, domestic buyers accounted for 57% of all operations.

The decrease in investment volumes in 2016 is explained by a reduction in purchases during the first six months of the year, given that, during the third quarter, several large operations have been signed, including the acquisition of the Diagonal Mar shopping centre in Barcelona, by Deutsche Bank’s real estate fund, which paid €495 million for the property; and Torre Foster, which was acquired by Amancio Ortega’s real estate company (Pontegadea) for €490 million.

Excluding these operations, the average volume per acquisition has decreased this year, from €55 million to €40 million, say sources at Cushman & Wakefield (C&W). The average over the last decade stands at €50 million.

Shopping centres

By type of asset, the large shopping establishments (centres, retail parks and flagship stores) have been the stars of the investment market so far in 2016, accounting for 44% of the total, according to the report. In this way, in addition to Diagonal Mar, the following establishments have changed hands: the ABC Serrano in Madrid and the Gran Vía in Vigo. “Investment in retail in Spain is much more oriented towards foreign capital, above all, in the case of shopping centres”, say sources at the consultancy firm.

Meanwhile, offices have accounted for 25% of the total investment volume, compared with 30% on average over the last ten years.

Purchases of logistics assets are recovering well, thanks to the high returns that they now offer compared to other types of properties, whose returns have started to decrease due to high demand. One of the most important operations of the year saw the fund CBRE Global Investors purchase 16 logistics centres from Metrovacesa.

By location, Madrid maintained its position as the leading destination for real estate investment in Spain, accounting for 30% of the total.

After a strong third quarter, the forecast for the end of the year is positive, but lower than the figure recorded in 2015. “We estimate a total spend of around €8,000 million for the full year (excluding Metrovacesa’s office portfolio, worth €1,000 million), compared with €8,600 million last year”, say C&W.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

ABC Serrano Completes 2 Year Refurbishment

21 July 2016 – Expansión

After almost two years under refurbishment, the ABC Serrano shopping centre in Madrid, the former headquarters of the ABC newspaper and a property with more than one hundred years under its belt, is ready to secure new brands, attract younger customers and compete with the fashion houses and restaurants along Madrid’s golden mile.

The shopping centre, which has a retail surface area of 14,000 sqm and 255 underground parking spaces, spread over four floors, is accessible from both Paseo de la Castellana and Calle Serrano.

The co-Presidents of IBA Capital Partners, Thierry Julienne and Jesús Valderrama, explained in an interview with Expansión that, since the architect Mariano Bayón was commissioned in the 1990s to completely renovate the building and convert it into a shopping centre, ABC Serrano has not undergone any remodelling. “We have brought a sleeping beauty to life. It is another step in the regeneration of the city centre”, said Julienne.

The construction work, which began in Q4 2014 and which will be completed in September, had a budget of €15 million and has been complex. Firstly, because the building is a listed property for the purposes of cultural interest and, also, because the remodelling process has been undertaken in the presence of tenants and shoppers. “We have maintained an open dialogue with the Town Hall, which has guided us a lot”, explained Julienne.

The construction work at ABC Serrano, which has been owned by CBRE Global Investment Partners since February 2016 and in which IBA Capital participates as a shareholder and the manager of the asset, has focused on improving access between the floors and redistributing the retail space.

In this way, the flights of stairs have now been unified into a single core. In addition, the dome of the building, which was previously covered over, has been turned into a huge skylight allowing natural light to enter the building.

The construction work, which has been led by the architecture studio L35, will allow the shopping centre to secure new brands, attract customers on the weekend and improve the profitability of the asset. “We reject offers from tenants that do not fit with the centre’s image”, explained Julienne.

The co-Presidents of IBA indicated that the shopping centre, which has an occupancy rate of 70%, has signed new lease contracts with Habitat, which will open its new flagship store in a 900 sqm unit; as well as with a hand and footcare specialist D-Uñas, and Zooo-Huawei, the official technical service company of Huawei and Sony. In addition, tenants such as Neck&Neck, El Armario Francés, Sebago, Luis&Tachi, Lujans, Viena Capellanes and Calzedonia, amongst others, have renewed their contracts. “This is a trophy asset, both in terms of the location and because it is an iconic building with a new image”, said Valderrama.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

The Socimi Zambal Debuts On MAB With 4.84% Rise

2 December 2015 – El Economista

The Socimi Zambal, owner of the ABC Serrano shopping centre, amongst other properties, has debuted on the Alternative Investment Market (‘Mercado Alternative Bursátil’ or MAB) with a 4.84% increase, after it recorded an initial price of €1.30/share, compared with the price it set to go public (€1.24).

Zambal, the eleventh real estate firm of its kind to debut on this market, is the owner of nine office and commercial buildings in Madrid and Barcelona.

Besides the ABC Serrano shopping complex, located in the centre of the capital, the firm is the landlord of Día, Unidad Editorial, BMW Ibérica, Enagás and Vodafone España, since it leases buildings in Madrid in which these companies have their respective corporate headquarters.

In the commercial sphere, Zambal is the owner of a property in Plaza de Cataluña in Barcelona, which El Corte Inglés occupies under a lease contract.

Zambal listed on the MAB under the ticker ‘YZBL’ and its shares were traded through a fixing system. At the first auction, held at 12:00h, the company sold 1,500 shares.

Original story: El Economista

Translation: Carmel Drake

GMP Will Debut On Stock Exchange Before Oct 2016

10 November 2015 – Cinco Días

One of the real estate companies that owns some of the best office buildings in Madrid will debut on the stock exchange before October 2016. GMP Property, which was constituted as a Socimi in September last year, has up to two years to list on the stock market, and it seems like the company’s managers are going to maximise that period – by all accounts, they are in no hurry to take the step, but they are already working to prepare the company to that end.

GMP Property is controlled by the Montoro family, which founded the company in 1979, as a pure real estate company, in other words, a company dedicated to the generation of income, primarily from office rentals. The GIC Real Estate International division of the Singapore sovereign fund acquired a stake in the company as part of GMP’s strategy to become a Socimi in September last year. It purchased 30% of the real estate company for €200 million, which meant that the company’s market value then stood at around €670 million.

That is an indication of the potential value of the real estate company on the stock exchange, although the company says that its market capitalisation is greater now than when GIC acquired its stake, given the better climate for economic activity in Spain and thanks to the new properties that the company has incorporated into its portfolio. “GMP is undoubtedly worth more now than a year ago”, said Xavier Barrondo, the CEO of GMP.

In this way, it will become one of the largest Socimis in Spain, alongside Merlin, Axiare, Hispania and Lar España. Zambal is the Socimi that is expected to debut on the stock market next. It is owned by the French fund IBA Capital and holds properties such as the ABC Serrano shopping centre in Madrid and Zara’s flagship store on Calle Preciados. The Socimis have the advantage that they do not pay corporation tax, but they are obliged to pay dividends to their shareholders. Moreover, they have a maximum period of two years to debut on the stock exchange.

Shareholder stability

Once listed, the managers of GMP intend to maintain the union of current shareholders, which includes the Montoro family and GIC. “It is a long-term strategic alliance”, says Barrondo. For this reason, the Socimi will only list the minimum number of shares known as free float on the stock exchange, for a small value, estimated at €2 million.

The Singapore fund holds its stake in GMP through another Socimi, known as Euro Cervantes. That company also holds other investments in Spain, primarily in shopping centres, such as La Maquinista (Barcelona) and Habaneras (Torrevieja, Alicante). The latest data available for GMP, from its annual report for 2014, indicates that the gross value of the company’s assets amounted to €1,282 million as at December 2014. (…).

Some of the most iconic buildings in its portfolio include the BBVA Tower on the Castellana, the historical headquarters of Banco Bilbao, on Calle Alcalá 16 and Garrigues’ corporate headquarters on Calle Hermosilla, all in Madrid. (…).

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

IBA Capital Buys Vodafone’s HQ In Madrid

5 October 2015 – Cinco Días

The real estate fund manager IBA Capital Partners has purchased Vodafone España’s headquarters in Madrid through its Socimi Iberia Nora, on behalf of Zambal Socimi SA. It has also agreed a long-term rental contract with the telecommunications company.

In a statement on Saturday, IBA Capital said that this operation represents an important addition to the group’s portfolio of real estate assets, valued at €650 million.

Vodafone España’s headquarters are located in a business park comprising five buildings, with a total surface area of 50,000 m2 and 1,500 parking spaces.

IBA Capital Partners, Investment and Asset Manager, which is itself headquartered in Madrid, said that it had been one of the first groups to back the recovery of the real estate sector in Spain in 2013.

The group’s portfolio of assets includes the headquarters of several organisations and corporates including: the Ministry of Foreign Affairs, Unión Editorial, Día, Enagás and BMW in Madrid, as well as the ABC Serrano shopping centre, also located in the Spanish capital.

The managing partners of IBA, Jesús Valderrama and Thierry Julienne, highlighted that their objective is to “continue investing through Zambal, in high quality assets in Madrid and Barcelona and in other high added value assets in Spain’s other major cities”.

Original story: Cinco Días

Translation: Carmel Drake

Judge Asks Reyal Urbis To Rectify Errors In Its Creditors’ Agreement

9 March 2015 – Expansión

The judge at the Commercial Court number 6 in Madrid has ruled that the real estate company Reyal Urbis must present additional documentation and perform “certain rectifications” to the draft agreement that the company presented to exit from its bankruptcy proceedings.

The real estate company, which filed for bankruptcy in February 2011, submitted a payment plan to the court, containing a proposal for the settlement of the €3,978 million debt that it owes.

Reyal Urbis has offered its creditors, which include banks such as Santander, Popular and RBS, as well as Sareb and ICO, a discount of more than 80% on its liabilities and to pay the remaining debt with assets.

The real estate company holds assets amounting to €1,474 million, after it sold several buildings such as the ABC Serrano shopping centre in Madrid. It has just agreed with the tax authorities that it will pay its debt in full, which amounts to around €400 million, but over a long period of time.

The request made by the Commercial Court suspends the period for achieving agreement, which would otherwise have become effective before 13 March.

Martinsa Fadesa

Meanwhile, the Commercial Court in La Coruña has announced the opening of the liquidation phase of Martinsa Fadesa, which owns €6,600 million, after the real estate company failed to obtain support from its creditor banks for a new banking agreement.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Reyal Urbis Offers Its Banks 20% Of The Debt It Owes Them

13 February 2015 – Expansión

The listed real estate company Reyal Urbis will submit its payment proposal today to allow it to overcome the bankruptcy process in which it has been immersed for two years now.

The real estate company controlled by Rafael Santamaría will offer its creditors, which include entities such as Santander, Banco Popular and RBS, as well as Sareb and ICO, a haircut of 80% of the debt and the payment of the remainder through the transfer of assets.

The real estate company filed for bankruptcy in February 2013, after a string of up to four refinancing processes. According to the bankruptcy report, the company has a debt of €3,978 million, an equity deficit of €2,878 million and assets amounting to just €1,474 million. After selling off various iconic assets, such as the ABC Serrano and Castellana 200 shopping centres, both in Madrid, and the Diagonal Port Hotel in Barcelona, Reyal and its creditors have been working together to distribute the rest of its assets, in the form of lots, which will be awarded through a draw.

The tax authorities

The proposal for an 80% haircut will not apply to all of the creditors, since the real estate company will propose a different offer to the Tax Authorities.

Reyal Urbis will offer to pay the Public Administration the full amount it owes in cash (€400 million) over the long term, say sources close to the process.

Creditors have until 13 March to accept or reject Reyal Urbis’ proposal. If it does not obtain the agreement of the entities, the real estate company will end up with a small lot of assets and a manageable debt.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake