Segro Buys a 28,500 m2 Warehouse in Granollers

29 January 2019 – Eje Prime

Segro is continuing to grow its logistics portfolio in the Spanish market. The British Socimi has acquired a distribution centre measuring 28,500 m2 in Granollers (Barcelona), leased to the logistics operator ID Logistics, with which Segro has a long-term agreement.

The asset was constructed in 2019 and is located thirty kilometres from Barcelona, with easy access to the A7 and C17 motorways. The group has highlighted “the location and access of the asset for distribution across the south of Europe”.

The company, founded in 1920, entered Spain in 2015 with the development of a logistics centre in Martorelles (Barcelona). Since then, Segro has purchased a 16,000 m2 logistics park in Coslada (Madrid), another 49,000 m2 site in Castellar del Vallès (Barcelona), a second plot in Martorelles, where it is constructing an asset spanning 20,000 m2, and a plot in San Fernando de Henares.

Segro has also added other plots in Getafe (Madrid), Sant Esteve Sesrovires (Barcelona), Mollet del Vallès (Barcelona) to its portfolio, as well as a second building in Coslada (Madrid), and Villaverde (Madrid). In total, the firm has a portfolio spanning 400,000 m2 of constructed space in Spain and another 70,000 m2 under construction.

Original story: Eje Prime 

Translation: Carmel Drake

Valencia’s Town Hall Unveils Special Plan for El Cabanyal with 850 New Homes & 1,000 Parking Spaces

11 July 2018 – Inmodiario

The draft of the Special Plan for El Cabanyal-Canyamelar (PEC) involves 850 homes in total: 650 for social housing and private use and 200 more for public use. That is according to the Councillor for Sustainable Urban Development at the Town Hall of Valencia, Vicent Sarrià, who has held a meeting with residents of the neighbourhood to inform them about the progress of the PEC working document.

60% of the 650 homes will be allocated to social housing and the remaining 40% will be for private use. Moreover, the plan will include another 200 public homes to be allocated to the elderly (over 65 years) and young people (under 35 years), amongst other cohorts, on a rental basis.

In terms of the parking lots, the PEC is planning to build high-rise car parks for neighbours right across the area. The forecast being considered at the moment, according to the councillor, involve approximately 1,000 parking spaces in total.

Another question dealt with at the meeting was the distribution of the new buildings with respect to Doctor Lluch Park. Vicent Sarrià indicated that the building “will be located on adjacent plots, and so the entire surface area of the current gardens will be respected”.

The councillor highlighted that the document envisages “the remodelling of the entire garden area and that the walls will be replaced by slopes, which will improve accessibility”. In this way, he added, the plans reflect the requests made by people who actually live in the area.

Finally, Sarrià made reference to the forecasts for the end of Avenida de Blasco Ibáñez which, he revealed, involve turning the roundabout that is home to Cabanyal station “into a more accessible green area, connected by public transport”.

The document is still being drafted and the team responsible is expected to submit it in September so that the Town Hall can proceed with its publication.

In terms of the forecast investments, within the framework of Plan Cabanyal, the intention is to spend €13 million on the renovation of homes; another €18 million on the re-urbanisation of the streets, sewers and other installations; and €30 million on the development plan, co-financed by funds from the EU. In total, the project will see more than €60 million of public and private funds spent on the reinvigoration of this maritime neighbourhood of Valencia.

Original story: Inmodiario 

Translation: Carmel Drake

Fitch: House Prices Are Going to Rise At A Faster Rate Than Salaries

20 February 2017 – El Economista

On Thursday, the ratings agency Fitch warned that access to housing in Spain is going to gradually worsen as a result of the difficulties facing the labour market.

In its report about the outlook for the real estate and mortgage market in 2017, the ratings agency forecasts that house prices in Spain are going to rise at a faster rate than salaries, which means that the accessibility of housing is going to deteriorate.

“Fitch expects the accessibility of housing to gradually worsen given that any recovery in salaries will be lower than the increase in house prices, taking into account the challenges facing the labour market”, said the agency, which added that access to the real estate market will be “especially difficult” for first-time buyers.

Fitch expects the positive trend observed in house prices, which rose by 4% during the third quarter of 2016, to continue thanks to “robust economic growth”, the maturity of the mortgage market and foreign demand, which currently accounts for 13% of transactions.

Nevertheless, it says that the two-speed market will continue, given that the “bulk” of the recovery will focus on homes whose quality and location place them above average.

Slow down due to floor clauses

On the other hand, Fitch thinks that the legal uncertainties surrounding the floor clauses and the reform of the mortgage market will slow down the growth experienced since 2014 for the granting of loans to buy homes.

“The rate of growth in loans will slow down from the levels seen in 2015 and during the first half of 2016, given that Spain’s banks will adopt a more cautious approach in the face of the legal uncertainties that are affecting the mortgage market”, said the agency.

Nevertheless, it considers that the rise in house prices and the favourable loan environment, thanks to low interest rates, are still offsetting the repayment of loans in progress.

Finally, Fitch thinks that Spain’s banks will continue to reduce their exposure to toxic assets by divesting their non-strategic businesses, such as their non-performing loans and foreclosed properties.

Original story: El Economista

Translation: Carmel Drake

Veracruz Properties Acquires Parla Natura Shopping Centre

4 August 2016 – Mis Locales

Veracruz Properties has acquired the Parla Natura shopping centre (in Madrid) in an operation advised by Cushman & Wakefield and Savills, marking a new milestone in the sale and purchase of shopping centres in Spain.

Opened in 2009, Parla Natura has a gross leasable area of 18,000 sqm spread across twelve stores, which are leased to brands such as Decathlon, Aki and Kiabi, as well as 1,200 parking spaces. Moreover, its location is unbeatable, given that it is easily accessible from the A-42 motorway that links Madrid and Toledo.

Salvador González, Director of Retail Investment at Savills, commented that “Investor appetite for retail parks in Spain is still very strong, primarily due to the product’s future potential both in terms of revenues and profitability. At Savills Spain, we have always been committed to the retail park sector, and proof of that is the strong track record of transactions that we have advised in this segment. We have successfully closed this operation, together with Cushman & Wakefield.

Rupert Lea, Head of Retail Capital Markets at Cushman & Wakefield Spain explained that: “The sale of Parla Natura is another example of the strong interest that international investors, in this case, from Latin America, have in the retail sector in Spain. Together with our co-agents, Cushman & Wakefield, we have successfully closed another transaction for our client”.

Original story: Mis Locales

Translation: Carmel Drake

Madrid Río Shopping Centre Will Open In October 2017

15 April 2016 – Expansión

Located opposite the Matadero, the shopping centre will open in October 2017 and will be directly accessible from the M-30.

The Plaza Río 2 shopping centre will open in October 2017 with a new design that will include an access road between Calle Matilde Gayo and the Manzanares river, as demanded by Carmena’s Government. “At the request of the Town Hall, there will be a wider than planned street connecting (the shopping centre) with the river. In addition, the façade will be more modern and less palatial, in order to better blend in with the environment”, said Bertrand Chevallereau yesterday, the CEO of Sociedad General Inmobiliaria de España (LGSIE), the property developer behind the new shopping centre.

Located in Usera, next to the Matedero Madrid, Plaza Río 2 will have three parking levels, three shopping floors and a terrace with eight restaurants. The lowest floor will be 7m below the level of the river. According to José Solana, Commercial Director of Sociedad de Centros Comerciales de España (SCCE), the project will comprise 150 stores including an Alcampo hypermarket, all of the Inditex brands, electrical appliance shops and a few sports stores “such as, for example, Décimas”.

Of the 150 stores, 30 will be large brands and the rest, 120, will be small and medium-sized retailers. “We have given priority to local retailers wanting to move in or open a second store in the shopping centre, but in general they do not want to move in as they cannot afford the investment or because they have concerns about moving here”, said Solana.

The shopping centre will be opened on a surface area measuring 40,000 m2, but there will not be any leisure facilities such as cinemas, bowling allies or recreational shops as there is not enough space, given that the shopping centre alone will take up 75% of the site. “What’s more, Matadero Madrid already organises lots of cultural events”, added Chevallereau.

Besides the obstacle to access the river directly, the main complaint lodged by Madrid Río’s neighbourhood associations relates to concerns that the construction of a new shopping centre will harm local retailers in the area and may cause transport problems. In this sense, Chevallereau said that local retailers have concerns that “are unfounded, at least in part”

By way of example, he referred to La Vaguada shopping centre – also built by the LSGI investment and development group – where he says that “many businesses have been generated around the building because it is an attraction for the public”. For Chevallereau, “the new shopping centre will not represent competition to small businesses but rather a dialogue”.

In terms of the disruption that traffic may cause in the area, he stressed that the shopping centre will be connected directly to the M-30, where the road exits the Manzanares tunnel, which means that “many cars will access it that way, without having to drive around the streets bordering the shopping centre”.

Original story: Expansión (by Noelia Marín)

Translation: Carmel Drake