Acciona Inmobiliaria Begins Work on Playa Azul Development in Costa Ballena

9 September 2019

Acciona Inmobiliaria has started work on the construction of its new residential development, Playa Azul, located in Costa Ballena, in Chipiona, Cádiz. The group plans to invest 30 million euros in the project. The plot of land has 33,500 square meters, where the group will build 168 flats.

Sales of the first phase of the development have already begun. Acciona Inmobiliaria announced that those 68 homes would be ready for delivery by the beginning of 2021. The flats, which have from 2 to 3 bedrooms, begin a 72 square meters with a 12 m2 terrace. The smallest will cost €172,000, plus VAT, and include parking and storage.

Original Story: ABC de Sevilla – M. J. Pereira/A. Jiménez

Adaptation/Translation: Richard D. K. Turner

Acciona Sells a Building in Madrid to IBA Capital for €50M

21 December 2018 – Eje Prime

Acciona Inmobiliaria is continuing to divest. The company chaired by José Manuel Entrecanales has sold a building in the Spanish capital to IBA Capital for around €50 million The asset houses some of the criminal courts for the Community of Madrid.

The building, which has a surface area of 20,000 m2, is located at number 31 Calle Albarracín, in the Julián Camarillo area. With this operation, advised by JLL, the courts have a new landlord, according to reports today from Cinco Días.

This is not the first sale that Acciona has undertaken so far this year. The company has divested some of its office properties and hotels in recent months, as part of its divestment plan carried out with the aim of rotating capital to reinvest in other segments.

For its part, IBA Capital is a manager of real estate funds founded in 2013, which manages assets worth €1 billion. The company also manages the Socimi Zambal, which focuses primarily on the office and commercial sectors.

Original story: Eje Prime

Translation: Carmel Drake

Serratosa Family Sells Alameda Building in Centre of Valencia to Loreto Mutua

2 October 2018

Grupo Zriser and Nefinsa reached an agreement with Loreto Mutua to sell the 11,000-m2 office building, which is located in the prime area of ​​Valencia, the capital of Turia.

The Serratosas just sold an iconic building Valencia. The family, through Grupo Zriser and Nefinsa, transferred the ownership of the Alameda building to Loreto Mutua. The asset, located in the centre of Valencia, has 11,000 square meters of offices.

Located on Antiga Senda de Senent Street, the property was acquired by the Serratosas in December 2009, when the family purchased it from Acciona Inmobiliaria. Currently, the building is completely occupied, in part due to its location, in one of the best office zones in the capital of Turia, according to the newspaper Expansión.

The sale of Alameda is part of Grupo Zriser’s strategic plans. The company is hoping to take advantage of the recent boom in the real estate market to sell some of the buildings in its portfolio.

Zriser’s most recent acquisition took place in December of last year when the group bought the former headquarters of Caja Madrid in Valencia from Goldman Sachs.

Original Story: EjePrime

Translation: Richard Turner

Grupo Zriser Sells the Alameda Building in Valencia

2 October 2018 – Valencia Plaza

Grupo Zriser, the investment arm owned by Ana and Pablo Serratosa, has sold the Alameda Building, located on Calle Antiga Senda de Senent in València. The buyer is the fund Loreto Mutua, previously known as Montepío Loreto, and linked to workers in the aviation sector, and a historical shareholder of the now extinct Banco Valencia.

The building, which was acquired by Grupo Zriser from Acciona Inmobiliaria in December 2009, has a surface area of more than 11,000 m2 dedicated in its entirety to offices and parking spaces. The building is fully occupied and is located in one of the premium areas of the city for business activity.

This operation, which according to real estate sources has been brokered by Olivares Consultores, forms part of Grupo Zriser’s strategic plan, which considers both the selective divestment of buildings and corporate stakes, as well as the acquisition of industrial companies, real estate assets and technologies.

“The Alameda Building is one of the most iconic office buildings in Valencia, located in one of the best business districts”, said Pablo Serratosa, Chairman of Grupo Zriser. “Moreover, it has a very well-diversified tenant base by solvency and commitment to the building; it is undoubtedly a great asset” (…).

In recent years, Grupo Inmobiliario Zriser, founded in 2007 following the departure of Ana and Pablo Serratosa from Nefinsa, has become one of the major real estate companies in the city by volume of gross leasable area. Its tenants include local companies and multinationals alike (…).

Original story: Valencia Plaza (by Estefanía Pastor)

Translation: Carmel Drake

Oak Hill to Allocate €400M to Finance Residential Developments

3 April 2018 – Expansión

The American investment fund Oak Hill Advisors has arrived in the Spanish residential market hand in hand with the recently created management firm Íbero Capital Management. The fund is planning to allocate at least €400 million to finance the construction of homes in the country.

Walter de Luna, former CEO of Acciona Inmobiliaria and Executive Chairman of Íbero Capital Management, explains that, given the lack of modern, structured capital for the construction of residential developments and the high-level of unmet demand for new homes, the objective of the platform is to channel financing from Oak Hill Advisors and to offer customised solutions for the real estate project.

Oak Hill Advisors, with more than USD 30 billion under management, has invested more than €1 billion in Spain through corporate loans and investments in assets and companies. The alliance between Íbero Capital Management represents its debut in this segment.

The fund is currently negotiating to offer €50 million in financing for the development of around 500 homes in several developments in the Costa del Sol and Madrid. The heads of the platform explain that they will select new projects in other regions and open the door to extending their coverage to Portugal.

Sources at Íbero Capital Management explain that the requirement to access financing is that the property developers’ plans are “commercially viable” with a minimum of €5 million. Moreover, unlike what happens currently with bank financing, they will offer funding for the purchase of developable land or plots where little (urban planning) management required.

Another difference with respect to current bank financing lies in the fact that property developers do not need to have a certain volume of pre-sales to access the funds; moreover, payment of interest and commission will not be triggered until the homes are handed over.

The investment and divestment horizon for the €400 million financing initially planned has been established at six years. “The fund has the capacity and appetite for more”, adds Luis Moreno, Director General of Íbero Capital Management.

The financing solutions proposed by Íbero Capital Management are mainly aimed at small- and medium-sized property developers, although the firm is also open to reaching agreements with large listed companies for land co-investment agreements or specific projects.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Adif Sells Plot in Madrid for 80% More than its Original Asking Price

2 January 2018 – El Confidencial

It has been, without a doubt, the clearest example of the overheating in the prices of buildable land in Madrid. Adif has just concluded the auction of several plots in Dehesa Vieja, San Sebastián de los Reyes, which it launched at the beginning of October. The asking price was set at €9 million and in the end, the state-owned firm has obtained proceeds amounting to €16.3 million, in other words, 80% more than initially expected.

The plots, which have a buildable surface area of 10,500 m2, sparked interest amongst much of the property development sector, given that they are located in one of the most sought-after and rapidly growing areas of the Community of Madrid. Up to 13 property developers participated in the first auction held on 3 October, including some of the industry stalwarts.

From Gestilar to Amenábar Promociones, and including the renewed Acciona Inmobiliaria and Pryconsa. Other participants also included Monthisa, Aelca, the listed firm Neinor Homes, Procisa and Solvia. And one cooperative: SS de los Reyes Sociedad Cooperativa, owned by the Asentis group, which after going head to head with the real estate company owned by the Entrecanales family over the last month, has ended up acquiring the sought-after plot. And the reality is that, after a couple of years on the back burner, cooperatives have returned to the market with a bang and are showing that they are capable of competing, economically speaking, in spaces where traditional property developers cannot or do not want to operate.

Adif’s auction is a clear example. SS de los Reyes Sociedad Cooperativa has won the bid with an offer of €16.3 million, compared to the figure of just over €16 million that Acciona Inmobiliaria was willing to pay and which represents a land (impact) price of €1,550/m2. Just too high, in the eyes of many of the interested parties who threw in the towel along the way and who marked a top price of around €1,200/m2.

To give us an idea, the price paid by the cooperative (…) means that the future homes that are going to be constructed on the site will have to be sold for around €2,400/m2, or around €2,900/m2 if the aforementioned offer had been presented by a property developer, since it would have to include its margin to sell the homes and ensure it did not make a loss (…).

“It is important to consider that the homes planned for the site are large, measuring between 130 m2 and 140 m2 and that if we exceed prices of €400,000 for a three-bedroom home, then no matter how much prices rise by, middle-class families start to have limitations in terms of financing, and, therefore,  problems when it comes to buying such homes”, according to sources at one of the property developers that participated in the bid.

And it is not the only land operation to have raised the alarm. For months now, the market has been seeing sales of buildable plots of land at prices that were unthinkable just a couple of years ago. Recently, the Mutualidad de la Policía (Mupol) managed to sell three plots of buildable urban land – in other words, ready to build on – for around €2,250/m2 to another cooperative manager, Gesvieco, which has placed between €40 million and €42 million on the table for the plots that span 5,500 m2. The traditional and conservative property developers such as Pryconsa and Vía Célere were not willing to pay that price (…).

To give us an idea, 24 months ago, according to data from Foro Consultores, buyers were paying €800/m2 for buildable land. In other words, in two years, land prices have doubled. This (impact) price means that the price of homes for end users has increased from around €2,300/m2 to €3,100/m2.

Operación Calderón, the next major operation

Nevertheless, if there is an operation that can break all records, it is the one involving the plots that Atlético de Madrid owns next to the Vicente Calderón Stadium. The club is asking around €200 million for that package of land, in other words, around €3,500/m2, which would give rise to homes with prices of €6,000/m2, well above the price for the area, which ranges between €3,000/m2 and €4,000/m2 (…). The interested parties have already submitted their binding offers, now the club just needs to choose the best suitor.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Acciona Buys a Plot of Residential Land in Malilla (Valencia) from Sareb

19 December 2017 – Valencia Plaza

Acciona Inmobiliaria is joining the property developer fever in Malilla. The firm has purchased one of the few plots of land left for sale in the Valencian neighbourhood from Sareb for more than €7 million, according to several sources in the sector speaking to Valencia Plaza.

The transaction, which was signed last week, places almost 2,000 m2 of land in Malilla Norte Residencial at the disposal of the property developer. The plot has a permitted buildable surface area of almost 15,000 m2 – equivalent to around 150 homes.

According to the same sources, Acciona, which has been advised by the consultancy firm CBRE, was awarded the plot after it submitted the best offer in a process that saw half a dozen companies compete. The marketing of the plot was carried out by Solvia.

Execution unit 1 in the Malilla Morte sector is one of the hottest spots in Valencia’s property market. It comprises a land surface area measuring 360,000 m2, of which 70,000 m2 will comprise a large garden – plus another 13,000 m2 for the same use spread throughout the neighbourhood – 68,000 m2 for the road network, 50,000 m2 for public use and 45,000 m2 for private buildable land.

It is precisely the buildable plots where a large number of property developers have taken positions, including Libra, Hábitat, ASG Iberia (Activum SG), Grupo Lobe, Urbem and Aelca.

The most talked about investment in the area was that made by the listed company Neinor Homes, which after acquiring a plot for the development of 54 flats in the neighbourhood, spent another €27 million to buy 50,000 m2 of land from the Valencia firm Urbem, where it plans to build 400 homes.

Second development underway

In terms of Acciona Inmobiliaria, the firm has at least two projects underway in the city after announcing its return to domestic property building in March, with the construction of 16 developments – 13 in Spain and the rest in Mexico and Poland.

As this newspaper reported, the infrastructure management and renewable energy company will build a development on Avenida del Puerto, 284, on the corner of Calle Barco. That residential complex will comprise 53 homes and will integrate a protected façade.

Original story: Valencia Plaza (by Dani Valero)

Translation: Carmel Drake

The Coordenadas Institute Ranks Spain’s Top 20 Property Developers

24 July 2017 – El Confidencial

The awakening of the residential sector in Spain has brought with it a large number of property developers, who are promising to construct thousands of homes over the next three years. The problem is in the detail, understanding who is going to promote each one of those homes.

That analysis is what the Coordenadas Institute of Governance and Applied Economics, an independent study centre, has just developed. It has identified the Top 20 largest companies in the country, ranked according to the number of homes that they are planning to construct between now and 2020.

At the top of the list is Metrovacesa, the property developer controlled by Santander, BBVA and Banco Popular, which is planning to bring 12,600 homes onto the market over the next three years and which, together with Neinor, Aedas, Vía Célere, Corp and Pryconsa are the only ones that already own all of the land they need to build these homes.

Moreover, the company led by Jorge Pérez de Leza and controlled by three Spanish entities, breaks the leadership ranks of the large international funds, which are behind the bulk of the companies that comprise this Top 20 and are already negotiating with local companies to tackle the purchase of land to allow them to achieve the current housing forecasts.

In order to complete the 80,000 homes that these companies plan to develop together, the Coordenadas Institute has taken into account both developments in progress, as well as those that may be developed on the available land and forecast new land purchases, which have been extracted from various sectoral sources.

Neinor Homes (Lone Star), with 10,250 homes; Aedas Homes (Castlelake), with 9,850; Vía Célere (Värde), with 6,200; and Aelca (Värde) with 5,750 homes, complete the first five positions in the ranking which contains just two companies linked to the large listed construction groups: Acciona Inmobiliaria, with 4,500 homes; and Realia (FCC) with 1,650.

Another company with a differential sign is the Catalan firm Corp, since it is the only member of the ranking that does not have a national presence, rather it focuses all of its efforts on its own autonomous region, where it plans to construct 3,000 homes.

Some of the main innovations in this new property developer sector, besides the hegemony of the large funds, are: the family structure of the bulk of the domestic property developers (Amenábar, Quabit, Pryconsa, Lar, Ibosa…); the greater demands on the banks to grant mortgage financing to local investors, with requirements such as having pre-sales of more than 50%; and the focus on the client.

“It is clear that the Spanish property development sector has learned some important lessons from the crisis and now operates with completely different criteria. A key factor is the focus on the client, which for the first time in a long time has become an essential piece of the real estate business. Property developers that know how to connect with what the client needs are going to be assured survival in the market; those who don’t know, will disappear”, said Jesús Sánchez Lambás, Executive Vice-President of the Coordenadas Institute.

Of those that survive, many will do so by making the leap onto the stock market, where Neinor and Quabit are already listed; they will soon be joined by Aedas, Vía Célere and Metrovacesa. Nevertheless, many more will follow in their footsteps, given that the institute forecasts that between eight and ten companies will be listed on the stock market within the short term.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

ING Grants €280M Loan To Tan To Finance Torre Espacio

26 February 2016 – Expansión

It was the major real estate transaction of 2015. The sale of Torre Espacio to the Philippine group Emperador, owned by Andrew Tan (pictured above), last November was the grand finale to a year that all of the experts agree was the year during which the real estate sector finally began its recovery.

But the financial arrangements for this great purchase remained to be seen. The price agreed was €558 million, a figure to which almost €200 million of debt linked to the company Torre Espacio Castellana must be added. The company owns the skyscraper and served as the vehicle through which the Asian businessman acquired the building.

ING Wholesale Banking has now granted a syndicated loan amounting to €280 million with a seven year term, which will be used exclusively to finance this operation. The loan perfectly represents how the financial sector has reopened its appetite for high quality real estate assets.

According to sources, the rest of the operation will be financed directly by the Philippine businessman, one of the wealthiest people in the world according to the Forbes list. It ranks him as the 330th richest person on the planet and the third richest in his country, thanks to his fortune, estimated to be worth $3,700 million (equivalent to around €3,300 million at the current exchange rate).

Torre Espacio is one of four skyscrapers that were constructed on land that formerly housed Real Madrid’s Ciudad Deportiva in the North of the Madrid. The building has a gross leasable area of 60,142 m2, spread over 56 floors and 1,173 parking spaces. It is regarded as one of the most important office buildings in Spain and its main tenant is the former owner, Grupo Villar Mir, which occupies more than half of the property.

ING, which has acted as the sole underwriter and agent bank, highlights that this loan is a clear example of “the bank’s commitment to real estate financing in Spain and its significant profile in the Asian markets”, according to a statement made by Íñigo Churruca, CEO of ING Wholesale Banking. The entity is currently working to share the risk with other banks, although it is expected to take on the majority of the financing itself.

The entity also closed a financing agreement with Merlin Properties in January this year, amounting to €67.9 million and with a five year term, to finance the purchase of a portfolio containing seven logistics assets.

In addition, last year, it granted a syndicated loan amounting to €125 million, with a seven year term, to Acciona Inmobiliaria, which the company allocated to Urbanizadora Coto, a subsidiary of the group owned by the Entrecanales family that owns seven residential buildings and two offices, as well as a 50% stake in the Arturo Soria shopping centre, in one of the best areas of Madrid, close to Parque del Conde Orgaz.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

ING Grants €125M Loan To Acciona Inmobiliaria’s Subsidiary

5 January 2016 – Bolsa Manía

ING Commercial Banking has granted a 7-year syndicated loan amounting to €125 million to Compañía Urbanizadora Coto, S.L., a subsidiary of Acciona Inmobiliaria, according to a statement issued by the company.

The loan will be used to finance Acciona Inmobiliaria’s property portfolio, which comprises seven residential buildings, two office buildings and a 50% stake in a shopping centre, all of which are located in the centre of Madrid.

This financing agreement forms part of the framework of the company’s new strategy, which is being led by the new management team that joined Acciona Inmobiliaria in September 2014. Currently, the company’s plans are focused on boosting the profitability of its residential business by joining forces with a leading partner, as well as the possible IPO of its real estate business through its conversion into a Socimi.

The CEO of ING Commercial Banking, Íñigo Churruca, said that with this financing agreement, ING Real Estate Finance “is consolidating its financing strategy to focus on prime assets located in the best areas in Spain and to provide support to real estate companies in the sector, just like it has being doing for the last 20 years”.

In this sense, he confirmed that ING Real Estate Finance was one of the most active financing entities in the Core Commercial Real Estate sector in 2015.

Original story: Bolsa Manía

Translation: Carmel Drake