RE Experts Warn That The Cataluña Situation Is Seriously Affecting Investment

17 October 2017 – Expansión

The Spanish Association of Real Estate Consulting Companies (ACI) says that the “serious” situation currently being experienced in Cataluña is affecting the normal evolution of the real estate market since investors are fearful.

The Spanish association of real estate consultancy firms, comprising domestic and international companies alike, such as CBRE, Aguirre Newman/Savills, Cushman & Wakefield, JLL, Knight Frank and BNP Paribas, warned yesterday of the consequences that the secessionist challenge is having in the real estate market.

Specifically, the association chaired by Ricardo Martí Fluxá said that “the serious situation” in Cataluña at the moment, is affecting the strong performance of the Spanish real estate market as a whole. Until the third quarter, the volume of investment in real estate assets was registering record figures, at €10,300 million, up by 58% compared to the same period a year earlier. “The latest developments are seriously affecting the normal operation of investment activity and the evolution of our real estate market”, they warned.

For this reason, the real estate consultancy firms have called for respect for the laws, appealing to the Generalitat to abide by the order established in the Constitution. “Our association joins the large number of companies, institutions and entities that are calling on the Generalitat to comply with the provisions of our laws and abide by the order established in the Constitution”, they said in a statement.

The warning from the large real estate consultancy firms follows a statement made just a few days ago by the CEO of Lar España, one of the five large Socimis whose shares trade on the (main) Spanish stock exchange.

The CEO of the listed company, Miguel Pereda, said that if his firm had to make an investment in Cataluña today, it would “probably” not go ahead with it, in light of the political situation regarding independence.

Meanwhile, on 5 October, the ratings agency Moody’s issued a report warning that the “growing political tension” may negatively affect the credits interests of the Socimis Merlin and Colonial, given that the entities hold 13 % and 19% of their respective portfolios in Cataluña.

Indeed, Colonial is one of the listed companies that has moved its corporate headquarters from Barcelona to Madrid because of the secessionist challenge posted by the Catalan Generalitat.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

“Now, Purchase in Spain Equals to Good Deal”

16/05/2014 – Expansion

Ricardo Martí Fluxá leads ACI, an association uniting four largest real estate advisory companies in Spain: Aguire Newman, CBRE, JLLS and Knight Frank. “They are as Spanish as any national company”, he says.

“Due to real estate advance, advisors play more and more important roles. (…) ACI supports transparency in the sector by publishing official, unified statistics extracted from various sources”, the director explains.

Another challenge faced by ACI described by Martí Fluxá is better management of property belonging to the Public Administration with view to obtain greater savings. “We cannot clearly state whether all public houses shall be rented or sold but we shall consider each case separately. That will, obviously, take time”, he claims.

The advisory firms also play crucial role in property sales to foreigners. “The arrival of so many international funds has not been provoked by Sareb, but by real opportunities. Those who purchased in the last months have done a really good business”.

“As the investors´profiles vary, advisors are there to guide, coordinate and help the funds to do their shopping.”

The four prominent members of ACI (Real Estate Advisory Association) gather around 80% of all revenues of the sector in Spain. They employ over 1.200 workers in the country and around 18.000 all around the world. Altogether, they manage seven million square meters of commercial real estate. Moreover, the former four remain open to welcome new members in the association.



Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE