Savills & HomeAway: Spain is the Most Attractive Market for Buying a Second Home

29 September 2018 –

According to an international study compiled by the real estate consultancy Savills and HomeAwayTM, a global expert platform for holiday rentals, Spain is the most attractive destination for investing in a second home, according to 19.3% of those surveyed, followed by Portugal (13.2%) and France (13.1) in third place.

Spain is attractive for overseas investors

According to the survey, 44% of owners of second residences in Spain are foreigners. The main countries of origin of those owners are the United Kingdom (19%), Germany (12%), The Netherlands (4%), France (3%) and Belgium (2%). The remaining 56% of owners are Spanish.

The main areas where second homes are located in Spain include the Canary Islands (12%), the Costa del Sol (9%) and the Balearic Islands (9%).

Where are they buying homes?

People’s behaviour when it comes to acquiring a second home is different depending on where the buyers come from. The study reveals that British and Dutch owners are those who buy the most second homes outside of their own countries, nevertheless, Spaniards, Italians and Portuguese citizens tend to choose their own countries as the destination for acquiring second homes (around 95%).

Second homes: for personal use and to rent

According to the study, 28% of Spanish owners cover some of their expenses with revenues generated from the rental of their properties and 38% obtain a profit.

Summary of second homes in Spain

The average price of the second homes acquired last year by the Spanish owners surveyed amounted to €245,000, 22% lower than the average acquisition price ten years ago. Moreover, 28% of those surveyed confirmed that they personally financed the acquisition of their second home, 52% acquired it using a mortgage and 8% inherited or were gifted the property.

In the same vein, Spanish owners of second homes obtain an annual income of €12,000 (from their properties) and they rent them out for 19 weeks a year, on average. 43% of owners had the same number of reservations in recent months as they did during the same period a year ago, 41% had more reservations and 16% had fewer.

Second homes, with some specific characteristics

Two-bedroom apartments are the most popular types of second home for the Spanish owners surveyed.

Features that owners are looking for when it comes to buying a second home include: proximity to restaurants and bars (88%), a balcony or terrace (88%) and proximity to the supermarket and shops.

According to Juan Carlos Fernández, Director General for Southern Europe at HomeAway: “The fact that Spain is the most attractive destination for foreigners looking to buy a second home indicates that Spain is a robust market that is very attractive to investors and that is something that we must take care of and promote”.

Owner profile

  • Average age when they acquired the property, in 2017: 51 years old
  • Average number of weeks leased during the year: 19 weeks
  • Typical property type: 2-bedroom apartment
  • Average acquisition price in 2017: €245,000.

Original story:

Translation: Carmel Drake

Hispania Signs €340M Financing Agreement with BNP Paribas

26 September 2018 – Hosteltur

Hispania Activos Inmobiliarios has signed an agreement with BNP Paribas to open a financing line amounting to €340 million to finance and/or refinance its debt, according to a statement filed by the Socimi today with Spain’s National Securities and Markets Commission (CNMV).

In the relevant fact, the company reports that on 25 September 2018, it signed the aforementioned agreement with the entity “under market terms, amounting to €340,000,000, to finance and/or refinance debt held by the group’s entities upon their maturity, plus commissions, costs and expenses”.

This new financing arrangement will expire on 16 February 2020, although it may be extended twice by the company for one year each time.

Hispania recorded a net profit of €71.9 million during the first half of this year, 55% less than during the same period in 2017 when it earned €161.4 million. That decrease was basically due to the recognition of a provision for the fees to be paid to Azora, the former manager of the group. As Hosteltur reported, the relationship between the two entities was terminated on Monday, with Concha Osácar and Fernando Gumuzio, the owners of Azora, leaving the Board of Directors of the Socimi.

Blackstone, the new owner of Hispania, has paid €224 million to the manager by way of compensation for the early termination of Hispania’s asset management contract, which covered its hotels, offices and residential buildings. The indemnity amount was calculated on the basis of the manager’s base fees (€33.6 million) and success fees (€190.8 million), according to the terms specified in the “Termination Letter”, following the success of the takeover bid launched by the US fund for 100% of the Socimi.

Nevertheless, in terms of the results during the first half of the year, Hispania’s operating profit grew by almost 16%, to €57.1 million, whilst its revenues amounted to €85.3 million, which represents an increase of 9.8%.

Revenues from rental income amounted to €80.9 million, up by 14%. Of that amount, €67.9 million corresponded to hotels, €11.3 million to office buildings and €1.7 million to homes.

At the end of the first half of the year, the gross value of Hispania’s assets amounted to €2.818 billion, which represents an increase of 60.8% with respect to their acquisition price and of 43.3% compared to the total investment.

Original story: Hosteltur

Translation: Carmel Drake

Quonia Acquires Building in Sevilla for €5.6M

18 June 2018 – Eje Prime

Quonia is gaining ground in the south of Spain. The Catalan Socimi has taken positions in Sevilla, where it already owns some assets, with the purchase of a building on Calle Antonio Salado. The acquisition price amounted to €5.6 million and includes the property and adjacent units at numbers 2, 6 and 12 Calle San Antonio, according to a statement filed by the company with the MAB.

In total, the operation involves a surface area of 3,541 m2, taking into account the property and the adjacent units. The building is currently vacant and is awaiting refurbishment, in which Quonia plans to invest €3.2 million before leasing it out.

The Socimi has financed the acquisition through a combination of own funds and debt. Quobia has obtained a mortgage loan from Banco Popular amounting to €4 million, with monthly repayments over a ten-year term and a capital repayment of 30% at the end of that period.

In February, Quonia obtained another loan from Banco Popular, in that case amounting to €1.5 million, to renovate the building that it owns at number 4 Calle San Vicente. That property has a surface area of 3,500 m2.

Led by Eduard Mercader since October last year, the Socimi has set itself the objective of liquidating its portfolio by 2025, whilst it continues to search for assets to keep buying. Quonia, whose assets are concentrated in Barcelona, completed a €26.5 million capital increase in January.

Original story: Eje Prime

Translation: Carmel Drake

Savills Finalises Purchase Of Aguirre Newman

14 June 2016 – Cinco Días

The large Spanish real estate consultancy firm par excellence, Aguirre Newman, is going to be acquired by its British rival Savills. The two companies are finalising a purchase agreement, according to sources in the market, which could be closed before the summer. The acquisition price amounts to around €80 million.

The Spanish consultancy firm launched a sale process two months ago, in search of an alliance with an international partner. The company, which was founded in 1988 by Santiago Aguirre (pictured above) and Stephen Newman, the current Presidents, employs around 460 people and recorded revenues of €96 million last year.

If the sale is completed, the co-Presidents Aguirre and Newman will remain at the helm for between four and five years. The rest of the management team will also continue to lead the business, according to sources familiar with the process. The Spanish company operates a real estate broker business in the office, hotel and residential segments; it also performs appraisals, town planning activities and corporate operations.

Besides Savills, the owners of Aguirre Newman have received offers from Cushman & Wakefield and Colliers, in a process that has been advised by the financial group Atlas Capital. But only the British consultancy firm has passed through to the final stage, where the finishing touches still need to be agreed.

Savills, which has declined to comment on the operation, is a real estate broker that recorded turnover of €1,645 million last year, up by 13% YoY. It has a market capitalisation of €1,400 million. Despite being one of the largest consultancy firms in the world, it only has limited operations in Spain, falling behind JLL, CBRE and Aguirre Newman itself. Its business in Spain, where Rafael Merry del Val is President, is strong in operations known as off-market deals.

With this acquisition, Savills will become one of the leading players in the domestic market. The company records revenues of around €11 million in Spain, almost nine times less than the Spanish company. Moreover, it is likely that the British consultancy will retain both brands for a period of time, so as to be more recognisable to its customers.

Experts familiar with the operation indicate that Aguirre Newman brings a strong presence and knowledge of the domestic market, compared to Savills, located in London, which will provide its Spanish subsidiary with strong international links.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Merlin Buys Galp’s HQ & Another Property In Lisbon For €103M

15 March 2016 – Expansión

The Socimi Merlin Properties has purchased two properties in Lisbon, one of which is leased in its entirety to the oil firm Galp, for a combined total of €103 million, and has whereby strengthened its presence in the Portuguese capital, where it has an office portfolio comprising three buildings with a total leasable surface area of 42,842 m2.

The real estate company has explained that the acquisition price was fully paid down using own funds, and so the acquisition will generate an initial gross yield of 7.4% and an initial net yield of 6.5%.

Specifically, Merlin has acquired the Monumental building (pictured above), located in Plaza Duque de Saldanha – in the heart of the city’s financial district -, with a total leasable surfacea area of 22,387 m2, comprising offices and retail space. 89% of the offices are leased, to domestic and international firms, such as KPMG, Marsh and Mercer. Meanwhile, the retail area has 41 outlets.

The other property it has acquired is the Torre A Building, with a surface area of 13,715 m2, spread over 16 floors and leased to Galp under a long-term contract. Torre A forms part of another office complex, which contains eight buildings that have a surface area of more than 70,000 m2 and 1,683 parking spaces.

Merlin, which focuses on the Iberian market, made its debut in Portugal last June with the acquisition of an office building in Lisbon for €18 million.

The office building, located in the Expo area, is fully leased to Novabase. Meanwhile, Fidelity has notified the CNMV that it holds a 3.55% stake in Merlin, which is worth €117 million at the current share price.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Hispania Buys Residential Complex And Office Block For €86M

30 March 2015 – Hispania Press Release

Hispania has closed two separate deals: the acquisition of an office building located on C/ Príncipe de Vergara – for €25 million – and the purchase of a residential complex containing 284 dwellings in Sanchinarro, Madrid, for €61.15 million.

Following these transactions, Hispania now has committed investments amounting to an aggregated GAV of €877 million. 

Hispania Activos Inmobiliarios, S.A., through its 100% subsidiary company Hispania Real Socimi, has closed two off-market transactions in Madrid for a total amount of €86.15 million, which have been fully financed using Hispania’s own funds.

Office building on Príncipe de Vergara, 108 (Madrid)

Hispania has acquired an office building located on C/Príncipe de Vergara, 108, where the street intersects with C/Joaquín Costa. The acquisition price amounted to €25 million (€3,718 /sqm).

The asset is located in the city centre of Madrid and enjoys excellent visibility. The building has a GLA of 7,324 sqm, distributed over 12 floors and commercial surface, as well as 68 underground parking spaces.

Residential complex in Sanchinarro (Madrid)

Hispania has also purchased a residential complex in Sanchinarro (Madrid) with a GLA of 39,000 sqm, distributed across 284 dwellings (2 and 3 bedroom properties), 311 parking spaces, 284 storage units and a retail unit, which is currently occupied by a major supermarket chain. The dwellings are in a closed complex with garden areas.

The total purchase price amounted to €61.15 million. The purchase price of the dwellings -excluding annexes and a retail unit- is equivalent to €2,050/sqm above ground. The dwellings are currently rented, with an approximate occupancy rate of 80%. Hispania’s business plan involves investing in the asset and expanding the surrounding facilities in order to convert it into a unique asset in the residential rental market in the Sanchinarro area, with the ultimate aim of optimizing its occupancy rate.

Located to the north of Madrid’s city centre, Sanchinarro is one of the most dynamic residential areas in Northern Madrid. Over the last few years, various companies have chosen to locate their corporate headquarters in Sanchinarro and its surrounding areas. This has increased the already strong demand for residential properties in the area.

These two deals prove, once again, Hispania’s ability to invest in high-quality assets through off-market deals in consolidated areas”, said Concha Osácar, Board Member of Hispania.

Hispania has committed investments amounting to €877 million during the last 12 months.

After these two transactions, Hispania has committed investments amounting to an aggregated GAV of more than €877 million. Hispania has a committed asset portfolio with an office GLA of 97,940 sqm –mainly in Madrid and Barcelona- 683 dwellings in Madrid and Barcelona and 22 hotels in Madrid, Barcelona, the Costa del Sol, the Canary and Balearic Islands and the Costa de la Luz.

Original press release: Hispania

Edited by: Carmel Drake