Tag: Adif

Operación Chamartín: The Plot Thickens

30 September 2015 – El Confidencial

The small print of the agreements signed between the Government and the developers of Operación Chamartín, BBVA and San José, includes an important payment in kind that has gone undetected until now. A payment that will convert the Ministry of Development into one of the largest landowners of this development.

And so, not only will the company formerly known as Duch, now Distrito Castellana Norte, have to pay €1,240 million in cash to acquire the land (covering an area of almost 2 million m2) currently owned by Adif, it will also have to make a payment in kind, involving the transfer of urbanised land with buildability of 100,000 m2 for residential use.

This payment forms part of the principles of the agreement signed on 22 January between Duch and the public entities Adif, Renfe Operadora and Adif-Alta Velocidad, the owners of the land where the majority of Operación Chamartín is expected to be constructed and, therefore the main beneficiaries of this urban planning project.

Specifically, when this development, whose official sign off has so far been delayed for more than two decades, was reactivated at the beginning of the year, the economic agreement was structured around three pillars: the payment of a cash fee amounting to €984 million, the payment of interest linked to this expenditure over the next two decades (which takes the total amount of the cash payment to the aforementioned figure of €1,240 million), and the payment in kind in the form of plots of land.

But the public administrations’ role as landowner goes much further than that, given that the land that the Ministry of Development will take control of will be added to the plots (covering an area of almost 600,000 m2) that will correspond to the Town Hall of Madrid.

The Local Government, led by Manuela Carmena (who has the ultimate power to unblock this development) is set to become the second largest landowner, as a result of the sum of: the space (165,000 m2) it currently owns in the area; the area (150,000 m2) that houses the EMT’s garages in Fuencarral; and the land (300,000 m2) that corresponds to it from the transfer of 10% of the land from the developers, as required by legislation.

Sell or develop

At the current market price of €1,000 /m2, the value of the plots of land owned by the Town Hall could amount to around €600 million, whilst the land owned by Adif could be worth around €100 million.

In both cases, the public administrations have the ability to benefit from their roles as landowners to develop social housing on the Operación Chamartín site itself or to make profits to return to society.

And one of the main attacks launched against the developers of this site has been they are simply seeking to “strike it rich”, criticism that has been fuelled by the fact that the development is located in the north of the capital, an area traditionally regarded as very wealthy, and because the original plans include just 10% of social housing.

The reason why it looks like the people responsible for Distrito Castellana Norte are planning to construct so few VPO homes is partly because these calculations do not include the uses that the public administrations will make of all of their plots of land. Therefore, it is up to Carmena and Adif to increase the volume of social housing in this development.

Between the two of them, they own more than 20% of the total surface area (3.1 million m2) that makes up the Operación Chamartín site.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Saba Sells Toulouse Logistics Park To CBRE For €23M

18 September 2015 – Expansión

The group is focusing on its car parks / The company has sold a logistics park in Toulouse for €23 million.

Saba is continuing to take steps to exit the logistics sector and focus its activity on its core car park business. Yesterday, the group led by Salvador Alemany announced the sale of a logistics park in Toulouse (France) to CBRE Global Investors for €23 million.

The asset has a surface area of 20 hectares and was one of the company’s key sites, thanks to its strategic location in the neighbouring country, 30 kilometres away from the French city, one of the centres of the global aviation industry.

This divestment whereby reduces the group’s international presence to Lisbon, where it owns a site with a surface area of 100 hectares. The economic crisis in Spain has been more intense than in Spain and the demand for logistics space is not as great as in the areas close to the cities of Madrid and Barcelona.

In 2012, Saba began its exit from this business segment with the sale of a logistics park in Chile for €56 million, a deal that allowed it to begin its policy of shareholder remuneration.

In Spain, Saba is about to sell its 32% stake in Cilsa, the company that operates the Logistics Activities Area (ZAL) in Barcelona, measuring 208 hectares and located in one of the best areas of the Catalan capital. It is the last major logistics asset that Saba still owns.

The Competition Commission is studying Saba’s exit from this company; its stake is due to be acquired by Merlin. One of the unresolved questions is whether Sepes will hold onto its 5% stake in Cilsa – which does not even entitle it to sit on the Board of Directors – or whether Merlin will acquire the whole package.

Background

In Spain, Saba – which is controlled by Criteria CaixaHolding – last year sold a logistics park in Coslada (Madrid), some land in San Fernando and a logistics park in Penedés (Barcelona), in a deal worth €100 million.

The firm has continued to withdraw from its logistics business, whilst at the same time closing operations that have enabled it to make important in-roads into the car park sector, with new contracts at Adif train stations, Aena airports and with the Town Hall of Barcelona.

Saba generated revenues of €215 million in 2014 – the logistics division accounted for 19% of sales and car parks accounted for the remainder. In Spain, Saba still owns logistics assets in the provinces of Barcelona, Álava and Sevilla.

Original story: Expansión (by A. Zanón)

Translation: Carmel Drake

Metrovacesa To Build Homes & Hotels In Clesa Factory

28 May 2015 – Expansión

The real estate company and the College of Architects are holding a competition for ideas to renovate the main building of the complex in Madrid and develop homes, hotels and retail spaces.

Recover an industrial area that was abandoned years ago, and integrate it into the new urban plan for Madrid. That is the ambitious project that the real estate company Metrovacesa finds itself immersed in.

The company has decided to convert the Clesa factory – the former dairy brand of the Ruiz Mateos group – in Madrid, into a residential area with all sorts of amenities, as well as hotels and retail spaces. The project includes the demolition of 16 industrial warehouses that make up the complex, but one building, created by the architect Alejandro de la Sota, will be maintained. “The disused building was neglected by the former tenants, which constructed adjoining properties. We have been working on (this project) for months and in the end, last Friday, we got the green light from the Town Hall of Madrid for the classification (of the property) as a protected building”, explained Carlos García León yesterday, Director General at Metrovacesa.

The area, located on Avenida Cardenal Herrara Oria in Madrid, next to the Ramón y Cajal hospital and with 90,000 square metres of buildable area, has been empty for the last six years, when the business conglomerate owned by the Ruiz Mateos families ran into financial difficulties. Metrovacesa has been the joint owner of the factory since 2006 and in 2013, it became the sole owner of the property.

Now, and with an investment of more than €30 million, Metrovacesa will reduce the buildable surface area to 70,000 square metres, of which 9,000 m2 relate to De La Sota’s protected building; the remainder will be split as follows: 60% for homes, both unsubsidised (free homes) and subsidised social housing; and 40% for tertiary properties.

“We have listened to the requests made by people in the area, such as the families of patients at the hospital, who do not have retail areas or hotel rooms to stay in”, explains José Antonio Granero, Dean of Madrid’s Official College of Architects (el Colegio Oficial de Arquitectos de Madrid or COAM).

Competition for ideas

The first phase of this new urban development will feature the protected building. To this end, Metrovacesa has teamed up with COAM to hold a competition for ideas to renovate the property, designed in 1959 and completed in 1961, to find a new use for it. “The competition will be announced next week once the Town Hall’s approval of the change to the general plan has been published in the BOE”, explain sources at COAM. The decision to award the project will evaluate both the proposals for the provision of services in the area, as well as their technical and economic feasibility. Interested architects may submit their proposals to a panel comprising directors from Metrovacesa, architects from COAM and members of Madrid’s Town Hall.

For the renovation of this space alone, the real estate company will invest between €15 million and €20 million.

Furthermore, Metrovacesa has signed an agreement with Adif for the transfer of 1,000 square metres of space, which the railway manager will use to improve the station that is currently closest to the site. “Adif is going to build a footbridge to link the area with the Ramón y Cajal hospital, which is currently separated from the complex by the train tracks.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

The Electoral Shift May Undermine Operación Chamartín

27 May 2015 – El Mundo

The Ministry of Development fears that the electoral shift may undermine the plans for the project known as Distrito Castellana Norte, which is worth more than €6,000 million.

From June, the new municipal political map in Spain will face decisions regarding the future of dozens of urban development projects in the country’s large capital cities, worth thousands of millions of euros, many of which are still awaiting licence approvals from their respective town halls.

The largest one is Operación Chamartín, in Madrid, the largest urban development plan in the capital. The project has been in the pipeline for 20 years – four less than the Partido Popular held office for at the town hall – and was accelerated in recent months by the incumbent mayoress, Ana Botella, in an effort to obtain the final approvals.

The inability to comply with all of the procedures required for the operation, located in the North of the capital, covering 3.7 km in length and three million square metres in surface area, with plans to build 17,000 homes, as well as offices, retail areas and green spaces, forced Botella to leave the final approval (of the project) in the hands of her successors at the Town Hall. Specifically, to the resolution of around 1,800 claims and above all, to the approval of a partial plan for the extension of the Paseo de la Castellana.

Until 24 May, it was expected that a new municipal team led by the Partido Popular would continue the project, which promises to transfer the centre of the city from Puerta del Sol to the North. But the setback suffered by the Partido Popular in the capital last Sunday leaves the project in the air. The most likely option, that of a left-wing coalition between Ahora Madrid and the PSOE, is raising concerns amongst the stakeholders. The focus of the likely team, led by Manuela Carmena, would centre on social housing rather than on million-euro urban developments.

The project known as Distrito Castellana Norte is estimated to be worth more than €6,000 million; BBVA and the construction company Grupo San José are the main partners in terms of financing and development. The operation also includes municipal and regional land, but the majority is owned by the Ministry of Development, and in particular, its two largest companies: Renfe and Adif.

The urban development plan that Ana Botella was unable to finalise involves covering over the train tracks at Chamartín station. The value that the sale of this land to BBVA and San José would have for the companies owned by the Ministry of Development amounts to €1,200 million, most of which would be paid to Adif, whose debt amounts to €18,000 million this year, making it the State’s most indebted public company, behind only the FROB (Fund for the Orderly Restructuring of the Banking Sector). Given the financing needs of the conventional railway infrastructure companies and the lack of funds available for such investments, the minister Ana Pastor has publicly backed the plan. In fact, Adif was already counting on the payment of €200 million this year based on the approval of the pendingpartial Plan.

Now the deadlines are being called into question, at least the fast-track option is, which carries the support of the incumbent town hall. But the amendment, rejection or definitive approval of the largest chapter in the capital’s urban planning cannot be left on the sidelines for long.

After its launch in 1995, with the granting of land to the current BBVA, the project has survived (changes in) municipal teams, real estate bubbles and judicial processes, which have delayed its approval and halved the value that the property developers were guaranteed to generate.

In the end, last year, the grant was awarded, but BBVA and the Grupo San José extended their offer up to a maximum deadline of 2016. If there is no partial plan by the new Town Hall and the new extension expires, the Ministry of Development will see its largest urban development project die, although it is likely to be a legacy that another Government will pick up in due course.

Original story: El Mundo (by César Urrutia)

Translation: Carmel Drake

Villar Mir Will Build A New Skyscraper On La Castellana

30 April 2015 – Expansión

Through his real estate subsidiary Espacio, the businessman Juan Miguel Villar Mir has been awarded the plot of land behind the Cuatro Torres complex in Madrid, where he will build a private hospital and a shopping area.

There will soon been a fifth skyscraper in the complex known, until now, as the Cuatro Torres Business Area, on the Paseo de la Castellana, in Madrid. Yesterday, the Town Hall of Madrid announced that it was awarding the plot of land located behind the complex, to the real estate company Espacio, owned by the businessman Juan Miguel Villar Mir.

Espacio will construct a private hospital with a shopping area on this land. The businessman, who also owns the construction company OHL and who is the primary shareholder of Colonial, has won the award process for this plot of land, where the Town Hall of Madrid was originally going to build the International Convention Centre, before it was forced to suspend its plans in 2010, due to a lack of funding.

At the end of 2014, Ana Botella’s Government decided to seek an alternative plan for this plot of land and it organised a bid in which it asked for participants to offer an annual fee of €1.935 million for the right to use the plot of land. Four bids were submitted but only two were admitted since one did not exceed the (minimum) required fee and the other was ruled out for formal reasons.

One of the two projects that made the cut was led by the property company Hispania, which presented its bid jointly with Ferrovial, and committed itself to paying €2.6 million (per year). Villar Mir, meanwhile, offered to pay €4 million per year for the next 75 years.

The land situated just behind the existing Cuatro Torres has a surface area of 33,325 square metres and a buildable area of 70,000 square metres. In this space, to which a green area measuring 33,647 square metres will be added, the winning bidder will have to allocate 53,500 square metres for public use; the remaining 16,500 square metres may be destined for commercial use.

Villar Mir’s proposal is to construct a skyscraper, which will be similar to the other towers in terms of height and which will house a hospital. “The building will be as tall as the neighbouring towers and will house health services, and the top floors will be occupied by scientific companies linked to the health sector”.

Moreover, next to the skyscrapers, Espacio will create another, low-level building, which will be used to provide recreational and commercial services for the new skyscraper and the four existing ones, which mainly house offices. “Most of the construction will be horizontal, built in a north-south direction, over the entire floor of the structure that has already been constructed and designed based on landscaped terraces, which will descend from the high public square down to the pedestrian access, which is reached from the plot classified as a green area”, said (a representative from) the project.

In addition, the new skyscraper will be connected to the four that have already been constructed – which all have direct access from the Castellana – through a landscaped pedestrian zone.

In total, Villar Mir will invest €500 million in the project, including both the full (canon) payment and the construction work. Of this amount, €134.06 million will be spent on the building and development of the plot.

This project comes in addition to the plan to lengthen the Paseo de la Castellana by 3.7km to the north on land that Renfe and Adif own in the area.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Who’s Who In The ‘Operación Chamartín’ Project?

2 March 2015 – Expansión

Madrid / The most important real estate project to be undertaken in Spain in recent years is being driven by BBVA and the San José group, which together own the development company; three public bodies are also participating in the project, as well as companies such as Renfe.

On 30 January, a swarm of photographers surrounded tens of public figures including distinguished representatives from the financial world, such as Francisco González, Chairman of BBVA, and Spanish businessmen and politicians. It was not a chance encounter, but rather a meeting to formally present of one of the largest real estate developments ever planned in Spain and one of the most important in the world today: the Castellana Norte project.

The official presentation of the development, known until now as Operación Chamartín, put the finishing touches to more than two decades of negotiations and collaborative work between public and private companies.

The project, which will require an investment of almost €6,000 million for the development of almost 3 million square metres (of land), has required consensus from the developers, BBVA and the constructor group, San José, as well as the Town Hall of Madrid, the Community of Madrid, the Ministry of Development and executives at Renfe. But, which role will each party be taking on?

“This would not have been possible without the support of BBVA”, announced one of the real estate experts who has worked, together with 31 professional teams from more than twenty countries, on the preparation of the Castellana North project. The financial entity owns 75.5% of the plan’s developer, the Castellana Norte Madrid company (formerly Dutch), having inherited the stake from Argentaria following its acquisition in 1999. The company is the owner of the rights of 61.6% of the land (amounting to almost two million square metres).

Its partner in this (development) company is the construction group San José. The company owned by Jacinto Rey had to divest its real estate assets during the last refinancing process it underwent. Nevertheless, it managed to retain its stake in the former company Dutch, showing its commitment to this project, which is expected to be executed over 20 years.

After the Castellana Norte company, the Town Hall of Madrid owns the next largest plot of land, with a 5.3% stake. On 19 February, the Council approved the revision of the Partial Plan for the Interior Reform of Operación Chamartín (Plan Parcial de Reforma Interior de la Operación Chamartín), which will organise the 3,114,336 square metres under development.

In that document, the Town Hall has committed to carrying out the construction works of the Nudo Norte (North Junction) and Nudo Fuencarral (Fuencarral Junction) set out in the plan, although the expenses incurred will be borne by the developer.

Renfe

62% of the land owned by the company Castellana Norte was transferred from Renfe. This land is partly occupied by the train tracks that converge at Chamartín station. The railway company, which reports to the Ministry of Development, will receive €1,250 million for the transfer of this land over a 20 year period.

Furthermore, Renfe, which owns 1.4% of the land, together with Adif, will take responsibility for the execution of the remodelling of Chamartín Station; the construction of the new tunnel to connect the high speed line between Atocha and Chamartín; the construction of the stations in Fuencarral; and the construction of the structure that will cover the tracks.

Meanwhile, the Community of Madrid will be responsible for the design and execution of the construction of the new metro line that will run through the area, but the cost of that will be borne by the management company.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Final Approval For Intermodal Logistics Centre In Aranjuez

11 February 2015 – misnaves.es

The Community of Madrid has granted the final approval for a specific amendment to the Urban Plan for Aranjuez, which will make way for the construction of the so-called Intermodal Logistics Centre, the first one of its kind to be built in the south of the Community of Madrid.

The centre will be constructed on a surface area of 34 hectares and will be completed in two phases, with investment from Adif expected to amount to €13 million and €8.5 million in each phase, respectively.

Previously, the central Government had already created the company Mixta Madrid Sur Logística Aranjuez, in which Adif holds a 47% stake; the remaining 53% is held by three private companies, which contributed initial share capital of €4.5million.

According to the mayor, “this approval will allow us to expand the railway network structure, to create a logistics centre in Aranjuez that will receive trains travelling along the Valencia-Madrid corridor, amongst others”. The mayor also highlighted that “the development of this logistics centre represents a new opportunity for both direct and indirect employment in Aranjuez”.

In addition to the surface area that the platform itself will occupy, the plot offers a further 70,000 square metres of space where other activities may be conducted, not only industrial but also tertiary including as hotels and the like. In total, the plot measures 350,000 square metres.

Original story: misnaves.es

Translation: Carmel Drake

Adif Seeks Tenant For Historical Building In Príncipe Pío

9 February 2015 – Expansión

Madrid / The railway management company is looking for a tenant to manage the property, which measures more than 6,000 square metres, for 50 years

The railway management company, Adif, is continuing with the optimisation process of its real estate assets and has decided to put one of its most emblematic buildings in Madrid on the market. The building, located next to the Estación del Norte – known locally as Príncipe Pío – has been empty for years. Adif has decided to confer the management of the building and surrounding area for a term of 50 years. During this period, the new tenant shall pay a fixed annual rent of no less than €150,000 per year, whereby the public company will receive at least €7.5 million from the arrangement.

Historical building

The railway management company will grant both the main building, with has a surface area of more than 6,530 square metres, as well as the free spaces around the building, which have a surface area of approximately 3,429 square metres. The building has “great architectural value and its origins date back to the beginning of the 20th century”, with a large central hall and two towers, according to the terms of reference prepared by Adif.

Nevertheless, the main building is in a “poor condition” and so the tenant will have to undertake a comprehensive renovation project, which will be a key condition of the contract. The cost of the restoration and renovation work may not amount to less than €7 million.

Interested parties have until 2 March to submit their bids and the period for the submission of financial bids will open on 13 March.

This is the second time that Adif has put the Príncipe Pío building on the market. In December 2013, it launched a similar process to award the operation of the property. However, the two bids it received did not meet the conditions established in the terms of reference. To avoid a repetition of this problem, Adif has simplified the conditions, which should facilitate their agreement. The property, which is listed as a Property of Cultural Interest, was renovated in 1999 to house a recreational, cultural and retail centre. Last year, the Community of Madrid extended its permitted use to include offices.

Original story: Expansión (by Rocío Ruiz))

Translation: Carmel Drake

Merlin Acquires Three New Properties In Spain

14 January 2015 – El Mundo

Merlin has acquired an office building in Barcelona and two logistics warehouses in Getafe and Vitoria.

As a result of these transactions, the Socimi’s gross rentable area exceeds 680,000 square metres.

The Socimi Merlin Properties, one of the leading real estate companies listed on the Spanish stock exchange, which specialises in the acquisition and management of tertiary assets in the Iberian peninsular, has announced that it completed the purchase of three new assets in December. It spent €88.4 million on the acquisitions, which will generate rental income of €5.9 million, taking the total annual gross rental income the company generates from its portfolio of assets to more than €128.8 million.

The first acquisition involved an office building in Barcelona, number 8 of the WTCAP, which it bought for €36.5 million. This represents the second purchase made by the company in the landmark business park, following its acquisition of the building at number 6 in August. Number 8 has a gross leasable area of 14,543 square metres, plus 700 sqm of storage and 247 parking spaces.

The building in the WTCAP is partially leased to multi-national companies such as Panasonic, Technip and Colt Telecom. The acquisition price represents an initial gross rental yield of 5.6% (4.8% net) and the property has high growth potential, through the rental of its unoccupied surface area (equivalent to 35% of the total leasable area). If the building were fully occupied, the rental yield of the property would exceed 8%.

Meanwhile, Merlin Properties is continuing its commitment to logistics and industrial assets, where it now has a gross leasable area under management of more than 136,000 square metres. In December 2014, it bought a logistics warehouse measuring 16,242 square metres, located in the CLA in Getafe (Madrid), which is leased to the Galician logistics company Transportes Souto under a 10-year contract. The acquisition price (€12.5 million) represents a gross and net rental yield of 8.4%.

Finally, Merlin has also acquired a logistics warehouse measuring 72,717 square metres in Vitoria, located in the Júndiz business park, which is renowned for its excellent transport connections and for housing the only Mercedes Benz factory in Spain. The park is also home to several other prestigious companies, including Correos, DHL, DB Schenker, Azkar (Dascher) and Adif. The warehouse is leased under a 10-year contract to the well-known multi-national logistics company Norbert Dentressangle. The acquisition price (€28.58 million) represents a gross and net rental yield of 9.6%.

As a result of these three transactions, Merlin Properties’ real estate portfolio now has a total gross leasable area of more than 680,000 square metres and generates gross annual rental income of €128.8 million.

Original story: El Mundo

Translation: Carmel Drake

Adif Hands Over the Castellana Plot to El Corte Inglés Paying €136 Mn

26/11/2014 – E Pais, El Mundo

El Corte Inglés ponders next extension of what it considers its flagship department store in Spain due to its excellent location on the coveted Paseo de la Castellana street in Madrid’s downtown. The chain has acquired a plot situated just in front of its existing store and at few meters from the Nuevos Ministerios light railway and subway station from Adif for more than €136 million.

The piece of land has 13.000 square meters and it is located inside the Azca complex. Adif, a public company managing railway infrastructure in Spain, put the parcel up for sale in September at an asking price of €40 million. It received six offers for the lot, from such known developers and co-ops managers as Monthisa, Allegra, Capriles, Colonial or Grupo Villar Mir.

Newly named president of El Corte Inglés Dimas Gimeno said ‘town planning project for the terrain displays a total buildability of 35.192 square meters, of which 10.176 square meters are intended for construction of three stories above the ground level, of the tertiary use (i.e. commerce, services but no dwellings), and around 25.000 square meters below the ground level which can be used for building four underground parkings’.

The El Corte Inglés store has been growing throughout years. Opened in 1969 with less than 50.000 square meters, it was amplified by a new building, which replaced the old Windsor, in 2011. Currently, it has a 130.000 square meter floor area.

Thanks to the purchase and the planned extension, the Castellana store will become the biggest in Spain. Right now the honour belongs to the center in the El Bercial neighbourhood in Getafe which covers 180.000  square meters. In any way, it will be much smaller than other departments stores said to be largest in the world and even in Spain, as the Marineda City retail park in A Coruña offers a 500.000 square meter built area and a GLA of 200.000 square meters.

This acquisition adds to the latest three November land purchases in the center of the Spanish capital amounting to €370 million in total.

Two other plots, curiously enough situated in the same area, were tendered publicly earlier this month and fell into hands of cooperatives managers Domo Gestora and Grupo Ibosa. First piece of land, situated at 50 Raimundo Fernandez Villaverde street, was bought for €111.05 million on the 5th. A week later, the other carrying Madrid Metro’s depots in the Cuatro Caminos zone was sold for €88.3 million. Finally, Pryconsa acquired the old Buñuel studio of Spanish TV RTVE for €35.27 million.

 

Original article: El País (by Cristina Delgado), El Mundo (by Jorge Salido Cobo)

Translation: AURA REE