Tag: Alantra

Chenavari Puts its Entire Property Portfolio in Spain Up For Sale

The British investment manager is looking for a buyer for its real estate portfolio in Spain, which is valued at 700 million euros.

The London-based real estate investment manager Chenavari has decided to find a buyer for its portfolio of assets in Spain. According to El Confidencial, the firm created by former partners of BNP Paribas, Société Générale and Bear Stearns, already had plans to exit the Spanish market before the coronavirus and had engaged Alantra for that purpose.

Chenavari entered the Spanish market in 2014, by purchasing both assets and loans from Spanish banks. In this way, it participated in the purchase of two of the first portfolios that were sold by Bankia following its rescue by the state, specifically, Project Wind, amounting to €1.3 billion, which it acquired together with Oaktree, and another portfolio containing property developer loans worth €335 million.

Juan Velayos Leaves Alantra to Create his Own Real Estate Firm

The former CEO of Neinor has left Alantra a year after joining to found his own real estate management and consulting firm, called JV20.

Juan Velayos, who was instrumental in the startup of the property developer Neinor Homes, has decided to leave the consulting firm Alantra to set up his own real estate boutique.

As confirmed by the executive himself, both parties have agreed his exit from Alantra just a year after he was appointed. On Monday, the consulting firm announced the reorganisation of its real estate asset management activity. “As a consequence of this strategic reorganisation, Alantra and Juan Velayos have agreed to end their professional relationship and interrupt the project that he was launching to on investment in nursing homes,” the firm said in a statement.

Banks come to the Rescue of the Real Estate Sector with Loans and One Year Grace Periods

Real estate companies are already negotiating with their financial institutions to defer payments by three months and to secure new lines of ICO financing with one-year grace periods.

“We have just refinanced a €50 million loan with a grace period of 12 months. The banks are being amazingly positive”. Those were the words of one senior executive of a real estate consultancy regarding the role of financial entities in helping the real estate business manage the impact of Covid-19. “It has been a dream response,” said one large owner of commercial properties in Spain and Portugal.

The role of the banks, both Spanish and international, is going to be key to ensuring that the Spanish real estate sector does not repeat the crash experienced between 2008 and 2013. “The banks are going to be part of the solution and not part of the problem, although late payment and over-indebtedness will return”, predicts Juan Velayos, Managing Partner of Alantra.

Spain’s Developers Increasingly Look for Alternative Financing

6 January 2020 – Alternative financing is taking on an ever more visible role in the Spanish real estate market. Several groups beyond the traditional banking institutions are playing an active role. Although alternative financing didn’t even exist just four years ago, now such lending already accounts for 20% of the total loans to developers.

Fund managers such as Colliers International, Ibero Capital and Alantra, among others, are financing an increasing amount of loans, while crowdfunding platforms are increasingly providing yet another alternative.

Developers generally look to raise 65% of the financing from banks, while using equity to pay for the rest. There are currently about 200,000 new homes under construction, and the existing financing arrangements will only pay for a quarter of the total. The rest, which will require approximately €15 billion in financing, will need to come from somewhere else.

La financiación alternativa está asumiendo un papel cada vez más visible en el mercado inmobiliario español. Aunque el financiamiento alternativo ni siquiera existía hace solo cuatro años, ahora esos préstamos ya representan el 20% del total de préstamos a inmobiliarias.

Los administradores de fondos como Colliers International, Ibero Capital y Alantra, entre otros, están financiando una cantidad cada vez mayor de préstamos, mientras que las plataformas de crowdfunding ofrecen cada vez más otra alternativa.

Las inmobiliarias generalmente buscan recaudar el 65% del financiamiento de los bancos, mientras usan el capital para pagar el resto. Actualmente hay alrededor de 200,000 casas nuevas en construcción, y los arreglos de financiamiento existentes solo pagarán una cuarta parte del total. El resto, que requerirá aproximadamente € 15 mil millones en financiamiento, deberá provenir de otro lugar.

Original Story: El Economista – Luzmelia Torres

Translation/Summary: Richard D. Turner

Alantra Launches Commercial Real Estate Financing Fund

30 October 2019 – Alantra is launching a new €100-€150-million real estate financing fund, which will provide loans of between 5 and 25 million euros for real estate projects. The loans would mainly cater to investors in commercial assets, such as offices, the retail sector, hotels, logistics and housing for students and senior citizens. The loans could be used for acquisitions, the refinancing of existing debt, rehabilitation works or repositioning.

Original Story: Expansión

Adaptation/Translation: Richard D. K. Turner

Alantra REIM Acquires NH Sotogrande in Cádiz

8 October 2019 – Alantra has finalised the acquisition of the NH hotel in Sotogrande, Cádiz, through its subsidiary Alantra REIM.

Alantra REIM’s portfolio will now comprise three assets: the Hotel Dénia La Sella Golf Resort & Spa, the Islantilla Golf Resort (both acquired in 2018) and the NH Sotogrande. The latter hotel is a four-star unit with 96 rooms. The hotel also has other facilities such as a swimming pool and paddle tennis courts.

Original Story: El Economista – Araceli Muñoz / Rubén Esteller / Alba Brualla

Adaptation/Translation: Richard D. K. Turner

Former CEO of Neinor Juan Velayos Joins Alantra

24 June 2019 – Cinco Dias

Alantra has hired Juan Velayos as a managing partner, tasked with building up a new real estate asset management business in Spain and abroad. Velayos will lead the creation of investment vehicles, while raising funds and directing investment, following the example of such major international firms as Blackstone, Brookfield and Cerberus.

Juan Velayos was Neinor Homes’ CEO until two months ago after Lone Star put him in charge of the firm when it acquired the developer from Kutxabank.

Original Story: Cinco Dias – Alfonso Simón Ruiz

Translation/Summary – Richard D. Turner

 

 

Alantra Leases 5,000 m2 of Office Space in Rivas Futura (Madrid)

27 February 2019 – Eje Prime

Alantra Reim has leased 5,000 m2 of offices in 521HUB, the business park that the company manages in Rivas Futura (Madrid). The complex comprises two twin, independent buildings located on Calle Marie Curie in the Madrilenian municipality, which span a total surface area of 43,500 m2.

With this operation, Alantra Reim, the Alantra Group’s real estate investment and asset management platform, is starting to occupy Building I in this business park, which the company purchased in July 2018 from the Spanish family office Autocampo. The other twin building is leased almost in its entirety, according to a statement issued by the company. This operation has been advised by the consultancy firm CBRE.

The 521HUB business park is located between the towns of Rivas Futura and Rivas Vaciamadrid, just twenty kilometres from Madrid, and has office spaces available from 1,500 m2 up to 17,000 m2.

In addition to its office assets, Alantra Reim, led by Luis Iglesias, also operates a line of business in the hotel segment. Last year, in Spain, it acquired the Islantilla resort in Huelva and Hotel Denia La Sella in Alicante.

Original story: Eje Prime

Translation: Carmel Drake

Sabadell Delays Completion of ‘Solvia Desarrollos Inmobiliarios’ Sale until May

28 February 2019 – El Confidencial

Banco Sabadell is finalising the sale of land from Solvia Desarrollos Inmobiliarios (SDIn) to complete its real estate divestment process with prices of between €900 million and €1.1 billion. The process began with more than 20 funds and property developers expressing interest. Analysts forecast that the Catalan entity will record gains of more than €200 million.

To this end, the bank chaired by Josep Oliu (pictured above, left), has already prepared a timetable. The entity has delayed the deadlines because it has taken longer than expected to receive some of the signed confidentiality agreements (NDAs). Now, the interested parties will have until 30 March to analyse SDIn and submit non-binding offers. The deadline for the subsequent period for the submission of binding offers will be 17 May.

In this way, Sabadell will have the second half of May to accept the winning bid, and then receive the corresponding authorisations to complete the divestment before July (…).

Analysts expect that the operation will be executed in the region of €1 billion, with a discount of 30% on the net asset value. Even so, that would result in capital gains from profits of more than €200 million, according to a report by Alantra, to which this newspaper has had access. In this way, the maximum quality capital ratio (CET1 fully loaded) would move towards 12%, approaching the 12.5% that the bank has set itself as a target for 2020 in its strategic plan. In December, the ratio amounted to 11.1%, well below the 12.8% from the previous year following the sale of toxic property and the problems with the integration with TSB.

The land has been valued at €1.3 billion by Savills Aguirre Newman and by the property developer SDIn itself (…).

Candidates include funds and property developers. Market sources point to Cerberus, Oaktree and Neinor homes as some of the leading contenders. The operation will require the buyer to become one of the largest real estate players in Spain (…).

In December, Banco Sabadell agreed the sale of its property developer Solvia to the Nordic fund Intrum for €300 million. Intrum is listed on the Stockholm stock exchange and is the owner of Lindorff and Aktua in Spain (…).

Original story: El Confidencial (by Óscar Giménez)

Translation: Carmel Drake

Kutxabank Sells a €700M Property Developer Loan Portfolio to Bain

21 December 2018 – Cinco Días

Kutxabank has sold a “problem property developer loan” portfolio with a gross valuation of €700 million to a subsidiary of Bain Capital Credit. The portfolio includes doubtful assets and non-performing loans to property developers, according to a statement issued by the entity chaired by Gregorio Villalabeitia (pictured below).

The divestment includes both loans with mortgage guarantees, secured by land for the most part (48% of the total), as well as finished homes (another 29%). They are located in Andalucía and Euskadi.

The transaction has materialised through a competitive bidding process, which has been coordinated by the investment bank Alantra.

Sources at the vendor bank indicate that there is “a great investor appetite” in the market for this type of asset at the moment, a situation that has encouraged the entity to take the decision to divest these assets, the first operation of this kind that it has undertaken in its history.

The divestment will improve Kutxabank’s results this year and will reduce its exposure in the courts, due to the costs associated with the litigation relating to these assets. The bank has already calculated that, following this operation, its default ratio will improve by 50 basis points to fall below 4%.

The sale of the real estate portfolio will also have a positive impact on the bank’s CTE 1 capital ratio, which will increase by 10 basis points. According to the bank, it will thereby consolidate its position of leadership as the most solvent entity in the country.

Bain Capital Credit, with 200 employees, invests in the entire spectrum of loans, including leveraged loans, high-yield bonds and structured products, amongst others. Bain Capital has been advised in this operation by Copernicus, Aura, JLL and Allen & Overy.

Original story: Cinco Días

Translation: Carmel Drake