Allianz Acquires the Castellana 200 Complex for €250M

12 April 2019 – Expansión

Allianz is going to be the new owner of the Castellana 200 office and retail complex located just a stone’s throw from Plaza Castilla in Madrid. The Socimi Silvercode, in which the Canadian pension fund manager PSP and Drago Capital both hold stakes, is going to sell the property to Allianz Real Estate for €250 million, five years after buying it from Reyal Urbis for €144 million.

The complex, which was developed by Reyal Urbis in 2009, comprises 20,295 m2 of office space, 6,415 m2 for commercial use and 844 parking spaces. It has additional buildability of 14,000 m2 for a hotel or residential project, which is currently suspended, although that space is excluded from the operation. Castellana 200 is currently managed by Drago Capital.

Original story: Expansión (by R. A.)

Translation/Summary: Carmel Drake

Starwood Capital Finalises the Purchase of an Office Portfolio for €125M

24 January 2019 – Expansión

The fund Starwood Capital is seeking to strengthen its presence in Spain with the purchase of a portfolio of offices in Madrid and Barcelona. Specifically, Starwood is finalising the purchase of an office complex in Madrid, comprising four buildings, and another one in Barcelona from the Socimi Autonomy for €125 million, according to explanations from market sources speaking to Expansión.

In the case of Madrid, the four office blocks are located in the north of the city, inside the Omega business park, in the Arroyo de la Vega area. They span a combined surface area of 33,458 m2 and have 940 parking spaces.

The Omega Business Park, which is home to the headquarters of companies such as Samsung, BP and Allianz, is located next to the airport of Madrid and has become one of the most established areas in the north of the capital.

Besides the offices in Madrid, the operation also includes a new build property in the 22@ district of Barcelona, with a surface area of 12,596 m2.

The building in Barcelona comprises two towers connected by a common entrance hall, with twelve and four floors, respectively. The building also contains commercial premises and 216 parking spaces.

The building on Calle Pallars is occupied by tenants such as Regus, General Electric and Ticketmaster. The operation has been advised by the real estate consultancy CBRE, on the vendor side, and by Drago Capital, which has advised the buyer and which will manage the properties (…).

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

CaixaBank & Allianz Grant a €135M Loan to Finance Caleido

20 November 2018 – Expansión

CaixaBank and Allianz have granted a €135 million loan to finance the construction and operational launch of Caleido, a project led by Inmobiliario Espacio, the property developer of the Villar Mir Group, and MegaWorld Corporation, the business conglomerate owned by the Philippine multi-millionaire Andrew Tan.

Caleido, which will constitute the so-called Fifth Tower in Madrid, is going to comprise a vertical 35-storey building, which will contain the facilities of Instituto de Empresa, and a second horizontal building at the base comprising four above ground floors and standing 17 metres tall in which Quirón Salud is going to manage an advanced medical centre. Moreover, Caleido is going to include an extensive commercial and services area, as well as lots of green space for Madrid and its citizens.

The loan, which has a 10-year term, will finance the construction period until the hand over of the property, in the final quarter of 2020, as well as seven years of operation.

The property developers have explained that the aforementioned agreement will cover the financing needs of Caleido, with a total estimated investment of approximately €300 million.

“This operation strengthens the confidence that financial institutions have in the project and the great expectations that are being generated around its construction. In this way, the technical solvency of the project is clear, as is its future management and operation”, said the property developers.

Caleido – designed by the architecture studios Fenwick & Iribarren and Serrano Suñer Arquitectos – will be located in the epicentre of the new financial district of Madrid and will serve to eliminate a scar from the north of the Spanish capital, connecting Paseo de la Castellana and Anida de Monforte de Lemos, as well as revitalising the current business complex.

The project is being built on some plots owned by the Town Hall of Madrid, granted to Espacio Caleido through a concession arrangement for the construction and operation of the project for the next 75 years. In exchange, Espacio Caleido will pay an annual fee of €4 million. The launch of Project Caleido will generate around 2,400 jobs during the construction period and another 3,992 jobs once it is operational.

Original story: Expansión (by R.A.)

Translation: Carmel Drake

Allianz Invests €400M in Student Halls of Residence in UK

22 June 2018 – Eje Prime

Allianz is joining the wave of student halls of residence. Allianz Real Estate, the real estate arm of the insurance group, is preparing to invest €400 million in the sector in the United Kingdom. The company has created a joint venture with Greystar Real Estate Partners and the Public Pension Investment Board (PSP Investment) to promote Chapter, a brand of halls of residences for students in London.

Chapter is owned by Greystar, a US group specialising in this type of accommodation. Allianz has acquired a stake in Chapter’s share capital, together with PSP Investment, one of the largest pension fund managers in Canada. The insurance company is going to disburse GBP 350 million (€399 million) for the operation.

With this alliance, Chapter will double its size to 10,000 beds in five years. Greystar will continue to manage its portfolio, which currently contains 5,100 beds in ten locations in the centre of London. The next one to be added to the portfolio, in September, will be located in White City, West London.

“This joint venture with Greystar and PSP Investments demonstrates our strategic commitment to scale our global business with high-quality halls of residence for students in established markets”, explained Olivier Téran, Director of Investment at Allianz Real Estate. In the operation, which is pending approval, Allianz has been advised by Savills and Herbert Smith Freehills.

Original story: Eje Prime 

Translation: Carmel Drake

Eurosic Teams Up With Allianz To Launch A Socimi In Spain

13 February 2017 – El Economista

The Socimi market is still going strong and for the first time since the legislation governing these listed companies was reformed, a vehicle is now being created with mostly French capital. In December 2015, the French real estate giant Eurosic created Eurosic Investment Spain Socimi, with the aim of debuting it on the stock market with a share capital of more than €100 million, according to sources in the sector.

Eurosic, which already tried less than a year and a half ago to debut on the Spanish stock market by purchasing Testa, will launch this Socimi in partnership with the Allianz group, which will use this vehicle to take a new step in its strategy to gain weight in the Spanish real estate business.

The insurance company, through two of its companies, Allianz Invest Pierre and Euler Hermes Reinsurance – world leader in credit insurance – has entered the shareholding of Eurosic Investment Spain Socimi. Both companies, which are headquartered in Switzerland and France, respectively, have taken positions in an operation worth €67 million, according to TTR.

Allianz gains in strength

With this move, Allianz increases its exposure to Spanish real estate, a market it broke into last September, through Allianz Real Estate, which opened a branch in Madrid to track operations in the Iberian Peninsula and manage the Group’s properties on the ground.

Allianz Real Estate’s portfolio contains assets under management worth €41,700 million; €29,300 million in direct and indirect investments and loans worth €12,400 million – figures as at end of 2015, when operations amounting to €7,400 million were closed. Its aim is to reach AuM of €60,000 million “within a few years”.

The strategy that Allianz is carrying out, which includes acquiring stakes in debt and listed companies, as well as direct and indirect positions in financing, places it amongst the most active insurance companies in the real estate market. (…).

Companies such as Mapfre, Mutua Madrileña, Santalucía, Reale and Línea Directa have acquired properties recently and are now looking for opportunities, although their incursion as financiers is residual or non-existent, in contrast to the role played by multinationals such as Axa and Allianz.

Eurosic’s portfolio

In Spain, Eurosic set the wheels in motion last year to feed its portfolio of assets. In this way, in October, it closed the purchase of two buildings in Madrid, at number 40 on Calle Atocha and number 27 on Calle Magdalena. In the same month, it acquired Hotel Tropicana, located on La Carihuela seafront in Torremolinos. This year, it has continued its spending spree with the purchase of Hotel Monterrey Roses (a three-star establishment in Roses, Gerona) and a portfolio of assets in Palma de Mallorca, comprising two hotels and some tourist apartments.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Realia Puts “Los Cubos” Building Up For Sale For €57M

2 November 2016 – Expansión

Realia, the real estate company controlled by Carlos Slim, has decided to cash in one of its most iconic assets. The company has put the office building known as Los Cubos, in Madrid, up for sale.

The property, which owes its name to its unique architecture, has a leasable surface area of 18,324 m2 and 334 parking spaces. The building has been empty since the end of 2015.

Its location, alongside the M-30 and next to the headquarters of companies such as Iberia and Alstom – which occupy an adjacent office complex owned by Colonial and its unique design make it attractive in the market, even though it does not have any tenants, say sources in the market.

Realia has decided to put the property on the market for €57 million – in other words, for around €3,000/m2 -, although it is also considering a possible project to renovate it, according to sources in the sector. Realia bought the building, which was constructed in 1981, in July 2004 from the insurance company Allianz for €60 million.

Possible interested parties include large Socimis such as Axiare, Hispania and Lar España, which have experience buying and renovating empty properties of this kind, as well as international funds looking for investment opportunities in Spain, who are struggling to find available properties in the centre of Madrid and Barcelona, say real estate sources.

This is Realia’s first divestment in the Spanish market in recent years. In 2014, the real estate company sold its stake in the French Socimi Siic de Paris. Realia received €559 million from the sale of its 59% stake, which it used to reduce its debt by around €1,000 million.

As at 30 September 2016, the group’s financial debt amounted to €900 million, down by 20% compared with the same time last year.

During the first nine months of the year, Realia generated revenues of €71.7 million and profits of €89 million. Excluding extraordinary items, its recurring profit amounted to €17.6 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Allianz Real Estate Opens Branch In Spain

22 September 2016 – El Economista

The real estate arm of Allianz has arrived in Spain, attracted by the investment opportunities on offer here. Allianz Real Estate has just opened a branch in Madrid to track its operations in the Iberian Peninsula and take responsibility for the management of the properties owned by the group.

To lead the project, the firm has hired Miguel Torres, ex-Arthur Andersen, who has been linked with GE Capital Real Estate since 1995, according to the Commercial Registry. “After the recovery of the real estate markets, Spain and Portgual are once again in the focus of international real estate investors”, explained the CEO of Allianz Real Estate, François Traush, who highlighted that the incorporation of Torres into the team aimed “to identify attractive investment opportunities to allow us to continue constructing a diversified portfolio”, for our shareholders.

With more than 20 years of experience in the real estate and structured financing sectors, Torres joins the company from GE Capital in Mexico, where he served as Director General, leading a team of 50 specialists and an unit with almost €3,500 million in real estate financing. Prior to that, he held various management positions at GE entities in Madrid, New York and Stamford.

Allianz Real Estate’s portfolio contains €41,700 million in assets under management: €29,300 million in direct and indirect investments, plus loans amounting to €12,400 million, based on figures at 2015 year end, when it closed operations amounting to €7,400 million. Its goal is to reach the €60,000 million threshold “within the next few years”.

The company, which has subsidiaries in Germany, France, Italy – into which the operations in Spain will report -, Switzerland and the USA, includes the office in Madrid as part of its regional expansion.

Its investment aspirations cover almost the entire sector: from taking stakes in debt, to investing in listed companies, direct and indirect positions in financing and building a significant property portfolio.

It debuted as a lender in Spain a year and a half ago, with a loan for €133 million that allowed the Socimi Merlin to acquire the Marineda Shopping Centre, which, at the time, was the largest investment in this type of complex since 2008.

The strategic logic is two-fold. The low interest rate environment is causing insurance companies to dust off old commitments to property in light of the meagre returns being offered by public debt and the high capital consumption involved with other investments. Companies such as Mapfre, Mutua Madrileña, Santalucía, Reale and Línea Directa have acquired properties recently and are looking for opportunities, although their involvement as financiers is residual or non-existent, unlike the role performed by multi-national firms such as Axa and Allianz.

The sector hopes that Brussels will smooth the path, easing the burden of callable capital, given that the Juncker Plan itself wants to involve infrastructure projects that Europe needs.

In addition, the real estate sector is presenting itself as an alternative that offers higher returns, especially given the security of their operations. The high expectations of growth in terms of office rents and a notable increase in the number of small operations, is converting this segment of the market into one of the most attractive options. In the case of the most cutting-edge buildings and those located in prime areas, rents may increase by up to 22% over the next three years. For the other more modest assets, the annual yield amounts to around 7%. Similarly, yields of commercial premises amount to around 7.5%,and rents are expected to increase by an average of 2.4% p.a. in Madrid over the next two years.

Original story: El Economista (by Eva Contrerar and Alba Brualla)

Translation: Carmel Drake

Mapfre, Allianz & Plus Ultra Insure Houses of Sareb For €2.7 Mn

15/04/2014 – Expansion

Mapfre, Allianz and Plus Ultra have signed insurance contracts with Sareb that pledged to pay €2.7 million for them.

The insurance policies signed with the three companies will encompass 90.600 properties belonging to Spain´s bad bank. Their total value has been estimated at €11.4 billion.

Mapfre, Allianz and Plus Ultra share two types of coinsurance agreements: for material damage and civil responsability of Sareb. Plus Ultra leads in the first, while Mapfre in the second coinsurance.

Last year, the bad bank received property transfers from Bankia, Catalunya Banc, Liberbank, BMN, Ceiss, NCG, Valencia, Gallego and Caja3 and the assets had diverse insurances. To establish an order, Sareb named Willis to design the new contract signing operation.

The agreements will remain valid until the end of March 2015.

Mapfre and Plus Ultra, united in Catalana Occidente, are small shareholders of Sareb with 0.8% and 0.3% respectively. Allianz has no share in the bad bank´s investments.

 

 

Original article: Expansión (by Elisa del Pozo)

Translation: AURA REE