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

Reyal Urbis Finds New Tenant For c/Torrelaguna Office

6 July 2015 – Expansión

The real estate company, Reyal Urbis, has found a new tenant to lease one of PwC’s former headquarters, at number 75 on the Madrilenian street, Calle Torrelaguna. The office has a surface area of more than 11,000 m2. Companies such as Iberia, BNP Paribas and Alstom have all moved to the area in recent times.

Original story: Expansión

Translation: Carmel Drake

Icex, Alstom & Cepsa Reign in the Office Rental Market

6/06/2014 – Expansion

Spain´s leading office markets started the year with very promising figures as for the sector. Companies like Vodafone, Alstom, DKV and HP have decided to move their corporate premises in various Spanish cities to find offices that are more spacious, better located and found in more representative buildings.

According to Aguirre Newman, big companies leased jointly 110.000 square meters of new office spaces in Madrid and 65.000 sqm in Barcelona just in the first quarter of 2014.

“The first three months of the year saw certain movement in this segment, however, in opposition to the best quarters of 2013 (i.e. Q1 and Q4), the contract signing shows greater dynamics without large-scale operations that would influence the numbers. This means the demand is based on belief about the market´s bottoming-out“, says Patricio Palomar from CBRE.

There have been three most prominent rental deals since the beginning of the year. “The largest was the one of Icex which relocated to the 15.300 square meter old headquarters of Repsol”, tells JLLS´s office analyst Ignacio Buendía.

Second biggest in terms of volume was replacing Iberia by Alstom on over 6.000 square meter office space in a building of Colonial at 49 Martínez Villergas street. Also, aircraft company ITP has decided to take advantage of the favorable circumstances the market offers and moved onto a 5.500 space at 9 Francisca Delgado street in Alcobendas (Madrid).

Moreover, Vodafone has played a significant role in the office segment by renting 45.000 square meters at 115 America avenue in Madrid. Although the lease contract was signed last year, the employees moved to the new office in February this year.

The last must-mention is Cepsa that has just rented the Torre Foster from Bankia.

Knight Frank forecasts greater office occupancy rate for 2014 than it was in 2013. Yet higher in 2015, when companies start to hire people at normal pace again.

Apart from Madrid, Albertis leased  5.125 square meter office space on the Pedralbes avenue in Barcelona, HP rented 3.300 sqm in Catalana Parc (Sant Cugat), while DKV Seguros moved to a 5.000 sqm office in a huge building in Zaragoza.


Original article: Expansión (by R. Ruiz)

Translation: AURA REE