Elix Vintage Acquires Two Buildings in Madrid

14 October 2019 Elix Vintage, a socimi controlled by the investment firms KKR and Altamar, has acquired two residential buildings, both currently leased, located on the Fomento and Ave María streets in Madrid.

Elix Vintage paid 8.425 million euros for the two assets and will invest more in renovations.

Original Story: Expansión – Rocío Ruiz/ Marisa Anglés

Adaptation/Translation: Richard D. K. Turner

Altamar and Healthcare Join to Create Healthcare Activos Yield

10 September 2019- Healthcare Activos, which specialises in investing in the healthcare real estate assets, and Altamar have joined to create Healthcare Activos Yield. The vehicle, which will invest in the Iberian Peninsula, has 20 assets in its portfolio, all of which are leased long-term to European operators, and an initial investment of more than €250 million.

Healthcare Activos Yield intends to grow its portfolio by acquiring additional assets. Healthcare-based real estate assets in Spain are currently worth approximately €20 billion. Market sources forecast growth of around 3% per year over the next 15 years.

Original Story: Expansión

Adaptation/Translation: Richard D. K. Turner

Platinum Buys the Park Hyatt Site Near Sotogrande to Open its Own Hotel

25 April 2019 – El Confidencial

Platinum Estates has just completed the purchase of Finca Doña Julia, a plot spanning 40,000 m2 located in Casares, between Marbella and Sotogrande, where the Hong-Kong based fund is planning to open a 4-star hotel.

The future establishment is going to be built on the structure that the property developer Evemarina designed for Park Hyatt. Work was suspended on that project after the company filed for bankruptcy when the economic crisis hit.

The debt ended up in the hands of seven banks, which have now sold their stakes to Platinum for an undisclosed amount. The fund led in Spain by Juan Luis Segalerva has been advised by Garrigues.

The same financial institutions have also transferred another plot to Platinum next to Finca Doña Julia, measuring 11,000 m2.

All of these assets are located next to Finca Cosentín, where KKR, together with Altamar and Single Hom are going to invest €450 million in the development of exclusive villas and apartments.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Deutsche Bank, APG & CBRE GI Enter Spain’s Residential Rental Market

7 December 2018 – Expansión

The large international investors have placed their focus on the residential market and, specifically, on the rental segment. The success of this sector, together with labour mobility, the difficult access to housing and changes in living habits mean that, increasingly, renting is an option over buying in Spain, and that has fuelled interest from capital in the sector.

Blackstone, the largest real estate investor in Spain, was one of the first funds to back the residential rental sector with the purchase of 18 developments comprising 1,860 units from the Municipal Housing and Land Company of Madrid (EMVS) in 2013, but it has not been the only one. The Dutch pension fund APG, in conjunction with Renta Corporación; the German bank Deutsche Bank; and the international fund manager CBRE GI have been some of the most committed investors in this market in recent months.

In this way, APG reached an agreement in the spring of 2017 with the Catalan real estate company Renta Corporación to launch Vivenio, a Socimi specialising in housing, with the aim of acquiring assets worth €1 billion in Madrid, Barcelona and the provincial capitals. The Socimi is going to close a particularly active year for acquisitions, with a total investment of €400 million and is planning to repeat that amount in 2019 to reach a total portfolio of €1 billion in just over two years. One of the largest purchases it has made this year was the batch of 1,100 homes that belonged to the manager Aquila Capital, headquartered in Hamburg, for €240 million.

With the aim of diversifying its portfolio and entering this growing segment, the international fund manager CBRE GI joined forces with Azora, the Spanish manager founded by Concha Osácar and Fernando Gumuzio, with experience in this sector, and the New York investment firm Madison to invest €750 million over the next two or three years. That three-way alliance started with a portfolio of 65 buildings and a total of 6,458 homes and has the aim of reaching, at least, 10,000 units.

Another large investor that is betting heavily on the Spanish residential sector is DWS, the asset management subsidiary of the German bank Deutsche Bank, which has prepared a budget of €500 million to acquire between 1,000 and 2,000 homes in Spain. In that case, it is backing new build developments and it will do so through three formulae: delegated development, the acquisition of construction projects from other property developers and direct development. The objective is to maintain the assets in its portfolio and rent them out. In that case, the vehicle will not be a Socimi because German regulation of the funds from which the capital proceeds do not allow that. 60% of the investment will be made with own funds and the rest, bank financing. The plan is to invest primarily in Madrid and Barcelona, but they will also study plots in cities such as Bilbao and Sevilla, provided the rental market is very liquid.

Meanwhile, Catella Asset Management Iberia (CAMI), the Spanish subsidiary of the Swedish fund manager is intending to reach 2,000 units by 2020. The manager, which will add 1,000 homes to its portfolio at the beginning of 2019, entered the residential rental market two and a half years ago and has invested around €160 million in the business to date. It plans to double that figure to reach 2,000 homes within two years.

Another real estate company that has teamed up with foreign funds to grow in this segment has been Elix. The firm, which is dedicated to the purchase of buildings, their renovation and the sale of homes by unit, has signed an alliance with KKR and Altamar to invest in buildings, renovate them and dedicate them to the rental market. Its aim is to invest €200 million in Madrid and Barcelona through the Socimi Elix Vintage.

Finally, Redevco has created a new fund to invest €500 million in residential projects in several European markets, including Spain (…). Redevco is planning to build a pan-European residential portfolio comprising approximately 2,500 units.

Original story: Expansión (by Rebeca Arroyo & Marisa Anglés)

Translation: Carmel Drake

Elix Buys a Building in Barcelona for €4.1M

26 October 2018 – Eje Prime

Elix VRS is continuing to grow its portfolio as a listed company. The Socimi, led and founded by Jaime Lacasa and Jorge Benjumeda, has acquired a building in Barcelona for €4.1 million, according to a statement filed by the company with the Alternative Investment Market (MAB).

The purchase of the property, located on Calle Consell de Cent of the Catalan capital, has been financed in part by the company’s own funds (45%) and in part by a loan (55%). The loan, granted by CaixaBank, has a five-year term and a quarterly repayment schedule.

This operation follows the acquisition of four buildings in the centre of Barcelona that the company carried out in August for €34 million. The new assets of Elix VRS, controlled primarily by the property developer Elix and the funds KKR and Altamar, are located in iconic areas of the Catalan capital.

During 2018 and after just one year of life, the Socimi already has 25 projects underway in Madrid and Barcelona. With this volume of operations, the real estate company is going to put more than 300 homes on the market. Six of these projects are new build and the other 19 are renovations.

Elix’s plans involve buying around forty buildings by 2021 to subject them to comprehensive renovations and place the homes on the rental market once they have been renovated. These rents will fee the Socimi, which plans to rotate the portfolio of assets that it builds every three years.

Original story: Eje Prime 

Translation: Carmel Drake

KKR, Altamar & Single Homes Launch New JV to Invest €450M in Málaga

26 October 2018 – Eje Prime

New joint venture to boost the luxury residential sector in Málaga. The funds KKR and Altamar have joined forces with the real estate company Single Homes to invest €450 million in the construction of several developments in the prime urbanisation of Finca Cortesín, located close to the Málagan town of Casares.

The plot where the residential complex is going to be built spans an area of 215 hectares and is located in the centre of the Costa del Sol, between Marbella and Sotogrande. The plan is for the joint venture to build a complex of luxury apartments and villas on this plot worth more than €200 million, according to reports from Expansión.

Single Homes is going to retain a majority stake in the company, whose long-term purpose involves launching other projects with a surface area of almost fifty hectares. The alliance with the funds will allow the real estate firm to finance and consolidate the Finca Cortesín residential complex, which already has a hotel, a golf course and two residential complexes.

The Spanish group, which has more than fifty years of experience, started to operate under the current name in 1987, following the merger of various companies. Nowadays, the company owns a portfolio of assets worth more than €450 million and land for the construction of more than 2,500 homes.

Meanwhile, with this project, KKR and Altamar are once again joining forces in Spain. In 2017, the funds teamed up with the property developer Elix to launch a Socimi specialising in the residential segment.

Original story: Eje Prime

Translation: Carmel Drake

Socimi Elix VRS to Acquire 4 Assets in Barcelona for €14M

23 October 2018 – Idealista

The Socimis are continuing to grow their portfolios with the acquisition of new assets. Following the purchase of four residential buildings in Barcelona for €34 million, Elix VRS, the Socimi owned by the property developer Elix and the funds KKR and Altamar, is finalising the purchase of new assets amounting to €14 million, as explained by the group in a statement filed with the Alternative Investment Market (MAB).

The company has carried out an update of its forecasts as a result of the upcoming purchase of four assets in Barcelona involving an investment of €14 million. In this way, the company is planning to grow revenues to €578,000 in 2018 and to €1,809,000 in 2019, which represents an almost tripling of the figures following the update. “These forecasts have been prepared on the basis of prudent criteria, taking into account only the assets in the portfolio and the assets committed contractually”, explain sources at the group.

The four residential buildings that Elix’s Socimi purchased are located in the Catalan capital, in the Born neighbourhood, on Calle Comerç and Calle Ribera, as well as on Avenida Gran Vía de les Corts Catalanes and Calle Notariat. The acquisition was financed in part (35%) using the company’s own funds and in part (65%) using a mortgage loan secured by the four assets granted by Caixabank.

In just one year, the Socimi owned by KKR, Elix and Altamar has launched 25 projects (six new builds and 19 renovations) in Madrid and Barcelona. In this way, the group is planning to launch more than 300 homes onto the market.

The plans for Elix VRS involve debuting the entity on the stock market in 2019 and purchasing around forty buildings over three years, which it will subject to a comprehensive renovation before placing the newly renovated homes on the rental market.

Original story: Idealista (by Custodio Pareja)

Translation: Carmel Drake

KKR, Altamar & Elix Inject €12M into their Socimi

16 March 2018 – Eje Prime

It’s non-stop for the Socimi owned by Altamar, the property developer Elix and KKR. After taking its first steps last year with the acquisition of its first assets, Elix Vintage Residencial has received a capital injection of €12 million to move ahead with the purchase of assets located in Barcelona and Madrid, as explained by company sources speaking to EjePrime. This new capital injection comes in the same year that the Socimi is planning to make its debut on the Alternative Investment Market (MAB).

According to the Official Gazette of the Mercantile Registry, the company has carried out a €12 million capital increase in its company Elix Vintage Residencial Socimi. As such, the subscribed capital of the company now amounts to €15 million. The first purchases that the company carried out were four residential assets, in Barcelona and Madrid, last year.

Currently, the company led and founded by the businessman Jaime Lacasa and Jorge Benjumeda, have 25 projects underway, which will result in the placing on the market of more than 300 homes. Of those projects, six are new builds and 19 are renovations.

Under the framework that Socimis are obliged to adhere to, the company plans to make its debut on the Alternative Investment Market (MAB) before the end of this year, whilst its mission in 2019 is going to be to start to trade on the main stock market. On the MAB, the company will start trading under the name Elix Vintage Residencial Socimi.

KKR and Altamar Capital Partners joined forces last July to invest in the Spanish market in the renovation and rental of homes. The two funds signed an agreement with one of the property developers that has most experience in this sector, Elix, to launch a Socimi that will invest more than €200 million in the purchase of properties in Barcelona and Madrid. The objective of both funds with the investment vehicle is to list it on the stock market once it has made the bulk of its investments.

This company, headquartered in Barcelona, was created with share capital of €100 million, most of which was contributed by KKR and a group of international and domestic investors including Altamar and Deutsche Finance Group. The rest of the shares are owned by Lacasa and Benjumeda

The Socimi’s plans involve purchasing around forty buildings over three years to subject them to a comprehensive renovation and put the homes on the rental market once renovated. That rental income will feed the Socimi, which plans to rotate the portfolio of assets that it builds every three years.

Elix will be the company responsible for transforming the properties, and so will act as the industrial partner. With this vehicle, the company is going to manage to scale its business model, which until now had been very concentrated in El Eixample, Barcelona. The company, founded in 2003, launched its activity in Madrid last year (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Elix Vintage Residencial Buys 4 Buildings for €3M

5 December 2017 – Eje Prime

The Socimi owned by Altamar, the property developer Elix and KKR has purchased its first assets. The company Elix Vintage Residencial has injected €3 million for the purchase of four buildings, located in Barcelona and Madrid, according to explanations given by sources at the company to Eje Prime.

According to the Official Gazette of the Mercantile Registry, the firm has carried out a capital increase amounting to €3 million in the company Elix Vintage Residencial Socimi. In this way, the company’s subscribed capital has increased to €3.06 million. According to the company, the first purchases that have been carried out involve four residential assets, in Barcelona and Madrid, although sources at Elix declined to give more details about the properties.

KKR and Altamar Capital Partners joined forces in July to invest in the Spanish market for the renovation and leasing of homes. The two funds signed an agreement with one of the property developers with the greatest amount of experience in the sector, Elix, to launch a Socimi that will invest more than €200 million in the purchase of properties in Barcelona and Madrid. The objective of both funds is to debut the investment vehicle on the stock market once it has carried out the bulk of its investments.

This company, which is headquartered in Barcelona, was created with share capital of €100 million. That capital was mostly contributed by KKR and a group of international and domestic investors, including Altamar and Deutsche Finance Group. The rest of the shares are owned by Jaime Lacasa and Jorge Benjumeda, founders of Elix.

The idea is that this capital contribution could be doubled with indebtedness. The plan involves purchasing around four buildings over three years and subjecting them to complete renovations before putting them on the market as rental homes once they have been refurbished. That rental income will feed the Socimi, which plans to rotate its asset portfolio every three years.

Elix will be the company responsible for converting the properties, and so it is acting as an industrial partner. With this vehicle, the company will be able to scale up its business model, which until now had been very concentrated in the El Eixample district of Barcelona. The company, founded in 2003, expanded its activity to Madrid last year (…).

New recruit

In parallel to its Socimi, Elix is pushing ahead with its business, to which end it has hired a new director to strengthen its real estate area. The company has recruited Rafael Vázquez to lead the management of its property portfolio.

The company’s newest member will lead an area that handles around 1,000 properties and which is expected to include another forty new buildings (to be renovated) thanks to the more than €200 million of funding that the Socimi Elix Vintage Residencial has available to spend on assets in the Spanish and Catalan capitals.

Vázquez, who has more than fifteen years of experience in the sector, joined the firm from Encore Captial Group, a company for which he carried out asset recovery services in Spain. The executive holds a degree in Architecture and an MBA from the IE business school.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Spain’s First Student Hall Socimi Prepares Its MAB Debut

13 September 2017 – El Confidencial

Student Properties Spain Socimi will be the first listed real estate investment company specialising in student halls of residence to debut on the stock market. And it will do so with an asset that could mark a before and after in this market in the Spanish capital.

It acquired the building at the end of 2016 from the insurance company Mapfre for €13 million. The property is located on Calle Don Ramón de la Cruz, in the heart of the Salamanca neighbourhood, just opposite Nuestra Señora del Pilar school, 200m from the Deusto Business School (the Universidad de Deusto’s business and economics school) and 500m from the IE Business School.

With a total surface area of 5,420 m2, spread over eight floors, of which 3,500 m2 are above ground, the asset used to house one of Mapfre’s private clinics. But its new owner is committed to converting it into a hall of residence for wealthy students. In fact, the property is currently being renovated by the construction company Vialterra Infraestructuras, which was awarded the building contract, with a budget of around €3 million (…) plus indirect costs of €1 million (…).

With those figures on the table, all indications are that the building will end up housing a luxury hall of residence for students, in line with The Lofttown project in Barcelona. The price of rooms is likely to reach €1,800/month. Having said that, all kinds of services will be included: an outdoor gym, a solarium, a co-working room, a private kitchen, weekly cleaning, use of a 3D printer, laundry, a Play Station, a chill-out terrace and a parking area for bikes, amongst other services.

“Projects such as The Lofttown in Barcelona are hard to replicate in many cities in Spain, and above all, they are hard to scale up. That does not mean that they cannot be attractive and even very profitable real estate investments than more standard products, but it does mean that they always have to be marketed and managed by very specialist teams. Moreover, institutional capital will always consider them to be niche products”, says Patricio Palomar, Senior Investment Consultant at AIRE Partners.

Name change and upcoming stock market debut

Don Ramón de la Cruz 37 was acquired by Collie Investment, a joint-stock company that was subsequently transformed into a Socimi. A week ago, that entity changed its corporate name to Student Properties Spain Socimi (…).

The managers behind the company are Altamar Capital Partners, whose President and founding partner is Claudio Aguirre (Goldman Sachs España), Amira Real Estate Asset Management and Orienta Capital, which is chaired by Emilio Soroa, former Director at Seguros Bilbao.

Indeed, one of the directors of Altamar, Miguel Zurita, joined the Socimi just two weeks ago to replace Fabrizio Agrimi, CEO of the firm until 28 August (…).

“In markets such as the USA, Australia, the United Kingdom, the Netherlands and Germany, student halls have gone from being considered as alternative real estate assets to being products that have as much demand and liquidity as hotels and logistics platforms. To the extent that our market converges towards that trend and becomes more mature, we are going to see products of a different quality appearing, designed for a different type of consumer, in the same way that three-star hotels exist in cities alongside super-luxury hotels”, says Palomar (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake