Grosvenor Injects Another €15M into its Luxury Home JV with Amprop

29 January 2018 – Eje Prime

Grosvenor is still interested in growing in the Spanish market, hand in hand with its local partner. The British company has injected another €15 million into its Spanish joint venture with the Malayan firm Amcorp Properties Berhad (Amprop), created last year to build luxury apartments in Madrid. Both groups have financial muscle amounting to more than €200 million, which they plan to invest in the construction of new developments in the country.

In this way, Grosvenor and Amprop are continuing with the plans they started last year when they completed the purchase of an 820 m2 plot on Madrid’s golden mile on which to build a luxury residential development. That plot is located on Calle Jorge Juan, one of the most expensive areas to live in the Spanish capital.

The British fund, owner of more than 1,500 properties spread all over the world, transformed its fund Grosvenor Fund Management into Grosvenor Europe, with the aim of undertaking joint investments in key markets in Europe, including Paris, Madrid, Milan and Stockholm.

The alliance signed with Amcorp set itself the objective of backing value-added investments, where it assumes more risk but also receives greater returns. For these types of projects, the two groups have allocated a budget of €70 million.

Seven months after creating this alliance, the partners have closed their first investment, for an undisclosed sum. In this plot, Grosvenor and its partner will construct an exclusive development comprising six apartments and a penthouse with views over the Retiro park.

Grosvenor has not yet determined the price at which it will place these properties on the market although the average price per square metre for prime real estate in the Salamanca neighbourhood amounts to around €8,500. Although, according to the most recent residential reports, some developments are going for more than €9,000.

The purchase of these plots followed the acquisition of two buildings in Madrid in July, which it will transform into new residential and retail spaces (…).

Grosvenor in Spain

In the Spanish market, the fund has been led by Fátima Sáez del Cano since 2007, although it started to operate in the country in 1996. The director manages the fund that specialises in the office business and retail sector, which is also responsible for the management of funds and assets. Some of the properties under Grosvenor’s management in Spain include the Islazul shopping centre in Madrid and the Anecblau complex in Barcelona (…).

Moreover, in recent months, Grosvenor has decided to add new lifeblood into its leadership team with the hiring of new directors. Last September, the group recruited Javier García as the new Technical Director for the Spanish market (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Grosvenor Buys 3 More Residential Properties In Madrid

26 October 2017 – Eje Prime

The youngest multi-millionaire in the world has set his sights on Spain. The young Duke of Westminster, 26, has acquired three properties in Madrid, where he is going to build luxury homes. The latest project involves the transformation of a property that used to house the Philatelic Forum for many years. The plan is to build twelve properties there for wealthy tenants, according to Cinco Días.

The Spanish subsidiary of Grosvenor has also purchased a plot of land on Calle Jorge Juan, where it plans to construct seven apartments and a property on Santa Engracia, which will contain 18 homes once the building has been renovated.

To carry out this series of investments, the British company has joined forces with the holding company Amcorp, which is headquartered in Malaysia and which has funds amounting to €70 million.

In addition to the residential market, Grosvenor is looking to purchase offices for their rental, according to the company. In Spain, the firm is a partner of the Sonae Sierra joint venture, one of the main players in the shopping centre sector.

Grosvenor, led by Mark Preston, currently owns properties with a value of around €7,300 million, most of which are located in the United Kingdom, where, it is also the main landowner in London’s most exclusive neighbourhoods. These assets generated revenues of €298 million in 2016 and profits of almost €90 million.

Original story: Eje Prime

Translation: Carmel Drake

Grosvenor Buys 2 Buildings In Madrid To Turn Them Into Homes

17 July 2017 – Expansión

The British real estate company Grosvenor has acquired two buildings in Madrid, which it will transform into new luxury apartments and commercial spaces. Specifically, Grosvenor, through its subsidiary Europe, has purchased one building, with a surface area of 3,000 m2, located between c/Modesto Lafuente and c/José Abascal. The property, which currently houses offices, will undergo a comprehensive renovation to create thirteen 3- and 4-bedroom homes, spread over ten floors.

Similarly, the British group has acquired another property, located on c/Santa Engracia, with a surface area of around 1,800 m2. There, the real estate company plans to create 18 homes, including two penthouses and some retail premises.

The two operations form part of the joint venture created by Grosvenor and the Asian firm Amcorp in July 2016, which has the aim of investing €70 million in Spain during its first phase.

In May, the alliance closed its first transaction with the purchase of a plot of land measuring 820 m2, at number 53 on Calle Jorge Juan, to promote seven exclusive apartments.

The British group, founded in 1677 by Sir Thomas Grosvenor, is currently one of the largest real estate owners in Great Britain.

Grosvenor is one of several major international investors that has taken the decision to back the residential market in Spain. Funds such as Kennedy Wilson, Lone Star, Greenoak, Grosvenor, Autonomy Capital, Invesco, as well as family offices and representatives of wealthy families such as Shaftesbury, the Capriles family, Stoneweg and Dazi are all currently working on residential projects in the Spanish market.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

British Groups Invest Heavily In Spain’s RE Sector

9 May 2017 – Expansión

The Grosvenor group is embarking on its first residential project in Spain, developing luxury homes in Madrid. It is following in the footsteps of other compatriot companies such as Intu, Taylor Wimpey and Benson Elliot.

One of the latest real estate companies to show its commitment to Spain has a history that spans 340 years. The firm in question is Grosvenor, the centuries-old British firm, which closed its first investment in the Spanish residential sector about two months ago.

The project chosen by Grosvenor for its arrival in Spain is a luxury residential development on the Golden Mile of Madrid. To this end, Grosvenor, through its subsidiary Grosvenor Europe, completed the purchase of a plot of land measuring around 820 m2, located at number 53 on Calle Jorge Juan, for the development of six exclusive apartments and one penthouse with views over the Retiro Park. (…).

Grosvenor’s operation on Jorge Juan forms part of a joint venture signed by the Asian firm Amcorp in July 2016, whereby it undertook to invest €70 million during the first phase. “We hope to build a significant real estate portfolio in Spain during 2017”, said sources at the British group, which was founded in 1677 by Sir Thomas Grosvenor, and which is nowadays one of the largest landowners in the United Kingdom.

In light of this commitment to Spain, Grosvenor, which has four divisions through which it operates in Europe, Asia, America and the United Kingdom, has strengthened its office in Madrid, led by Fátima Sáez del Cano, by hiring Miguel Silmi, who formerly served in interim roles at firms such as Altamira, owned by Banco Santander. (…).

Investment

Grosvenor’s commitment to Spain is not a unique case amongst the large British groups. “Investors from the United Kingdom have always liked the Spanish real estate market and they have invested throughout the economic cycle. For example, Heron International, which is known today for the shopping centres that it built in Madrid, Barcelona and Valencia, used to hold a significant portfolio of office buildings in Madrid, in the 1990s”, said Javier García-Mateo, Partner in Financial Advisory at Deloitte. (…).

Meanwhile, Benson Elliot has been present since 2011. That fund has just closed the purchase of the Hotel Silken Diagonal, together with the joint venture between Walton Street and Highgate. Previously, BE had purchased two other assets in Barcelona, which it has now sold. “Another British firm, London Regional, has purchased hotels and offices in Spain and has also taken advantage of the cycle to sell them at a profit”, said Rafael Bou, Partner in Real Estate at PwC.

“Having invested more than €2,147 million since 2011, British funds are the second most significant international investor in the Spanish real estate market, after the United States (…)”, according to Savills. During the first quarter of 2017, British firms have already made real estate purchases amounting to €550 million, according to Deloitte.

One example of this commitment is the return of British Land to Spain, which last year purchased the Nueva Condomina shopping centre in Murcia, and the more than €120 million that has been invested by the UK & European Investment group in operations in Madrid, Barcelona and Marbella. (…).

In addition to real estate companies and investment funds, some of the large British insurance companies are also placing their focus on the Spanish real estate sector, such as the case of Prudential and Aviva, which just closed the purchase of the Tormes shopping centre in Salamanca.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake