Grosvenor Backs the Rental Sector in Spain & Formalises its First Purchases in Madrid

1 June 2018 – Eje Prime

Grosvenor is betting on a business that is on the rise in Spain: the residential rental market. The group, which is going to spend €200 million on its growth plans in the country between now and 2022, as Eje Prime revealed, has recently acquired a building on Calle Rey Francisco, in the Madrilenian neighbourhood of Argüelles, which it is going to rent out.

The property in question is a protected building, located in an area that is very close to the university centres, and which the company hopes to renovate to create rental homes and convert the existing commercial premises into common areas, according to Expansión. In total, the building will have 23 homes, some of which are currently let out under the old rent system, whose tenants will be maintained by the British real estate company.

To give continuity to its business in Spain, Grosvenor will allocate more than €200 million to purchases, together with the Malaysian group Amprop, with which it has created a joint venture in the country. The group’s objective is to double its asset portfolio between now and 2022, according to James Raynor, CEO of Grosvenor, speaking to Eje Prime in an interview.

Grosvenor’s most ambitious plans in Spain include new purchases. The group, which has an office in Madrid and employs eight people in the country, has increased its investment capacity through its joint venture company with Amprop, created last year to build luxury apartments in Madrid, to €200 million.

The objective of the alliance with Amcorp is to back value-added investments, whereby assuming the associated risk but also receiving higher returns. The two groups have allocated a budget of €70 million for these types of projects, although they have reviewed the numbers thanks to the opportunities on offer in the Spanish market.

Original story: Eje Prime 

Translation: Carmel Drake

Canal Isabel II Sells Building In Madrid For €16.75M

16 November 2017 – Addmeet

Canal Isabel II, the utility company responsible for supplying water to the Community of Madrid, has sold a building located on Calle Buen Suceso, 12 in the Argüelles neighbourhood of the Spanish capital, at auction, for €16,750,000.

The 5-storey property dates back to the beginning of the 20th century, has a surface area of 8,635 m² and may be used for a variety of purposes (flexible use).

The identity of the purchaser has not been disclosed.

Original story: Addmeet

Translation: Carmel Drake

Stoneweg Still Has €200M To Invest In Spain

10 November 2017 – El Economista

The Swedish real estate investment platform Stoneweg, founded at the beginning of 2015 by the Spaniards Joaquín Castellví (pictured below, left) and Jaume Sabater (pictured below, right) in Geneva, has an investment plan for Spain amounting to €750 million. “So far, we have spent €550 million and our intention is to continue looking for opportunities in Madrid, Barcelona and along the coast, to spend the remaining balance that we have left of the €200 million”, explains Castellví.

Both partners left the bank Edmond de Rothschild to embark on this new venture, which, in just two years has established a presence in Italy, the USA and Switzerland, as well as in Spain. In the latter, its strategy is based on property development, including both new build and renovation projects, primarily residential, which currently account for 89.5% of its portfolio. In this way, the firm is currently working on the construction of 1,600 homes and “between October and November, we will be delivering the first units”, said the Director. He added that in the case of Madrid, the firm is looking for opportunities in the centre, in neighbourhoods such as Moncloa and Arguelles, “where there is a latent demand for a type of product that has not been built for many years”.

Stoneweg’s latest project in the centre of the Spanish capital is in the former Provincial Court building in Madrid, located on Calle Ferraz, where it is going to build 25 homes. “We have already started to market the homes and in the first week alone we have sold five units”, said the Director, who points out that the prices in other neighbourhoods, such as Salamanca and Chamberí, do not fit with their strategy, since they are looking for average returns of between 15% and 20%.

In its residential business, Stoneweg is also working by means of one-off partnerships with other property developers. Such is the case of its largest operation in Móstoles, where it has purchased a plot land for 300 homes together with ACR.

Also positioned in offices

The firm also holds positions in the office sector. In Barcelona, in fact, it is working on the largest business development in the city, the Luxa complex, comprising two buildings, which have already been pre-leased to Amazon and WeWork. “We sold those two properties to Catalana Occidente and we are now searching for a tenant for the WIP building, also located in 22@, measuring 4,500 m2. Once it has been leased, we will put it up for sale”.

The Director is optimistic because he acknowledges that “clearly, all the noise and uncertainty that we are currently seeing in Cataluña is not having any effect; we continue to have faith in the fundamentals of the city (…)”.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Telefónica Sells A Building In Madrid To Princeton For €25M

16 January 2016 – El Economista

Telefónica has sold a building with a surface area of 9,700 m2 located in the Argüelles neighbourhood of Madrid to the British real estate group Princeton Investments for around €25 million.

According to the British group, the operation, which was announced by Princeton Investments, represents a decisive step in its expansion strategy in Spain.

The real estate company highlighted that the building is in an “excellent location” for the development of luxury housing.

According to sources in the real estate sector, the price paid for the property amounts to around €25 million.

The building, a unique asset located on Calle Irún, next to Parque del Oeste, has a garden and a roof top pool with views over the Royal Palace and the Templo de Debod.

In addition, it has 350 parking spaces, a gym and common recreation rooms.

According to Princeton, the operation consolidates its investment position in Spain, a market in which it has already made several purchases.

In 2015, the British group acquired a building with a surface area of 10,600 m2 on La Cuesta de Santo Domingo, close to Gran Vía, also from Telefónica, for its subsequent rental.

In March 2016, Princeton bought a building with a surface area of 4,000 m2 next to the Google Campus in Madrid from Gas Natural to open a co-working centre.

That property, which is being renovated, has been leased to Regus and will be inaugurated in Q2 2017.

In parallel, the British group plans to launch a student hall of residence project in Valencia in a building that has a surface area of 10,160 m2.

Princeton is keen to replicate this model in other major university cities across Spain, including in Madrid and Barcelona.

Original story: El Economista

Translation: Carmel Drake