Tag: asking prices

Valencia’s Logistics Market will Incorporate 6+ New Platforms in 2019

14 May 2019 – Valencia Plaza

The logistics real estate sector in Valencia is on a roll. At least that is according to a study conducted by Triangle Real Estate Management, which highlights the plentiful supply in the province, in particular in the Riba-Roja and Cheste areas.

Construction is currently underway on three new logistics platforms, spanning 53,000 m2 in total, in the town of Riba-Roja, which are expected to be completed in Q3 2019. Moreover, work has already been finished this year on three other logistics properties in Paterna, Torrent and Loriguilla, with a combined surface area of 40,000 m2.

In addition, there are eight other projects in the pipeline to build turnkey properties, spanning a total surface area of 261,123 m2, which will be ready 9-12 months after they have been signed.

Stock of properties

On the other hand, the report details that the total stock of properties available for storage in the Valencia area spans a surface area of more than 2.5 million m2, of which 60% is located in the Valencia Logistics Corridor, comprising the municipalities of Riba-Roja, Loriguilla and Cheste. However, most of the available surface areas are “old, small properties”.

Land under development

The Valencian logistics market also has 6 million m2 of land available for development, in other words, land that is buildable and classified as industrial but pending the completion of one or more urban planning procedure. 75% of that land will be developed over the long-term, in other words, in more than 5 years time.

Rental prices

Market prices have risen in recent months due to the shortage of supply. Asking prices in the prime areas along the A-3 (Riba-Roja, Cheste, Loriguilla and Quart de Poblet) amount to €4.5/m2/month, compared with €4.25/m2/month in the area around the Ford Almussafes factory and €3.75/m2/month in secondary areas and places such as Sagunt.

Original story: Valencia Plaza (by Begoña Torres)

Translation/Summary: Carmel Drake

CBRE: New Homes Under Construction on the Costa del Sol Will Be Sold for c. €6,000/m2

18 February 2019 – Diario Sur

Six thousand euros or one million pesetas (…). That is what the buyers of the new single-family homes in Nueva Andalucía, in Marbella, can expect to pay per square metre. The real estate consultancy CB Richard Ellis has compiled a report about the characteristics of the new build developments that are being constructed on the Costa del Sol. And, the changing trend is reaching such an extreme that the analysts involved are talking about “a new building paradigm” in the residential market on the Costa del Sol, in this cycle of reactivation of the sector. The general conclusion is simple: better quality homes are being built, with more considered designs and common services, but also with much higher prices.

The document points out that in the past, the large number of transactions were sold for speculative purposes and, therefore, fundamental questions such as finishes, orientation, views and distribution were often neglected in the developments that were put on the market (…).

But times have changed. In this new cycle, property developers are taking care of their products and focusing their attention on clients with medium/high purchasing power and primarily those from overseas. It is not so much a question of location, be it in one specific municipality or another, but rather the quality of the product. (…). Now, most of the developers are backing more contemporaneous designs, with straight lines and large windows, with some of the best finishes in the market.

Change in model

“The reality is that during the last cycle, homes were built for the average market, but following the crisis years, almost everything is now being constructed to serve a niche in the market, of average-high purchasing power, which was previously unmet demand”, explains Andrés Moreno, Director of the Valuations Department at CBRE in Andalucía (…). “Now, much more care is being taken. Everything is designed with the final purchaser in mind (…)”.

The report highlights that the Costa del Sol is consolidating its position as an exclusive and luxurious destination. And that trend means that the newest flats are far from affordable for the general public (…).

In areas around Torremolinos, there are developments with sales prices of more than €4,000/m2, when the average for the area does not exceed €2,500/m2 for second-hand properties. In the Fuengirola/El Higuerón area, new build homes are being marketed for more than €4,000/m2. Prices amount to close to €3,000/m2 in La Cala de Mijas and rise to €6,000/m2 in Nueva Andalucía and Behahavís. The average budget of these clients ranges between €500,000 and €1 million.

Original story: Diario Sur (by Ignacio Lillo)

Translation: Carmel Drake

Santander Grants €128M Loan to La Finca for Madrid’s Largest Ever Luxury Development

12 February 2018 – Expansión

A loan from Santander / The group owned by the Cereceda family has obtained financing for the first phase of its project, which will include the construction of 144 homes, a golf course, sports facilities and a leisure centre.

The group owned by the García Cereceda family – owners of the La Finca business and residential complex – has obtained a cash injection of almost €130 million to develop its LGC3 residential project, which will involve the construction of around 500 luxury homes in the municipality of Pozuelo de Alarcón (Madrid) for a total investment of €340 million.

Specifically, the company has signed a loan with Santander amounting to €127.5 million for the development of the first phase of the project, which will include the construction of 144 homes in three-storey blocks, a golf course, a lake, sports facilities and a shopping and leisure centre, according to financial sources speaking to Expansión.

The first phase of the project, which has been called LGC3 – an acronym that corresponds to the initials of Luis García Cereceda, the patriarch and founder of Procisa (now La Finca) who passed away in 2010 – is already underway and will involve a total investment of between €154 million and €159 million.

Prices

The homes in this first phase will have a surface area of between 200 m2 and 400 m2, approximately, and will have terraces that may extend to 600 m2, as well as private swimming pools for some of the homes. The sales prices of the units will range between €1 million and €2 million.

The LGC project will be carried out on a plot that has a total surface area of 850,000 m2 in Pozuelo de Alarcón, to the north of the capital, next to Parque Empresarial, the exclusive urbanisation were well-known footballers and Spanish businessmen live. Of the total surface area, around 100,000 m2 will be allocated to the plot where the 500 homes will be built. The first phase of the development alone, with 144 units, will occupy around 36,000 m2.

The rest of the surface area – around 750,000 m2 – will be allocated to the Country Club, accessible only to owners of the homes, which will have an 18-hotel golf course, next to a lake with a water surface area of 35,000 m2, an artificial beach, sports facilities and schools, lakes, gardens, a running track and a shopping and leisure centre with a surface area of 10,000 m2.

In addition to the security measures that the urbanisation will have, with a double perimeter fence surrounding the plot and an intrusion detection system and gatehouse, the development will also incorporate the latest requirements in terms of sustainability and energy efficiency (…),.

Property business

La Finca, chaired by Susana García Cereceda, has already started to construct the first phase of homes and has allocated around €25 million from the group’s own cash funds to the urbanisation work. The company carried out a corporate restructuring in 2016 and signed a financing agreement with a syndicated loan led by Société Générale, CaixaBank and Santander amounting to €395 million destined to pay off its existing debt and tackle new projects.

Moreover, last year, the company welcomed the fund Värde into its office property business – La Finca Global Assets – which includes its La Finca, Cardenal Marcelo Spínola and Martínez Villergas business parks.

The company has already initiated the process for La Finca Global Assets (in which Värde owns a 40% stake) to debut as a Socimi on the Alternative Investment Market (MAB) during the course of 2018.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake