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

Ores Signs a €35M Loan to Finance New Purchases

11 October 2018 – Eje Prime

Ores is obtaining more fuel to continuing buying Spanish real estate. The Socimi, controlled by Bankinter, has signed a mortgage loan amounting to €35 million, which will facilitate “the execution of the company’s business plan with respect to future acquisitions”, according to a statement filed by the real estate manager with the Alternative Investment Market (MAB).

The company has formalised with a loan with a Spanish bank, whose identity the company declined to disclose. The loan term expires on 11 October 2023 and the principal will be returned with a single bullet payment. The loan has been structured in the following way: €28.1 million at a fixed rate of 1.79% and €6.9 million at a rate of 3-month Euribor with a floor of 0%, plus a spread of 1.35%.

The capital inflow to Ores arrives just in time. At the end of the first half of the year, the Socimi had already achieved more than 90% of its total investment target and it only had €30 million left for purchases.

Between January and June 2018, Bankinter’s Socimi obtained net income of €8 million and a gross operating profit (EBITDA) of €6.3 million. Nevertheless, the company saw its net profit fall during the first six months of the year, with losses amounting to €3.9 million.

During the first half of the year alone, Ores completed the acquisition of thirteen new assets in Spain and Portugal. The company disbursed €117.5 million for those properties, exceeding its forecast investment target by 10%. Similarly, the group, together with Sonae Sierra, purchased the Millenium de Madrid retail park for €31 million in July.

Ores currently has thirty assets in its portfolio, worth €328 million, which generates a gross annual income of €19.4 million. With these latest operations, the Socimi is on track towards the target established when it was created in December 2017 of investing €400 million in high street retail premises, supermarkets, retail parks (up to 20,000 m2), bank branches and unique assets with long-lasting rental contracts and solvent tenants.

Original story: Eje Prime

Translation: Carmel Drake

Acciona Sells its Stake in Testa to Blackstone for €379M

8 October 2018 – Eje Prime

Blackstone is continuing to increase its stake in Testa. After acquiring the majority of the company in September, by purchasing the shares owned by Merlin, BBVA and Santander, now the US fund is buying the 20% stake that Acciona owns in the rental home Socimi for €379 million, according to a statement filed by the company with Spain’s National Securities and Exchange Commission (CNMV).

The closure of the operation, which has not been formalised yet, is conditional upon the completion of the sale of 50.01% of Testa’s share capital, which Blackstone agreed with Merlin, BBVA and Santander for €948 million. The fund will pay the real estate arm of Acciona €14.32 for each share that it owns in the Socimi, whereby assigning the company a total value of €1.895 billion.

Testa, which has been listed on the Alternative Investment Market (MAB) since July, owns a portfolio of assets containing more than 10,700 homes, which gave the company a market capitalisation of €1.833 billion on the day that it made its stock market debut.

Original story: Eje Prime

Translation: Carmel Drake

Corpfin Capital Real Estate will Debut 5 Socimis on the MAB in 2019

26 September 2018 – Voz Pópuli

Corpfin Capital Real Estate Partners is planning to debut five new Socimis on the Alternative Investment Market (MAB) under the name Inbest before September 2019.

By the time they make their debuts, the Inbest Socimis will have an investment volume of almost €400 million. The Socimis intend to carry out investments with an average volume of between €50 million and €60 million to acquire properties located in commercial areas of Madrid and Barcelona, as well as in the main provincial capitals, and to provide them with added value and convert them into retail premises and flagship stores for major brands.

The management company of Inbest Socimis is currently in the process of becoming a management company that will be regulated by Spain’s National Securities and Markets Commission. It is chaired by Javier Basagoiti (pictured above), founding partner of the firm together with Carlos Lavilla and Patrick Gandarias. Basagoiti founded Corpfin Capital Real Estate in 2008 in conjunction with Felipe Oriol. Ana Granado, who joined the firm as the Managing Director last year, after working at Santander, Aguirre Newman and Deloitte, will lead the Inbest team, which will comprise 13 professionals in total.

Inbest will finish this year having raised €200 million during the year from various investors and plans to end its investment period in December 2021.

Corpfin Capital Real Estate’s real estate operations include the rental to Apple of its store in Valencia, a residential building that was renovated and whose use was modified to commercial, which was subsequently acquired by Pontegadea, the investment company owned by the Zara founder, Amancio Ortega; the renovation of a old bank branch in San Sebastián, which has now been converted into a shopping arcade that is home to major fashion labels; and the purchase of the premises that used to house the former Nebraska cafeterias in Madrid, establishments that are now occupied by McDonalds and VIPS.

Through Inbest, Corpfin Capital Real Estate wants to take advantage of the boom in the commercial real estate sector, which reported record investment figures in 2017.

The trend of the major brands is to occupy large retail spaces in the main shopping areas of cities, leaving smaller establishments and those set away from the prime areas, whereby opening a niche in the market in which Inbest is specialising. The consolidation of the e-commerce sector has also influenced this change in trend.

Original story: Voz Pópuli (by Alberto Ortín)

Translation: Carmel Drake

Lar España Invests €2M on Renovation of As Termas Shopping Centre in Lugo

31 August 2018 – Eje Prime

Lar España is revaluing one of its assets. The Socimi specialising in retail is going to invest €2 million in the renovation of its As Termas shopping centre, located in the city of Lugo.

The building work will begin in September and is expected to be finished by the end of the year. The company has set itself the objective of improving the restaurant areas and the overall comfort of the centre to “allow greater convenience for both customers and tenants”.

The company is also going to launch other renovation projects soon, including the refurbishment of the following shopping centres: Megapark in Vizcaya; Ànec Blau in Barcelona; and Portal de la Marina in Alicante. As at 30 June 2018, the market value of Lar España’s asset portfolio amounted to €1.58 billion.

During the first half of 2018, Lar España invested €41.3 million, with the largest amount being allocated to the development of the Palmas Altas shopping centre in Sevilla, followed by the Lagasca 99 residential development in Madrid and the VidaNova Parc retail park in Valencia.

Original story: Eje Prime

Translation: Carmel Drake

Sareb Sets Itself an Online Sales Challenge: €1.8bn in NPLs

10 July 2018 – El Economista

Sareb has launched a new wave of non-performing loans for sale on its online marketing channel, aimed at investors and professionals, to boost the divestment of €1.8 billion, equivalent to 7.2% of its portfolio of financial assets, according to sources at the company speaking to Europa Press.

Since July 2017, Sareb has had a dedicated loan sales channel for investors and professionals, a pioneering initiative in the European market, which allows it to promote divestment and increase the visibility of these kinds of assets.

The aim of the so-called bad bank is to enhance the transparency of the sales processes of these types of assets, which are now in their fourth wave. At the end of 2017, it had managed to sell loans with a nominal value of €186 million, €35 million through its website and €151 million through its servicers, which also have specific platforms to market these portfolios.

The guarantees associated with these loans mainly constitute mortgages over properties of different kinds: finished residential homes, work in progress buildings and land.

With this channel, Sareb is continuing to push ahead with its divestment process and its commitment to a more dynamic and transparent loan market, according to Expansion.

The channel is aimed at investors and professionals who fulfil a series of minimum eligibility requirements. Sareb’s aim is to expand the number and profile of investors who can participate in its loan sale processes, whereby facilitating divestment in the segment. In this way, the players that may operate on the channel include international and domestic professionals, as well as local operators interested in the loans.

Sareb has a loan volume amounting to more than €25 billion proceeding from almost 14,575 debtors. All of them have a combined debt of €70.4 billion, including associated interest and expenses. In order to recover those amounts, the entity carries out an active management process that allows it to ensure the payment of interest on the loans and, where possible, their repayment or cancellation.

When it was constituted, Sareb received around 200,000 assets worth €50.8 billion, of which 80% were loans and property developer credits and 20% were properties.

After five years of life, Sareb has reduced its portfolio by more than €13.6 billion. Currently, its portfolio of assets comprises 67.3% in loans and 32.6% in properties.

Sareb issued debt backed by the Spanish State to pay the rescued entities for the assets that they transferred to the company. The company is complying with the repayment of that debt, and to date has repaid more than €12.9 billion.

Original story: El Economista 

Translation: Carmel Drake

The Owner of ‘Nevada Shopping’ Acquires Another Building in Central Granada

2 July 2018 – Eje Prime

General de Galerías Comerciales (GGC) is increasing its portfolio of assets. The company specialises in making investments in retail parks and shopping centres, but, this time, it has opted for a building in the centre of Granada, according to a statement filed with the Alternative Investment Market (MAB).

The Socimi has acquired a building located at number 55 Calle Reyes Católicos. The company, which has financed the operation using own funds, has invested €6 million in the purchase in total.

Controlled by Tomás Olivo, GGC made its debut on the MAB in July last year, to become one of the Socimis with the largest market capitalisation in the sector. The company, which has twenty years of experience, carries out its activity across the whole value chain: from land purchases to management.

The main assets in its portfolio are retail parks and shopping centres in Spain, including La Cañada (Marbella), Mediterráneo (Almería), Mataró Parc (Mataró), Gran Plaza (Almería), Las Dunas and Nevada Shopping (Granada).

The company also owns a large portfolio of residential assets and commercial premises, as well as land, primarily in the south of Spain. At the time of its debut on the MAB, the company’s asset portfolio was worth €1.906 billion.

GGC closed 2017 with a net profit of €103.18 million, up by 58% compared to the previous year, when it recorded a net result of €65.4 million. The Socimi recorded sales of €111.3 million in 2017, up by 27% compared to the previous year. The majority of the company’s turnover proceeds from the rental of its properties, €93.35 million in 2017 compared to €64.9 million in 2016.

Original story: Eje Prime

Translation: Carmel Drake

Sareb Activates the Transfer of a Second Batch of Homes to its Socimi

11 June 2018 – La Información

“Investors are asking us for a larger portfolio, more geographical diversification and, above all, more liquidity”. The CEO of Témpore Properties – the Socimi launched by the bad bank to generate returns from its portfolio of residential rental assets -, Nicolás Díaz Saldaña, speaking at a recent conference organised by the Stock Exchange of Madrid, linked the success of the project with the acceleration of the milestones established in its strategic plan and reaching the objective of listing on the main stock market – which is planned for 2020 – as soon as possible.

The first step in that direction was taken just a few days ago by the team at Témpore Properties when it exercised “the right to submit the first offer” extended to it by the framework of the relationship signed with Sareb and which gives the Socimi priority when it comes to accessing rental assets that the bad bank wants to put on the market, according to sources at the Socimi speaking to La Información (…). On 24 May, the first window was opened for Témpore to expand its portfolio of assets by resorting to Sareb’s funds and the Socimi did not want to miss out on the opportunity.

Témpore made its stock market debut on 3 April 2018 with a portfolio containing 1,553 residential rental assets, worth €152.7 million in total. Its plans – according to its own IPO prospectus – include the intention to expand its portfolio to almost double the size this year with the addition of 1,000 new residential assets worth €160 million, which Díaz Saldaña’s team – which is very familiar with Sareb’s portfolio – has already cast its eyes over.

The Socimi has two opportunities to do this: now in May or later in November when the second window will open for incorporating assets from the bad bank into its portfolio (the agreement that gives priority over Sareb’s assets to Témpore expects such a window to open every six months over the next three years). The problem in both cases is how to finance the operation. The Socimi has a consolidated portfolio of assets but hardly any available capital. Sareb’s 98.51% stake reflects the value of the assets transferred for the creation of the Socimi and the minority stake is distributed between 24 small investors, who have contributed €2.12 million.

Sareb neither wants to nor could increase its stake in the share capital of the Socimi, which means that the acquisitions of the assets proceeding from the bad bank that Témpore executes will have to be undertaken at market prices and following their valuation by an independent expert: otherwise, the entity will either have to borrow or increase its share capital, or both, which according to the sources consulted is the most viable solution given that the Socimi has self-imposed a restriction on its debt capacity equivalent to 40% of its asset value, which leaves a margin of €80 million through that route.

Díaz Saldaña acknowledges that the lack of liquidity on the MAB is a barrier when it comes to attracting institutional investors, but he also recognises that he doesn’t have any choice but to do this if the Socimi wants to strengthen its portfolio to configure a project capable of debuting on the main stock market. For the time being, he says that he has a list of 40 investors interested in providing the €100 million that the company needs to finance this operation.

Geographical diversification

According to the sources consulted, Témpore’s team is already analysing the portfolio of assets offered by Sareb, although the real scope of the operation will depend on the Socimi’s capacity to incorporate new investors into its share capital.

Nevertheless, the objective of the operation is very clear: the geographical diversification of the Socimi’s portfolio of assets (…). Currently, 84% of the Socimi’s residential assets – calculated by market value – are concentrated in Madrid and Barcelona.

The priority is to open up the range of possibilities. The sources consulted specify that options are being evaluated in Valencia, Málaga, Sevilla, Alicante, Valladolid and Logroño (…).

Original story: La Información (by Bruno Pérez)

Translation: Carmel Drake

Catella Acquires 3 Residential Assets in Pamplona for €26M

7 June 2018 – Eje Prime

Catella Asset Management Iberia (Cami) is on a roll in Spain. The Swedish fund has taken another step forward in its strategy to grow its residential business in Spain with the purchase of three buildings in Pamplona for €26 million, according to explanations provided by sources at the company speaking to Eje Prime.

The latest operation signed by the fund in Spain is the acquisition from a local property developer of three residential buildings for their operation as long-term rental properties. “The vendor is going to continue to take care of the day-to-day management of the buildings”, explain the sources.

Two of the three assets are located in Plaza Puerta de Badostain, in the town of Sarrigueren, located to the west of Pamplona. Those two assets contain 168 homes, 187 parking spaces and 173 storerooms, covering a total constructed surface area of 15,080 m2.

The third building is located on Calle Paseo de los Donantes de Sangre, in the neighbourhood of Ezcaba, in the north of Pamplona. This residence has 67 homes, 69 parking spaces and 67 storerooms, which together span a constructed surface area of 7,100 m2.  The operation has been brokered by the real estate consultancy JLL.

Moreover, Catella has recently signed agreements with developers for the construction of two developments in Madrid containing 362 homes and which will form part of its portfolio in operation in the next 18 months.

The first development, whose delivery is scheduled for December 2018, is located in the expansion area of Villaverde in Madrid. It is a development with 171 homes, garages and storerooms, with a combined constructed surface area of 13,035 m2.

Meanwhile, the second development comprises 191 homes, garages and storerooms, spanning a constructed surface area of 13,800 m2 and located in the south of Madrid, which will be handed over at the beginning of 2020. With these acquisitions, Catella Asset Management Iberia has four residential assets: four in Madrid, one in Barcelona and three in Pamplona.

Roadmap in Spain

This operation forms part of the new roadmap that Catella is going to follow in the Spanish market. The Swedish manager, which is going to focus on its objective of growing its asset portfolio in the residential and office sectors, plans to own up to 1,000 flats for rental by the end of this year, doubling its current figure, which stands at around 400 homes.

Present in Spain since 2015, Catella has signed five purchases in recent years in the residential segment, where it has spent around €85 million. The group has €300 million more to spend to continue growing through purchases in the country.

In addition to the residential business, Catella is also very present in the retail sector, where it has recently undertaken operations, such as the purchase from Axiare of the Planetocio shopping centre in Madrid, alongside AEW. The company closed 2017 with a portfolio of assets under management in Spain worth €200 million.

In addition, through its fund specialising in student housing, Catella European Student Housing Fund, the investment company is backing the star alternative asset in the real estate at the moment.

In 2017, it purchased the La Campana hall of residence in Pamplona and, this year, it is analysing possible new acquisitions in the large capitals such as Madrid, Barcelona, Valencia and Sevilla, but also in another city with a notable presence of university students: Granada.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

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