Neinor & Ática Pull Out of the Bidding for the Mestalla Plots

14 November 2018 – Eje Prime

Neinor and Ática have pulled out of the bidding for the Mestalla plots. The two property developers have decided not to formalise their interest in the land that Valencia Football Club has put up for sale during the period for the presentation of non-binding offers, which terminated on Tuesday.

In the case of the property developer led by Juan Velayos, the listed company has decided not to formalise its interest due to the high percentage of land assigned for tertiary use that VFC has put on the market; it is not offering the option for interested parties to bid for each use separately. Of the 100,000 m2 in total, approximately 40% will have to be used for commercial purposes or as offices or hotel rooms.

The withdrawal of Grupo Ática, by contrast, is based on the complexity of the operation. In its case, the candidates, which were thought to include a fund as a financial partner for the Valencia-based property developer, have considered the transaction to be too high risk, according to sources speaking to València Plaza.

The candidates that are still aspiring to take over the land include the Valencian investor group Atitlán, the fund Cerberus, the property developer Aedas and the Valencian construction company Bertolín. Nevertheless, Deloitte is planning a new bidding period during which the candidates who want to continue in the process will have to convert their bids into binding offers, a commitment that they will have to make before the end of the year, on the basis of what has been seen to date.

Until now, the club has not set a price for its plots, but it estimates that the land is worth around €120 million.

Original story: Eje Prime

Translation: Carmel Drake

Cerberus, Aedas & Neinor Compete to Acquire the Mestalla Plots in Valencia

5 November 2018 – Eje Prime

Three great players want to score a goal on the grounds of the Mestalla stadium. The US fund Cerberus and the Spanish property developers Neinor Homes and Aedas Homes are interested in acquiring the more than 100,000 m2 of residential and tertiary land that Valencia Football Club is going to release when it demolishes its stadium, according to València Plaza.

The process to sell the land, which is being led by the consultancy firm Deloitte, has already received interest from up to 25 companies, as the Director General of Valencia FC, Mateu Alemany, explained to the press last week. The value of the plots amounts to €120 million, although the club has not revealed the exact price for which it plans to sell them.

Located on Avenida Aragón, the Mestalla land will have a new owner before long. The funds and property developers that want to invest in this operation have until 8 November to place their non-binding offers on the table, with the obligation to convert them into binding offers by the end of the year.

The interest from Neinor and Aedas in these plots is in line with their investments in the Community of Valencia. In the case of the property developer led by Juan Velayos, the company already has €200 million committed in the region. Last week, Neinor announced the launch of its first 48 homes in the provincial capital, where it is now working to obtain the licence for a second development comprising one hundred homes in Quatre Carreres.

Meanwhile, Aedas is planning to build 500 homes in the Community of Valencia and has already started marketing 120 units, distributed over two blocks, which are going to be built very close to the Ciudad de las Artes y las Ciencias. The US firm Cerberus would undertake this purchase through its property developer Inmoglacier, which opened its first office in the city opposite the Mestalla stadium at the end of October.

Several local players including Atitlán, the investment firm owned by Roberto Centeno and Aritza Rodero, Grupo Ática and the construction firm Bertolín are also on the list of candidates who want to buy Valencia FC’s former grounds.

Original story: Eje Prime

Translation: Carmel Drake

CV Grupo Debuts First Spanish Socimi on Euronext

17 September 2018 – Expansión

Salvador Vila Arcos and the Copoví Ridaura brothers have created Logis Confort, which owns seven industrial buildings in Valencia and Madrid, and they have opted to debut the entity on a secondary French market in light of the more onerous demands of the MAB.

One of the main developers of industrial warehouses in Valencia, CV Grupo, has converted its firm Logic Confort into the first Spanish Socimi to list on the Euronext Access market in Paris. The firm has opted for that secondary French market due to its less onerous requirements and its greater flexibility with respect to the Spanish Alternative Investment Market (MAB).

Logis Confort groups together seven industrial properties that the company leases, mainly in Valencia plus one in Madrid. The assets are worth €15 million. The firm started to trade in July with a benchmark price for its shares of €2.20, which represents a company valuation of €11 million. Although its corporate headquarters are located in Madrid, its three shareholders are from Valencia. The main shareholder is Salvador Vila Arcos, who owns 50% of the firm and is the owner of several firms that operate under the CV Grupo brand, with which it has developed and constructed some of the Ford suppliers’ park in Almussafes. His partners are two builders from that town, Edelmiro and José Manuel Copoví Ridaura, each of whom own 25%.

According to sources at the firm, the decision to opt for the Euronext exchange over the MAB fundamentally due to the conditions regarding the number of shareholders, the diffusion of the shareholding and of the free-floating shares – the percentage of total share capital trading freely on the stock market – demanded by the Spanish market and which did not fit with the company’s plans. Last year, the MAB tightened up its requirements in light of the Socimi boom to take advantage of tax benefits.

In fact, Logis Confort, which has relied on Armanext as an advisor, does not initially expect to open its share capital up to investors in general. Its strategy is to expand the Socimi’s capital by contributing more assets, some of which involve other partners who may join the shareholding of the company.

With this formula, the group also wants to take advantage of the creation of Logis Confort to reorganised its corporate structure and to be able to have an instrument for future operations and alliances.

As Expansión published, CV Grupo participates in companies with the investment firm Atitlán for the management of industrial warehouses.

Original story: Expansión (by A. C. A.)

Translation: Carmel Drake

Hayfin & Atitlán Buy Land from Sareb to Lock Down Plan for Valencia’s Former Formula 1 Circuit

21 August 2018 – El Confidencial

The British fund Hayfin Capital and the Valencian investor Atitlán Grupo Empresarial are continuing to take steps to launch the most iconic urban development project and the one still pending execution in the city of Valencia with the greatest chances of generating gains.

At the end of July, a joint venture held by the two investment specialists completed the purchase of plots still owned by Sareb in the so-called PAI del Grao, a developable sector that occupies land on the former Formula 1 urban circuit in the regional capital. Hayfin and Atitlán acquired 14,000 m2 of land in total, with 8,100 m2 corresponding to residential use and 2,700 m2 to commercial use, according to market sources speaking to El Confidencial. The buildability is defined by the current urban plan of the Town Hall of Valencia, although it is finalising a new plan that will modify the distribution of that buildability. The expectation is that the final use of this land will amount to around 16,000 m2.

The investors paid €4 million in an operation that appears to have a low economic value but significant strategic potential. The sale of the assets by the bad bank chaired by Jaime Echegoyen (…) will allow the Spanish-British consortium to increase its percentage stake in the plan as a whole, which occupies a surface area of more than 300,000 m2 and will involve the construction of a new neighbourhood that will connect the Ciudad de las Ciencias and Avenida de Francia with Valencia’s maritime seafront. The area is set to become one of the most sought-after parts of the city if its developers decide to build high-quality residential properties (…).

Nevertheless, it will be a while before the new Valencian neighbourhood takes shape. As a result of the administrative and bureaucratic processes still pending, the real estate sector estimates that it will take between three and five years before developments in the PAI del Grao can start to be marketed. Nevertheless, if Hayfin and Atitlán are patient and manage to overcome the pitfalls, they may obtain juicy profits from an urban planning operation in which they have already invested more than €30 million but which could generate up to €300 million in property sales, according to the most optimistic estimates.

The plan for the former Valencia Street Circuit is the most ambitious project to be launched by the Atitlan Grupo Empresarial’s real estate division, which according to its own official data already has 100 homes under development, 200,000 m2 of surface area for rent and 1.5 million m2 of land under management, including its operations in Portugal.

With its olive-growing subsidiary Elaia the largest generator of current income, an aquaculture division (Sea8) and the service and construction company Mosaiq (formerly Obinesa-Lubasa), Atitlán generated sales amounting to €437 million last year and an EBITDA of €92 million. According to official figures, it employs 2,500 people across the group (…).

Original story: El Confidencial (by Víctor Romero)

Translation: Carmel Drake

Bankia Sold its Stake in NAU for Less Than €6M After Reducing its Value by €11.7M

25 June 2018 – Valencia Plaza

The sale of 48.62% of the Valencian real estate company Nuevas Actividades Urbanas (NAU) by Bankia Habitat was closed for a price of less than €6 million. That is according to the latest accounts deposited by Bankia Habitat – corresponding to 2016 – in which the company indicates that it sold a set of shares whose net book value amounted to €6.973 million.

In addition to the shares in NAU, the sold package included the 46% that Bankia held in the company Costa Bellver SA, which was acquired by the Calabuig family for €1 million, as well as other stakes in the firms Espai Comercial Vila-real SL and Viladecavalls Park Centro Industrial Logístico y Comercial SA. As a result, the price at which Bankia sold its stake in NAU must have amounted to less than €6 million.

It is also a lower value than the amount assigned to the company just a year ago. According to the accounts of Bankia Habitat, in 2015, the company recognised an impairment provision amounting to €11.7 million.

When asked about this, sources at Bankia explained to Valencia Plaza that “the stake in NAU was adjusted in 2015 to reflect the estimated market value of that stake, to get it ready, from an accounting point of view, for its possible sale”. “There was no more to it”, they underlined.

In terms of the exact sales price of NAU, Bankia explained that it is not authorised to divulge the figure “for reasons of confidentiality agreed between the parties when the transaction was signed”.

A firm that started life with a share capital of €503 million.

Atitlan and Gesfesa have controlled NAU since March 2017, when they acquired 79.66% of the company through the firm Demeter Aurea SL. The rest of the shares are held by Sabadell Real Estate Development SL (15.22%) and Multiactividades Reunidas SL (5.12%).

The company, created in 2009 with a share capital of €503 million, holds stakes in important buildings including the Aqua and Arena Multiespacio shopping centres, but it is weighed down by a heavy debt, amounting €200 million, according to its new owners.

At the end of 2017, following divestment operations such as the sale of three plots by the subsidiary MAI for €33 million and the stake in the Cirsa Valencia casino, that amount had been reduced to around €95 million, of which €35 million corresponded to the consolidation of subsidiaries.

Original story: Valencia Plaza (by Dani Valero)

Translation: Carmel Drake

Grupo Hotusa Buys Hotel Eurostars Gran Valencia from Atitlán

15 June 2018 – Expansión

Grupo Hotusa is continuing to increase its portfolio of assets under ownership. The corporation chaired by Amancio López Seijas has purchased the Hotel Eurostars Gran Valencia, which the company has been managing through its hotel chain Eurostars.

The investment firm Atitlán – led by Aritza Rodero and Roberto Centeno, son-in-law of the owner of Mercadona, Juan Roig – was the owner of 66% of the hotel, according to explanations from market sources speaking to Expansión.

The hotel, located in the upper part of Torre Ademuz, has 110 rooms and a 4-star rating. Specifically, the Eurostars Gran Valencia occupies the upper floors of the building located on Avenida de las Cortes in Valencia, between the Palacio de Congresos and the future Nou Mestalla stadium.

Horwath HTL has advised the sales process, which began last year and which has been delayed for months due to the complexity involved.

Other purchases

In addition to the Hotel Eurostars, the building houses two hotels owned by Ilunion, which used to be managed by Accor, as well as a gym and a parking lot.

With this operation, Grupo Hotusa is taking another step in the framework of its expansion and purchasing plan, which extends both nationally and internationally. In this way, in May, Hotusa purchased Hotel Barceló Thalasso, located in Estepona (Málaga) from Sabadell and in March, it acquired the hotels Eurostars Gran Hotel La Toja and Eurostar Isla de la Toja in O Grove, Pontevedra, from Banco Popular.

The hotel consortium created in Barcelona in 1977 closed last year with a turnover of €1.24 billion, up by 15%.

The Eurostars Hotels chain, created by Grupo Hotusa in 2005, has around 100 establishments in large Spanish capitals and other international destinations such as New York, Paris, Berlin, Rome, Naples and Venice. Moreover, the group owns more than 50 hotels through its Exe Hotels chain.

Meanwhile, Atitlán is continuing with the divestment of its hotel properties with this operation. In this vein, a few months ago, it sold a portfolio of six establishments to Atom, the Socimi promoted by Bankinter (…).

Original story: Expansión (by R. Arroyo & A. C. Álvarez)

Translation: Carmel Drake

Bankinter Continues to Fatten Up its New Hotel Socimi Atom

3 April 2018 – El Español

After the success of Ores, the shopping centre Socimi managed by Sonae Sierra and whose ownership Bankinter shares with the insurance company Mapfre, the bank has recently constituted another real estate investment company as an alternative way for its most select clients to generate greater returns from their wealth (…).

The company is called Atom. Another Socimi that, with a share capital of almost €25 million, started work three months ago from offices leased to it by the bank in the La Finca Business Park, in the Madrilenian suburb of Pozuelo de Alarcón.

No date set for its stock market debut

Although at first, the possibility was considered that Atom would make its stock market debut during the first quarter of 2018, that decision has now been delayed. “No date has been set for the stock market debut. It could happen at any time. In a matter of weeks or months”, say sources at the bank led by Dolores Dancausa (pictured above), the CEO (…).

Bulky portfolio in just 3 months

Nevertheless, and unlike Ores – which made its debut on the MAB on 22 February 2017 without a single asset in its portfolio – Atom is going to start its stock market life with a bulky portfolio of assets. In just three months, it has acquired around 20 hotel establishments.

The last six – including the Hotel Rey Don Jaime de Valencia- were incorporated at the end of March, when the Socimi took advantage of an asset divestment by the private equity firm Atitlán, led by Aritza Rodero and Roberto Centeno, the son-in-law of the President of Mercadona, Juan Roig. Atom added 900 bedrooms to its portfolio through that operation.

Although it has not been disclosed, sources in the sector consulted by this newspaper indicate that the other hotels acquired by Atom could be the 11 establishments that Banco Sabadell left out of the operation, closed in October, in which the entity chaired by Josep Oliu sold the hotel management platform HI Partners to the fund Blackstone for almost €631 million.

Whilst in the case of Ores, Bankinter engaged Sonae Sierra as a specialist shopping centre manager, for Atom, it has empoyed Global Myner Advisors Hotels Capital Invest (GMA-HCI), a company led by Víctor Martí Gilabert, which has proven experience in the management of hotel assets (…).

Atom’s Board

In addition to Martí Gilabert, on the Board of Atom – which is chaired by Eduardo Ozaita, who was recently appointed the Director General of the Commercial Bank of Bankinter, switching roles with Fernando Moreno, who has moved to lead Business Banking –  sits Esther Colom García, who has been hired as the Legal Counsel of the new Socimi (…).

Together with Ozaita, on Atom’s Board as Bankinter’s representative is its Director of Investment Banking, Jaime Íñigo Guerra, who also sits on the governing body of the Socimi Ores. Atom’s Board is completed by Antonio Riestra and Ignacio Díaz, the sole administrator of Otels Hospitality Services.

In theory, the idea being proposed by Bankinter is for Atom to make its debut on the MAB with a portfolio of hotels worth around €200 million, with two-thirds of the establishments located in holiday environments and the remaining one-third located in strategic urban nuclei.

The split of Atom’s share capital will be similar to that of Ores

To raise this share capital, Bankinter has committed to contributing around €20 million, the manager GMA-HCI around €10 million, and other institutional investors another €30 million. Most of the money, around €120 million, will be provided by Bankinter’s own private banking clients. The minimum investment per client will be €200,000, up to a maximum of 15% of each individual’s financial wealth.

Bankinter wants Atom to have a similar shareholder structure to that of the Socimi Ores, in which the financial institution holds a 10% stake (7.48% through the parent company and 2.54% through Línea Directa), the insurance company Mapfre holds 6%, the Castellón based companies Corporación Juan Segarra and Inmuebles Gil Comes hold 5% each, and the manager Sonae holds 3.75%. The remaining 70% is owned by Bankinter’s private banking clients.

Original story: El Español (by Juan Carlos Martínez)

Translation: Carmel Drake

Atitlán Sells 6 Hotels to Bankinter’s New Socimi Atom Hoteles

19 March 2018 – Valencia Plaza

Atitlán is continuing to shake up the real estate market with its operations, in this case focusing on the hotel sector. The investment firm owned by Roberto Centeno and Aritza Rodero has sold six hotels to a new Socimi in the sector that is being promoted by Bankinter. According to sources familiar with the operation, speaking to Valencia Plaza, the asset sale has included the Hotel Rey Don Jaime de Valencia, amongst others.

The transaction represents Atitlán’s departure from a market in which it has operated by stealth since 2013 when it began to acquire hotel assets in Spain. Its modus operandi involved buying up hotels in need of refurbishment in good locations. The company then invested in the renovations before putting the properties back on the market, in some cases affecting a change of operator to optimise the management.

The brand acquired the aforementioned portfolio, containing six hotels in total, located in the cities of Madrid, Sevilla, Palma de Mallorca, Santiago de Compostela and Valencia, in the case of the latter through the purchase of the Hotel Rey Don Jaime from Grupo Beatriz, whose management was entrusted to the operator Hotusa.

That acquisition was completed in 2015 when the hotel was in the midst of a redundancy program. According to reports at the time by the Valencian edition of El Mundo, the investment made by the new owner – Atitlán – was €5 million. The 14-storey building is one of the largest hotels in terms of capacity in Valencia.

When asked about the subject, sources at Atitlán confirmed to this newspaper that a portfolio of six hotels – comprising 900 rooms in total – was sold in February – including the Hotel Rey Don Jaime. The firm declined to confirm the location of the other properties or the total amount of the transaction.

The operation comes shortly after another high profile sale by the company owned by Roberto Centeno – the son-in-law of Juan Roig – and Aritza Rodero. Last month, the firm sold three plots that had been owned for years by a subsidiary of Nuevas Actividades Urbanas (NAU) for €33.6 million, after taking control of NAU just over a year ago for €8.7 million.

The buyer, in that case, was the US fund Harbert Management Corporation, which made its debut in Valencia through this operation hand in hand with the property developer Momentum Real Estate Investment Managers.

Atom Hoteles Socimi

Sources familiar with Atitlán’s hotel operation add that the company that has acquired the assets is Atom Hoteles Socimi SA, a firm promoted by Bankinter, which owns 19 hotel establishments in total spread all over Spain.

The bank has also been silent about the project, although the Mercantile Registry reveals that the new company, which was constituted in January, is chaired by Eduardo Ozaita Vega, the Director General of Bankinter.

At the end of last year, market sources revealed Bankinter’s intention to launch a Socimi focused on the hotel sector this year for its private banking clients, in which it will maintain a stake of around 10%.

The entity led by María Dolores Dancausa plans to launch this investment vehicle on the Alternative Investment Market (MAB) with a share capital of around €200 million, for those clients whose wealth exceeds €1 million. The minimum investment to participate in the Socimi will be €200,000 per client, up to a maximum of 15% of total assets.

In this way, Bankinter is replicating the model of Olimpo Real Estate (Ores), a Socimi that it launched to invest in small and medium-sized retail assets in which the entity retains a 10% stake and which was designed to respond to clients who were demanding higher returns in the context of low interest rates.

Original story: Valencia Plaza (by Dani Valero)

Translation: Carmel Drake

US Fund Harbert Buys 3 Plots in Valencia from NAU for €33M

1 March 2018 – Valencia Plaza

There’s a new player in the Valencia real estate sector. The US fund Harbert Management Corporation is disembarking in Cap i Casal together with the property developer Momentum Real Estate Investment Managers with the purchase of three residential plots from a subsidiary of the real estate company ‘Nuevas Actividades Urbanas’ (NAU), a firm that has been controlled by the investor group Atitlan for the last year.

According to sources in the real estate sector, the operation involves two plots located in the Campanar neighbourhood – close to Maestro Rodrigo – plus a third plot in the area near to Avenida Alfahuir. In all cases, the plots are located in established residential areas of the city where the demand for housing is significant.

The fund has invested €33 million in total to acquire this set of assets, which are estimated to have a (roof space) impact of 42,900 m2. The operation put an end to a long sales process led by Atitlan itself in which more than a dozen parties had expressed their interest.

This is the first major operation that NAU has undertaken following the entry of Atitlan as a shareholder. Atitlan is owned by Roberto Centeno (pictured above) – the son-in-law of Juan Roig – and Aritza Rodero. The company has a stake equivalent to 40% in NAU, which allows it to lead the real estate firm.

It does so through Demeter Áurea, which has controlled 84.51% of NAU’s shares since 2017 after it acquired the 48.62% that Bankia held and received the 35.89% that Gesfesa transferred to it. NAU’s best assets include its stakes in the Aqua Multiespacio and Arena Multiespacios shopping centres in Valencia.

When asked about this, sources at Atitlan confirmed to this newspaper that “one of NAU’s subsidiaries that has filed for liquidation has sold three residential plots”. Nevertheless, the company distances itself from the operation. “Atitlan does not hold a majority stake in NAU and NAU does not hold a majority in the subsidiary that has sold the plots”, they confirmed.

A new property developer in the city

In any case, the operation represents the entry into Valencia of a new operator, the property developer Momentum Real Estate, which is called to lead the development of plots that until now were owned by NAU’s subsidiary. According to details provided by the firm on its website, it specialises in the construction of primary residences.

“It only works with ‘finalist’ assets, those that do not have any urban planning procedures pending”, said the company, which has a large portfolio of developments in Spain – mostly in Madrid – but which lacked projects in the Community of Valencia until now.

With regards to the fund, Harbert does already have experience in the Community of Valencia. It was the owner of the El Manar de Massalfassar shopping centre, which it sold in 2017 for around €40 million.

Original story: Valencia Plaza (by Dani Valero)

Translation: Carmel Drake

Sabadell Acquires 15% Of NAU, Which Holds Stakes In 2 Shopping Centres In Valencia

7 September 2017 – Valencia Plaza

Gesfesa, the firm owned by the Ferrando and Quesada families, has transferred the shares that it held in the real estate investment company Nuevas Actividades Urbanas (NAU) to Banco Sabadell. NAU owns significant stakes in the Aqua and Arena shopping centres in the city of Valencia.

That is according to the most recent annual accounts filed by the company Gesfesa Valencia SL, which reflect the operation within the caption “Variation in Group companies and associates”. “During the year, 51,862,209 shares in the company Nuevas Actividades Urbanas were transferred to Banco Sabadell by way of payment for a debt that we held with the entity”, reveals the company in its annual report.

The shares, which represent just over 15% of NAU’s total share capital, convert the financial institution into the new partner of Atitlan, which has controlled an 84.5% majority stake in the company since last March, through the entity Demeter Áurea.

When asked about the deal, sources at Banco Sabadell refused to confirm any of the details of the operation, but according to sources in the real estate sector, Gesfesa has now paid off all of its debt with the financial institution. The same sources add that Sabadell would have valued the stake it received at around €30 million, which means that the value of NAU amounts to around €200 million in total (…).

NAU’s assets

NAU, in which Sabadell now holds a stake, owns an attractive portfolio of assets, although it has suffered in recent years from a high level of debt and a complex relationship with the Montoro family. The Montoros are NAU’s partner in the ownership of its most sought-after assets – the aforementioned Aqua and Arena Multiespacio shopping centres.

Oceanic Center, the company that owns the Aqua Multiespacio retail, hotel and leisure complex, is one of the companies that NAU and the Montoros own jointly through the firm Navisa, however, the recent purchase of the 50% stake that used to be owned by Iberdrola left the family in control of most of the shares.

Meanwhile, the ownership of Valencia Natura Park, which owns the Arena Multiespacio shopping centre, is shared equally between the parties, with 50% in the hands of NAU and the remaining 50% held by the Montoros. The same applies in the case of Osito Park, which owns land next to the El Osito de la Eliana shopping centre. Another important asset is the Vega Cullera SL company, the property developer of the so-called Manhatten de Cullera – which is 100% owned by Navisa, in which the Montoros holds a majority stake.

Original story: Valencia Plaza (by Dani Valero)

Translation: Carmel Drake