GMP Puts Huawei’s Offices in Castellana Norte Up For Sale

28 May 2019 – Eje Prime

The real estate group GMP has put the headquarters of the Chinese company Huawei in Madrid up for sale. The technology giant has occupied the offices, which span 21,000 m2, since Q1 2017. The premises are located in the Castellana Norte Business Park in Las Tablas, close to the headquarters of other groups such as Mediaset and Nokia.

The Castellana Norte Business Park has become one of the most important urban renovations projects in the Spanish capital. It offers office space measuring more than 1 million m2, with capacity for over 200,000 people.

GMP, which is owned by the Montoro family and the Singapore sovereign fund, specialises in the management of offices and retail parks. It owns 18 work centres in Madrid and generated revenues of €106.7 million in 2018, up by 8% YoY.

The office market in the Spanish capital is one of the most attractive for international operators thanks to the combination of low prices (€33/m2/month) and availability (10.5%).

GMP’s decision to sell the property was taken before the US named the Chinese company as a threat to national security and vetoed it from all business with US companies.

Original story: Eje Prime (by Marta Casado Pla & Marc Vidal Ordeig)

Translation/Summary: Carmel Drake

Forcadell: 12% More Office Space was Leased in Barcelona in 2017 (340,000 m2)

23 February 2018 – Eje Prime

In 2017, the office business in the Catalan capital recorded its highest volume of activity for ten years. According to the real estate consultancy Forcadell, 340,000 m2 of office space was leased in Barcelona in 2017, up by 12.2% compared to the previous year and also higher than the volume recorded in 2015, even though both years also saw record leasing figures. Moreover, the lack of space in the city of Barcelona has driven the office market to the outskirts of the city over the last 2 years – peripheral areas accounted for 20% of all of the space leased in 2017.

According to data from Forcadell, the availability rate of offices in Barcelona is continuing its downward trend, moving from 9.3% during the first half of 2017 to 8.8% by the end of 2017.

“That gradual decrease in product availability is due to the good leasing rate and the rapid absorption rate recorded over the last 2 years, and in particular during 2017”, say sources at the consultancy firm.

In terms of demand, the office market in Barcelona closed the second half of 2017 with an increase in demand of 9.2% with respect to the same period a year earlier. Demand for surface areas spanning more than 1,000 m2 was concentrated in the New Business Districts, specifically in 22@ and the Zona Franca, whilst demand for smaller surface areas rose in the prime and Central areas.

According to Forcadell, the average price per m2 of offices in Barcelona amounted to €13.5/m2/month at the end of 2017. During the second half of the year, office rents in the Catalan capital continued to show moderate increases in almost all areas, in line with the trend observed over the last 5 years. The average YoY variation in Barcelona amounted to 8%, identical to the increase recorded in H1 2017.

The consultancy firm’s outlook for the year ahead is that the office market in Barcelona will continue to attract interest from investors. “They are increasingly demanding a minimum rating category, given that that has become an essential requirement for companies moving into new work spaces”, say sources at Forcadell. Moreover, international funds specialising in the comprehensive renovation of office buildings have also shown interest in the Barcelona market, a trend that is expected to intensify during 2018 and 2019.

Original story: Eje Prime 

Translation: Carmel Drake

Bulevard Rosa Shopping Arcade To Be Converted Into Large Format Stores

20 October 2017 – Eje Prime

The historical Bulevard Rosa, managed by the Catalan Vives family, will close its doors during the first half of next year, according to explanations provided to Eje Prime by sources close to the process. The establishment, which will be converted into between large format stores for fashion retailers, is whereby following in the footsteps of the Madrilenian shopping arcade El Jardín de Serrano, which is also in the process of closing its doors for a refit to welcome Uniqlo’s first megastore in Madrid.

Bulevard Rosa opened its doors in December 1978, to become one of the most iconic shopping arcades in the centre of Barcelona. The complex, which occupies the ground floor of the office building located at number 55 Paseo de Gracia, currently comprises around 100 shops and has a gross leasable area of 5,200 m2.

According to sources at Bulevard Rosa, the managers of the shopping centre have already contacted the tenants to inform them that their rental contracts will not be renewed beyond June 2018. According to sources in the real estate business, the owners’ project involves transforming the arcade into between two and four megastores, depending on the needs of the operators that express interest in the location (…).

This decision comes ten years after the managers of Bulevard Rosa tried to revitalise the shopping centre by expanding it and introducing new operators. In 2008, the company converted its former movie theatres into a Nespresso megastore, whilst the Galician ladies’ fashion label Bimba y Lola also recently expanded its store in the complex.

With the disappearance of Bulevard Rosa, the owners of the complex may be able to generate a return on their commercial investment with the opening of new large format stores. Currently, the monthly rent for a store on Paseo de Gracia amounts to between €240/m2/month and €310/m2/month, with a return of 3.8%.

Moreover, fortune is playing into the hands of the owners of the shopping arcade, given that the availability of stores along this stretch of Paseo de Gracia is almost nil (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

La Liga Puts Its HQ Up For Sale For €3.5M

9 October 2017 – Eje Prime

La Liga is hoping to receive a bonus before Christmas. The football league association will complete its move to a new corporate headquarters before December and so plans to complete the sale of its current offices during the final stretch of 2017 or beginning of 2018, according to Palco23. The football clubs’ delegated commission approved the sale of the building at the beginning of the year and has now commissioned the valuation of the building before it puts it on the market: €3.52 million.

The valuation has been performed by an independent third party and has forced the entity chaired by Javier Tebas to recognise a loss amounting to €1.04 million. That is because the price that has been assigned to the property, located at number 10 Calle Hernández de Tejada, is lower than its net book value in the accounts.

The building has a surface area of just over 1,100 m2 and La Liga tried to squeeze into the various floors as it continued to grow. Nevertheless, two years ago, the association decided to rent some additional offices around the corner, and in the end, has decided to concentrate all of its activity in a single building, located just 800m away from the historical headquarters.

As such, the association that represents first and second division clubs will occupy four of the seven floors in Edificio Murano, located at number 60 Calle Torrelaguna. That building is owned by the real estate group Hispania, which has secured the occupation of more than 50% of the property’s surface area (7,574.6 m2) thanks to Spanish football.

The move will not only result in an improvement in the conditions of the 158 workers that La Liga employs, it will also allow the body to offer a more modern image. Compared to the antiquated facilities at Hernández de Tejada, the new headquarters will be located in a glass building with views of Avenida de América and Calle Arturo Soria.

The office market in Madrid

The office market is one of the most active in the Spanish real estate sector. During the first six months of the year, 275,037m2 of office space was leased in the capital, a very similar figure to that recorded during the first half of 2016. According to the real estate consultancy Aguirre Newman, activity has been improving throughout the 6 months.

Another significant feature in the market has been the recovery of large volume operations: 25 deals were signed for spaces spanning more than 3,000 m2, which accounted for 42% of the total volume of operations closed. Those figures include La Liga’s new building on Calle Torrelaguna.

The overall office availability rate in the market in Madrid has decreased significantly over the last six months, from 11.4% in January 2017 to 10.8% in July 2017, as the volume of available space decreased by more than 74,000 m2.

In terms of prices, during the first half of the year, average rents grew in all areas, to reach an average half-year a rise of 3.9%. The average rental cost in the capital’s business district rose to €28.94/m2/month, whilst average rents in the peripheral areas amounted to €12.61/m2/month.

The most significant increases in rental prices by area were recorded in the central business district, with an average rise of 7.7% in six months. That mainly occurred as a result of a change in companies’ requirements, since they are now prioritising location and building quality over rental cost.

Original story: Eje Prime (by M. Menchén and C. Pareja)

Translation: Carmel Drake