Green Oak Sells a Batch of 5 Assets in Madrid for €74M

21 January 2019 – Eje Prime

Green Oak is divesting assets in Spain. The US fund manager specialising in real estate has disposed of a batch of five office buildings in Madrid, for which it has received €74.3 million in total, almost €9 million more than the appraisal value of the properties. The five assets formed part of the portfolio of Gore Spain Holdings, the Socimi owned by Green Oak, which has been listed on the Alternative Investment Market (MAB) since January 2017.

Last Thursday, Green Oak formalised the sale of 100% of the company Inversiones Pukaki, through which it controlled four office buildings in the Avalon Business Park. Barings acquired those properties for €57.8 million in total, although the valuation of the buildings amounted to €47.2 million as at December 2017.

Green Oak had owned the four buildings in Avalon, a complex located at number 65 Calle Santa Leonor, since July 2015. The buildings sold to Barings (which owns 100% of the park following the operation) have surface areas of 3,671 m2, 5,077 m2, 6,304 m2 and 6,119 m2, respectively, amounting to 21,172 m2 in total.

GreenOak purchased this batch of assets from Banco Santander for around €40 million. According to data provided by Green Oak, the valuation of the properties was revised at €47 million on 31 December 2017, on the basis of an appraisal compiled by CBRE.

The US fund manager has divested another asset, also included in the portfolio of Gore Spain Holdings. On Friday, the company signed the sale of the company Inversiones Malvinas, through which it controlled another office building, located in Alcobendas.

The company has divested the property located at number 7 Avenida Bruselas of the Madrilenian municipality for €16.5 million. The valuation of that asset amounted to €18.26 million as at 31 December 2017, based on an appraisal also performed by CBRE.

That asset has a gross leasable area of 6,361 m2 spread over six floors. The building, constructed in 2002, also has three underground floors for parking and is home to five tenants (…).

Original story: Eje Prime (by P. Riaño)

Translation: Carmel Drake

Barings Finalises Purchase of 4 Office Buildings from GreenOak

2 December 2018 – Eje Prime

Barings is on the verge of acquiring 100% of Avalon. The British fund manager is finalising the purchase from GreenOak of the four office buildings that it owns in the Madrilenian business park. If the operation goes ahead, the British company will become the owner of the nine properties that make up the complex.

Avalon Business Park is an enclosed business park, with a total surface area of 47,000 m2 and 1,000 parking spaces, located in the Julián Camarillo area of Madrid. Barings has been present in the complex since the end of the summer when it purchased five office buildings, with a combined surface area of 25,785 m2, from Meridia Capital for €73 million.

Now, the fund manager wants to advance with its growth plan in Spain by acquiring the four remaining properties, owned by GreenOak, which have a combined surface area of 21,170 m2. The US fund has owned the assets since 2015 when it purchased them from Banco Santander for €40 million. Almost four years later, the price of the properties amounts to around €60 million, according to reports from Expansión.

Barings arrived in the Spanish market three years ago and has already undertaken several investments in other real estate segments. In November 2017, the company purchased a logistics centre in Plaza (Zaragoza) from Deka, which it added to another logistics asset that it acquired in Madrid in April last year for €35 million.

The fund manager also has a portfolio of retail assets, which includes the Berceo shopping centre in Logroño (La Rioja). The British group acquired that complex, which has a gross leasable area (GLA) of more than 34,000 m2 at the beginning of 2018, after reaching an agreement with CBRE Global Investors, the former owner.

Original story: Eje Prime

Translation: Carmel Drake

Barings Acquires Five Office Buildings in Avalon Business Park in Madrid

    

Barings Real Estate has acquired five office buildings within Avalon Business Park, Madrid, Spain, as part of a Pan European value add investment strategy on behalf of an institutional investor. The seller is Meridia Capital. The five office buildings comprise 24,495sqm and are best in class in this submarket. The buildings are 97% occupied with more than 20 tenants mainly from the IT/technology and engineering sectors. Additionally, there are 1,291sqm of retail space and 421 underground parking spaces.

The Avalon Business Park comprises in total nine office buildings with 46,952sqm. The business park is located in Julian Camarillo, a 950,000sqm, consolidated office sub-market within the city of Madrid, one of the largest submarkets in terms of take-up in 2018. Formerly an industrial area, Avalon Business Park has already undergone big changes in the past years. It is in very close proximity to the city centre and the airport (15 minutes by car to each). The metro station is within eight minutes walking distance, and the property is served by several bus lines.

“We are delighted to announce our seventh acquisition in Spain and our first investment in the Madrid office market, where we see significant rental and value growth over the coming years. This is a new milestone in the development of our investment strategy in the Iberian Peninsula after a significant capital deployment in both the retail and the logistic markets. As our local team grows, we continue broadening our investment horizon, not only across different asset classes but also in terms of risk profile, from core product to value-add and opportunistic transactions,” Adolfo Favieres, Country Head Real Estate, Spain at Barings, said.

Barings was advised by Dentons (Legal), Deloitte (Financial), Arcadis (Technical) and Knight Frank (Valuation). Meridia Capital was advised by Garrigues and Savills Aguirre Newman.

Barings Finalises Purchase of 5 Office Buildings in Madrid from Meridia

27 July 2018 – Eje Prime

The office market in Madrid is just a few days away from seeing the completion of a deal that is shaping up to be the largest operation of the summer. The British fund Barings is finalising the purchase of five office buildings owned by Meridia Capital in the Avalon business park, which have a total surface area of 25,785 m2, according to confirmation provided by sources close to the operation speaking to Eje Prime.

The American fund Starwood Capital was also a finalist in the bid for this portfolio of assets, but in the end, Barings has fought off the competition to seal the deal. The total amount of the operation has not been revealed, but the transaction is expected to be signed within the next few days. The real estate consultancy firm Savills Aguirre Newman is advising Meridia on the sale.

Located in the Julián Camarillo district, the new tech area of the Spanish capital, the Avalon business park comprises nine buildings and spans a total surface area of almost 47,000 m2. The rest of the properties in the complex are owned by GreenOak, which purchased its four assets from Banco Santander in 2015 for €40 million.

That same year, Meridia also completed its entry as an owner of the Avalon properties. In May 2015, the Catalan fund, led by the businessman Javier Faus, acquired the five Madrilenian buildings, as part of its purchase for €60 million of 33 assets from Naropa Capital, the family office owned by the Fernández Fermoselle family. The offices in Julián Camarillo were the main assets in the portfolio, but it also included commercial premises, residential properties and even a plot of land in Valencia.

With this operation, Barings is acquiring five assets that, in addition to a vast office space, have 423 parking spaces in a highly sought-after area of Madrid, close to the Adolfo Suárez-Barajas airport.

Diversification: after logistics and retail come offices

Barings is on fire in the Spanish real estate market. This latest operation that it is on the verge of signing in Madrid follows several others that it has closed over the last year, to take advantage of the new upward cycle in the real estate sector.

Nevertheless, Avalon is the first large portfolio that the British fund has purchased in the Spanish office market. Barings is, therefore, diversifying within the real estate sector, where it has made investments in the logistics and retail segments in recent months (…).

€23 million more for new purchases and to create a Socimi 

In the framework of its new roadmap for the Spanish real estate market, Barings carried out a capital increase amounting to €23.1 million last February for its Spanish subsidiary Barings Core Spain.

The reason for this reinforcement to its financial muscle resulted from the British fund’s interest to convert the company into a Socimi. The group’s intention is to combine all of the assets owned by Barings in Spain in this new vehicle and to list it on the Alternative Investment Market (MAB) over the coming months, as revealed by Eje Prime.

Original story: Eje Prime (by Jabier Izquierdo & Pilar Riaño)

Translation: Carmel Drake

UST Global Leases 3,150 m2 in Madrid’s New Techie Zone

6 April 2018 – Eje Prime

UST Global is plugging into the new techie zone in Madrid. The technology company has leased 3,150 m2 of office space in the Avalón Business Park, a closed office complex located in the Julián Camarillo area. In its new home, the US company will share the district with other technology companies such as IBM, Atos, Tecnocom and The Cube Madrid, amongst others.

The company is going to move a team of 400 employees to Avalón, half of the company’s total workforce in Spain, who are going to be spread over three floors. The technology company’s neighbours will include Konecta and Kone, amongst other companies.

UST Global, which is headquartered in California, has a presence in 25 countries and its clients include large listed companies from the banking, insurance, retail and healthcare sectors.

Original story: Eje Prime

Translation: Carmel Drake

GreenOak Prepares New €900M Spanish Residential Fund

16 February 2017 – Cinco Días

The firm GreenOak Real Estate is preparing its second dedicated real estate fund in Spain, which is expected to have an investment capacity of around €900 million. On this occasion, the new vehicle will place a greater focus on the residential construction segment in Madrid and Barcelona above all.

Housing is attracting international funds. The enormous commitments pledged by Värde Partners, Lone Star and Castlelake have been known for several months and now, the US fund GreenOak is joining the party. (…). The recovery in the residential sector is attracting lots of overseas investors given that it offers higher returns than other real estate segments such as retail, offices and industrial warehouses.

And so GreenOak has now opened its second fund in Spain, from its British office, which is led by John Carrafiel. Its investment capacity is expected to amount to almost €900 million, both in terms of capital secured as well as additional bank financing, according to market sources. Some of those resources will be allocated to housing, both the renovation of existing stock and new builds. The fund will also develop buildable land in established residential areas, where active demand exists due to the lack of development during the years of the crisis.

The search for opportunities will focus on Madrid and Barcelona, markets where almost all new builds are being sold, according to sources in the sector, due to the demand that has built up in recent years. In order to construct its projects, rather than creating its own real estate company like other funds have done, GreenOak will establish partnerships with local developers that specialise in different markets.

GreenOak was created in 2010 by three partners from Morgan Stanley’s real estate business. Its main headquarters are located in New York, London and Tokyo; and Spain has been a strategic investment location since the beginning.

In 2015, the firm announced that it had raised its first fund amounting to €700 million, with a view to investing in property in our country. That vehicle has now completed around 15 operations in Spain, primarily in the logistics sector.

The first fund entered the housing sector for the first time with the renovation of a building on c/Fuencarral 77 in Madrid, close to the Tribunal metro stop. (…). The firm also has experience in residential construction in other countries, such as in the USA.

Last year, GreenOak also acquired four office buildings from Santander in the Avalon business park, on the Julián Camarillo industrial estate in Madrid.

It completed its major purchase in a single operation last year when it acquired the Las Mercedes business megacomplex, at kilometre 11 on the A-2, next to Barajas airport. That park contains nine office buildings with a surface area of 78,000 m2. According to sources in the sector, it acquired it for around €140 million from Standard Life.

Moreover, the first fund has been particularly active in the logistics segment, closing more than a dozen operations. In fact, the firm has considered putting up a portfolio of some of its industrial assets up for sale, just a year after acquiring them.

In addition, the firm debuted its own Socimi, called Gore Spain Holdings, on the Alternative Investment Market, on 19 January 2017, with an initial value of €144 million. That company owns 20 assets in Madrid, Barcelona, Zaragoza, Valencia, Bilbao, Murcia and Sevilla, including logistics warehouses and the Avalon business park in Madrid.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

GreenOak Puts All Of Its Logistics Assets Up For Sale

29 November 2016 – El Confidencial

Early in the summer of 2015, the opportunistic fund GreenOak surprised the market by announcing its unbridled appetite for the Spanish logistics market. In June of that year, the vehicle funded and managed by John Carrafiell announced that it had just purchased five logistics assets in the Community of Madrid, with a combined surface area of 200,000 m2, and that it had agreed to acquire another 100,000 m2.

Over the next few months, the fund completed a barrage of operations, involving the acquisition of, amongst others: a 14,000 m2 platform, which became the largest logistics operation in the País Vasco in 2015; a 30,000 m2 asset in Toledo, leased to Schwepees; the Michelin logistics platform in Seseña, which has a surface area of 47,000 m2; and a portfolio covering 144,320 m2 spread across several properties in Zaragoza and Massalvés (Valencia), which it purchased from Prologis.

Thus, in just 12 months, GreenOak fulfilled its objective of acquiring a portfolio covering 500,000 m2, but rather than develop it, the US fund has now decided to put it up for sale, and whereby take advantage of the strong appetite from institutional investors and specialists in the sector. According to several sources familiar with the sale, the fund has opened a formal sales process, whose first key milestone was recorded last week, with the presentation of preliminary offers from interested parties.

The US firm Eastdil Secured, a subsidiary of Wells Fargo, is coordinating the process, according to the same sources, who point out that this advisor was also chosen by the Canadian fund Ivanhoe to coordinate the sales process of Xanadú, one of the largest shopping centres in Spain, which was sold for around €500 million.

GreenOak’s decision to divest its entire logistics portfolio is seen in the market as an operation by an opportunistic fund, which knew how to buy cheaply and which has decided to take advantage of the interest from more stable investors to generate rapid capital gains. The consideration for the operation is expected to exceed €200 million, compared with the figure of around €125 million that GreenOak has invested to build the portfolio.

Opportunistic buyer

GreenOak signed its first major property purchase in Spain in 2014, when it acquired seven shopping centres from the Dutch group Vastned Retail for €160 million. (…).

It then went onto buy the building located at number 77 on Calle Fuencarral, which it acquired from the General Social Security Treasrury for €21 million; followed by the Sevilla Factory shopping centre, which it bought for €12 million; an office building in Port Cornellá (Barcelona), which it purchased for €10.1 million; and four buildings in the Avalon Business Park (Madrid) and another one in Arroyo de la Vega (Alcobendas), on which it spent more than €55 million in total, according to the figures disclosed in the annual accounts of Gore Spain, the Socimi through which the fund channels its investments in our country.

The icing on the cake for GreenOak came in June this year, when it acquired the Las Mercedes Business Park from Standard Life. The property is located on the outskirts of Madrid, next to the A-2 motorway and comprises an 80,000 m2 complex with 10 buildings, of which nine are used for offices, with the tenth used for the provision of general services.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

GreenOak Acquires 4 Office Buildings In Madrid’s Avalon Business Park

24 August 2015 – Mis Oficinas

The US fund GreenOak has purchased four office buildings from Banco Santander. The offices, which are located on Calle Santa Leonor in the Avalon Business Park (Madrid), have a combined surface area of 21,170 m2 and 353 parking spaces. In May, Meridia Capital purchased the other five buildings that make up the park (spanning 25,785 m2 and with 423 parking spaces) from the Naropa family office.

The main tenants of these offices include Arcelor, Konecta and Tatacs. All three lease more than 1,000 m2 of office space each.

GreenOak, founded in 2010, has a portfolio of assets under management worth $5,400 million.

Original story: Mis Oficinas

Translation: Carmel Drake