Merlin Expresses Interest in Aena’s RE Plans for Madrid & Barcelona Airports

7 May 2018 – La Vanguardia

Merlín Properties is interested in participating in the real estate development plans that Aena is going to develop in the vicinity of the airports in Madrid and Barcelona, according to the CEO of the company, Ismael Clemente.

The Socimi is going to place its focus on the development of logistics centres and office buildings included in these two plans, according to details provided following the company’s General Shareholders’ Meeting.

“We are interested and we will look at them (the plans) with all the interest in the world”, said Clemente. “When they launch the project, we will be there”, he said.

By virtue of these plans, Aena is looking to develop 2.7 million m2 of land around the Barajas aerodrome, which will require a total investment from the private sector of around €3 billion and which will constitute one of the largest urban development operations in Europe. In the case of El Prat, the land spans around 1.84 million m2 and will involve an investment of €1.3 billion.

On the other hand, during his speech at Merlin’s General Shareholders’ Meeting, the CEO expressed the company’s intention to sell the entire 17% stake that it holds in Testa Residencial, the largest rental home company in the country, when that firm makes its upcoming stock market debut. The Socimi expects to obtain proceeds of around €300 million from that transaction.

“The reasonable thing would be for us to sell the entire stake if the transaction price is reasonable”, said Clemente, who attributed this decision to the fact that the Socimi’s investment in Testa “brings down the average return of the company” because it is a housing company.

Original story: La Vanguardia

Translation: Carmel Drake

Inditex Negotiates the Sale of 16 Stores to German Fund Deka

29 January 2018 – Eje Prime

Inditex has found a buyer for its portfolio of stores. The Galician fashion retailer is holding conversations with the German fund Deka Inmobilien to sell the sixteen stores that it put up for sale in December. Both companies are holding negotiations to close the acquisition for €400 million.

The agreement is expected to be closed this week in such a way that the group may include this divestment in its results for 2017, according to reports by El Confidencial. Almost 80% of the value of the portfolio corresponds to the establishments located in Madrid (the Zara store on c/Preciados and the Lefties shop on c/Carretas), Barcelona (the Zara store on c/Pelayo) and Lisbon (Rúa Augusta y Antonio Augusto de Aguiar). The remaining stores are located in Valencia, Córdoba, Albacete, Palma, Sevilla, San Sebastián, Ciudad Real, Zamora, and Fuengirola.

Zara’s parent company has received several offers for its stores. Some buyers were only interested in part of the portfolio and many were mainly interested in the Preciados store. The operation is being brokered by Savills-Aguirre Newman.

Meanwhile, Deka Inmobilien, the real estate investment division of Grupo Deka, is a buyer interested in acquiring assets in good locations, with high profile tenants and long-term contracts. Its operations in recent years include the acquisition of the Diagonal 640 office building in Barcelona for €145 million. Inditex guarantees a five-year rental term with the option of extending for another twenty years and rental prices that offer an average return of 4% for the whole portfolio.

Original story: Eje Prime 

Translation: Carmel Drake