Metrovacesa Reaches Low with €39 Million in Losses and Begins Recovery

23 March 2018

In 2018, the real estate company plans to launch between 3,500 and 4,000 units, while delivering 520.

Metrovacesa, a real estate developer controlled by Santander and BBVA, announced today that it recorded losses of 39 million euros in 2017 with revenues of 28 million euros and a gross margin of 25%, in line with its reporting during its re-listing on the stock exchange.

The company, which returned to the stock exchange on February 6, obtained a negative gross operating result (Ebitda) of 7 million euros in its launch phase.

However, Metrovacesa has highlighted the group’s “solid” financial position, with zero net debt and a long-term loan to value target of less than 25%, which will allow the implementation of its business plan.

The company has highlighted that it is “firmly” moving forward with its plans to meet target deliveries of between 4,500 and 5,000 homes by 2021.

In 2017, the sales of residential units experienced “solid” growth, especially in the second semester.

The company pre-sold 512 homes in the year as a whole, closing the period with an accumulated pre-sale book of 135 million euros (equivalent to 541 units). The number of deliveries made during 2017 reached 110.

As of December 31, 2017, the company had 48 active developments (2,141 residential units), of which 21 (955 residential units) are already under construction.

Regarding its service industry business, Metrovacesa obtained 2.6 million euros last year from the sale of land and has preliminary agreements for another 30 million euros.

The firm has also highlighted the sale of a turnkey project involving an office in Madrid located in Josefa Valcárcel for 30 million euros to Axiare Patrimonio.

By 2018, Metrovacesa expects the launch of between 3,500 and 4,000 units and the delivery of 520. Regarding the progress of sales, the developer’s projects have a high level of visibility for deliveries this year, with 70% already sold.

In addition, all units that have been targeted for delivery are in the construction phase.

In 2019, the company plans to deliver 700 units, 33% of which have already been sold and 72% are in the construction phase.

Metrovacesa practices active management of the land undergoing development, which has meant that, in the last quarter of 2017, the company managed to increase its ready-to-build land portfolio by 76%, in terms of gross asset value (GAV).

With regard to the service industry business, Metrovacesa aims to launch more than 36,000 square meters in the current year.

Original Story: La Información

Photo: Wikimedia Commons

Translation: Richard Turner

Axiare Sells its First Building for €30M

20 December 2017 – El Economista

Axiare Patrimonio has sold the building located at number 15 on Calle Fernando El Santo in Madrid to a domestic investor for €30 million. The company had held this asset in its portfolio for three years, as required by the law governing Socimis.

According to a statement issued by the firm on Wednesday, the sales price represents an increase of 82% with respect to the acquisition price and a 5% increase compared to the most recent valuation, dated June 2017.

This prime property, which houses the headquarters of the Argentinian Embassy and Consulate is located next to the current residence of the Argentinian ambassador to Spain.

The building’s façade dates back to the era of its construction and the property comprises six storeys, with a total surface area of 3,254 m2 and 42 underground parking spaces.

The CEO of Axiare Patrimonio, Luis López de Herrera-Oria, said that his company’s first divestment “represents a clear success story for Axiare Patrimonio. Moreover, the sales price is further evidence that the market values our active management strategy very highly”.

Original story: El Economista

Translation: Carmel Drake

Spain’s Top 5 Socimis Have A Combined Market Cap’n Of €12,160M

2 August 2017 – El Confidencial

The Socimis are still proving fashionable. Spain’s listed real estate investment companies are continuing to capture the attention of large investors. And they are not disappointing them. The companies’ results for the first half of this year show that their average profits have risen by 50% YoY.

Colonial (Ibex 35), Axiare, Lar and Hispania are four of the five Socimis listed on the main stock market (another 30 are listed on the Alternative Investment Market (MAB)) that have published their accounts for the first half of 2017. Meanwhile, Merlin, the largest Socimi in Spain, which is also listed on the main stock market, will wait until after the summer to publish its half year accounts (on 22 September).

Since their debut on the stock market, these Socimis have not stopped growing. (…). Hispania has appreciated in value by 66%, followed by Axiare (64%), Merlin (43%) and Lar (6%). “The case of Colonial is not comparable with the others because it already existed as a company. Moreover, it is worth noting that Merlin comes off worse than Hispania in terms of pure value appreciation, but it has distributed the most dividends”, explain sources at Bankinter.

On Monday, Colonial reported that it increased its net profit by 90% compared to the same period last year. Moreover, it is the first Socimi to publish results having been transformed under the new tax regime. The entity chaired by Juan José Bruguera has seen its real estate asset portfolio increase in value by 7%. The portfolio contains office buildings located in the centre of Madrid, Barcelona and Paris (…). The company’s share price rose by 1.4% off the back of the good results, to reach €7.8 per share (…).

Meanwhile, Axiare Patrimonio increased its profits by 36% to €114 million. The asset portfolio of that firm has appreciated to €1,709 million, according to the valuation certificate issued by CBRE Valuation Advisory (…). Currently, Axiare Patrimonio is working to refurbish four of its office buildings in Madrid and Barcelona (with a combined surface area of 49,202 m2) and two logistics projects (for 76,816 m2 in total). (…).

Meanwhile, Lar España has increased its net profits by 50%. (…). The company chaired by José Luis del Valle generated profits amounting to €65 million. (…). Between January and June 2017, Lar acquired the Parque Abadía retail complex in Toledo and 22 retail premises in different locations across Spain.

In the case of Hispania, the Socimi in which the US magnate George Soros holds a stake, the entity reported net profits of €185 million, which represents an increase of 35% with respect to the same period in 2016. (…). The company chaired by Rafael Mirando explained that its half-year results continued to benefit from the positive effect of tourism so far this year.

In terms of the Socimis in the Ibex, analysts at Bankinter are still backing Merlin Properties as their main investment plan, with a “buy” recommendation and a target price of €12.6 per share, representing a potential appreciation of 9.6%. (…).

For Colonial, the analysts maintain their “neutral” recommendation with a target price of €8.1 per share, representing a potential appreciation of 4.8%. (…).

New requirements to debut on the MAB

In July, six new Socimis debuted on the MAB. The reason is that new requirements entered into force on 1 August affecting all companies wanting to debut from this month onwards and in particular, the Socimis (…).

Meanwhile, all eyes are fixed on the Socimi that is being promoted by Sareb (…). It is expected to make its stock market debut before the end of the year, once it has completed all of the procedures required by the MAB.

Sareb has announced that it has already taken the first steps to constitute the new company. It has also engaged several advisors to accompany it through the process, such as Renta 4 (…) and Clifford Chance (…). Although the so-called ‘bad bank’ has not provided details about the assets that will form part of its Socimi, it is understood that a quarter of the 4,600 homes and 820 tertiary assets that it currently rents out could be transferred to this new vehicle, which would represent almost 1,500 properties in total.

Original story: El Confidencial (by Carmen Alba)

Translation: Carmel Drake

Axiare Acquires 2nd Phase Of Logistics Project In San Fernando De Henares

3 July 2017 – Observatorio Inmobiliario

Axiare Patrimonio has completed the acquisition of the second phase of its logistics park in San Fernando de Henares (Madrid) after having pre-leased a significant part of the first phase, which it acquired just one year ago.

This latest acquisition represents the culmination of a pre-agreement reached in 2016, during the purchase of the first phase of the project, for which the Socimi reserved the right to develop a second, turn-key, phase.

The CEO of Axiare Patrimonio, Luis López de Herrera-Oria, stated that “this operation shows once again our capacity to act outside of the market, acquiring assets with great potential in complex operations. We continue to faithfully fulfil our business plan, with the ultimate objective of maximising value for our shareholders”.

The Socimi has invested €38 million in the acquisition of this second phase. This new investment will add two new logistics warehouses, with a gross leasable area of 60,000 m2, to the three already planned for the first phase of the project, all integrated within the same logistics complex. The handover of this second turnkey phase is scheduled for the second half of 2018.

In total, Axiare Patrimonio will invest €81 million in the development of the two phases of this logistics park, which is located in the first ring of Madrid, in the best area of the Corredor de Henares. It is one of the most important logistics centres in the country, located just 10km from the airport and 18km from the city centre. High-profile first-rate tenants, such as Amazon, TNT and XPO, also have their logistics centres close to this site.

The technical specifications of the new warehouses will be identical to those constructed during the first phase, which means that they will be high-quality facilities, with LEED environmental certificates.

With this off-market operation, Axiare Patrimonio has invested €195 million in the acquisition of five properties in line with its investment strategy.

The project will be developed by Grupo Barral, a company specialising in the logistics sector.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Axiare Leases 2 Industrial Warehouses In Madrid To Transaher

16 May 2017 – Inmodiario

Axiare Patrimonio Socimi SA has leased a total surface area of 42,000 m2 to the company Transaher. This is the first turnkey project measuring more than 30,000 m2 to have been constructed in the first (logistics) ring of Madrid since 2010.

Cushman & Wakefield, the global leader in real estate services, has advised the Socimi on this operation, which includes a logistics warehouse measuring 26,500 m2 and a cross-docking building covering 16,300 m2. The latter will also include a surface area for office use, where Transaher will establish its main headquarters.

Both buildings will be constructed with Class A specifications for logistics operators and will have a Gold LEED certification.

“We think that this is a very important operation for the owner of the project, because it has managed to close a turnkey operation spanning more than 40,000 m2, as well as for the tenant, which is going to have some new flagsgip facilities, with very high-quality standards. In this sense, the efficiency of the project will be maximised”, explained Guillermo García-Almuzara Rodríguez, Director of Logistics & Industrial at Cushman & Wakefield Spain.

“Transaher is a logistics company that is continuously expanding and through this project, we will boost our two business lines: Transport in the cross-docking building, and Logistics. By having two buildings in the same park, we will be able to strengthen the Same-day and home-delivery services to Logistics clients, as well as significantly extend the cut-off times for warehouse orders, by increasing the synergy with transport. Moreover, the location is exceptional in terms of connections, which will positively influence distribution”, said Mª Luz Cobos, Director General of the Transaher Group.

Completion in 2018

The development of Axiare’s logistics park in San Fernando de Henares spans more than 70,000 m2, of which 60% is already leased. The park is home to another logistics building, measuring 28,000 m2, which is configured to deal with demand for spaces of 5,000 m2 upwards. Completion of the warehouses is scheduled for H1 2018.

“We think that the San Fernando park is going to be a role model, both in terms of the quality and versatility of the building, as well as its magnificent location and environmental features, given that it will benefit from a Gold LEED energy rating”, added García-Almuzara.

Original story: Inmodiario

Translation: Carmel Drake

Axiare’s Profits Rose By 156% In Q1 2017 To €13.1M

12 May 2017 – Expansión

The listed real estate investment company (Socimi) Axiare Patrimonio recorded a net profit of €13.1 million during the first quarter of 2017, up by 156% compared to the same period last year, according to a statement filed yesterday by the company with the CNMV.

Revenues from gross rental income grew by 36%, to €13.4 million. In comparable terms, rentals grew by 4.9%.

So far this year, the Socimi has signed new lease contracts covering a surface area of 93,400 m2: 16,200 m2 relating to offices and 77,200 m2 to logistics facilities, which represents a new record.

At the end of the first quarter, the occupancy rate of Axiare’s portfolio amounted to 92.6%.

During the first quarter, Axiare signed new lease contracts for offices covering a surface area of 4,485m2, which also represents a new record.

In the logistics segment, it signed two new contracts, covering a surface area of 26,165 m2, whereby increasing the occupancy rate of the segment to 97%. Moreover, lease contracts were renegotiated for 23,456 m2 of space.

Since the end of the first quarter, Axiare has signed lease contracts for offices and logistics facilities spanning more than 63,000 m2.

So far this year, Axiare has invested €157.9 million on the purchase of four properties, to take its real estate portfolio to a record figure of more than €1,500 million.


75% of Axiare’s portfolio comprises offices, whilst 16% corresponds to logistics assets and 9% to other assets, primarily retail parks.

In addition to the €93 million raised in March through a capital increase, Axiare has obtained bank financing amounting to €119 million, whereby benefitting from the current low-interest rate environment.

According to the Socimi, with these funds, the company plans to continue with its policy of investing in real estate assets with strong potential for generating value.

Original story: Expansión

Translation: Carmel Drake

Axiare Buys Office Building In Barcelona For €19.5M

3 May 2017 – Iberian Property

Axiare Patrimonio has acquired an office building in Sant Cugat del Vallès with a surface area of 17,648 m2 for €19.5 million. The transaction has been advised by Estrada & Partners, representing the buyer.

According to news from Spanish Real Estate, the property, which has been specially designed to operate as a corporate head office, is located on Avenida Can Fatjó del Aurons, in Sant Cugat de Vallès, a stone’s throw from the railcar stop at Can Sant Joan, making for easy access to/from Barcelona. Tenants of the calibre of Hewlett-Packard, TVE, Deutsche Bank, Banco Sabadell, Mapfre, Nespresso and Gas Natural all have offices in the area.

The building has a modern auditorium with capacity for 200 people and parking for more than 400 people.

With this transaction, the Socimi is beginning to invest some of the proceeds raised through its most recent capital expansion in one of its pipeline property projects announced at the presentation of its results in February.

Original story: Iberian Property (by Ana Tavares)

Edited by: Carmel Drake

Patron Capital Acquires Los Alcores Shopping Centre

30 April 2017 – ABC

A constant and silent trickle of investments has seen a significant number of the shopping centres in Andalucía change hands. The latest operation was closed in March, when the investment fund Patron Capital – which is headquartered in London and which has a portfolio worth more than €5,000 million – acquired Los Alcores, the most well-known establishment in Alcalá de Guadaíra (with a leasable area of 124,000 m2). Its tenants include H&M, Lefties, Bershka, Stradivarius and Cinesur.

The shopping centre, located at the foot of the A-92 motorway, has belonged to Incus Capital since 2013, just like El Mirador (in Cuenca) and Alzamora (in Alcoy). Now, these three properties have been acquired by Patron Capital, which has joined forces with the firm Eurofund to invest more than €13 million modernising the properties.

According to the experts, the operation makes sense, “Los Alcores is located in an area that will be served by the metro in the near future and which has large residential projects underway nearby, such as Hacienda Rosario being constructed by Aedas Homes; it is highly visible from the motorway and its tenants include many household names”, said Rosa Madrid, Director of CBRE in Andalucía, the firm that advised the operation.

A report by this consultancy highlights that the shopping centre business has “been recovering for several years and recorded a successful year in 2016”. Behind this rise is “the increase in consumption and, therefore, the good indicators in terms of visitor numbers and sales, which improved by 3.1% and 1.6%, respectively (taking the portfolio of shopping centres managed by CBRE in Spain as a sample)”.

From there, the significant interest from the major commercial brands in growing again, “which has allowed shopping centre occupancy rates to increase at a good pace”. In the CBRE portfolio, “the average occupancy rate rose from 89.6% to 93.9% between 2014 and 2016, figures that illustrate the improvement in the sector”.

If we look at what has happened over the last twelve months, it is clear that this sector “is on a roll”. At the end of 2016, the Via Outlet group – in which the London-based giant Hammerson owns a stake – purchased The Style Outlet in the town of San José de la Rinconada (better known as “The Airport Factory”). Until now, that establishment has belonged to a fund promoted by the Spanish real estate company Neinver (controlled by the Losantos family). Its major rival, the Outlet de Dos Hermanas, had already been acquired by Green Oak, just a few months earlier.

Major sales

These operations joined a long list, which also includes Grupo Lar, which sold the Airesur de Castilleja de la Cuesta shopping centre to CBRE Global Investors. And an Andalucían company has also made money in this wave, specifically, the case of Bogaris, which sold six retail parks in Andalucía and Extremadura to Redevco Iberian Ventures in the middle of last year for €95 million (including Kinepolis Pulianas, las Marismas del Polvorín and the Motril retail park).

And the activity does not end there: Axiare Patrimonio purchased the Viaparck shopping centre in Almería for €20 million; Alpha Pyrenees Trust bought the Connecta shopping centre in Córdoba….and just a few weeks ago, New Winds Group (the owner of the Windsor building in Madrid) purchased Málaga Plaza shopping centre. Just another sign of the good health of a business that is taking off again.

Original story: ABC (by Luis Montoto)

Translation: Carmel Drake

Axiare Acquires 12,000 m2 Office Building In Barcelona For €19.5M

27 March 2017 – Observatorio Inmobiliario

Axiare Patrimonio has closed its first purchase following the capital increase announced in March. The Socimi has invested €19.5 million in the acquisition of an office building that has a GLA of 12,000 m2 and more than 400 parking spaces. The building, which was constructed recently, comprises several floors measuring 2,500 m2 each, as well as an auditorium with capacity for 200 people. According to the Socimi, the building will generate annual rental income of €1.25 million over the next two years.

The asset is located on Avenida Can Fatjó dels Aurons in Sant Cugat, Barcelona. Sant Cugat is a strategic area for offices in Barcelona, with direct connections to the C-16 and AP-7 motorways and a 5-minute walk from the Sant Joan train station. The area is home to many institutional owners including Mapfre, Axa, Catalana Occidente, Banco Sabadell and Merlin and tenants of the calibre of Hewlett-Packard, TVE, Deutsche Bank, Banco Sabadell, Mapfre, Nespresso and Gas Natural. Sant Cugat has been extremely sought after by tenants is recent times and currently has one of the highest occupancy rates in Barcelona.

The CEO of Axiare Patrimonio, Luis López de Herrera Oria states that “we have purchased a magnificent office building for a price that is 27% below its repositioning cost and with a great potential to increase in value”.

Following this operation, during the first three months of 2017, Axiare Patrimonio has invested €157.9 million on the purchase of four tertiary-use properties, with a combined surface area of 46,354 m2 and almost 1,300 parking spaces. This property formed part of the pipeline announced by the Socimi when it presented its annual results for 2016 on 27 February.

For this operation, Axiare Patrimonio has been advised by EY, BNP Paribas Real Estate and Estrada & Partners.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake


Axiare Launches €96M Accelerated Capital Increase

8 March 2017 – Expansión

Late Tuesday, Axiare Patrimonio launched an accelerated capital increase, aimed at qualifying investors, which will see it issue securities representing 10% of its share capital and worth €96 million, according to a statement made by the Socimi.

The operation will result in the dilution of the 15% stake that Colonial holds as the Socimi’s largest shareholder, given that the operation will be carried out without any preferential subscription rights, in other words, without reserving any of the securities for Axiare’s current investors.

In addition, the placement firms behind the operation have been entrusted with the job of “making a selection” from amongst the requests for new shares that they receive from investors, before awarding the new securities.

Colonial’s investment has never been welcomed by Axiare, which regards Colonial as a competitor. In addition, following the real estate company’s entry into its share capital, the Socimi’s Board of Directors engaged independent legal experts to “analyse the different consequences that this operation could have for the Socimi”.

Nevertheless, Axiare is adamant that the aim of the capital increase is to raise funds to buy new buildings, which it will add to its real estate portfolio in the short term, as well as to incorporate new investors into the business, expand its free floating stake and increase its liquidity.

By virtue of Axiare’s capital increase, it will issue 7.19 million new shares, equivalent to 9.99% of the Socimi’s current share capital, worth €95.9 million on the basis of the company’s current market prices. The firm closed trading on the stock market on Tuesday at €13.350 per share.

Financing new asset purchases

The Socimi led by Luis López de Herrera-Oria is looking to raise funds to undertake new property purchases and whereby continue to increase its portfolio, despite the fact that so far this year it has already closed three acquisitions for a combined total of €140 million.

Currently, Axiare owns a real estate portfolio worth €1,400 million, of which 74% comprise office buildings.

Nevertheless, the Socimi is currently analysing potential asset purchases worth €1,100 million, of which properties worth around €400 million worth are in advanced stages of negotiation and are close to being acquired.

Original story: Expansión

Translation: Carmel Drake