Investors Spend €12,000M On RE Assets In 15m To Mar 15

5 June 2015 – Expansión

International funds, private investors and other companies have purchased assets worth almost €12,000 million during the last 15 months. American investors favour large properties, whilst Asians players prefer hotels.

The purchases of almost €12,000 million…mean that the Spanish market has returned to its pre-crisis levels and illustrate the focus that investors from around the world have placed on our country. But, what is the profile of these buyers? And which assets do they prefer?

According to data from the last 15 months, office buildings and shopping centres have been the star investments. Nevertheless, rather than making direct purchases, investors, both Spanish and overseas, have chosen to participate in the market through the new listed companies for real estate investment (Socimis).

For their stock market debuts, the four large Spanish Socimis – Merlin Properties, Hispania Real, Axiare and Lar España – raised funds amounting to more than €2,550 million; and this year they have undertaken capital increases to raise another €1,300 million…Hispania raised €550 million for the IPO of its Socimi subsidiary, from large international investors such as the US magnates George Soros and John Paulson. Just a few weeks ago, it raised a further €337 million from investors with a similar profile. Meanwhile, the real estate company GMP secured €300 million from the Singapore fund GIC.


The four Socimis have created portfolios worth around €4,000 million. These companies, headquartered in Spain, have been the major investors. Thus, 64% of the €2,727 million invested in offices was disbursed by Spanish investors. “The main Spanish investors are Socimis, but they also include investment funds, private equity firms, wealth managers and family offices. The average price for this type of transaction is €29 million, compared with the large deals carried out by British investors (above all investment banks and private investment companies), which exceed €100 million”, explain sources at the consultancy JLL.

Spanish investors have also exceeded foreigners in terms of the purchase of retail premises; 78% compared with 22%, respectively. “During 2014 and Q1 2015, Spanish investors spent €738 million on retail premises. The average price of these transactions was €37 million and the typical buyers were retail operators (such as fashion brands), family offices and private investors”, say JLL.

Meanwhile, international buyers dominate the market for shopping centres and hotels. Of the €3,092 million invested in shopping centres between January 2014 and March 2015, 82% was foreign capital, thanks to the purchases made by US funds such as Tiaa Henderson and specialist companies, such as the French firm Klépierre.

Almost €2,500 million has been invested in hotels in the last 15 months and 55% of the capital invested was foreign. Furthermore, it was very diversified, with Chinese investors such as the Wanda Group and Qatari funds, such as Katara Hospitality buying hotels in Spain – the latter acquired the InterContinental Hotel in Madrid. (…)

In the residential segment, several US funds have chosen to buy land in Spain. The clearest case is Lone Star, which has become the largest developer of land in the country. (…)

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Axiare Closes Accelerated Placement Ahead Of Its Capital Increase

18 May 2015 – Expansión

The Socimi has just closed an accelerated placement with investors ahead of its capital increase.

The listed real estate investment company (Socimi) Axiare Patrimonio wants to maintain the speed of investment that has enabled it to disburse €460 million since its IPO last summer. To this end, the company has announced a capital increase of €394 million, with the aim of doubling its share capital.

Last week, the Socimi led by Luis López de Herrera Oria launched a brochure containing the details of the transaction, which would involve the issue of around 35.87 million new shares, at a nominal value of ten euros per share, plus a premium of one euro (per share).

The capital increase will have preferential subscription rights. The Socimi’s shareholders include funds such as T. Rowe Price and Taube Hodson, and Citigroup.

Axiare owns assets worth €507.95 million, including office buildings in Madrid and logistics warehouses in Guadalajara (pictured above). During the first quarter of 2015, the Socimi generated revenues of €7.59 million and a profit of €2.32 million.


Ahead of this capital increase, Axiare closed an accelerated placement of the shares of one of its largest shareholders, Perry Capital, on Friday. The objective of this placement was to provide greater liquidity for the company’s stock.

The placement of 3.5 million shares (representing 9.721% of its share capital) was closed in record time (one hour) and with a slight issue premium (€12 per share). Buyers of these shares included institutional investment funds from the US, Britain and Norway, according to sources at the company.

The subscription rights for these shares will begin trading on 20 May, whilst the shares themselves will begin trading on 10 June. On Friday, Axiare’s share price closed down 0.29% on the stock exchange at €11.94 per share.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Socimis Invest €420M+ In Asset Purchases In Q1 2015

6 April 2015 – El Economista

The main listed real estate investment companies (‘sociedades cotizadas de inversión inmobiliaria’ or Socimis) have continued to make purchases in 2015. During the (first three) months (of the year), they have spent more than €420 million on the acquisition of office buildings, residential complexes, logistics warehouses and hotels.

Merlin Properties, which debuted on the stock exchange in June last year, with a valuation of €1,250 million, has invested the largest amount during the first three months of the year (€146.3 million).

Since the start of the year, the company has acquired the office building located at number 8 World Trade Center Almeda Park (WTCAP) in Cornella de Llobregat (Barcelona) for €36.5 million and has spent €38.1 million on another office building located on Calle Alcalá 38-40 (Madrid), which is entirely leased to the Ministry of the Interior.

Similarly, it has acquired a logistics warehouse measuring 16,242 m2 in Getafe (Madrid) for €12.75 million, which is leased to Transportes Souto; another measuring 72,717 m2 in Vitoria for €28.58 million, leased to Norbert Dentressangle; and has spent a further €19.8 million on another warehouse located in Coslada (Madrid), measuring 28,490 square metres, which is leased to Azkar.

Following these acquisitions, Merlin’s property portfolio exceeds 717,000 m2 and generates gross annual rental income of €132.2 million.

Meanwhile, the Socimi owned by the Lar Group purchased a plot of land jointly with Pimco measuring 26,203 m2, located on Calle Juan Bravo, 3 (Madrid), where the Juan Bravo Plaza project was being carried out, led by the property developer Eurosazor, owned by Rafael Ortiz, in which Fernando Fernández-Tapias and Paloma Mateo also hold shares.

Lar España will now take over the management of this new real estate project with the objective of constructing a first class residential building in one of the “prime” (real estate) areas of the city, close to the Golden Mile. This transaction takes the Socimi’s total investment to €458.7 million in 15 deals since its IPO.

Meanwhile, Hispania, – the listed investment company controlled by Azora and in which the multimillionaires George Soros and John Paulson hold shares – has acquired a residential complex measuring 39,000 m2 in Sanchinarro (Madrid), comprising 284 homes and 311 garages, for €61.15 million.

It has also purchased an office building located on C/Príncipe de Vergara, 108 (Madrid) measuring 7,324 m2 for €25 million, as well as the three-star Hesperia Ramblas Hotel (Barcelona) for €17.5 million and the four-star Vincci Málaga Hotel for €10.4 million.

Finally, AxiaRE has acquired two office buildings in Madrid, one located in Campo de las Naciones and the other on Calle Juan Ignacio Luca de Tena, for €40.5 million in total.

Since its IPO, the company has closed 9 investment transactions valued at €464 million, through which it has acquired 18 properties, which have a combined rentable surface area of more than 402,000 m2.

Original story: El Economista

Translation: Carmel Drake

AxiaRE Increases Capital By €396M To Fund New Purchases

6 April 2015 – Expansión

The listed real estate investment company (‘sociedad cotizada de inversión inmobiliaria’ or Socimi) Axia Real Estate has announced a capital increase of around €396 million. The operation, which will involve the issue of up to 36 million shares at a minimum price of €11 per share, will allow AxiaRE to continue purchasing real estate assets.

The Socimi also announced the purchase of two office buildings in Madrid: one in the Campo de las Naciones area and another on Calle Juan Ignacio Luca de Tena. In total, AxiaRe has invested €40.5 million in these two purchases.

The real estate company has also signed bilateral financing agreements for several properties, including the offices on Luca de Tena, for which it has signed a loan with CaixaBank for €10.85 million, with a term of 13 years. It has also obtained a €50 million loan from Santander, with a seven year term, to finance the purchase of some (other) offices in Madrid, two warehouses in Guadalajara and a retail space in Tarragona.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

The Socimi Axiare Invests €180 Mn in Five Buildings

11/12/2014 – Expansion

Socimi Axia Real Estate (Axiare), one of the Spanish REITs listed earlier this year, has just spent the remaining amount of the 360 million euros in funds raised at its flotation on July 5th. The trust bought four office buildings and a retail space for a joint amount of 180 million euros from Credit Suisse Asset Management Immobilien Kapitalangegesllschaft. ‘Credit Suisse had to sell the assets because the fund was set to be dissolved in 2015. First, the talks went on two or three assets, but finally the entire porftolio was transferred’, said Oriol Barrachina, CEO at Cushman & Wakefield España which served as a consultant at the operation.

The acquired properties totalling at more than 40.000 square meters of rentable space are found in Madrid (3) and in Barcelona (2). Among them, interesting are two office buildings inside the Cristalia business park in Madrid, leased to such big-name firms like corporate service provider Sodexo and logistics firm Chep Iberica. In Catalonia, apart from an office unit located at 197 Diagonal street inside the 22@ District in Barcelona, Axiare has bought a retail space of 12.413 square meters let to Bauhaus.


Following the purchase of the 5 units, the Socimi chaired by Luis Lopez de Herrera Oria has added new properties to its twelve-unit office portfolio with buildings situated in Madrid, Alcobendas and Barcelona, as well as several logistics warehouses in Seville and Guadalajara. In total, the REIT has spent 415 million euros on assets and additional 10 million on document processing and advisory services. As at its IPO Axiare raised only 360 million euros, it asked for support from banks at the deal. ‘We have consolidated our asset portfolio and we are analyzing various real estate investment opportunities for the following months’, said Lopez de Herrera Oria Tuesday.

Original story: Expansión (by R. Ruiz)

Translation: AURA REE

Axiare Acquires an Office Unit in Madrid For €31 Mn

14/11/2014 – Expansion

Newly listed Spanish REIT (or a Socimi as they are known in this country) Axia Real Estate (now Axiare) has bought an office building situated at 7 Manuel de Falla in Madrid for €31 million.

As soon as the rehabilitation works are completed (probably in March 2016), the property will become a part of the buyer’s portfolio.

The deal was formalized through a down payment of €12 million, fully disembursed from Axiare’s own funds.

The building has a total built area of 6.500 square meters and apart a parking lot with 40 spaces, all designed by the Arquitectura Allende Arquitectos architect’s office. Gleeds Ibérica will advise Axiare on supervision of the refurbishment works.

In opinion of the general director of the Socimi, Luis Lopez Herrera-Oria, the deal was an exceptional opportunity in terms of purchasing offices in downtown Madrid. Acquisition of this building and of another one located at 15 Fernando el Santo street proves the firm bet the company placed on the city center.

During the four months which passed since its listingAxiare has invested a more than €236 million amount, representing 65.5% of its IPO funds.


Original article: Expansión

Translation: AURA REE