Lone Star Puts Isla Chamartín Business Park Up For Sale

2 February 2017 – El Economista

In just a few days time, Lone Star will hang the For Sale sign up on one of the most attractive office asset in its Madrid portfolio. The asset in question is the Isla Chamartín business park, located in the north of the capital, opposite the studios owned by the production company Zeppelin Televisión.

The complex, which comprises four office buildings with a surface area of more than 9,000 m2 each, is located on Avenida de Manoteras 20 and, according to comments from sources in the sector, will be put on the market for more than €110 million.

The US fund generated revenues of €380 million at the end of last year from the sale of the Adequa business park, which neighbours Isla Chamartín. That is a mixed use complex, covering more than 100,000 m2, which is now owned by the Socimi Merlin and which includes land on which two more buildings are going to be constructed.

The two complexes entered Lone Star’s portfolio in 2015, when the fund foreclosed a debt package amounting to more than €600 million from Bami Newco, the real estate company owned by the late Joaquín Rivero, which filed for liquidation that same year.

The Isla Chamartín complex was finished just a few months before the real estate bubble burst – its four buildings were inaugurated between February 2007 and June 2008.

In total, the properties that comprise the park have a combined surface area of 38,134 m2, plus 930 parking spaces. Their tenants include Iberdrola Ingeniería y Construcción, BBVA Consultoría and Aernnova Engineering Solutions Iberica.

Over the last few weeks, Lone Star has been organising the sales process to select the agents that will take care of the marketing side. In the end, the fund has engaged the consultancy firms Knight Frank and CBRE, which are expected to launch the official sales process at the beginning of February.

Experts believe that this asset, located just seven minutes by car from Madrid Barajas Adolfo Suárez airport, with two Metro stops and easy access to the M-11 and A-1, will be well received by investors. (…).

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Merlin Given Green Light To Build Skyscraper In Las Tablas

11 November 2016 – Cinco Días

The Socimi Merlin Properties has been given the green light to add an important office complex to its already gigantic portfolio of real estate assets. The company has just completed an operation to purchase the Adequa business park in Madrid, in a transaction agreed over the summer with the fund Lone Star, for which it will pay €380 million.

According to sources in the market, the one outstanding item on the Socimi’s to do list was to obtain a construction permit to allow it to build an office block, measuring more than 100m tall, in the Adequa business park, which currently comprises six buildings.

As soon as the Socimi led by Ismael Clemente (CEO) obtained the permit, it paid €310 million to the fund plus another €70 million to complete that milestone, explain sources in the sector.

The US fund Lone Star put the business park up for sale in the spring of 2016. It was awarded the asset after agreeing to take on the debt of the now inactive company Bami Newco. That real estate company, created by the late Joaquín Rivero, filed for liquidation last year after going bankrupt with debt amounting to €652 million.

The former property developer had already drawn up plans to build the tower, which will require an investment of between €70 million and €75 million from the Socimi. The skyscraper will add office space of around 29,000 m2 to the business park. In addition, another adjacent building will be built, with a surface area of around 15,000 m2. Construction work is expected to begin in 2018 and terminate at the end of 2019.

Adequa currently has a surface area of 121,000m2, spread over six office buildings, as well as a centre for services and commerce (5,000 m2), which houses a gym, restaurants, a nursery and three padel courts.

The business park is located on Avenida de Burgos, at the entrance to the Las Tablas neighbourhood and is very close to BBVA’s new headquarters. It is home to the offices of Renault España, Técnicas Reuidas and Costa Cruceros, amongst others.

This is the first major operation undertaken by Merlin Properties since it completed the absorption of the historical Metrovacesa last month. The Socimi, created in 2014, now owns assets worth €9,600 million, which make it one of the top 10 Socimis in Europe. (…).

Santander, which used to be the largest shareholder of the former Metrovacesa, now controls 22.3% of Merlin; meanwhile, BBVA owns a 6.4% stake. The Socimi’s original shareholders include the fund Principal Financial Group, which retains a 3% stake.

Merlin, which is now chaired by Rodrigo Echenique – Vice-President at Santander – is also working on the development of another office building in Madrid, on the so-called Isla Chamartín, very close to Adequa, by the junction of the A-1 and M-11 motorways.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Lone Star Puts Adequa Business Park Up For Sale

6 May 2016 – Cinco Días

The US fund Lone Star is going to put the Adequa business park up for sale, which it acquired after taking on the debt of the inactive real estate company Bami Newco. Adequa will be put on the market within the next few weeks and will be marketed by the brokers Knight Frank and JLL.

These consultancy firms received the exclusive joint-mandate to handle the sales process, which will be presented to a small group of investors only.

Adequa is one of the largest business parks in Spain. It has a total surface area of 120,813 sqm and contains six office buildings, as well as a service centre with commercial space measuring 5,013 sqm, including a gym, restaurants, a pharmacy, a nursery and three padel courts. The park is located next to the A-1 highway, in the new neighbourhood of Las Tablas.

This business park is home to the headquarters of Renault in Spain, for xample. Moreover, construction is on-going at the site, to build a new space, measuring 44,885 sqm, which will be divided into two buildings, one of which will be a central tower with office space covering 29,095 sqm.

Bami Newco, the real estate company controlled by Joaquín Rivero following his departure from Metrovacesa, filed for liquidation last year, at the company’s own request under the Bankruptcy Law, with debts amounting to €652 million. At that time, the assets, basically the business park itself, were worth €726 million.

Original story: Cinco Días (by A.S.)

Translation: Carmel Drake