Banca March & Crédit Agricole Create Adriano Care to Invest in Geriatric Homes

17 September 2019 Banca March and Crédit Agricole have agreed to a joint venture, incorporating a socimi dubbed Adriano Care. The socimi, which will focus its investments in the growing market for residences for senior citizens, will have an investment capacity of about 250 million euros, according to market sources.

Private equity funds controlled by the two banks are funding the socimi, which Azora will manage. Adriano Care intends to acquire geriatric residences and other services for senior citizens.

The sector is currently in vogue, offering relatively high yields compared to other types of assets, such as offices while providing stable, long-term income flows.

Original Story: La Información – Lucía Gómez

Adaptation/Translation: Richard D. K. Turner

 

Azora, Banca March & Indosuez Behind Adriano Care Socimi

July 2019 – Richard D. K. Turner

Azora, Banca March and Indosuez have joined together to create a new socimi, Adriano Care. The socimi is forecast to invest approximately 250 million euros to acquire a portfolio of residences for senior citizens.

Adriano Care has already identified potential investment opportunities worth €600 million, and has nearly concluded negotiations for €100 million of those.

Original Story: Cinco Dias

Vitruvio Acquires Commercial Premise in Madrid for €1.5M

5 June 2018 – Eje Prime

Vitruvio is gaining strength in the centre of Madrid. The Socimi has just completed the purchase of a commercial premise in Madrid for €1.5 million. With this acquisition, the real estate group now owns 100% of the building located at number 52 Calle Fernández de la Hoz, which it acquired in 2016, according to the company. Vitruvio also recently completed the renovation of the building.

The commercial premise that Vitruvio has just purchased has a commercial surface area of 314 m2 and until now was occupied by a Bankia bank branch. “The acquisition has not required external financing, but rather has been paid for using the company’s own funds”, say sources at the Socimi.

The acquisition forms part of the transformation strategy that the company has carried out on the building on Fernández de la Hoz to improve the rental income generated by the asset when it purchased it in 2016”, they explain.

“The building has been renovated, to create modern and attractive office space so that the future tenants will be able to benefit from the location of the property in an open and modern space”, they maintain. “Therefore, adding the commercial premise means improving the representativeness of the entrance and improving the space for the tenants of the offices”.

After starting the year with this purchase (in April, it ruled out the acquisition of another building that it was evaluating), the Socimi is looking ahead with 2018 with optimism after recording strong results in 2017. The company closed last year with a 91% increase in its profits to €1.1 million, and a real estate portfolio worth more than €107 million.

That growth was due in large part to the integration of CPI, a real estate investment vehicle created by Consulnor (the manager in which Banca March holds a 48% stake), as revealed by Eje Prime last September.

Meanwhile, rental income at the end of the quarter amounted to €5.1 million, which represented a return of 4.8% on the most recent valuation. Once the building work has been completed on the properties on c/Sagasta and c/Fernández de la Hoz, the income will increase to more than €6 million, which will result in a yield of around 6%. Specifically, the return on Vitruvio’s residential premises amounted to 3.8% in 2017; on its offices to 6.2%; on its commercial premises to 6.4%; and on its industrial premises to 9.3%.

At the end of the year, Vitruvio managed 36 assets and 126 tenants, of which 118 accounted for less than 3% of its income. In terms of asset composition: 38% of the Socimi’s portfolio comprises residential properties; 28% commercial; 22% offices; and 12% industrial.

The company concentrates the bulk of its assets in Madrid, which account for 78% of the portfolio, followed by Vizcaya (10%) and Barcelona (4%). Portfolio highlights include the property at number 24 Calle Sagasta in Madrid, worth €18.8 million and the building on Calle Ayala 101, worth €10.3 million.

In the last quarter, Vitruvio refinanced a significant part of its debt. The group obtained a €19 million loan with a fourteen-year term and an interest rate of 1.95%.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Vitruvio Doubles its Real Estate Portfolio to €107M

1 May 2018 – Expansión

The Socimi is growing its real estate portfolio following the integration of CPI (the investment vehicle of Banca March’s manager), the entry of the Borbón family and several purchases.

The Socimi Vitruvio closed last year with a 91% increase in profits and a 95% leap in revenues. “Vitruvio closed a very positive 2017 with a 130% increase in EBITDA, and the doubling of its size, as well as of its number of properties and tenants. And all of that, whilst maintaining a very low level of indebtedness: from 35% in December to 24.6% at the end of the first quarter”, highlighted Joaquín López-Chicheri, CEO of Vitruvio.

This outstanding growth is due, to a large extent, to the integration of CPI, a real estate investment vehicle created by Consulnor (the manager in which Banca March holds a 48% stake).

The agreement, which was closed at the end of 2016 and formalised during the second quarter of last year, involved the incorporation of around twenty properties into Vitruvio’s portfolio, which closed the year with 36 assets worth €107 million. “We doubled the number of assets in the portfolio and their value between 2016 and 2017. Moreover, the average appreciate in the value of the portfolio was 7.85%, plus dividends”, explained the senior executive.

Dividend

In total, the listed real estate company (which has been trading on the MAB since July 2016) recorded revenues of €4.1 million, an EBITDA of €2.3 million and a profit of €1.1 million.

On 11 May 2018, Vitruvio is going to pay an interim dividend of €0.05 gross per share against its profits for 2018, as part of its quarterly dividend payment policy. In 2017, it paid 15% more than expected, distributing dividends amounting to €1.014 million in total.

“Vitruvio is the Socimi with the most disperse shareholding, excluding the Socimis owned by banks, with 206 shareholders at the end of 2017 and 284 as at 31 March 2018”, said López-Chicheri.

Currently, Vitruvio’s real estate portfolio is split between residential (38%), commercial (28%), offices (22%) and logistics assets. By location, 78% are situated in the central area of Madrid capital, 10% in Vizcaya and 4% in Barcelona.

Brand new projects

Following the strong results recorded in 2017, the Socimi plans to continue its good run, with a further increase in revenues, thanks to the incorporation of two high-profile assets, which are currently undergoing renovation: Sagasta 24 (pictured above) and Fernández de La Hoz 52, where building work is going to be completed this month (May). “The rental of both buildings is going to multiply turnover next year. In the case of Sagasta, we expect revenues to increase by four-fold, whilst in the case of Fernández de la Hoz, where the investment has been much lower, we estimate that the increase will be 1.7 times”.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

ABC Serrano’s Owners’ Socimi Gets Green Light for MAB Listing with €105 Million Valuation

28 March 2018

The socimi Serrano 61 is controlled by Banca March, which holds 19.2% of its capital. 40.8% is in the hands of minority shareholders, and another eight partners hold 5% each.

There’s going to be a new socimi debuting on the alternative market. Serrano 61, controlled by Banca March and owner of the ABC Serrano shopping centre in Madrid, will be listed on the Alternative Stock Market (MAB) at 21.10 euros per share, valuing the socimi at 105.5 million euros, according to BME.

The complex is located in the capital’s golden mile, the main commercial area of ​​the city, and is located in a historic building dating to the beginning of the last century. The asset has a lettable area of ​​about 15,000 square meters spread over seven above-ground floors, together with four floors of underground parking.

The Socimi Serrano 61, which has the complex as its sole asset, is controlled by Banca March, which holds 19.20% of its capital. 40.8% is in the hands of minority shareholders, and another eight partners hold 5% each.

The firm is listing itself on the MAB to attract capital and undertake a strategy designed to “maximise” the income generated by the centre “in the medium term”, to “monetise their investment,” according to a prospectus regarding the listing on the MAB.

At the end of 2017, ABC Serrano had an occupancy rate of 86.2% of its total surface area, with fifteen of its 46 stores vacant. Last year, the centre registered losses of 990,000 euros, after taking in 5.30 million euros in rents. Its owners expect to reverse the losses this year, forecasts profits of €2.4 million. To do this, the investors plan to increase revenues to €5.6 million and reduce expenses and amortisations.

Original Story: EjePrime

Translation: Richard Turner

 

Socimi Vitruvio Signs €19M Loan With Abanca

5 December 2017 – Eje Prime

The Socimi Vitruvio has paid off an outstanding debt with a new loan. The company has subscribed a financing contract amounting to €19 million with Abanca. According to explanations provided by the group, the funds will be used to repay the debt resulting from the merger by absorption of Consulnor.

The debt assumed following the merger with the real estate company Consulnor amounting to €12.7 million will be paid off thanks to this new loan. The Socimi will also proceed to cancel the line of credit granted by Banco Santander amounting to €4.6 million.

The new loan with Abanca has a two-year grace period (until 30 November 2019) and a monthly repayment schedule of 14 consecutive instalments. The interest rate that Vitruvio will pay will be fixed at 1% during the first year, before rising to 1% plus 1-year Euribor from November 2018 onwards. The loan is due to mature in December 2031.

At the end of 2016, Vitruvio and Consulnor Patrimonio Inmobiliario (CPI) signed a merger agreement whereby CPI, a real estate investment vehicle created by Consulnor (the manager in which Banca March holds a 48% stake), transferred its assets to the Socimi in exchange for shares.

After closing the operations involving CPI and Madrid Rio, Vitruvio plans to undertake new investments amounting to more than €30 million this year.

Original story: Eje Prime

Translation: Carmel Drake

Deutsche Bank Negotiates Purchase Of L’Aljub Shopping Centre

9 November 2017 – Expansión

The real estate sector is heading for a new investment record this year and shopping centres are one of the star segments on the rise. Deutsche Bank, which marked a milestone in 2016 with its purchase of Diagonal Mar, wants to strengthen its position in this market and to this end, is negotiating the acquisition of the L’Aljub shopping centre, located in Elche. The operation could be closed for a price of more than €170 million, according to market sources.

L’Aljub is currently owned by the fund Seva (Southern European Value-Add Mandate), managed by TH Real Estate for the investors TPG Real Estate – the real estate platform of the international manager TPG – and Partners Group. The consultancy firm Cushman & Wakefield is advising the vendor and CBRE the buyer.

This investment vehicle, which also owns two other retail assets in Italy, has a combined value of €300 million. The three assets were acquired a year ago from TH Real Estate for €250 million.

In addition to the retail and leisure premises, L’Aljub also houses an Eroski hypermarket on the ground floor. TH Real Estate purchased that store from Eroski a month ago through this investment vehicle for €18.7 million.

This investment in L’Aljub includes the hypermarket, which has a surface area of 9,900 m2, as well as the space leased by Primark (4,500 m2) and the gas station (200 m2), operated by Eroski.

The shopping centre was inaugurated in August 2003 and has a surface area of more than 60,000 m2, spread over two floors, as well as an extensive underground car park. The centre is home to 120 stores and 3,200 parking spaces (free of charge). Some of its most high profile operators include Inditex, H&M, Primark, Mango and Cines ABC.

If the negotiations prove fruitful, Deutsche Bank would strengthen its position in the retail segment in Spain. Last year, the company purchased the Diagonal Mar shopping centre (Barcelona) for almost €500 million. After the purchase of Xanadú, that operation was the second largest ever closed in the shopping centre segment.

Investment

Another example of the interest in this type of asset was the purchase of Xanadú by Intu Properties in March for €530 million. Subsequently, the British created a company with TH Real Estate to share ownership of the Madrilenian shopping centre.

Banca March has also decided to back this kind of asset with the purchase of the ABC Serrano shopping centre in Madrid this summer for €130 million, debt included. Meanwhile, Klépierre acquired Nueva Condomina in Murcia for €230 million earlier this year.

In this way, investment in the segment during the 10 months to October amounted to €2,300 million, which suggests a high volume year, behind only the historical maximum, recorded last year, of €2,700 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Banca March Creates A Socimi To Maximise Returns From ABC Serrano

7 November 2017 – La Información

Serrano 61 Desarrollo Socimi – that is the name of the listed real estate investment company (Socimi) that Banca March has constituted to try to optimise the profitability of one of the most high-profile investments that the entity has undertaken this year, the acquisition of the ABC Serrano shopping centre, according to data in the Mercantile Register.

Banca March purchased the building on Calle Serrano, 61, in June for an undisclosed sum. It is one of the jewels in the crown of Madrid’s golden mile, which until then formed had part of a portfolio owned by CBRE Global Investors – the investment arm of the largest real estate consultancy firm in the world (CBRE Ellis). Banca March is the fifth owner the asset has had since 2013. In that year, Reyal Urbis, which has now filed for liquidation, transferred ownership of ABC Serrano and another commercial space to the investment company IBA Capital Partners, which shortly after included it in the asset portfolio of its Socimi Zambal. CBRE Global Investors acquired the building at the beginning of 2016.

Banca March has chosen the Socimi format, just like IBA Capital Partners, which is still responsible for managing the centre, did back in the day; its aim is to try and extract the maximum return possible from this real estate investment, in which it shares the risk and reward with a group of the bank’s clients who have participated in the operation as a result of a co-investment model through which the deal was formalised.

Co-investment is one of the unconventional investment formats that Banca March offers its clients. According to information provided by the entity on its website, it uses the format in “projects analysed by the March Group in which it decides to invest, and it offers its clients the opportunity to participate in the investments” (…).

MAB debut in 2018

This implies that Serrano 61 Desarrollo Socimi will not be an exclusive Banca March project, but rather will have financial backing from a group of the entity’s clients, which will also be shareholders of the company.

According to sources familiar with the operation, the company will start to operate as a Socimi from 1 January 2018 onwards and will make its debut on the Alternative Investment Market at some point next year. Its sole asset will be the ABC Serrano shopping centre.

Financial sources consulted by lainformacion.com deny that the activation of this Socimi is the first step of a more decided commitment by Banca March to the real estate sector. “Grupo March has a very recognisable investment approach. It identifies assets of interest, analyses their profitability threshold and if it takes the decision to acquire them, it looks for the most appropriate vehicle to make them profitable. It does not invest in sectors, it invests in assets”, explained one market source.

The Socimi format will allow Banca March and the clients that accompany it with this investment to benefit from a Corporation Tax rate of 0%. Moreover, it will guarantee the distribution of 80% of the returns obtained from the management of the ABC Serrano to the shareholders, and it will provide a favourable fiscal framework that characterises this vehicle for the dividends obtained.

Original story: La Información (by Bruno Pérez)

Translation: Carmel Drake

Socimi Vitruvio Acquires 4,000 m2 Building In Madrid For €7.6M

19 April 2017 – Expansión

The Socimi Vitruvio Real Estate has completed the incorporation of a new property into its portfolio. The listed company, which is currently immersed in an integration process with CPI (the investment vehicle created by the manager of Banca March), has acquired a 4,000 m2 building at number 14 on c/Ermita del Santo, in the heart of the Madrid Río area of the capital.

The operation, signed on Friday 7 April, sees the incorporation of a unique asset into its existing real estate portfolio, which comprises residential and office buildings in the most historic areas of Madrid. For this property, which has a surface area of around 4,000 m2, spread over 38 homes and four commercial premises, Vitruvio will disburse €7.6 million, to which it will have to add a significant injection of funds to refurbish the asset. Currently, the property, which is leased in its entirety, generates annual rental income of €330,000, an amount that Vitruvio expects to increase following its upgrade or, in a worse-case scenario, it will sell the homes unit by unit.

The operation, advised by Baltex Brokers and Arcania, has a peculiar feature in that the vendor, or in this case, the vendors, have decided that almost half of the agreed price (around €3 million, to be specific) will be covered by shares in the Socimi (the rest will be financed through a loan with Banco Santander). In this way, Oliva de Borbón y Rueda, the last marquis of Villamantilla de Perales and her daughter Cristina de Figueroa de Borbón, daughter of Alfonso de Figueroa y Melgar IV, Duke of Tovar, will go from being the owners of this building, constructed in 1948 and owned by the family since then, to owning shares in the listed real estate company.

These types of operations are not new in the market or for this Socimi. Whilst the large listed real estate investment companies have become a haven for large international funds wanting to invest in Spanish real estate, the smaller real estate companies have developed a market for themselves as an efficient tool for wealthy families. In the majority of cases, families with wealth opt to build up their own vehicles, however, in some cases, they choose to transfer their family wealth to a firm managed by third parties, something that has already happened in the case of Vitruvio with families (primarily Spanish business people and private banking investors) who invested in the March’s management company.

At the end of 2016, the managers of the Socimi Vitruvio and Consulnor Patrimonio Inmobiliario (CPI) signed a merger agreement whereby CPI, a real estate investment vehicle created by Consulnor (the manager in which Banca March holds a 48% stake) would transfer its assets to the Socimi in exchange for shares in its capital. As a result of this operation, Vitruvio will become the largest Socimi on the MAB, by number of shareholders, with more than €100 million in properties.

After closing the CPI and Madrid Rio operations, Vitruvio plans to undertake new investments amounting to more than €30 million this year, taking the global figure to around €75 million. “In parallel to the fusion by absorption with CPI, which should be definitively approved between the end of May and the beginning of June, we are engaged in negotiations to acquire more assets”, said Joaquín López-Chicheri, CEO at Vitruvio.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Who’s Buying A Home In The Exclusive Lagasca 99 Building?

7 April 2017 – ABC

The structure has not even been erected yet (it is due to be finalised at the end of the month) and yet half of the 44 homes, distributed over eight floors plus the penthouse level, have already been sold. The smallest properties have a surface area of 330 m2 and the largest span 700 m2. They are the most expensive new build homes on the market and their asking prices range between €10 million for the smallest and more than €16 million for the largest, such as the case of one of the six duplex penthouses located on the eighth floor, which has already been sold, exceeding all expectations. That sale significantly beat the record in terms of the price per m2, paid 7 years ago for a home on Calle Serrano (€15,000/m2). Nevertheless, the average asking price for homes in this property ranges between €10,000/m2 to €14,000/m2).

The building, measuring 26,203 m2, belongs to the Lagasca 99 development and is located in the heart of the Golden Mile, on the only available plot, which makes it the most sought-after in the neighbourhood of Salamanca. It is located between Calles Juan Bravo, Maldonado, Claudio Coello and Lagasca. And 51% of the total volume has already been sold, including the two commercial premises, to domestic firms: Banca March and Actiu, a company that specialises in designer furniture.

On the one hand, the buyers are wealthy Latin American families from Venezuela, Colombia and Mexico, in line with the trend in the luxury real estate market in Spain (…). The remainder are Spaniards. The percentage varies, but on average the split is around 50-50%, said Antonio Pan de Soraluce yesterday, Director at Colliers Internacional in Spain, the entity responsible for marketing the development.

Freedom in terms of design

“Now is a great time to invest. Lagasca 99 is incredibly appealing and so the development is attracting interest from buyers at home and overseas, as well as from business people and firms interested in living in Madrid”, he added.

Word of mouth has played an important role amongst the potential buyers of these luxury homes and the hope is that when the construction work is completed and these homes are handed over, in August 2018, they will have all been sold. For the time being, the commitment is to high quality rather than to worry about the rate of sales, concluded the Director of Colliers. (…).

Original story: ABC (by M. J. Álvarez)

Translation: Carmel Drake