The Pace of NPL Sales Falters in Spain

6 December 2019 – Spanish banks have reduced their pace of sales of NPLs this year, as CaixaBank, Sabadell, Bankia, Bankinter, Unicaja and Liberbank unloaded a total of just 4.9 billion euros in the first nine months of 2019. Those financial institutions wrapped up the quarter with €35.006 billion of such assets on their books, 12% less than at the beginning of the year. In contrast, Spain’s banks in sold off €90 billion in non-performing loans and REOs in 2018.

Standard & Poor’s, on the other hand, published a report in February estimating that Spain’s banks should rid themselves of €30 billion in NPLS between 2019 and 2020. That figure would have lowered their collective NPL ratio to below 4% compared to 7% at the time. Both S&P and Spain’s central bank also argued that the banks needed to increase the pace of sales to prepare for a potential slowdown in the economy.

Original Story: El Economista – Eva Díaz

Adaptation/Translation: Richard D. K. Turner

 

Bankinter Acquires Primark’s Future Flagship Store in Barcelona

18 November 2019 – Zambal, a socimi managed by IBA Capital Partners, has sold the future Primark flagship store at Plaça de Cataluyna 23, in Las Ramblas, Barcelona, to a group of Spanish investors led by Bankinter.

The company sold an 89% stake in Trébol Core Properties, the company that owns the asset, for 71 million euros. IBA Capital Partners will continue to manage both the property and the company.

Primark expects to open the store early next year.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Atom Hoteles Acquires Two Hotels in the Canary Islands for €68 Million

8 October 2019 The socimi Atom Hoteles, which is controlled by Bankinter and Global Myner Advisors Capital Investment, will undergo an €80-million capital increase to finance its acquisition of the 439-room Isla Bonita de Tenerife and the 125-room Riviera Marina de Gran Canaria hotels. The firm agreed to pay 52.6 million euros for the first hotel and 15 million euros for the second, for a total of €67.6 million.

Atom Hoteles also announced that it had reached an agreement with the FTI Group’s Meeting Point Hotel Managements to operate the two 4-star units under its Labranda Hotels & Resorts brand. Either party may opt to extend the 12.5-year lease. Meeting Point will pay 6% of each unit’s revenues in rent, with a minimum guaranteed amount of just over 6% of the acquisition price.

The agreement also stipulates that Meeting Point will invest approximately €25.6 million in the Isla Bonita hotel and approximately six million euros in the Riviera Marina hotel to upgrade and reposition the assets.

Original Story: La Vanguardia / Europa Press

Adaptation/Translation: Richard D. K. Turner

Insur Refinances €100 Million in Outstanding Debts

20 July 2019 – Richard D. K. Turner

Inmobiliaria del Sur (Insur) took advantage of favorable market conditions to refinance its outstanding debt this week. The firm refinanced 100 million euros of debt, equal to 60% of its total net liabilities, at significantly better conditions, freeing up over 35 million euros over the next five years. Insur owns rental properties, including offices, commercial premises and car parks.

Insur Patrimonial arranged the refinancing in an operation involving a total of 11 banks, led by Santander. Those banks include Caixabank, BBVA, Unicaja, Sabadell, Bankinter and Novo Banco. In addition to the €100 million, the firm also borrowed another €10 million to acquire an office building in Seville for redevelopment into a hotel to be leased to Hotusa.

Original Story: El Confidencial – Carlos Pizá de Silva

Photo: F. Ruso

Ores Acquires Store Leased to Inditex for €11 Million

23 June 2019Idealista

The Ores socimi, which is owned by Bankinter, has just acquired a new commercial space. The store, located in the town of San Sebastián, is currently leased to the Spanish retail giant Inditex and has a total area of ​​729m2.

The store is located at 26 Calle San Marcial and is occupied by a Zara Kids store.

Ores paid €10.9 million for the asset as part of its continuing strategy to seek growth in its home market of Spain. Last year, the socimi paid out almost 180 million euros in acquisitions. Ores Socimi currently has 34 assets in its portfolio, with a market value of over 357 million euros and a gross annual income of 21 million euros.

Original Story: Idealista – Custodio Pareja

Translation/Summary – Richard D. Turner

 

US Firm Valeo Groupe Wants to Build 20,000 Beds in Student Halls in Spain

11 June 2019 – Cinco Días

After teaming up with Bankinter to invest in Spain last year, the US firm Valeo Groupe has now announced that it wants to become the market leader in the student residence sector. According to its CEO for Europe, Peter Haspel, “Our objective in Spain is to reach 20,000 beds”.

The firm does not have a detailed timeframe at this stage but its target would make it the market leader or one of the largest players in the country, alongside Resa, which currently has 10,000 beds, and Nexo Residencias, which is growing rapidly. Haspel considers that Spain has the capacity for 500,000 beds compared with the existing supply of 98,000.

The company has already designed a first investment plan amounting to between €300 million and €400 million to build 10 halls of residence in Spain and Portugal over the next two or three years.

It has already started work on a project in Granada and is about to launch one in Porto. They will be followed by new halls in other major cities such as Madrid, Barcelona, Lisbon, Valencia, Sevilla and Bilbao.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation/Summary: Carmel Drake

Bankinter’s Socimi Atom Buys Hotel Meliá Valencia for €42.3M

23 May 2019 – Levante EMV

Bankinter’s Socimi Atom has purchased the Hotel Meliá Valencia on Avenida Cortes Valencianas from the company Colony Capital for €42.3 million, according to sources close to the operation.

Colony Capital acquired the 117-metre tall property last year when it purchased the fund Continental Property Investments (CPI). In turn, Continental Property bought the building, which was operated under the Hilton brand originally, in January 2011.

Original story: Levante EMV (by Ramón Ferrando)

Translation/Summary: Carmel Drake

Bankinter’s Socimis Manage Assets in Spain Worth €850M

23 April 2019 – Idealista

Bankinter currently has two Socimis operating in the Spanish market, Ores Socimi and Atom Hoteles Socimi. Between them, they manage a real estate portfolio worth more than €850 million, according to the latest reports filed by the entities with the Alternative Investment Market (MAB).

The hotel Socimi, controlled by Bankinter and GMA, has the largest portfolio, comprising 21 assets located all over Spain and worth €489.2 million at the end of 2018.

Almost 60% (12) of the hotels are vacation properties and the rest (9) are urban establishments. For the time being, the hotels are mainly concentrated in the Balearic Islands, Canary Islands and Andalucía, but the company is preparing to expand overseas, where it seeks to acquire establishments in the USA, France, Italy, Germany and Greece.

Meanwhile, Ores, which is jointly controlled by Bankinter and the Portuguese giant Sonae Sierra, owns a portfolio of 35 retail assets worth €362.5 million as at 31 March 2019.

Ores’s portfolio is well diversified by asset type, size and location, with occupancy rates of almost 100%. The properties include hypermarkets, supermarkets, retail parks and high street stores leased to chains such as Continente, Mercadona, Inditex, Media Markt and Mango.

Original story: Idealista (by Custodio Pareja)

Translation/Summary: Carmel Drake

Ores has Invested €362.5M in 35 Assets Across the Iberian Peninsula

16 April 2019 – Eje Prime

Ores, the Socimi owned by Bankinter and Sonae Sierra, has invested €362.5 million in 35 assets across the Iberian Peninsula since its creation, according to a report filed by the company with the Alternative Investment Market (MAB) at the end of Q1 2019.

During the first quarter of this year, the company purchased a retail store in Burgos with a gross leasable area of 724 m2 for €5.2 million.

The company’s portfolio comprises hypermarkets (28.1%), mini-hypermarkets (17.8%) and retail parks (15%), amongst others. Its assets are located mainly in Madrid and Barcelona, as well as in prime areas of provincial capitals.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Invesco, GSA, Amro & Bankinter are Committed to the Student Hall Sector

6 April 2019 – Expansión

Halls of residence for students have become one of the most sought after assets in the real estate sector in recent years. The demand for beds (which far outstrips supply), the growth forecasts for the market and the lack of suitable supply for the new requirements of the market has led operators and investors to get involved in the promotion and development of new halls of residence.

Four of the largest investors are planning to spend €1.5 billion in the sector over the next few years, as follows:

GSA, which arrived in Spain in 2017, with the purchase of 3 halls of residence from Oaktree, wants to invest €500 million in Spain and Portugal to grow a portfolio of 15,000 beds. It already has four centres in operation and plans to open two more in Barcelona soon.

Meanwhile, Invesco has teamed up with Syllabus, the subsidiary of Urbania, to invest €250 million in new halls of residence with the aim of adding 2,000 beds in Spain and Portugal; and that figure could rise to 3,500.

In addition, the British firm Amro Real Estate is looking to invest €300 million in 5,000 new beds across Spain and Portugal and has just closed its first investment in Granada, where it will build a hall of residence with 360 beds.

Finally, Bankinter has launched a private equity fund to invest between €300 million and €400 million in the construction of student halls across Iberia; its first project will also be in Granada.

The future is bright for the growth of this segment.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake