Blackstone Buys La Llave de Oro’s Project in 22@ for €100M

17 January 2020 – Idealista

Blackstone has agreed to purchase an office building that La Llave de Oro is currently constructing in Barcelona’s 22@ district, in a deal that is expected to be closed for €100 million. The property is located on Calle Sancho de Ávila and will have a gross leasable area of 17,400 m2, on a plot spanning 3,300 m2.

The purchase of office buildings off-plan is becoming a bit of a habit in the Catalan capital’s 22@ technological district after the German bank Commerzbank paid €132 million in December for two offices that Conren Tramway is constructing there.

Original story: Idealista 

Translation/Summary: Carmel Drake

Bonavista Developments to Invest €40M in the Construction of a 11,500 m2 Office Building in Barcelona’s 22@ District

13 January 2020 – El Periódico

Bonavista Developments, through Mitsubishi Estate London and Europa Capital, has completed the purchase of a plot of land in the heart of the 22@ district of Barcelona, on Calle Cristóbal de Moura, for an undisclosed sum.

The two companies are planning to invest €40 million in the construction of a new office building on the site. The new offices are expected to span a surface area of 11,500 m2 and construction is scheduled to begin later this year.

Original story: El Periódico (by Max Jiménez Botías)

Translation/Summary: Carmel Drake

Partners Group Negotiates the Purchase of 5 More Office Buildings from Meridia Capital

10 January 2020 – El Confidencial

The Swiss manager Partners Group is in talks with Meridia Capital, led by the Catalan businessman Javier Faus, with a view to purchasing half of the office portfolio that Meridia put up for sale at the end of last year.

The two players enjoy a close relationship following a deal closed last April, which saw Partners acquire a portfolio of 18 offices from Meridia for €215 million, and the Socimi continuing to manage the portfolio.

A similar arrangement could be sought this time around. The portfolio on the table in 2020 comprises a dozen offices in Madrid and Barcelona worth around €200 million, although Partners is only interested in half of the properties.

Both parties declined to comment on the reports of a potential sale, however, sources in the know confirmed that a due diligence process has begun on five of the assets.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Addmeet: Investment in RE in Madrid Exceeded that in Barcelona by 2.5x in 2019

7 January 2020 – El Confidencial

According to the real estate portal, Addmeet, real estate investment in Spain amounted to €35.0 billion in 2019, of which 70% was concentrated in Madrid and Barcelona (€18.0 billion and €6.8 billion, respectively). The data compiled reflects all real estate operations amounting to more than €3 million in all sectors of the professional real estate market.

In the Community of Madrid, investment broke all records (€18 billion), exceeding the figures recorded in 2018 (€15 billion) and in 2008 (€10 billion). There, the office sector was the main driver, accounting for 61% of the total figure (€11 billion). The star transaction was the sale of Santander’s Ciudad Financiera, which the financial entity repurchased from Marme Inversiones for €3.2 billion 11 years after selling it to that same firm.

Other office-related deals included the sale of the La Finca business park to the Socimi owned by the Cereceda family for €423 million; and the purchase by Allianz Real Estate of Castellana 200 (comprising 20,000 m2 in office space and 6,500 m2 in retail area) for €250 million.

The next main drivers were the residential sector, which accounted for 11% of investment (€2 billion), boosted by the build to rent segment, and the retail sector, which accounted for 11.5% of the total investment.

Meanwhile, record figures were also recorded in the province of Barcelona (€6.8 billion) despite the “procés”. In fact,  the investment volume almost doubled that recorded in 2008 and far exceeded the total recorded two years ago (€5.6 billion).

Like in Madrid, the office sector in Barcelona accounted for most of the real estate investment (46% or €3.1 billion). The retail sector represented 11.5% (€0.8 billion), whilst the hotel segment attracted almost €1 billion (14%) and the residential segment just €0.5 billion.

Major deals in the Catalan capital in 2019 included the sale by Telefónica of Diagonal 00 to the Philippine magnate Andrew L. Tan for €150 million, amongst others.

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

HausInvest Returns to Spanish Real Estate Market

6 January 2020 – Real Assets IPE

Commerz Real’s €15.5bn HausInvest fund has returned to the Spanish real estate market after more than 14 years.

The German property fund is purchasing two office development projects in Barcelona off-plan for €130m from developer Conren Tramway.

It is the first time the fund has invested in Spain since it acquired the Espai Gironés shopping centre near Girona in 2005.

The two office buildings, which will be built on Carrer de Badajoz in Barcelona, will provide 13,900sqm and 9,300sqm of space, respectively.

Original story: Real Assets IPE

Edited by /Summary: Carmel Drake

Sales of Offices Buildings in Barcelona Rise by 45%

6 January 2020 Barcelona is experiencing record sales of office buildings, reaching highs not seen since before the beginning of the financial crisis. The sales are largely driven by high levels of liquidity and low bond yields. Ten buildings worth more than one hundred million euros sold during 2019, pushing total investments for the year to €2.816 billion. That figure is 44% above the amount sold in 2018, according to a report by CBRE.

The profile of investors has recently changed as well, as larger institutional investors looking for stable, long-term returns have slowly replaced more opportunistic buyers. Furthermore, the political turmoil in Catalonia also seems to have failed to scare off most investors.

Barcelona está experimentando ventas récord de edificios de oficinas, alcanzando máximos no vistos desde antes del comienzo de la crisis financiera. Las ventas están impulsadas en gran medida por los altos niveles de liquidez y los bajos rendimientos de los bonos. Se vendieron diez edificios por valor de más de cien millones de euros durante 2019, lo que empujó las inversiones totales para el año a 2.816 millones de euros. Esa cifra es un 44% superior a la cantidad vendida en 2018, según un informe de CBRE.

El perfil de los inversores también ha cambiado recientemente, ya que los inversores institucionales más grandes que buscan retornos estables a largo plazo han reemplazado lentamente a los compradores más oportunistas. Además, la agitación política en Cataluña también parece no haber asustado a la mayoría de los inversores.

Original Story: Expansión – Marisa Anglés

Photo: Elena Ramón/EXPANSION

Translation/Summary: Richard D. Turner

Goodman Real Estate Rings Out 2019 With Acquisition in Madrid

4 January 2020 Goodman Real Estate has finalised its acquisition of a plot of land in Getafe, Madrid, from Lonestar, CaixaBank and the Masaveu family for thirty million euros. The land, where Goodman will invest 90 million euros to build a new logistics facility, is located in the southern zone of Madrid.

The deal is an example of the type of logistics operations that are driving the Spanish sector, as the rise of e-commerce and a focus on last-mile facilities are ramping up demand. According to estimates by JLL, investors ploughed a record 1.818 billion euros into the sector in 2019, an increase of 27.5% year-on-year.

Approximately 50% of the logistics facilities sold in 2019 were in Madrid, while a further 25% were located in Barcelona. Secondary markets, such as Bilbao and Zaragoza, are also gaining prominence. The increase in investor interest has also squeezed profitability in the two largest markets, falling from 5-6% to just 4.75%.

En español

Goodman Real Estate ha finalizado su adquisición de un terreno en Getafe, Madrid, de Lonestar, CaixaBank y la familia Masaveu por treinta millones de euros. El terreno, donde Goodman invertirá 90 millones de euros para construir una nueva plataforma logística, se encuentra en la zona sur de Madrid.

El acuerdo es un ejemplo del tipo de operaciones logísticas que están impulsando el sector español, ya que el aumento del comercio electrónico y un enfoque en las instalaciones de última milla están aumentando la demanda. Según las estimaciones de JLL, los inversores invirtieron un récord de 1.818 millones de euros en el sector en 2019, un aumento del 27,5% interanual.

Aproximadamente el 50% de las instalaciones logísticas vendidas en 2019 se encontraban en Madrid, mientras que otro 25% se encontraba en Barcelona. Los mercados secundarios, como Bilbao y Zaragoza, también están ganando protagonismo. El aumento en el interés de los inversores también ha reducido la rentabilidad en los dos mercados más grandes, cayendo del 5-6% a solo el 4.75%.

Original Story: El Confidencial – E. Sanz / C. Hernanz

Translation/Summary: Richard D. Turner

Housing Price Increases Slow Down in Madrid and Barcelona

3 January 2020 The average price per square meter for a residence in Spain reached 1,373 euros in the last quarter of 2019, an increase of 2.6% year-on-year, according to a report by Tinsa. That figure represents the lowest inter-annual growth in almost three years.

Market watchers believe that the frenetic expansion of recent times in Spain’s principal markets is reaching an end. Average prices in Madrid rose by 1.8% between October and December, while falling by 0.8% in Barcelona. Year-on-year growth stood at 3% and 2.9% respectively.

Spain’s secondary markets are now the main drivers of growth. Palma, Santa Cruz de Tenerife, Valencia, Malaga, Zaragoza and Seville all saw increases of over 7% in 2019.

El precio medio por metro cuadrado de una residencia en España alcanzó los 1.373 euros en el último trimestre de 2019, un aumento del 2,6% interanual, según un informe de Tinsa. Esa cifra representa el crecimiento interanual más bajo en casi tres años.

Los observadores del mercado creen que la frenética expansión de los últimos tiempos en los principales mercados de España está llegando a su fin. Los precios medios en Madrid aumentaron un 1,8% entre octubre y diciembre, mientras que cayeron un 0,8% en Barcelona. El crecimiento interanual se situó en el 3% y el 2,9%, respectivamente.

Los mercados secundarios de España son ahora los principales motores del crecimiento. Palma, Santa Cruz de Tenerife, Valencia, Málaga, Zaragoza y Sevilla registraron aumentos superiores al 7% en 2019.

Original Story: Eje Prime

Translation/Summary: Richard D. Turner

Commerz Real Acquires Two Office Buildings in Barcelona for €132 Million

3 January 2020 Germany’s Commerz Real has acquired two properties currently under construction in Barcelona’s 22@ district from Conren Tramway for 132 million euros. The two office buildings are on the same block and have a total gross leasable area (GLA) of 23,000 square meters.

The first, building B97, is at Calle Badajoz 97 and will have a GLA of 14,000 square meters on 13 above-ground floors. The building will also have underground parking. The second asset, building A160, is at Calle Almogàvers 160. The building will have a GLA of 9,000 square meters on six above-ground floors and underground parking as well.

La firma Commerz Real adquirió dos propiedades actualmente en construcción en el distrito 22@ de Barcelona a Conren Tramway por 132 millones de euros. Los dos edificios de oficinas están en el misma manzana y tienen un área bruta locativa total (SBA) de 23,000 metros cuadrados.

El primero, el edificio B97, se encuentra en la calle Badajoz 97 y tendrá un SBA de 14,000 metros cuadrados en 13 plantas sobre rasante. El edificio también tendrá estacionamiento subterráneo. El segundo activo, el edificio A160, se encuentra en la Calle Almogàvers 160. El edificio tendrá un SBA de 9,000 metros cuadrados en seis plantas sobre rasante y también estacionamiento subterráneo.

Original Story: Eje Prime

Translation/Summary: Richard D. Turner

Barcino Acquires Apartment Building in Barcelona for €4.2 Million

18 December 2019 – The socimi Barcino has acquired an 11-flat apartment building in the centre of Barcelona for 4.2 million euros. The socimi paid 20% of the price using equity, partially guaranteeing the rest of the payments with a mortgage loan on the property.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner