Gran Roque Capital Buys 3 Residential Plots Near The Calderón

16 October 2017 – El Confidencial

The Venezuelan Capriles family has closed another real estate operation in Madrid. Gran Roque Capital, the company controlled by Miguel Ángel Capriles and his cousin Áxel Daniel Capriles, has purchased three plots of buildable land from Prosegur just 500m from the site of the future Operación Mahou-Calderón. The Capriles family has paid around €25 million for this land, which does not require any kind of urban planning modifications, given that it is assigned for residential use according to the General Urban Planning Plan (PGOUM) for Madrid dated 1997, according to sources in the market.

The acquired land comprises three plots (measuring 592 m2, 593 m2 and 3,542 m2, respectively) spanning a combined surface area of 4,723 m2 and a buildable surface area of almost 8,800 m2. Two of the plots (the smaller ones) are vacant, but the largest one is currently occupied by a building that Gran Roque will have to demolish before it can build the new homes on the site. The land purchase operation has been advised by Knight Frank, which, nevertheless, declined to comment on the transaction.

The new residential project (…) will involve the construction of around 80 homes of different kinds, which will be sold for between €5,500/m2 and €6,000/m2, according to sources at Gran Roque, although, they emphasise that the project is still at a very embryonic phase. According to data from Idealista, the price of second-hand homes in the area stands at around €3,300/m2, however, some properties are currently on the market for between €4,000/m2 and €5,000/m2, whereby exceeding the peaks of 2007 (€3,980/m2 in the district of Arganzuela).

This operation represents an about-turn in Gran Roque’s investment strategy in the Spanish capital, where to date, it has opted for plots in prime locations and for projects involving super luxury homes. Its most recent project is in El Viso, opposite the bunker that constitutes the residence of the President of ACS, Florentino Pérez.

500m from the Calderón

This transaction is particularly important in the market given that the price paid for the land, around €2,900/m2, and the prices at which the future homes will be sold, will undoubtedly serve as a benchmark for the future sale of land in the so-called Operación Mahou-Calderón (…).

Experts in the sector consider that a price of between €1,500/m2 and €2,000/m2 would be appropriate for the area (…).

New build homes close to the Vicente Calderon are in short supply. One of the few projects underway is being led by Neinor Homes, which is constructing a 72-home residential project: Riverside homes, for €3,500/m2, a price significantly lower than the properties that Gran Roque is planning to build. Like most of the new builds currently being constructed in the capital, these homes are being targeted at middle and middle/upper-class buyers. Of the 51 homes that will comprise the future 20-storey tower, which will be 72 m tall, 49 units have already been sold.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Idealista: RE Sector Is More Profitable Than A Year Ago

23 July 2015 – El País

Investment in real estate in Spain are more profitable now than it was a year ago, according to a report published by Idealista about the second quarter of the year. And even in the worst of cases, the return on property is twice as high as the yield currently offered on 10-year State Bonds (2%).

Retail premises continue to represent the most attractive real estate investments. In fact, buying a shop or store to let in Spain now generates a gross yield of 7.6%, compared with 6.2% a year ago. The highest returns are obtained in Córdoba (9.2%) and Granada (8.5%), followed by Las Palmas de Gran Canaria (8.3%), Málaga (8.1%) and Zaragoza (8%). Yields in Madrid and Barcelona amount to 7.6% and 7.5%, respectively. Castellón offers the least attractive premises for investors (with an average return of just 4.6%), followed by Salamanca (5.3%) and Cádiz (5.6%).

By contrast, garages offer the lowest yields – they ended the second quarter of 2015 with an average return of 4.6%, up from 3.6% in June 2014. Even so, the returns are still more attractive than those offered by 10-year bonds. The highest yields on garages are obtained in Toledo (5.3%), followed by Las Palmas de Gran Canaria (5.3%), Santa Cruz de Tenerife (5.3%) and Pamplona (5.1%). The towns with the least profitable garages are A Coruña (1.6%), Barcelona (2.3%) and Salamanca (2.6%). The yield on garages in Madrid is 3.3%.

Investment in buy-to-let housing has increased over the last twelve months. Such properties offered a gross return of 5.5% at the end of the second quarter versus 4.9% twelve months ago. Lleida is the most profitable of the Spanish capital cities, with an average return of 7.8%. It is followed by Las Palmas de Gran Canaria (6.2%), Palma de Mallorca (5.8%), Huesca (5.7%) and Huelva (5.7%). The rental yield in Madrid is 5%, just above that of Barcelona (4.8%). Nevertheless, the lowest yields in Spain are those received by the owners of rental properties in Ourense (3.3%), A Coruña (3.6%), San Sebastián (3.8%) and Lugo (4%).

Offices generate an average yield of 6.3%. Offices generate the highest returns in Vitoria, where the gross average yield stands at 7.5%. It is followed by Sevilla (6.6%), Santa Cruz de Tenerife (6.5%), Zaragoza (6.3%) and Las Palmas de Gran Canaria (6.1%). In Barcelona, offices yield a return of 5.8%, whilst in Madrid they average 5.6%. At the other end of the scale are the returns in Valencia (4.8%), A Coruña (4.9%) and Alicante (4.9%). The office market is not as uniform as those of other products, and so it is impossible to obtain statistical data about more than half of the Spanish capital cities.

For the preparation of this study, Idealista has divided the ‘average sales price offered’ by the ‘rental price asked by owners’ in different markets for the quarterly indices of homes, retail premises, garages and offices relating to the second quarter of 2015. The result obtained is the percentage gross yield that owners earn from letting out their homes.

Original story: El País

Translation: Carmel Drake