ZAV to Receive €15.9M from the Sale of an Intermodal Plot for 198 Homes

11 April 2019 – El Periódico 

The company Zaragoza Alta Velocidad is going to receive at least €15,972,060 from the sale of a plot of land in the future AVE neighbourhood. That is the highest price offered in the auction for the plot, known as block 6, which is located next to the Delicias intermodal station in Zaragoza.

Assuming no last minute surprises, the winner of the auction will be the company SPV Reoco 1, which is the firm behind which one of the giants of the residential property sector in Spain likes to hide, namely Aedas Homes. It will be the listed company’s first venture into Zaragoza, although it already has a presence in Madrid, Sevilla and Valencia, amongst others.

Nevertheless, according to sources close to the operation, the auction has not been closed yet, and the other two competing firms Refacleta S.L. and Innovación and Desarrollo Asistencial (de Logroño) are still in with a real chance.

The plot measures 5,821.2 m2 and has a buildability of 27,956 m2, with capacity for 198 flats. Construction on the site, the second real estate development to be built in the AVE neighbourhood, is expected to begin later this year.

Original story: El Periódico (by D. López)

Translation/Summary: Carmel Drake

TPG, Round Capital & Ares Enter Final Round of Bidding for Témpore

12 March 2019 – El Independiente

Sareb has reactivated the sale of its Socimi Témpore Properties and the funds TPG, Round Capital and Ares are some of the candidates in the final round of bidding.

The bad bank was close to signing the transaction last year but called it off due to a lack of transparency. Then, it was the US investment fund TPG, shareholder of companies such as Spotify, Airbnb and Burger King, who was the likely buyer of Témpore, which manages 2,249 residential homes worth €338 million.

Now, TPG is back in the final round of the new process, this time against two opponents. The real estate fund Round Hill already has a presence in Spain – just a few weeks ago it launched a joint venture with the fund KKR and the logistics firm Pulsar Properties to buy logistics platforms. Meanwhile, the US fund Ares has also starred in several transactions in Spain, particularly in conjunction with the Dutch real estate firm Redevco.

Témpore closed 2018 with a loss of €384,394, but is forecast to generate profits from 2020. Its portfolio of residential assets, which is managed by Azora, generated rental income of €7.3 million last year. Moreover, 80% of its assets are located in the metropolitan areas of major capitals and the rest are in areas with significant rental demand, such as Valencia, Sevilla, Zaragoza, Málaga and Almería.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

Neinor Wants Sabadell’s Land & so is Competing with the Large Funds to Buy SDIN Desarrollo Inmobiliario

17 December 2018 – Voz Pópuli

The bidding for the land owned by Sabadell’s property developer, SDIN Desarrollo Inmobiliario, is going to start in a matter of days and none of the funds wants to miss the party. Everyone has their own interest, but there are some who may bid more strongly than others due to their close relationship with the bank. But this time, they will not be alone.

Neinor Homes wants to take a seat at the negotiating table, according to sources familiar with the operation speaking to Voz Pópuli. The property developer led by Juan Velayos is interested in obtaining the land that Sabadell owns in Madrid and Barcelona. The market classifies the plots as very good. Neinor has not made any comments in this regard.

Oaktree is also going to join the bidding – it has been a familiar face in Sabadell’s recent operations. The fund is very interested in acquiring SDIN Desarrollo Inmobiliario’s land. The plots have been valued at €1.3 billion, according to reports by El Confidencial, which have been confirmed by this newspaper.

Sources familiar with the operation have explained that the fund has a lot of interest after the joint venture that it formed with the group this summer to buy land from Iberdrola.

Cerberus

The third candidate in discord is another old hand: Cerberus. The giant also wants its share of the pie. The acquisition of the property developer Inmoglacier could be related. If it is successful with this operation, the fund could create a new “giant”, which would fulfil all of the requirements to debut on the stock market.

The bidding is expected to begin before the end of the year. It could even start this week but could also be delayed due to technical reasons (…). The intention is for this operation to be closed by the end of the first quarter of 2019 or the beginning of the second.

This operation will begin after Sabadell sold its servicer for €300 million to Intrum on Friday. Solvia has more than €30 billion in assets under management and has sold more than 94,000 properties in recent years.

Original story: Voz Pópuli (by David Cabrera)

Translation: Carmel Drake

Bankia Puts Branch in Barcelona’s Plaza Cataluña Up For Sale for €28M

5 July 2018 – Idealista News

Bankia is replicating in Barcelona what it has already done in Madrid with c/Alcalá 1. The bank has put up for sale the commercial premises in the building that it owns at number 9 Plaza Cataluña, in the centre of Barcelona, for €28 million.

The entity opened the bidding last week and will start to receive offers for the premises, which have a surface area of 1,000 m2, from Friday 6 July onwards. The asset, located between the Apple and Desigual flagship stores, has already attracted several suitors, including retail operators and international investment funds, according to Idealista.

The premises, which Bankia debating whether to put up for sale or lease, was the object of desire of the Japanese fashion giant Uniqlo for its arrival plan in Barcelona. In the end, that firm opened its flagship store close to Plaza Cataluña, at the intersection of Gran Vía and Paseo de Gracia.

This operation follows the deal that Bankia already initiated in March involving c/Alcalá 1 in Madrid, as revealed by Eje Prime. For that central property in the Spanish capital, two real estate funds, Renta Corporación and Arcano, are still the favourites to acquire the asset, which, nevertheless, has not yet been sold for its minimum asking price of €20 million.

Original story: Idealista News

Translation: Carmel Drake

La Generalitat to Auction c.20 Homes in Barcelona for €6M

29 May 2018 – Eje Prime

La Generalitat is going to auction off inhabited homes in Barcelona. The Catalan government is going to sell around twenty homes in L’Hospitalet de Llobregat for an asking price of €7.7 million in the first auction and €6.2 million in the second, according to information provided in La Generalitat’s Official Gazette.

The residential portfolio for sale comprises 16 homes and three detached houses, all of which are rental properties and all of which are currently occupied. The auction will be conducted in blocks in order to prevent the tenants from using the right of first refusal over their own homes. Nevertheless, the future owner of the homes is going to have to subrogate the lease contracts.

The apartments for sale are located opposite Plaza Europa and the Gran Vía 2 shopping centre in L’Hospitalet, at numbers 15-23 Calle Ciencies. In those blocks, in addition to the homes, La Generalitat is going to auction off two premises and 23 parking spaces with storerooms. With regard to the detached family homes, they are located on another urbanisation, on Calles Mileva Maric and Hanna Arendt.

The current tenants of the apartments pay between €800, in the case of the homes with the oldest rents, and €1,600 per month for the detached family homes. Each home has a surface area that ranges between 78 m2 and 120 m2 and has two, three or four bedrooms.

The auction, which will see the deadline for the presentation of offers close on 9 July, will be held on the 19th of that same month through Addmeet, the online real estate platform that has already managed other large public sales in other Spanish cities.

Original story: Eje Prime

Translation: Carmel Drake

Elliott & Minor Enter the Bidding for HNA’s Stake in NH

30 May 2018 – Expansión

The bidding to acquire the stake owned by the Chinese holding company HNA in NH is entering the home stretch. The Asian giant has set this week as the deadline for the receipt of binding offers for its 29.5% stake in NH, which will be diluted to 25.5% following the execution of the hotel chain’s convertible bonds that are currently in circulation.

The investment funds that have made it to the final round are Lone Star, which has joined forces with the US hotel chain Hyatt to launch its offer, as well as Apollo and Elliott, who have also expressed their interest. Meanwhile, Starwood Capital and Blackstone, which both analysed the operation, have been excluded from the process.

The offers from the funds fall in the range of between €5.50 and €6.00 per share, according to market sources. Yesterday, NH’s share price closed at €6.39. Other sources explain that the funds have signed a standstill with the company so as to not exceed 20% in NH following the operation and whereby avoid having to launch a takeover bid for 100% of the entity at a low price.

These funds have also been joined by the Thai hotel chain Minor, which last week acquired €30 million of Oceanwood’s shares, representing 8.6% of NH, for around €190 million. The agreement includes a pact whereby the manager concedes Minor the right to exclusively negotiate the purchase of the rest of its stake in NH, which, after the bond conversion, will amount to 9.5%.

If it were to acquire all of HNA’s stake, Minor would clearly exceed the 30% threshold that would oblige it to launch a takeover bid for the entire company. In that scenario, the Thai group, whose shares are traded on the Hong Kong stock market, would have a number of alternatives: sell some of its stake on the market, buy fewer shares from HNA or request permission from the shareholders to launch a takeover bid (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Starwood & Carlyle Bid for San Fernando Business Park (Madrid)

11 May 2018 – Expansión

One of the major real estate operations of the year in the office segment is entering the home stretch.

The US fund Oaktree, which engaged the real estate consultancy CBRE to coordinate the sale of San Fernando Business Park, has been receiving binding offers for this office complex, located in San Fernando de Henares, in the east of the Community of Madrid.

The international investors that have expressed their interest in the asset include the investment fund Starwood Capital and the private equity firm Carlyle, both of which have submitted binding offers and so entered the final round of bidding for the business park.

Oaktree acquired the San Fernando Business Park three years ago, when the US fund purchased a portfolio of unpaid debt worth €750 million from the German bad bank FMS Wertmanagement (FMS WM), which included, in addition to the office complex: luxury hotels, such as the Arts Hotel in Barcelona and another establishment in Cascais (Portugal); five shopping centres, including two in Madrid (Plaza Éboli and Heron City Las Rozas); several storeroom buildings; and other residential and industrial assets.

San Fernando Business Park comprises 13 buildings and spans a total surface area of 86,000 m2, as well as 2,500 parking spaces.

Moreover, the business complex boasts 40,000 m2 of green space and recreational areas. San Fernando Business park is accessible directly from the A2, M45 and M50 motorways and its onsite facilities include a gym, banks, a children’s nursery, meeting rooms and an auditorium.

Office market

As we wait to see how the sale of Hispania’s office portfolio pans out, which is worth almost €600 million but which is up in the air due to the takeover bid (OPA) that the US fund Blackstone launched for the Socimi, the purchase of San Fernando Business Park looks set to be one of the most important operations of the year in the office segment.

Investment

Last year, investment in the office segment amounted to €2.3 billion, less than half the previous year, due to less activity by the Socimis, a shortage of supply in good locations and the challenge for investors to find the desired returns.

So far this year, investment in the office segment has accounted for 42% of the total transacted volume, reaching €1.72 billion, given that the figure includes Colonial’s takeover of Axiare, which was successfully closed in February and which has caused the investment figure to soar.

More than 600,000 m2 of office space was leased in Madrid last year, which represents the best figure in the last decade, whilst in Barcelona, 345,000 m2 of office space was leased during the same period.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Prologis & Goodman Bid for 24,700 m2 Logistics Plot in Valencia

26 April 2018 – Eje Prime

Giants in the logistics sector are looking to expand their domains in Valencia. Prologis and Goodman have entered the auction for a plot of land spanning 24,700 m2 in the Valencia Logistics Park, also known as PLV. The space is currently owned by the Generalitat Valenciana, which has also put a second industrial plot up for auction, on the same industrial estate and spanning 8,600 m2, for which it has received just one offer.

In total, three other groups have also bid for the largest plot of land up for sale, besides the two international operators, namely: Inversiones y Terrenos Rústicos, VGP Naves Industriales Península and Servicio y Calidad, according to Valencia Plaza.

The five companies are bidding for a plot that the administration has placed on the market offering the option of the purchase and surface area rights, although the Generalitat is going to prioritise offers that express an interest in carrying out an operation over the second point.

After this operation, the Valencian administration will still need to sell 44,600 m2 of logistics land and 16,900 m2 of tertiary land. Moreover, the Generalitat is planning to place another 46,800 m2 of space on the market this year for a concession for a heavy vehicle parking lot on the M2 plot of the logistics park.

Original story: Eje Prime

Translation: Carmel Drake

Junta De Andalucía Puts 777 More Industrial & Residential Plots Up For Sale

7 November 2017 – La Vanguardia

The Ministry of Development and Housing, through its Agency for Housing and Rehabilitation in Andalucía (AVRA), has launched a new supply of residential and industrial land for sale, spanning 900,500 m2 and distributed over 777 plots across all of the provinces in the autonomous region.

According to a statement from the department led by Felipe López, this latest supply comes after the current legislature has already sold plots with capacity for 1,473 homes, mostly social housing properties, and a total of 287,282 m2 of land for residential and industrial use.

In its last land offer of the year, the Ministry of Development and Housing highlights that it is seeking to sell land that already received planning permission from AVRA – and therefore, which is ready to build on – during the years before the crisis, like on the previous occasions since it resumed this activity at the beginning of the current legislature. With this, the Junta wants to boost the construction of homes, especially social housing properties, and to encourage investment in the business fabric using the industrial land on offer (…).

According to the Ministry, the recovery of the management of AVRA’s land has allowed it to sell plots since 2015 whose combined sales price amounts to €50.2 million. The Agency has used the funds raised to boost new initiatives aimed at facilitating access to housing for those families with the fewest resources (…).

The bidding opens on 27 November

The new supply of land that the Junta is putting up for sale comprises land spanning 900,500 m2, distributed across 777 plots, with a combined total price of €117.6 million. 430 of the plots are for industrial and tertiary use, spanning 529,123 m2, whose combined price amounts to €40.6 million.

The residential land supply comprises 114 plots, spanning 97,134 m2, for 1,482 social housing properties, with a total price of €23.5 million; and another 220 plots, measuring 270,127 m2 for 1,559 private homes, with a price of €53.4 million. The Director General of Real Estate also owns another 134 plots for private residential use, with the capacity for 53 homes, whose management has been entrusted to the AVRA. These plots have an asking price of €3.8 million. The residential development plots are distributed across all eight of Andalucía’s provinces.

In addition, the sale includes 269 garages (€3.2 million), 112 premises (€15.2 million) and 10 storerooms (total price of €45,532) (…). Specifically, the date scheduled for the opening of bids is 27 November.

Original story: La Vanguardia

Translation: Carmel Drake

Optimum RE Looks Set To Buy 3 Assets In Barcelona For €7M

21 June 2017 – Eje Prime

The real estate investment vehicle manager BMB Investment Management and the US fund Bluemountain are continuing their shopping spree in Spain, through their Socimi. Optimum Real Estate will spend €7 million on the acquisition of three new assets in Barcelona, according to sources at the group. Optimum’s objective is to close the year with a portfolio of properties worth more than €70 million.

To this end, the second Socimi to be promoted and managed by BMB, is currently studying the acquisition of three assets in the Catalan capital, the city where the majority of the properties controlled by the group are located. The first is located at the junction of Calle Girona and Calle Aragón and has a surface area of 825 m2. For this residential asset, Optimum is looking at spending €2 million.

The second property for which Optimum is bidding is located on Calle Cartagena, also in Barcelona. Located in the El Eixample neighbourhood, this residential property measures 837 m2 and would require an investment of €1.8 million for the Socimi.

The last asset that Optimum is interested in incorporating into its pipeline is located at the junction of Calle Nápoles and Diagonal. It would be the most expensive of the three, given that the Socimi could end up paying almost €3 million for it – it would also be the largest, with a surface area of 1,091 m2. If Optimum were to complete these three purchases, it would end the year fulfilling its objective of owning a portfolio of assets worth more than €70 million.

“Nevertheless, although the negotiations are in an advanced stage, we are not ruling out the possibility of changing our plans and acquiring other assets over the next few months instead, whereby exceeding our objective”, explain sources at Optimum.

Currently, the asset portfolio owned by the Socimi, which was created following the success of two vehicles constituted in 2007 to buy residential buildings in Berlin (Germany), comprises fifteen assets located in Barcelona, in central areas such as El Eixample, Gran Vía, El Born and Ramblas, as well as one in Madrid, located at number 8 on Calle San Bernadino.  Optimum’s portfolio is currently worth €63.7 million.

Optimum III

In order to take advantage of the falling prices in the real estate market in Barcelona, BMB launched its third fund, Euro Re Optimum III Barcelona, focusing its experience on the residential market in the Catalan capital (…). This is a tailor-made fund aimed at private investors and family offices (…).

BMB’s intention is to invest €100 million in total with the new vehicle, through acquisitions and improvements. In this way, the portfolio of Optimum III will comprise more than twenty buildings.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake