Trajano Sells Manoteras 48 for €62.8 Million to BNP Paribas Real Estate

3 August 2019

The socimi Trajano Iberia has sold the Isla de Manoteras Business Park in Madrid for almost 63 million euros to BNP Paribas Real Estate. The company paid 44.3 million euros for the asset in March 2016. The two firms expect to sign the agreement in the next few days.

The property, at Avenida de Manoteras, 48, has a leasable area of ​​13,442 square meters and 274 parking spaces. The business park is located north of Madrid, next to the M-30 and A1, in a consolidated area between Manoteras, Las Tablas and Sanchinarro. The area is home to the headquarters of major companies such as Telefónica and BBVA.

After the sale, Trajano will have just four assets, with a leasable area of ​​almost 140,000 square meters and an occupancy of 99%, in its portfolio. Those four assets consist of two shopping centres, Nosso Shopping in Vila Real (Portugal) and Alcalá Magna in Alcalá de Henares; a mixed-use building with a ground-floor store and offices in ​​Bilbao’s CBD and a logistics complex in the Zaragoza’s Plaza industrial park.

According to the latest available data, the original five assets are valued at €335 million euros.

Original Story: El Confidencial – Ruth Ugalde / Elena Sanz

Adaptation/Translation: Richard D. K. Turner

BNP Paribas: Office Rentals Soar in Barcelona during Q1 2019

23 May 2019 – La Vanguardia

The office market in Barcelona broke historical records in terms of space leased and rental prices during the first quarter of the year, according to a report from the consultancy firm BNP Paribas Real Estate.

According to the data, 152,300 m2 of office space was leased during Q1 2019, up by 65% with respect to the same period in 2018, boosted by a 60% increase in demand for large spaces (those measuring over 3,000 m2).

According to David Alonso, Head of Research at BNP, the office market in Barcelona was traditionally dominated by SMEs demanding spaces measuring less than 1,000 m2. Nevertheless, since 2015, that trend has changed with the arrival of technological companies requiring larger offices, and since 2017, with the entry of coworking companies – the latter leased 22% of the space let during Q1 2019.

As such, 91 new contracts were signed during the first quarter of 2019, with the 22@ district as the main driver, accounting for 30 of the operations and 40% (60,900 m2) of the space.

Nevertheless, the two largest operations were closed in more secondary areas: the rental of 18,000 m2 in Sant Joan Despí by Gallina Blanca and the rental of 17,209 m2 on Gran Vía in Barcelona by La Caixa.

All of this activity drove up rents with prices in prime areas, such as the best buildings on the upper end of La Diagonal, reaching €27/m2/month, and some operations even reaching €30/m2/month, whereby exceeding the maximum recorded in 2008 (€27.5/m2/month).

Original story: La Vanguardia (by Rosa Salvador)

Translation/Summary: Carmel Drake

Iberia’s Former HQ in Barcelona is Being Converted into Luxury Apartments Costing c. €15,000/m2

4 April 2019 – El Confidencial

The fund Twin Peaks Capital is on a mission to convert Iberia’s former offices in Barcelona into 21 super luxury homes. The prices of the new properties at number 30 Paseo de Gracia are expected to go on the market for between €11,000/m2 and €15,000/m2. The penthouse might even fetch €19,000/m2, breaking all previous records in the Catalan capital and even higher than the most expensive prices in Madrid.

Twin Peaks Capital purchased the neoclassic style building from the former Agrupació Mútua in 2017 for €25 million. The property spans a surface area of almost 4,000 m2 distributed over five storeys, plus an attic, and the future homes will measure between 80 m2 and 270 m2, with first-rate finishes, plus common areas with terraces and a stunning swimming pool on the roof.

The properties will be marketed by BNP Paribas Real Estate and 25% of the development has already been sold, mostly to Catalan buyers and investors. The homes are expected to be ready during the second quarter of 2020.

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

BNP Paribas: Investment in the Real Estate Sector Amounted to €2.0bn in Q1 2018

1 April 2019 – Eje Prime

Investment in real estate assets amounted to €2.0 billion during the first quarter of 2019, down by 5% compared to the same period in 2018, according to data from the consultancy firm BNP Paribas Real Estate.

Investment in the office sector amounted to €900 million, accounting for 47% of the total, with prime yields remaining stable at 3.25% in Madrid and 3.5% in Barcelona.

Investment in the retail segment amounted to €410 million, where prime yields reached 3% on high street stores, 5% on shopping centres and 5.75% on retail parks.

Investment in alternative assets amounted to €305 million, with investors increasingly interested in halls of residence for students and nursing homes for the elderly.

Finally, in the logistics sector, investment amounted to €206 million, boosted by the growth in e-commerce and consumption.

By type of investor, 50% of the transacted volume proceeded from investment funds, whilst Socimis contributed 18% of the total volume.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

BNP Paribas: Valencia’s Logistics Stock Set to Rise by 100,000 m2

12 February 2019 – Valencia Plaza

The logistics capacity in the province of Valencia is going to increase by 99,457 m2 this year with the launch of five new platforms located in Riba-roja, Torrent, Paterna and Loriguilla, according to the latest report from BNP Paribas Real Estate.

Moreover, there are locations that will offer the possibility of “turnkey” constructions with a total constructed surface area of more than 200,000 m2.

The purchase price of logistics space has risen to €200/m2-€220/m2 in the most sought-after locations due to the interest in the purchase of land from property developers and investment funds, in an area where available logistics space currently accounts for just 2.8% of the total, and 77% of that surface area is located in Riba-roja.

Due to the lack of availability, maximum rental prices have increased slightly to reach €4.5/m2/month in Riba-roja.

In 2018, demand for logistics space remained high and 24 operations were signed, three more than during the previous year. The most sought-after area was Riba-roja, which accounted for 30% of the space leased.

Nevertheless, last year closed with 127,502 m2 of logistics space leased, a very similar figure to the average for the last four years although somewhat lower than in 2017 (by 30,000 m2).

The fourth quarter of 2018 saw high leasing activity and accounted for 43% of all of the surface area leased during the year.

Original story: Valencia Plaza 

Translation: Carmel Drake

BNP Paribas: RE Investment Rose by 8% in 2018 to €11.6bn

9 January 2019 – El Periódico

The volume of annual investment in the Spanish real estate sector amounted to €11.63 billion in 2018, which represented an increase of 8% compared to 2017. If we add the corporate operations with underlying real estate to that volume, then the figure increases to €19 billion, which represents an investment record since the end of the crisis, according to the latest report from BNP Paribas Real Estate in Spain. The report highlights that interest from investors in the Spanish real estate sector in 2018 was at its highest level for a decade.

During the fourth quarter of the year, the volume of direct investment in real estate assets – offices, logistics warehouses, hotels, retail and residential – amounted to €3.7 billion in total, which represented an increase of 58% YoY. The evolution of investor activity, therefore, exceeded the expectations of the sector at the beginning of the year.

“The good times that the fundamentals of the market are enjoying, with occupancy levels at maximums and rents that are stable or expanding in the most consolidated markets, together with the surplus capital and the limited alternatives offered by other financial products, have fostered a frenetic pace of activity in the investment market”, explains the report.

By type of asset, the commercial sector (retail) was the star of the year. The volume invested in commercial assets during 2018 amounted to €4.28 billion, which represents an increase of 23% compared to 2017. During the fourth quarter, investment reached €1.26 billion, and so the sector achieved a quarterly market share of 35%. The largest operation during the final quarter of the year was the purchase of a portfolio of three shopping centres – Max Center, Gran Casa and Valle Real – by Sonae Sierra and Perter Varbacka for €485 million.

Commercial yields

Demand from investors for high street retail assets was high, given that they consider them to be a very stable product. Similarly, there was a high interest in land for the development of retail parks, in light of the scarce supply of this type of asset. The yields continued at 3.00% for prime premises; between 5.00% and 5.25% for prime shopping centres; and at 5.75% for prime retail parks.

In terms of the office market, the investment volume recorded during the fourth quarter was €986 million taking the total figure for the year to €2.228 billion. That represented a slight YoY decrease of 4%. The shortage of products for sale meant that fewer operations materialised in 2018 than in 2017. The prime yield in the office market remained at 3.25% in Madrid and 3.50% in Barcelona.

The logistics market continues to rise. The increase in e-commerce and the strong performance of the consumer sector and the economy, in general, have encouraged investment in this type of asset. The investment volume registered during the fourth quarter of the year amounted to €400 million, whilst the total figure for the year (€1.3 billion) represented a new investment record, and an increase of 30% compared to 2017. The shortage of products, combined with the high investment pressure resulted in a considerable adjustment in yields, which amounted to 5.30% in the prime logistics market in the fourth quarter of 2018.

Investors

Investment funds were the great stars of the market, representing 61% of the total volume transacted in 2018. Socimis have been very present in the investment market, both on the buy and sell sides in the main land transactions to develop new products. Finally, the presence of family offices (private investors) stood out, with acquisitions, in general, for volumes of less than €50 million.

Alternative investments remained in the spotlight of investors, who were mainly attracted by student residences, clinics and nursing homes for the elderly. The cumulative volume invested in those types of assets amounted to €600 million in 2018.

Original story: El Periódico (by Max Jiménez Botías)

Translation: Carmel Drake

BNP Paribas Prepares to Enter Spain’s Property Development Sector

13 November 2018 – Eje Prime

BNP Paribas Real Estate already has the foundations in place to begin its activity in real estate development in Spain. The French group, which has extensive experience in this area, is preparing its structure in the domestic market to be able to increase a portfolio comprising more than 100,000 m2 of offices and more than 3,000 homes located all over Europe.

The first step taken by the company in this sense was carried out in July, when it simplified its corporate structure in Spain, as revealed by Eje Prime. At that time, the group dissolved its consultancy company (BNP Paribas Real Estate Advisory Spain) and transferred its assets and liabilities to its sister property company (BNP Paribas Real Estate Property Management Spain).

After that modification, the real estate area of the French consultancy firm had two companies in Spain: the property company and the investment company (BNP Paribas Real Estate Investment Management Spain).

The group’s Director of Development, Thomas Charvet, said in France yesterday that the real estate company is going to “accelerate” the development of assets in Europe. And Spain, undoubtedly, is one of the most mature markets in the continent in the development of office buildings and residential properties. Nevertheless, sources at BNP Paribas Real Estate España indicate that “the company has no intention of starting that activity soon”.

With experience spanning more than 40 years in property development, BNP Paribas Real Estate has constructed everything ranging from new build projects, to residences with special services to “the development of new neighbourhoods”, according to its website in France (…).

Presence in half of Europe

Spain is one of the few leading companies in Europe where BNP Paribas Real Estate has not undertaken any real estate development, yet. As well as France, the company also has a presence in Germany, the United Kingdom, Italy, Portugal and Luxembourg (…).

New faces for the new roadmap in Spain

All of the internal changes that BNP Paribas Real Estate has carried out in Spain in recent months have a common denominator: the recruitment of Frédéric Mangeant as the new CEO at the beginning of the year. The real estate firm has made several new hires since then to lead its different areas. Between May and June, Mangeant recruited five experienced executives in the real estate sector to lead the various lines of business that the consultancy firm operates in the real estate sector (…).

A giant with 33,500 homes under management in Europe

Spain could become another major market for the real estate arm of BNP Paribas. Taking advantage of the boom in the economy and, therefore, in the domestic real estate market, the French bank will put its efforts into growing in the country through its different lines of business.

BNP Paribas Real Estate is a giant in the sector, with more than 33,500 homes under management in Europe and 30.6 million m2 of real estate assets under management for third-party companies in Europe.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

BNP Paribas: Property Sales by Banks Amounted to €73.5bn in 9 Months to September

30 October 2018 – Eje Prime

Financial institutions are continuing to put their real estate on the market. The sale of portfolios of real estate assets by banks is expected to amount to €16.5 billion between October and December, according to the latest report published by BNP Paribas Real Estate.

The entity’s latest report reflects that sales amounting to €73.5 billion were made during the nine months to September. “The pressure that the European Central Bank is exerting on the financial entities to ensure that they do not speculate with the assets they hold on their balance sheets is generating a wave of sales of large portfolios of residential assets”, said David Alonso, Director of Research at BNP Paribas España, according to reports from Cinco Días.

The largest operations undertaken so far this year relate to Banco Santander, with the sale of Project Quasar to the investment fund Blackstone for €30 billion; the sale by the bank BBVA of Project Marina to Cerberus for €13 billion; and the sale by CaixaBank to LoneStar of 80% of its real estate business for €12.8 billion.

Despite the eye-wateringly large figures highlighted in the report, the funds acquiring the properties tend to obtain an average discount of 65% and so the final prices are considerably lower than the nominal value in each case. “The main buyers are opportunistic investment funds and when it comes to completing their purchases, they typically demand discounts of between 50% and 80% of the asset value”, explained Alonso.

The arrival of new players with an appetite for the Spanish real estate market, such as the Socimis, investment funds and joint ventures, has boosted the purchase of several debt portfolios from bank entities in recent years. “They are agents that were not present six years ago; with these purchases, they have helped the banks to significantly reduce the property on their balance sheets, and they have also increased the control over loans to property developers and the management of residential buildings for profit”, said Alonso.

Original story: Eje Prime

Translation: Carmel Drake

Merlin Acquires 2 Logistics Assets in Ribarroja & Henares for €42M

21 September 2018 – Finanzas.com

Merlin Properties has acquired two logistics assets for €42 million: a platform that it has purchased from the construction firm Pavasal on the Valencian industrial estate of Ribarroja, between the A7 and A3 motorways, and a plot for the construction of another warehouse in San Fernando de Henares, next to the A2 and M50 motorways in Madrid.

According to reports from the real estate consultancy firm BNP Paribas Real Estate, which has advised Merlin on the two operations, speaking to Efe, the two deals were closed in July.

The Ribarroja platform, on the Sector 13 industrial estate, has a constructed surface area of 35,282 m2, with fifty loading docks and three modules; it will be handed over during the second quarter of 2019.

The operation in the Corredor del Henares involves a logistics project that will have a surface area of 100,000 m2.

Original story: Finanzas.com

Translation: Carmel Drake

Valencia, in Search of Land for Construction

21 August 2018

The lack of available land is the reason that only 2% of the acquisitions of homes are for new housing in Spain’s third biggest city by population.

Valencia is after new land to re-energise its real estate market. With stable prices and an increasing number of transactions, the absence of new buildings is palpable in the statistics for the first quarter of this year, when just 2.3% of purchases (a total of 2,658) were for newly-built homes.

With a population that has been relatively stable in recent years, around 790,000 inhabitants, the city of Turia has doubled the number homes sold in the city since 2013, from 4,922 operations that year to 10,973 last year.

This has not yet pushed up prices, but it has been the basis for recovery. After the harsh effects of the crisis (apartments are 45% cheaper today than in 2007), housing prices reached 1,235.60 euros per square meter in the first quarter of this year, according to data on bank valuations at the Ministry of Public Works.

In homes less than five years old, the average price rose to 1,536.90 euros in the first quarter, while in second-hand homes, the investment needed to acquire a home fell to 1,233.70 euros per square meter.

The absence of development ready lands is a fact for the Spanish city’s real estate developers. According to a report by CBRE, the city is currently in the midst of desvloping and marketing sixty new construction projects, and it is expected that twenty more will be put on the market by the end of the year. Companies such as Neinor, Aelca and Aedas have housing developments in neighbourhoods such as Quatre Carreres, Patraix, Nou Campanar and Malilla Norte.

However, the high demand will cause prices to rise if more land is not made available, according to the consultancy. Metrovacesa’s project for the development of Benimaclet could be one of the most outstanding in this regard in Valencia. The real estate company controlled by Santander and BBVA is pushing for an agreement to present to Valencia City Council a project to build 1,500 homes in partnership with the local developer Urben.

Vía Célere is another of the developers active in the city: the company will build 22 homes in the Pechina neighbourhood, next to the Turia gardens. Aedas Homes is more advanced: the Spanish developer has sold another 120 homes in Turia’s capital through its Torres project, a residential complex that will be composed of two 16-floor apartment blocks. Aedas also has 252 flats in Valencia.

Residential prices in Valencia are now 45% lower than before the start of the crisis, but the city has great appeal, and the activity of private operators has been intense. Attikos is another local developer that has carried out work in the city, with the purchase of 1.9 million euros of development-ready land, where it will build 27 houses.

Offices on the rise

With a total of 63,480 companies, 88.2% of which are in the service industry, the office market in Valencia saw record allocations last year. According to a report by BNP Paribas Real Estate, the contracting amounted to 39,500 square meters in 2017, which caused a slight upward trend in rental prices, which are close to 14.5 euros per square meter in the city centre.

“Since the end of 2013, the last year of economic recession, demand has been positive,” the consultancy noted. “The good pace of allocations in recent years, together with the lack of new projects, are generating a considerable adjustment in the vacancy rate of the Valencian market which, fell to 10.4% at the end of 2017, out of a total stock of 774,000 square meters. This means that there are currently 80,546 square meters of available offices on the market,” they added.

One of the most notable operations in recent months was the rental of the former headquarters of CAM, leased by Solvia to the architectural firm Join Contract. The property’s new tenant will remodel it to transform it into a luxury hotel.

Original Story: EjePrime – C. De Angelis

Translation: Richard Turner