Bouygues to Build New Hotel in Nervión in Seville

21 October 2019 – The municipal government in Seville has granted the necessary permits and approvals for the French construction giant Bouygues to build a new hotel in the neighbourhood of Nervión in Seville. The building, located at Avenida de la Buhaira 2, was formerly occupied by offices of the multinational Abengoa. Bouygues Inmobiliaria acquired the asset, which had been unoccupied for a decade, for 17.5 million euros.

The French group now plans to invest €8,175,000 in the redevelopment, resulting in a three-star hotel. The new, 128-room unit will have five above-ground floors and four below-ground floors with 139 parking spaces. The plot of land has an irregular shape and a constructed surface area of ​​15,387 square meters, facing the streets of Luis Montoto and Blanco White.

Original Story: Diário de Sevilla – Manuel Ruesga

Photo: Juan Carlos Vázquez

Adaptation/Translation: Richard D. K. Turner

CBRE: Real Estate in Sevilla Attracts Funding from Overseas Investors

15 December 2018 – ABC

The city of Sevilla and its metropolitan area are now on the international real estate map and proof of that is that the major overseas funds are putting up a lot of the capital being absorbed by the new commercial, hotel and logistics projects in the city, “whereby taking over from the real estate firms of yesteryear”. That is one of the conclusions of a report compiled by the consultancy firm CBRE, which highlights that the return on investment has been felt most intensely in the shopping centre sector.

“With almost 300,000 m2 of future supply planned, Sevilla is the province in Spain that will grow by almost the most over the next few years in terms of gross leasable area – exceeded only by Madrid”, it said. “This will be a key sector this year and next for the Sevillan real estate market”, said Rosa Madrid, Director of CBRE in Andalucía. The first newsworthy event was the entry into operation of Torre Sevilla, “an open and mixed shopping centre, with a hotel and offices, which we have not seen here before and which is regenerating the area”, she highlighted. The office market “has absorbed without great problems” the 18,000 m2 that Torre Sevilla brought to the market “whereby disproving those who predicted a new crisis in this segment”, she said.

Offices

In the office segment, the highest rents are achieved in the most modern buildings of Nervión (a district in Sevilla), with rents of around €12-13/m2/month. In this area, some exclusive office buildings that were left vacant following the departure of the Junta de Andalucía to Santa Justa were occupied within 18 months. In La Cartuja, office rents are somewhat lower, around €9-11/m2/month, according to the report.

But, “the turning point” in the shopping centre sector is going to be seen Sevilla with Project Lagoh, promoted by the Socimi Lar España in the Palmas Altas area, to the south of the capital, and currently under construction. “Finally, the new era of shopping centres is going to arrive in Sevilla. Until now, we have only had shopping centres from the 1990s and none from the 21st century, like Xanadú in Madrid or Puerto Venecia in Zaragoza”, said Rosa Madrid.

Hotel investment

The hotel market has been also reactivated as demonstrated by the major operations closed in recent years. “In addition to the modern Eurostars Torre Sevilla, since 2015, the flow of properties acquired to transform them into accommodation has been continuous”, she highlighted. The most noteworthy operations include the purchase by the French real estate company Bouygues of the former headquarters of Abengoa, to renovate it and transform it into a 5-star hotel, the purchase of Hotel Macarena and the acquisition of the Generali building in Plaza Nueva by the British fund Shaftesbury.

Logistics market

Demand for logistics warehouses has also been increasing, at the same time as the major e-commerce operators have increased their logistics network in the south of the peninsula, such as the case of Amazon and Inditex, which have opened platforms in Sevilla. “That sector is here to stay. And operators are not only looking for large spaces far away from the cities measuring between 30,000 m2 and 100,000 m2, they are also looking for small spaces inside the SE30 to serve the last-mile market and demand for immediate distribution”, explained the regional director of CBRE.

Student halls

Investors specialising in alternative sectors, such as student halls of residence, are also placing their focus on Sevilla, a city that is home to 16% of all of Spain’s university students (…).

Original story: ABC (by E. Freire)

Translation: Carmel Drake

French Construction Giant Bouygues Returns To Spain

10 July 2017 – Cinco Días

Bouygues is returning to Spain with its real estate business after years during which the company has stayed away from this activity due to the property crisis. The French construction giant has already disembarked with a team for its property developer subsidiary focused on both Spain and Portugal. And it has already been commissioned to build an office building in Madrid, where it is due to start work at the beginning of 2018.

The French company has decided to look for opportunities in Spain in light of the recovery in the property sector and the improvement in the economy. “We have waited for the macroeconomic indicators to improve and we are looking again at the development of tertiary assets, such as offices and hotels”, revealed Ana Vidal, Director General at Bouygues Inmobiliaria.

The director previously led the company’s real estate project in Spain – where it has been present since 1989 – during the previous boom at the beginning of the century, but after the crisis, Bouygues hauled in the sails and Vidal moved to Paris. She returned to Madrid at the end of 2016 to identify opportunities. “We are going to work in three main businesses: the promotion of offices, residences for students and elderly people, and hotels”, said the Director General.

The whole time, the company has held onto three plots of land that it owns, two in Madrid and one in the 22@ district in Barcelona.

The first project, which is now in its design phase, is being developed in the Julián Camarillo area of Madrid, an industrial district that is home to offices and residential properties in the east of the capital, outside of the M-30. On this plot, Bouygues Inmobiliaria plans to build an 18,000 m2 office building.

Luis Vidal + Architects has been engaged to design the property. The Spanish firm is known for the design of Terminal 2 at Heathrow airport, amongst others major works. It also just led a renovation project for the Socimi GMP of Saint-Gobain’s former headquarters, now known as Castellana 77. Moreover, the firm has collaborated with the architect Renzo Piano in the recently inaugurated Centro Botín in Santander.

The company plans to invest €50 million on the construction of the building from 2018 onwards, over a period of approximately two years.

The other plot of land in Madrid – which it owns jointly with Vía Célere (owned by Värde Partners) is also located in Julián Camarillo. “We think that it is a good office area as an alternative to the centre, where buildings of the highest quality are being constructed. It is a neighbourhood with a lot of potential, like the 22@ district in Barcelona, although it lacks planning”, says Vidal. Finally, it is precisely in that new district of the Catalan capital where Bouygues plans to construct a tertiary use building in the future.

Bouygues Inmobiliaria is planning an annual investment of between €30 million and €50 million in Spain over the next few years, specialising in turn-key buildings. For the time being, the first project being managed by the team of professionals that has recently started work in Madrid does not have a tenant, but Vidal is convinced that it is not a problem, because the firm already has sufficient own funds to start work.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake