Tag: Calle Serrano

Haya Real Estate Manages the Sale of Bankia’s Branch on Calle Serrano for €59M

6 May 2019 – Eje Prime

Haya Real Estate has managed the sale of Bankia’s former premises on Calle Serrano, 64, to the Prada group for €59 million. The premises have a surface area of 908 m2 and are distributed over three storeys.

Bankia will have to vacate the property within six months of the transaction being formalised and will be replaced by one of the Prada group’s brands: Miu Miu, Church’s, Car Shoe, Prada and Pasticceria Marchesi.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Commercial Premises on Calle Serrano & Paseo de Gracia are More Expensive Than Ever

28 March 2019 – Expansión

The “golden miles” of Madrid and Barcelona seem to be immune to the consumer crisis and the boom in e-commerce that is negatively affecting other high streets across the country, for the time being at least. In fact, business is booming on Calle Serrano and Paseo de Gracia, driven by demand from large international luxury brands, which are only willing to open their flagship stores on those two streets.

Recent arrivals on Calle Serrano include Salvatore Ferragamo, Bottega Veneta, Saint Laurent and Bang & Olufsen. Meanwhile, the newest tenants on Paseo de Gracia include Moncler, Loro Piana (LVWH), Isabel Marant, Antropologie and Christian Louboutin.

Moreover, demand is driving up rents on those streets. In Barcelona, prices on the golden mile rose by between 5% and 6% in 2018, to €275/m2/month, according to Ascana. In Madrid, the price increase was less marked, up by just 1%, but nevertheless, the average price amounted to €284/m2/month, a new historical record.

Original story: Expansión (by Marisa Anglés)

Translation/Summary: Carmel Drake

Madrid & Barcelona Enter Top 40 Most Attractive Global Cities for Retail

19 October 2018 – Eje Prime

Madrid and Barcelona are two of the most attractive cities in the world for retail. The two Spanish cities rank amongst the forty most attractive places for commercial activity, according to the Hot Retail Cities report, compiled by Modaes.es, with the support of Tendam and in collaboration with Instituto de Empresa.

The top 3 of the ranking features New York, Los Angeles and Singapore. Madrid and Barcelona are ranked ahead of metropolises such as Milan and Moscow, boosted by factors such as economic openness, the socio-economic environment and the presence of international operators. Moreover, in the fashion category, the two cities are also cradles of some of the world’s retail titans, such as Inditex, Mango and Tendam, and they are home to one of the largest European department store groups, El Corte Inglés.

Barcelona is ranked at number 29 on the list, scoring 425 points out of a possible total of 1,000. Tourism, the presence of fashion operators in the city, the commercial streets and their structure and geographical location are the key factors that place Barcelona within the top thirty hottest cities on the planet. In recent years, the city has become a gateway for major international retailers, such as Uniqlo, which chose the city for its debut in Spain.

Meanwhile, the Spanish capital is positioned at number 36 in the Hot Retail Cities ranking with 410 points. In the case of Madrid, factors that work in its favour include commercial openness, economic stability and recovery, and the multiplicity of prime thoroughfares such as Calle Serrano, Gran Vía, Fuencarral and Calle Preciados.

The criteria for compiling the ranking are grouped together under eight general points that companies assess when it comes to studying the city: demographics, economy, politics, socio-economic environment, tourism, retail, fashion and trendy cities. In addition, analysis criteria are included about the more or less optimal conditions of each city for international retailers.

Original story: Eje Prime 

Translation: Carmel Drake

CBRE: Investor Interest in High Street Stores Skyrockets

5 July 2018 – Cinco Días

Stores on the most commercial streets of Spain have become an object of desire for investors in the real estate market. Large funds and insurance companies alike are investing in these types of assets and experts predict that a new record is going to be set in the segment this year.

Investors are expected to spend around €1.1 billion on these types of commercial premises in 2018, according to forecasts from the consultancy CBRE. That figure would exceed the amount invested in high street stores in 2017 by €300 million, equivalent to a growth rate of 36.9%. Of interest are shops on commercial thoroughfares such as c/Preciados and c/Serrano in Madrid and Paseo de Gracia and Portal de l’Àngel in Barcelona. In fact, those two cities accounted for 79% of total investment last year. “Nevertheless, other cities in Spain are on the rise and there is growing demand for investment products in cities such as Bilbao, Valencia, Sevilla and Málaga”, according to the report “The Keys to Retail in Spain”, published by CBRE yesterday.

Investors regard these types of well-located assets as a good option for placing their money, a solid alternative in the context of low-interest rates and because these high street stores perform better (than other commercial assets) in the face of competition from online retailers. Currently, according to CBRE; the returns on these properties amount to 3.5% in Barcelona and to 3.25% in Madrid; in other cities (with more risk), the returns are greater.

The stars of these acquisitions are mainly the large funds. Hines, M&G, AEW, Thor, Union Investment, CBRE GI and Deka. “In 2017, in addition, an insurance company entered the high street sector for the first time: Generali acquired the Pull & Bear store on Calle Preciados in Madrid”, according to the report. Other active players include the Socimis, such as Tander, Ores, and Silicius, which have started to express interest.

In terms of large operations so far this year, in January, the German fund Deka acquired 16 Inditex stores for €400 million. Another significant operation was the acquisition of Mercado de San Miguel by the Dutch fund Redevco, for €70 million.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Family Office Puts Tesla’s Store on c/Serrano Up For Sale for €7M

18 April 2018 – Eje Prime

The retail sector is hotting up in Madrid. A Spanish family office has put up for sale the store at number 3 Calle Serrano, which is occupied by Tesla, the company specialising in electric cars and led by Elon Musk. Although sources close to the operation have explained to Eje Prime that the process to receive offers has already begun, the estimated price of the asset is around €7 million.

This store has been occupied by Tesla since last September after it signed a lease contract that will continue in force following the sale. The asset has a retail surface area of 247 m2 spread over two floors. There, Tesla has a showroom, a warehouse and the group’s offices in Spain. According to real estate market sources, the consultancy firm CBRE is exclusively leading the sales process.

In recent months, the retail sector has been reactivated in the Spanish capital, with both the placing of premises on the market and the renovation of assets for their subsequent rental. The latest to be added to the portfolio of establishments for sale was the branch that Bankia owns at number 1 Calle Alcalá.

Although the bank already initiated an auction, which was attended by funds such as Arcano and real estate groups such as Renta, who were offering approximately €18 million for the premises, Bankia has decided to wipe the slate clean and launch a new auction process, through which it hopes to raise at least €20 million.

The asset, which, given its façade appeals more to restaurant operators than fashion retailers, is spread over two floors: the first floor spans 458 m2, whilst the basement measures 405 m2.

And from premises for sale to premises sold. In March, the fund manager IBA Capital, together with CBRE Global Investment, finally completed the sale of number 9 Calle Preciados, in Madrid, to the real estate investment vehicle of the insurance company Generali, Generali Real Estate. The Italian group paid €100 million for the asset, which is going to house Pull&Bear’s future flagship store on this high street, one of the most expensive in Spain for opening a store (…).

Investor appetite in 2018 

After closing 2017 with a total investment of €3.5 billion, the sector started 2018 with retail assets up for sale worth €2.5 billion. Moreover, during the course of this year, the volume of retail space on the national map is forecast to increase by 500,000 m2.

At the moment, shopping centres worth €2 billion are up for sale, along with high street products worth another €500 million. This situation guarantees a high degree of product availability for the segment, which is ideal at a time when Spain is very much in the firing line of international investors.

The influence of the retail market on the tertiary sector in 2017 is evidenced by the statistic that 38% of all transactions completed in this market involved retail assets, allowing retail assets to exceed office buildings for the first time ever.

With a volume increase of 36% over the last year, several large shopping centre openings are scheduled for 2018 including Open Sky in Madrid, which will see the arrival of Compagnie de Phalsbourg in Spain, after investing €160 million in the complex.

Similarly, in the Community of Madrid, the shutters will be lifted on X-Madrid, owned by Merlin, and in Málaga, McArthurGlen and Sonae Sierra will inaugurate a new designer outlet centre in the capital of the Costa del Sol. The stock of retail surface area in Spain amounts to 16.5 million m2, up by 1.4% YoY.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Spain’s Most Expensive Homes are Located on c/Serrano & Paseo de Gràcia

1 March 2018 – Expansión

Two realities in the housing market / The recovery in prices with respect to 2008 is leaving disparate scenes. The gap between the most expensive area of Madrid, on Calle Serrano, and the most affordable district, San Cristóbal, amounts to 61 percentage points.

In the heart of Madrid, on Calle Serrano, a 90 m2 apartment costs around €857,700 (€9,530/m2) on average, 5% less than in 2008. Meanwhile, 16 kilometres south of the Golden Mile, in San Cristóbal, those same 90 m2 cost around €78,300 (€870/m2), 66% cheaper than during the years of the real estate boom. This situation is repeated right across the country, where, in many cases, the housing market is experiencing two realities in the same city. “The current housing market in Spain is certifying the recovery of house sales and reflects that there is still scope to acquire homes at much lower prices than 10 years ago”, said José María Basañez, President of TecniTasa.

Despite the high degree of activity in the sector at the moment, with increases of around 5%, it is not uncommon for people to buy a home now for less than it would have cost in 2008. In 2017, house prices were 35% below the peaks of the real estate boom, according to a Report about housing Maximums and Minimums prepared by the appraisal company TecniTasa. The situation changes as you approach the hot spots of the main capitals. The difference between the most expensive and most affordable areas of Madrid is 61 percentage points, of Barcelona is 38 points and of Sevilla is 54 points. The most affordable homes in the Andalucían capital are found in the areas of Amate/ Pino Montano/Macarena Norte and Bellavista (€990/m2), nevertheless, it is one of the few areas where prices are higher than they were a decade ago (up by 24%). It is followed by La Rambla de Pedro Lezcano in Telde (Las Palmas) where prices have risen by 9.7%; the centre of Orense (5.7%); Las Gándaras (Lugo), where prices have risen by 4.4%, and the historic centre of Toledo (1%).

The fact that the most luxurious homes are still 30% cheaper than they were in 2008, on average – on c/Serrano and Paseo de Gràcia, they exceed €9,000/m2 – and the most affordable homes are still 40% lower – in El Pilar de la Estación (Toledo) and Barrio Guinea (Castellón), they cost around €400/m2 – “is one element to take into consideration when making a purchase decision”, explain sources at the appraisal company.

Original story: Expansión (by I. Benedito)

Translation: Carmel Drake

JLL: Retail Inv’t Will Soar To €4,000M+ In 2017

6 November 2017 – Eje Prime

The retail segment is attracting the attention of investment funds and is set a register a new record in 2017. Investment in retail assets is expected to soar by the end of this year to exceed €4,000 million, according to estimates from the real estate consultancy firm JLL. Operations such as the sale of the Mercado de San Miguel and the Mercado de Fuencarral, both in Madrid, will help this segment of the Spanish real estate sector record a new milestone this year.

So far this year, the commercial premises business has already broken all the records and registered the highest level of investment for the last fourteen years. During the nine months to September, the volume of investment in the retail sector amounted to almost €3,488 million, according to the Market Fundamentals report for Q3, compiled by the consultancy firm.

“The inter-annual footfall index in Spain rose by 1.7% in September and retail sales rose by 0.9% with respect to the previous month”, explain professionals in the retail business. This fact, together with the reality that prime rents are continuing to grow at a good pace, means that funds are looking very closely at retail premises.

The large operations involving portfolios of hypermarkets located across Spain stand out, as do the sales of the Mercado de San Miguel and the Gran Vía Alicante shopping centre. Other operations, such as the sale of Mercado de Fuencarral by Activum to AEW for €50 million have also helped to boost business in this segment in Spain.

“In terms of trends in the retail sector, over the last few months, we have seen how the traditional large format retailers are continuing to move into the city centres, convinced that their proximity to consumers will generate greater sales opportunities for them”, explain sources at JLL. Examples include Decathlon’s arrival on Calle Fuencarral and the opening of a Leroy Merlin store in the heart of Barcelona.

Another example is the case of Ikea on Calle Serrano. The Swedish group has just debuted its “test” of its new format, known as Ikea Temporary; it opened the doors of its first establishment in the centre of Madrid, in a building owned by the Loncito family office.

Moreover, last month, Media Markt opened its third urban store in Madrid, in the central Plaza del Carmen, close to the Preciados shopping street. In this way, Media Markt Preciados became the company’s 81st store in Spain and its 11th in Madrid.

Although the brand dedicated to the distribution of consumer electronics has now opened several stores under this “proximity format” in Valencia (Calle de Colón), Madrid (Calle de Alcalá and Paseo de la Castellana) and Barcelona (Plaza Cataluña and the Digital Store on Avenida Diagonal), the company is looking to further consolidate its arrival in Spain’s city centres with this latest opening.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

The Montejo Family Puts 2 Prime Stores In Madrid Up For Sale For €20M

30 October 2017 – Eje Prime

The commercial real estate segment is continuing to revolutionise Madrid. The latest operation is being prepared by the family office owned by the Montejo family of jewellers, which has put two of its prime stores in Madrid up for sale. The company has put a package of two establishments on Calle Goya on the market for €20 million, according to sources at the group speaking to Eje Prime.

The operation, advised by the company specialising in real estate management and consultancy TBCA, comprises, on the one hand, the store at number 25 Calle Goya, which has an asking price of €11.5 million. The establishment, which is currently occupied by Joyería Montejo, has a retail surface area of 158 m2 and a façade of 9m.

On the other hand, the Montejo family has also put a second store in Madrid up for sale, also located on the prime thoroughfare. Located at number 43 Calle Goya, that establishment is currently leased to the Italian firm Kiko, specialising in cosmetics. The asking price for that retail asset is €7.6 million and it has a retail surface area of 164 m2, spread over two floors.

The Montejo family, which has awarded the exclusive mandate for the sale of this package of assets to TBCA, also has other investments in Madrid, in the industrial and residential segments, although for the time being, no other parts of its portfolio are up for sale, according to sources at the real estate company.

In recent months, family offices have become the most active players in Spain’s real estate sector. With the search for the creation of trans-generational value, these types of vehicles are diversifying with the acquisition of their assets, in terms of geography, products and clients, in search of robustness with sustainable investments.

In this way, retail assets have become the currency of exchange for this kind of company, which either divest these types of products or negotiate better rents to get more out of them. Such is the case of the Madrilenian Lurrueña family, which has just leased the premises at number 54 Calle Serrano to the Prada group, which is opening a Miu Miu store. The establishment has a surface area of 250m2 spread over two floors and was occupied until now by the historical Lurrueña shoe shop, also owned by the family. (…).

But, the activity is not limited to Madrid alone. The family offices are also active in Barcelona. Although the city has lots of high profile players, such as the Tous family, Caboel, owned by the founder of Caprabo, and the Andic family, owner of the Mango fashion retail group, the latest real estate group to star in an operation of this kind in the Catalan capital, has been the Carcassona family, which has leased its store in Portal de l’Àngel to Inditex.

As Eje Prime revealed, the historical haberdashery Mercería Santa Ana, owned by the Catalan Carcassona and Capdevila family, will close its doors, located at number 26 Portal de l’Àngel, after signing an agreement with the Galician giant to open a large format store for its underwear and sportswear brand Oysho (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Miu Miu Moves Into Store On C/Serrano 54

20 October 2017 – Eje Prime

Change of tenants on Madrid’s most luxurious street. The luxury firm Miu Miu, owned by the Prada group, is finalising the opening of a new establishment on Calle Serrano, a store that was occupied until now by the historical shoe shop Lurueña.

Prada will thus become the tenant of the Lurueña family, which owns the property. The establishment, measuring more than 250 m2 over two floors, is located at number 54 Calle Serrano. According to sources in the sector, the operation has been brokered by Cushman & Wakefield.

As well as the chain of shoe shops and the management of its premises (many of which it owns outright), the Lurueña family also operates another business line, franchising restaurants. Until 2006, Lurca, a company owned by the Lurueña family, was the second largest franchisee in Spain of the chain Burger King. One branch of the family is still linked to the restaurant sector as franchisees of the 100 Montaditos breweries and the pizza chain Papizza.

The family’s decision to generate returns from its premises by leasing them out instead of operating them commercially is not unique. In Barcelona, the owners of the also historical Mercería Santa Ana (haberdashery) have done the same thing in Portal de l’Àngel in Barcelona, the most expensive street in Spain for opening a store. The owners have moved their business to a neighbouring street and have leased the premises to Oysho, Inditex’s underwear chain.

Until now, Miu Miu operated in the Salamanca neighbourhood in a smaller store at number 72 Claudio Coello. Meanwhile, Prada has its flagship store on Calle Serrano, at number 25.

So far in 2017, the luxury thoroughfare in the capital has seen numerous changes of tenants. At the beginning of the year, the jewellery firm Carrera and Carrera launched a flagship store at number 27, measuring 150 m2.

In recent months, it has been joined on Calle Serrano by two other luxury firms: Salvatore Ferragamo, which took over from Lladró at number 68 and Kenzo, which chose number 17 to open its first establishment in Madrid.

Original story: Eje Prime (by I. P. Gestal and C. Pareja)

Translation: Carmel Drake

Flagship Stores Become The Bastion Of Large Retailers

19 October 2017 – Expansión

The unstoppable rise of e-commerce, the tsunami of digitalisation and the new buying habits of consumers have revolutionised the retail sector forcing operators to adapt to the new times to stay competitive.

The e-commerce sector is now turning over €24,000 million per annum in Spain, with a growth rate of 20% p.a. In this context, consumers are increasingly using the internet to manage their purchases, resolve queries and optimise their visits to stores. As such, they are visiting stores less frequently but they are spending more time there when they do go, according to a report from CBRE about the retail sector.

In this context, large international brands are backing the flagship store model as a gateway into Spain; and operators that have traditionally based themselves on the outskirts of cities are now moving into flagship stores in the centre. By way of example, the French firm Kiabi opened a store on Paseo de Gràcia a few months ago. In the same way, operators who have traditionally had stores in retail parks are now making space for themselves in the city centre, such as Media Markt, which opened two stores in the centre of Barcelona in 2016. Before the summer, the electronics firm also opened its new its flagship store in Plaza del Carmen, Madrid, just a stone’s throw from Gran Vía.

Ikea is joining this trend too, with a store on Calle Serrano; as is Leroy Merlin, which is planning to open a shop on Calle Fontanella, next to Plaza de Catalunya in Barcelona

Interest in Spain

“Physical stores are still the favourite channel for consumers, but it is harder to get people out of the house. To attract them, retailers are opening large flagship stores focused on the shopping experience and expanding the range of services, supported by new technologies that allow marketing strategies to be customised”, explains Gonzalo Senra, National Director of Retail at CBRE España (…).

Given the interest from large brands in Spain and encouraged by the upwards cycle of the economy and the improvement in consumption, many overseas institutional investors have decided to back the Spanish market. For example, the US investor Hines has purchased four important prime premises in Madrid and Barcelona in the last year.

These types of investors are the main buyers of flagship stores in well-located premises, involving investment volumes of more than €20 million. Moreover, sources at the consultancy firm have noted a change in the trend in this market with the entry of several insurance companies bidding for large prime assets.

By contrast, the market for smaller acquisitions is dominated by Spanish private investors and family offices – they tend to be particularly interested in assets worth less than €10 million.

Overall, investment in high street premises amounted to €800 million in 2016. The rate of investment continued during the first half of this year, with an investment volume of €515 million, according to data from the consultancy firm (…).

The high level of demand has accentuated the typical shortage of well-positioned products and resulted in a reduction in returns. According to the report, the downward trend in yields continued in 2017 to reach 3.25% in some cases for the most prime products in Madrid and Barcelona (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake