Java International Sells Silvercode to Dothan for €144.5 Million

19 November 2019 – The US investment fund Dothan acquired the socimi Silvercode from Java International for 144.5 million euros. According to a statement to the MAB, the firm bought 97.32% of the company’s outstanding shares at 2.05 euros each.

Silvercode controls the Castellana 200, an office and retail complex in Madrid. Once Dothan manages to acquire the rest of the shares, the firm intends to delist the socimi from the stock market.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Allianz Acquires the Castellana 200 Complex for €250M

12 April 2019 – Expansión

Allianz is going to be the new owner of the Castellana 200 office and retail complex located just a stone’s throw from Plaza Castilla in Madrid. The Socimi Silvercode, in which the Canadian pension fund manager PSP and Drago Capital both hold stakes, is going to sell the property to Allianz Real Estate for €250 million, five years after buying it from Reyal Urbis for €144 million.

The complex, which was developed by Reyal Urbis in 2009, comprises 20,295 m2 of office space, 6,415 m2 for commercial use and 844 parking spaces. It has additional buildability of 14,000 m2 for a hotel or residential project, which is currently suspended, although that space is excluded from the operation. Castellana 200 is currently managed by Drago Capital.

Original story: Expansión (by R. A.)

Translation/Summary: Carmel Drake

Allianz RE Negotiates the Purchase of Castellana 200 for c. €250M

2 April 2019 – El Economista

The office and retail complex Castellana 200 in Madrid is on the verge of changing hands once again. Its owner, the pension fund of the Canadian armed forces, PSP, is negotiating its sale with Allianz Real Estate in a deal that could amount to €250 million.

The property is listed on the MAB through the Socimi Silvercode, which made its debut on the stock market in 2016. The company’s majority shareholder is Java International, (97.51%), which is in turn owned by PSP Britannia (87.76%) and Enavap Investments (9.75%). The latter is controlled by Luis Iglesias, founder of Drago Capital, which is the current manager of the complex.

Castellana 200 was last sold in July 2014 for €144 million, after opening its doors in April 2013. It is located on Paseo de la Castellana, just 300 m from Plaza de Castilla, and comprises two office buildings, spanning more than 20,000 m2, plus a shopping centre measuring 6,416 m2 and 817 parking spaces. There are also plans for a hotel in the pipeline with a surface area of 18,000 m2.

Through this deal, Allianz Real Estate, the strategic real estate division of the Allianz Group, would strengthen its position in Spain, a market it first entered in 2016.

Original story: El Economista (by Alba Brualla)

Translation/Summary: Carmel Drake

Spaces Launches its Third Co-Working in Madrid on Paseo de la Castellana

24 October 2018 – Eje Prime

Spaces is launching its third project in Madrid. The co-working space brand, owned by Regus, has opened a complex located at number 200 Paseo de la Castellana, in the heart of the Spanish capital’s business district.

The company leased 5,155 m2 of space in the complex in February. The facilities comprise more than 160 offices and 700 workstations. The space is owned by the Socimi Silvercode Investments, although it is managed by Drago.

The Castellana 200 property is the third office that Spaces has opened in the Spanish capital, where it also has another complex in Madrid Río and another in Atocha. In addition, Regus has a fourth asset in the 22@ district of Barcelona.

Castellana 200 was built in 2011 and spans an office area comprising two buildings, one smaller one, which Spaces has moved into, and another measuring 15,127 m2, which is home to tenants such as Discovery Channel, Linkedin and CBRE. The companies that have already decided to move into Spaces Castellana 200 include Ikan Biotech, Pervasive Technologies and Alliance Borntein, amongst others.

Spaces, founded in Amsterdam in 2008, competes directly with other groups such as WeWork. The company is experiencing exponential growth with the opening of 130 new centres, whereby it hopes to close 2018 with 150 centres in total all around the world. Moreover, it is consolidating its position in large markets such as in the USA, the UK, France and another 30 countries around the world.

Original story: Eje Prime

Translation: Carmel Drake

Drago Lets Building I in Castellana 200 to Workspace Supplier Spaces

28 February 2018 – Interempresas

The Socimi Silvercode Investments, managed by Drago, has signed an agreement with Spaces, the new international workspace supplier that promotes dynamic communities for entrepreneurs and companies, to lease it Building I of the Castellana 200 complex. Spaces, whose main activity focuses on offering flexible, innovative and disruptive workspaces, including coworking offices, in more than 100 countries, has decided to strengthen its expansion in Spain with the rental of this building, which has a surface area of 5,155 m2.

As a result of this deal, Spaces will have three centres available in the Spanish capital, in addition to the centre it owns in Barcelona. CBRE, the leading international consultancy and real estate services company, has advised the operation. Divided into nine open-plan floors spanning more than 600 m2 each with lots of light thanks to the integrated glass façade, Building I in Castellana 200 was the first in the country to obtain the B+ rating granted by the Spanish Office Association (AEO) for its excellent qualities and services, which are capable of exceeding the expectations of even the most demanding occupants.

According to Philippe Jiménez, Director of Spaces in Spain: “Following our arrival in Madrid with Spaces Río and the imminent opening of Atocha, Castellana 200 is going to become the third Spaces centre in the capital. This building is in a privileged location in the heart of the city’s business district, which will allow the new way of working that Spaces offers to reach many more Madrilenian companies and entrepreneurs”. And he added, “Spaces is still looking for new locations both in Madrid as well as in other Spanish cities to continue its growth across the country.

With this operation, Drago and CBRE have managed to lease more than 95% of the space available for office rental in Castellana 200, a complex comprising two office buildings and a shopping centre located on the Madrilenian Paseo de la Castellana. Building II has an occupancy rate of 95% and is home to leading companies such as Discovery Channel, Linkedin, CBRE, Ebury and Schweppes.

Original story: Interempresas

Translation: Carmel Drake

Madrid Attracts Many Of The Companies Relocating Their HQs From Cataluña

10 October 2017 – Expansión

Over the last 10 days, several companies with their headquarters in Cataluña, such as Oryzon, Dogi, Eurona, Proclinic and Sabadell have announced that they are moving their HQs outside the region. Oryzon has established its registered address on Carrera de San Jerónimo in Madrid (…) and the telecommunications operator Eurona has also moved to the Spanish capital (…). Meanwhile, Proclinic has announced that it is moving its headquarters to Zaragoza; Sabadell is moving to Alicante; CaixaBank to Valencia; Gas Natural and Abertis to Madrid, in both cases; and Catalana Occidente is still considering if/where to move.

According to sources consulted, no effective consultations are being carried out at the moment, but Madrid is becoming one of the major alternatives. Prime rents are higher in the capital than in Barcelona, ranging between €25/m2/month and €35/m2/month along Paseo de la Castellana, and peaking at historical maximums of €37/m2/month in Torre Serrano. Meanwhile, in Barcelona, the average rent in the city centre amounts to €19/m2/month, reaching maximums of €24/m2/month on Avenida Diagonal. In any case, the performance of prime rents in both cities has been very good so far this year, with growth of 9% in the last quarter with respect to the same period last year, according to CBRE (…).

In terms of absorption, 128,108 m2 of space was leased during the second quarter of the year in Barcelona and 156,334 m2 of space was leased in Madrid. Availability is greater in Madrid, at around 12%, compared to 8% in the Catalan capital.

According to José Miguel Setién, of JLL, whilst it is really hard to find spaces of 3,000 m2 on Avenida Diagonal, there is more high-quality space available in the business district in Madrid, due to the renovations that have been carried out since 2013. As such, the market for medium-sized operations has performed exceptionally well there, even during the summer.

Overall, it is estimated that 1.5 million m2 of surface area is available in Madrid; of which 220,000 m2 is free in the centre of the capital, according to Ángel Estebaranz, National Director of Offices at Aguirre Newman. There is space available in several well-known offices such as Torre Foster, Torre Europa, Castellana 81, Castellana 77, Castellana 200 and Plaza de la Independencia, mostly grade A renovation products. Even Torre Picasso has almost two floors available, which would allow the right tenant to locate its corporate headquarters in one of the most iconic buildings in the city (…).

When it comes to choosing a new location, the nature of the company’s business plays a critical role. In this way, financial and legal companies tend to locate their offices in the business centre of cities, whilst pharmaceutical companies, for example, position themselves between the M30 and M40 ring roads, since they do not require such iconic buildings, but do need a lot of space, available in areas such as Campo de las Naciones, Alcobendas, Moraleja, Sanchinarro… Tech firms, like Google and Amazon, tend to establish themselves within the city centre but not in prime areas, such as Atocha, for example. Meanwhile, publicity firms are moving to Chamberí, with WPP and Havas’ new headquarters to be located in that neighbourhood, and Telcos are concentrating in urban areas of the city with rents of between €22/m2/month and €25/m2/month, says José Mittelbrum, National Director of Offices at CBRE (…).

Original story: Expansión (by Lucía Junco)

Translation: Carmel Drake

Reyal Urbis’ Liquidation Process Begins

6 September 2017 – Expansión

Three months after receiving the “No” decision from its creditors to its payment proposal, the real estate company Reyal Urbis is starting its liquidation process, with Sareb, the Tax Authority and several banks, such as Santander, as the main beneficiaries.

On Monday, the property developer controlled by Rafael Santamaría received the ruling from Mercantile Court number six in Madrid, ordering the launch of the liquidation phase. In this way, Reyal Urbis will star in the second largest bankruptcy in Spain’s history, with debt amounting to more than €3,500 million, exceeded only by that of Martinsa Fadesa.

This new phase will be led by the bankruptcy administrator, given that the judge is continuing to suspend the managers of the company and has ordered the termination of its corporate governance bodies.

Since its appointment as the bankruptcy administrator in February 2013, the audit firm DBO has taken care of the company’s legal proceedings. It was responsible for submitting the payment proposal prepared by the company for its creditors, which included discounts of more than 90% on its liabilities. Only 32.7% of its shareholders supported that payment plan in June, which effectively condemned the company to extinction.

Now, the administrations will have to determine the best solution for the creditors, which are owed around €3,600 million, according to the most recent figures presented, whilst the company owns assets worth €1,170 million as at 31 December 2016.

Portfolio

The company’s assets include €188 million corresponding to properties that generate rental income and €863 million relating to around 200 finished homes and land. Specifically, Reyal Urbis owns one of the largest land portfolios in Spain, with 6.7 million m2, exceeding the large property developers such as Metrovacesa (6 million) and Neinor Homes (1.3 million).

Distributed over more than 30 cities in Spain and Portugal (the company owns assets in Lisbon and Porto), the portfolio of land and rental assets, such as the best-located hotels in the Rafael Hoteles chain, as well as its stake in the Castellana 200 retail and office complex, will be the jewels in the crown to be shared out amongst the creditors or sold to allow them to recover at least some of their investment, according to sources close to the process.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

5 Socimis Have Debuted On The MAB So Far In 2016

10 June 2016 – Expansión

Silvercode, which owns the Castellana 200 complex, is the latest Socimi to have joined the MAB, on 2 June 2016.

Since the beginning of the year, the following Socimis have all debuted on the MAB: Corpfin Capital Prime Retail III, Heref Habaneras, Inversiones Doalca, Jaba I Inversiones and Silvercode. In 2015, eight Socimis listed on the stock market in total.

In addition to the 17 Socimis listed on the MAB, four other companies of this type – Merlin, Lar, Hispania and Axiare – are listed on the main stock exchange.

Merlin is the only Socimi in the Ibex 35. The firm, chaired by Ismael Clemente, which has been listed on the reference index since the end of last year, debuted on the stock market on 30 June 2014 and was the third Socimi (after Lar and Hispania) to list on the main stock market.

Original story: Expansión

Translation: Carmel Drake

Owner Of Castellana 200 Debuts On The MAB

2 June 2016 – La Vanguardia

A new Socimi, Silvercode Investments, owner of the majority of the Castellana 200 Complex (pictured above), will make its debut today on the Alternative Investment Market (MAB) at a price of €1.11 per share, valuing the whole company at around €80.3 million.

The company will thus become the sixteenth Socimi to join the market, according to a statement issued by the Spanish Stock Exchanges and Markets (BME).

Silvercode owns the majority of the Castellana 200 Complex, located in Madrid’s main financial district. The site comprises two office buildings, one shopping centre, four floors of underground parking and a project under development.

The company will list through the price fixing system. Renta 4 Corporate is the registered advisor and Banco Sabadell is acting as the liquidity provider.

The initial share price has been adopted taking into consideration the findings of a report performed by independent valuation experts, Ernst & Young Servicios Corporativos.

The company has signed a contract with Drago for the management of the Castellana 200 Complex.

The shopping centre, located on Paseo de la Castellana, used to be one of the jewels in the crown of Reyal Urbis, before that firm filed for bankruptcy. The centre opened its doors to the public in April 2013, with 19 stores as well as common areas.

In 2009, a project was started to construct a five-star hotel in the building. Nevertheless, the construction work was never finished due to financing problems.

Silvercode currently owns 52.18% of the property under development, whilst the remaining 47.82% is still owned by Reyal Urbis.

In May 2014, Java International, a company domiciled in Luxembourg, acquired 100% of Silvercode Investments’ share capital.

Original story: La Vanguardia

Translation: Carmel Drake

Reyal Urbis Offers Its Banks 20% Of The Debt It Owes Them

13 February 2015 – Expansión

The listed real estate company Reyal Urbis will submit its payment proposal today to allow it to overcome the bankruptcy process in which it has been immersed for two years now.

The real estate company controlled by Rafael Santamaría will offer its creditors, which include entities such as Santander, Banco Popular and RBS, as well as Sareb and ICO, a haircut of 80% of the debt and the payment of the remainder through the transfer of assets.

The real estate company filed for bankruptcy in February 2013, after a string of up to four refinancing processes. According to the bankruptcy report, the company has a debt of €3,978 million, an equity deficit of €2,878 million and assets amounting to just €1,474 million. After selling off various iconic assets, such as the ABC Serrano and Castellana 200 shopping centres, both in Madrid, and the Diagonal Port Hotel in Barcelona, Reyal and its creditors have been working together to distribute the rest of its assets, in the form of lots, which will be awarded through a draw.

The tax authorities

The proposal for an 80% haircut will not apply to all of the creditors, since the real estate company will propose a different offer to the Tax Authorities.

Reyal Urbis will offer to pay the Public Administration the full amount it owes in cash (€400 million) over the long term, say sources close to the process.

Creditors have until 13 March to accept or reject Reyal Urbis’ proposal. If it does not obtain the agreement of the entities, the real estate company will end up with a small lot of assets and a manageable debt.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake