Tag: Cisco

Is Málaga the Silicon Valley of the South? Its Offices Generate Yields of 7.25%

7 January 2019 – Eje Prime

Málaga is positioning itself as the possible Silicon Valley of the south of Spain. The second most populated city in Andalucía and the only Spanish city in the Top 10 for the best quality of life in Europe, according to Eurobarómetro, has attracted several technology giants in recent years. The interest from these companies in moving to the area and the lack of available space have driven up prime yields in the office market in Málaga to 7.25%, making it the most profitable place to own an office in Spain, according to data from CBRE.

The international consultancy highlights that Málaga is “consolidating its position as a city of reference in Spain in the development of the technology sector”. Oracle, Accenture, Microsoft, Huawei, Ericsson, Indra, Atos and Cisco, amongst others, have all opened offices in the city. The meeting point for these companies is the Andalucía Technology Park (PTA), recently included in the catalogue of European Digital Innovation Hubs, compiled by the European Commission, and which recorded a turnover of €1.9 billion in 2019, up by 8%.

In addition, the province is home to other smaller clusters, such as Málaga SmartCity and the ‘Polo de Contenidos Digitales de Málaga’, the first hub with those characteristics in Spain and which aims to accelerate projects and companies related to the digital sector.

The increase in demand for offices in the city also comes in response to the future forecasts for growth in the region. In fact, Oxford Economists names Málaga as the city where the economy is going to grow by the most in Spain over the next decade. The good connectivity of the province abroad and tourism are some of the factors driving those predictions.

In recent years, Málaga has enjoyed a facelift in recent years with improvements in its infrastructures, and the airport and port as anchors for tourism and business. In addition, the population has increased to 570,000 inhabitants in recent years and there are now more than 40,000 companies, of which 87.1% specialise in services.

These drivers have reactivated the office market, which has taken advantage of the boost in demand, on the rise since 2015. Rentals cost €17/m2/month in the city’s best buildings and the occupancy rate in the prime area exceeds 90%.

The shortage of competitive products in terms of location, finishes and facilities, has driven the increase in yields. In comparison with Madrid and Barcelona, the variation in prime yields is great, improving the yields of 3.25% and 4% that were being registered in the two major Spanish capitals at the end of the third quarter 2018.

Moreover, the office market in Málaga also generates higher yields than the market in Bilbao, although it is not far behind with average yields of 7%, as well as those in Sevilla and Palma, which do not exceed 6.75%. The yields in Valencia and Zaragoza amounted to 5.25% and 6%, respectively, in September last year (…).

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Colau Halts Investments in Barcelona’s 22@ District

10 December 2018 – Catalunya Press

Colau’s municipal government has halted several investments in the 22@ district of Barcelona, which affects companies such as Acciona, Värde Partners and Metrovacesa.

According to sources in the real estate sector, several multinationals will also end up missing out, including the French company Bouygues, the family business Espais and private funds, such as Semillas Fito.

The histories of each firm are very varied. Shaftesbury purchased an abandoned factory in 2017, where it wants to build an office building spanning 16,000 m2, a turnkey project where the multinational technology firm Cisco is going to open a research centre for intelligent cities. The land purchase involved an investment of around €10 million, according to El Confidencial.

The US firm Värde spent €50 million in total during 2017 buying land in the area affected by the revised plans of Colau, who now wants to modify the urban planning arrangements, which will mean the suspension of all projects. It was one of the largest land operations of last year in Barcelona, involving 52,000 m2 of buildable office space. At stake, a €70 million investment, which is now under threat.

Acciona has been in the area since 2001 and is the owner of an entire block between Calles Perú, Bolivia, Fluvia and Selva de Mar, which spans a surface area of 53,380 m2 and where it wants to build 33,200 m2 of office space.

Sources in the real estate sector indicate that the suspension of all of these projects, involving approximately 2 million m2 of office space, is only going to serve to put more pressure on prices in the consolidated 22@ area, which has now been completed south of La Diagonal, where Torre Glòries and the other offices are now occupied. In other words, prices will rise.

Original story: Catalunya Press

Translation: Carmel Drake

Facebook in Torre Glòries: CCC Will Provide Anti Fake News Services to the US Giant

7 May 2018 – Eje Prime

The US giant Facebook has chosen Barcelona. According to sources in the sector, the California-based company has engaged Competence Call Center, which announced its moved to Torre Glòries two weeks ago, to fight against fake content on its platform. In this space, CCC is going to employ more than 500 people who will work directly for the technology giant in the building owned by Merlin.

CCC is going to occupy 10 floors in the building located in the 22@ district. Facebook has already opened another content control centre in Europe together with CCC in Germany, a model that it is now going to replicate in Barcelona, according to Cinco Dias.

Measuring 142 m tall and with a gross leasable area of 37,614 m2, the building in Barcelona has received investment amounting to €15 million from Merlin. After the departure of the EMA, the Socimi decided to convert the property into a multi-tenant space aimed at the office sector.

The building was designed by the architects Jean Nouvel and Fermín Vázquez and inaugurated in 2005. It has 34 above ground floors and an auditorium with capacity for more than 350 people. In addition, the building has another four floors for parking with 300 spaces. In total, the property spans a surface area of 51,485 m2.

The real estate group acquired the building in January 2017 for €142 million. With this operation, the Socimi avoided the tourist moratorium imposed by the mayor of Barcelona, Ada Colau, which prevented Emin Capital from opening a luxury hotel in the famous tower.

Emin Capital reached an agreement with Agbar at the end of 2013 to acquire the building for €150 million. That commitment materialised at the beginning of 2016 when the group made its first payment of €35 million.

The 22@ district is the main area of growth in the office market in Barcelona, having consolidated its position as a magnet for international innovative companies such as Cisco, Ebay, Yahoo, Deutsche Telekom, Sage, SAP, Capgemini and Indra, amongst others.

Original story: Eje Prime

Translation: Carmel Drake

Merlin Leases 8 Floors in Torre Glòries to Competence Call Center

26 April 2018 – Eje Prime

Merlin has found a new tenant for one of the most iconic assets in its portfolio after the European Medicines Agency (EMA) decided to vacate the property. The Socimi, led by Ismael Clemente, has signed the lease for 9,000 m2 of space spread over eight floors to Competence Call Center. Merlin has been advised by Savills Aguirre Newman and CBRE.

Standing 142 m tall and comprising a gross leasable area of 37,614 m2, the building in Barcelona has received investment of €15 million from Merlin. After the decision by the EMA, the Socimi decided to convert the property into a multi-tenant space dedicated to the office sector.

The building was designed by the architects Jean Nouvel and Fermín Vázquez and was inaugurated in 2005. It contains 34 storeys and an auditorium with a capacity of more than 350 people. In addition, the property has four floors of parking with 300 spaces. In total, the property spans 51,485 m2.

The real estate group acquired the building in January 2017 for €142 million. Through that operation, the Socimi avoided the tourism moratorium imposed by the mayor of Barcelona Ada Colau, which had prevented Emin Capital from opening a luxury hotel in the famous tower.

Emin Capital reached an agreement with Agbar at the end of 2013 to acquire the building for €150 million. That commitment materialised at the beginning of 2016 when the group made its first payment of €35 million.

The 22@ district is the main area of growth for the office market in Barcelona, having consolidated its position as a magnet for international innovation companies such as Cisco, Ebay, Yahoo, Deutsche Telekom, Sage, SAP, Capgemini and Indra, amongst others.

Original story: Eje Prime 

Translation: Carmel Drake