Tag: Colliers

IBA Capital & CBRE GI Sell Preciados 9 to Generali

15 March 2018 – Eje Prime

A new prime retail operation has been closed in the capital. The fund manager IBA Capital, together with CBRE Global Investment, has closed the sale of number 9 Calle Preciados in Madrid to the real estate vehicle of the insurance company Generali, Generali Real Estate. The Italian group has paid €100 million for the asset, which is going to be home to the future Pull&Bear store on that street, one of the most expensive in Spain for opening a store.

The property, which has a surface area of more than 3,000 m2, was the first building that El Corte Inglés sold in the Spanish capital and fired the starting gun for the policy of real estate divestments by the distribution group.

The asset, located in the so-called Golden Triangle of Madrid, was built in the 1940s. The building overlooks the confluence of the areas of Sol, Preciados and Gran Vía, and has a commercial surface area of more than 2,100 m2, distributed over six floors.

The operation, which has been brokered by the real estate consultancy Colliers, has been in the pipeline for six months, but the parties have not signed the agreement until now. In this way, IBA Capital is continuing to transform its asset portfolio in Spain.

Founded in 2013, IBA Capital is headed by Thierry Julienne and Jesús Valderrama, founders of the investment vehicle. The group has the capacity to manage all kinds of real estate assets and, currently, manages assets with a value of approximately €1 billion.

IBA Capital’s activity is divided into three lines of business. The company is continuing to acquire new assets following a phase of “prior selection of opportunities and a process of internal analysis”, according to sources at the company. IBA Capital also manages and sells assets, as well as controls the Socimi Zambal.

Its current portfolio comprises more than a dozen assets situated in prime locations of Madrid and Barcelona for the most part. They include number 18 Gran Vía and the ABC Serrano shopping centre, which have been acquired for their subsequent renovation and enhancement.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Colliers International Acquires Spanish RE Consultancy Irea

27 February 2018 – El Confidencial

There’s a new marriage in the market for real estate consultancy firms. Colliers International Group has acquired the independent Spanish firm Irea. This move comes just a few months after Savills purchased Aguirre Newman, a firm that Colliers also expressed its interest in.

Following this integration, the new company will have a team comprising more than 100 professionals, with offices in Madrid and Barcelona, a turnover of €25 million, and will provide services in the following fields: advisory, capital markets, consulting, valuation, workplace solutions and project management. The objective of the new group is to be one of the top three firms in the sector within five years.

The operation has been structured through the purchase of the majority of Irea’s share capital by Colliers International, a listed company with a global turnover volume of €27 billion, a move that has been followed by a merger, whereby Irea has acquired the Spanish subsidiary of Colliers.

Mikel Echavarren, Founding Partner at Irea, is going to be the CEO of Colliers in Spain. Meanwhile, the rest of the management team is going to comprise: Ignacio M. Iturriaga, Joan García and Álvaro Alonso as the Heads of Corporate Finance; Neil Livingstone and Antonio Pan de Soraluce as the Heads of Capital Markets; and Miguel Vázquez and Laura Hernando, as the Heads of the specialist hotel services division.

In addition, in accordance with the model that characterises Colliers, which teams up with local partners, Echavarren, Livingstone and Pan de Soraluce will hold onto 20% of the share capital of the Spanish subsidiary.

“The Spanish real estate and hotel markets have experienced significant growth in recent years, and having the opportunity to expand our business with Irea’s excellent team of professionals is going to allow us to offer high added value services for our clients”, said Chris McLernon, CEO at Colliers International for the EMEA region.

“Our integration into Colliers represents a natural evolution for Irea, given that both companies share the same business culture and a strong commitment to excellence”, said Echavarren. “We consider that integrating ourselves into a global brand that has an unparalleled international platform is the key for strengthening our growth strategy and continuing to offer the best service possible to our clients, wherever they are in the world”, he added.

Original story: El Confidencial (by R. Ugalde)

Translation: Carmel Drake

OHL Pre-Sells Half of the Luxury Apartments in Canalejas

28 December 2017 – El Independiente

The pre-sales of luxury apartments in the Madrilenian Canalejas complex, the only one in Spain – and one of just a few in Europe – to be serviced by the hotel chain Four Seasons, is going from strength to strength. Knight Frank and Colliers, the two firms that have been exclusively appointed to manage their sale, have already placed almost half of the homes with their contacts and clients during the private launch, in other words, before the For Sale sign has been officially put up, according to sources speaking to El Independiente.

Even the penthouse, the jewel in the crown of the building promoted by Juan Miguel Villar Mir, together with his construction firm OHL, has an owner: a European millionaire, who is going to pay more than €9 million for a 500 m2  home in one of the most iconic areas of Madrid.

To date, most of the homes on this block of prime Madrilenian real estate in Canalejas – next to the Puerta del Sol – have been sold to wealthy Spanish families even though, initially, they were expected to attract interest from foreign millionaires, specifically, Latin Americans. “Wealthy families from Latin America prefer the traditional and exclusive Salamanca neighbourhood, whilst Spaniards are more interested this concept, which is going to revolutionise the centre of Madrid”, explain sources in the real estate sector.

The 22 most expensive new build homes currently available in Madrid have a minimum surface area of 130 m2 and a minimum asking price of €2.5 million, which means that buyers paying more than €13,000/m2. The combined value of all of the homes amounts to around €90 million.

The apartments are located on the 5th, 6th, 7th and 8th floors of the Canalejas Complex, have between one and three bedrooms each, have independent access (as well as through the Four Seasons hotel) and will be handed over completely finished and equipped, with the exception of furniture.

The homes form part of a complex that comprises seven historical buildings, which in recent decades housed the former headquarters of Banesto, Central Hispano and Zaragozano.

For the time being, most of the homes have been reserved by Spanish millionaires.

The complex spans a surface area of 50,000 m2 in total and in addition to the twenty homes, is going to house a five-star Four Seasons hotel with 200 rooms, an underground parking lot with 400 spaces, a retail outlet for bank use and a 15,000 m2 shopping arcade.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

Starwood Capital Suspends Its Investment Activity In Cataluña

24 October 2017 – Expansión

The vehicle that the US firm Starwood Capital uses to finance real estate operations in Europe expressed its concern to the market on Friday about the situation in Cataluña. Starwood now has a presence in the autonomous region through a €46 million loan that it has granted to a new hotel in Barcelona.

Moreover, the firm has granted €61 million to two real estate projects in other areas of Spain. Starwood European Real Estate Finance, a fund that is listed on the London Stock Exchange, has said that from now on, it is going to “prioritise” its investments in other areas of the continent, keeping its distance from the Catalan crisis. “The political risk, and its potential impact on the real estate market, continues to be one of our areas of scrutiny, alongside, for example, the Brexit process, the elections in Germany and the latest events in Cataluña. The group is monitoring Spain and the situation in Cataluña closely. The tensions regarding Catalan independence are not new, but there has been a significant increase in the uncertainty there following the referendum on 1 October”, says Starwood in a note to update the composition of its investment portfolio.

The fund says that the reaction from the financial markets to these tensions has been relatively moderate and that economists predict a soft impact on economic activity in Cataluña and Spain as a whole. But the managers of this firm are more pessimistic. “Although the market has not reacted to the recent events, the group is more cautious and is only going to give priority to opportunities that are relatively isolated from the current uncertainty”. Starwood does not rule out taking another look at this market if prices adjust to the new reality. “During this time, the group will follow the political developments and also monitor the Spanish market to see whether any other attractive opportunities arise, on the basis of risk”.

Starwood’s message echoes the views of the real estate consultancy firm Colliers, whose managers said last week, in an interview with Expansión, that real estate investments amounting to €175 million have been suspended in Cataluña. Property developers such as Hispania and Merlin have also warned about the effect of uncertainty in the sector. Moreover, several private equity funds expressed their concern last Tuesday at a conference in the City of London.

Starwood European Real Estate, with almost €500 million in assets, is one of the vehicles that Starwood Capital Group uses to channel its investments. With $53,000 million under management in total, the entity holds other real estate positions in Spain through various funds. The California-based fund, founded in 1991 by Barry Sternlicht (pictured above) participated in the foundation of the hotel chain Starwood, which has now merged with Marriott.

Original story: Expansión (by Roberto Casado)

Translation: Carmel Drake

Savills Completes Purchase Of Aguirre Newman For €67M

31 July 2017 – El Confidencial

Savills has confirmed the news revealed on Friday morning by El Confidencial that it has formally agreed to purchase Aguirre Newman. This operation that puts an end to the sales process that was opened by the Spanish real estate company in February.

As a result of the acquisition, the British company has multiplied its size in Spain seven-fold, increasing its workforce from 70 people to almost 500 professionals. Moreover, it has completed the second most important international purchase in its history following its acquisition of Studley in the USA in 2014.

The transaction price has been agreed at €67 million, which will be paid in instalments over five years. The transaction is expected to be completed on 30 November, once all of the standard regulatory conditions have been fulfilled.

Although the exact terms of the agreement are unknown, the selection of Savills as the winning candidate has been based both on that firm’s economic proposal, as well as its commitment to continue to employ the workforce and to respect the roles of Aguirre Newman’s senior management.

In fact, the resulting company will initially operate in Spain under the brand Savills Aguirre Newman. Santiago Aguirre will be the CEO, whilst Stephen Newman and Rafael Merry del Val will occupy the two executive co-vice-president roles.

The senior management team will also include José Navarro, Javier Echeverría, Jaime Pascual-Sanchiz and Ángel Serrano; whilst the office in Barcelona will be led by Anna Gener and Arturo Díaz, as the CEO and President, respectively.

In addition to Savills, other firms that expressed interest in this operation included Colliers and Cushman & Wakefield. Moreover, the latter managed to hold very advanced conversations with a view to closing an agreement, but in the end, it never materialised, which left the path open for Savills to exclusively negotiate its purchase (…).

With its integration into Savills, Aguirre Newman will achieve its long-time goal of forming part of a large international network, a leap in size that it considers critical in the context of the growing weight of multinationals in the real estate market and its desire to work within a network that has operations around the world.

Meanwhile, Savills has managed to grow to a size that corresponds to its status as one of the large global real estate consultants, listed on the London Stock Exchange, with a market capitalisation of GBP 1,300 million (€1,450 million). By contrast, in Spain until now, it has operated as a specialist boutique. One of its most recent major achievements was the sale of Torre Agbar to Merlin, in a deal that was designed and executed by Savills.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

C&W Becomes Favourite To “Acquire” Aguirre Newman

16 May 2017 – El Confidencial

The most awaited marriage in recent times in the real estate sector looks like it is about to come to fruition. Aguirre Newman has chosen a favourite in its sales process, which it has delegated to Atlas, as El Confidencial revealed: the offer submitted by Cushman & Wakefield (C&W).

The firm led in Spain by Oriol Barrachina has presented the best offer, ahead of those submitted by Savills and Colliers, and its dream of becoming the new giant in the country, and of competing with CBRE and JLL for the leadership of the market, is starting to look like a real possibility, given that the merger of the two consultancy firms would create a giant with almost 670 employees.

Moreover, if the conversations between the two firms end up becoming reality, C&W will also take a step forward in its plans to grow in size in order to debut on the stock market, an option that it has been analysing since the beginning of the year. A year and a half ago, the consultancy firm completed a global merger with DTZ, and it is now aspiring to undertake another integration, in this case, in the domestic arena.

Sources at Aguirre Newman point out that “it is an open process, there are several options and interests in the running and nothing has been agreed. The company is continuing to analyse alternatives”. Amongst others, how to convert an operation that is theoretically an acquisition into a merger.

It has been precisely this question that has brought Stephen Newman closer to the posture being adopted by Santiago Aguirre, given that differences existed between the two partners regarding the benefit of initiating a sales process. Internally, the operation is viewed more like a merger and, in any case, it will require the agreement of the two partners to go ahead, given that together they control 75% of the share capital.

In fact, one of the elements that differentiates Cushman’s offer, according to market sources, is that, in addition to a juicy financial proposal, the firm has been much more flexible in terms of ensuring the continuity of the “Aguirres” and their decision-making power within the newly merged company.

With more than 400 professionals, revenues of €80 million and a gross operating profit (EBITDA) of €12 million, Aguirre Newman has been valued at between €80 million and €100 million. But its success story – it is the only Spanish firm that competes against the large multi-national firms – is going through a critical time for generational and business reasons, which was ultimately what triggered the sales process.

The fact that it is exclusively a domestic firm means that it is being left out of many projects, since large companies prefer to work with consultancy firms that can offer them international support, a growing trend in the face of the globalisation of the economy and that impediment is limiting the current structure of the Spanish firm.

An example of how the market is changing is the very sales process involving Aguirre Newman, given that the offers from both C&W and Savills, i.e. the two most important, are being led from London, according to sources familiar with the deal.

Original story: El Confidencial (by R. Ugalde)

Translation: Carmel Drake

Aguirre Newman Conditions Sale On Continuation Of Management Team

9 May 2017 – Cinco Días

The future of the real estate consultancy firm Aguirre Newman will be up for debate over the next few weeks, as the current shareholders decide whether to sell the company to one of the three competitors from which it has received proposals. In any case, the founders and presidents Santiago Aguirre (pictured above) and Stephen Newman, as well as the rest of the management team, will continue at the helm, according to market sources.

The owners of Aguirre Newman have received offers that value the company at around €80 million, an operation for which the financial group Atlas Capital has been engaged. The bids come from its rivals in the market: Cushman & Wakefield, Savills and Colliers, as revealed by El Confidencial and confirmed by sources in the sector. All three are international firms, with a smaller presence than the Spanish company in the domestic real estate market, but all of whom are strong at the international level.

And that is precisely what was of interest to the owners of the Spanish company: how to how to tackle the international market as an independent consultancy of the calibre of the global firms, as leader of the domestic market, together with JLL and CBRE. In fact, according to these sources, the owners are considering an alternative plan involving alliances overseas if this sale is ruled out in the end.

The three offers involve retaining the two founders as presidents – participating in the management – but, under one of the proposals, the two directors would retain only an institutional role. In all of the cases, the Aguirre Newman brand would disappear, although the Spanish management team would continue to lead the business for a certain period, which in other similar cases, tends to be for between four and five years.

Not all of the offers are for 100% of the company, given that under one of them, the current shareholders and executives would take on a minority stake in the new company, through which the buyer would operate in Spain.

Currently, the company’s shareholders are in the middle of considering the possibilities, and the plan is for them to take a decision over the next few weeks, based on the benefits and drawbacks of each bid. The US firm Cushman & Wakefield is the favourite in the running, given that following its merger at the global level with DTZ last year, it now has plans to debut on the stock market, something that the current owners of Aguirre Newman may find attractive, according to experts in the sector.

In the case of Savills and Colliers, their presence in the Spanish market is somewhat smaller, and so from their offices in London and Toronto, respectively, they are considering a direct investment in Aguirre Newman to promote their growth in Spain.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

C&W, Savills & Colliers Compete To Buy Aguirre Newman

20 April 2017 – El Confidencial

The final round of the sales process for Aguirre Newman has started and three firms are fighting to take home the trophy. The suitors in question are Cushman & Wakefield, Savills and Colliers, the only three players that have submitted bids for the real estate consultancy firm, according to sources in the market.

The winner is expected to be announced in less than a month. Following the first analysis of the proposals submitted, C&W and Savills are the favourites to reach an agreement with Aguirre Newman, to the detriment of Colliers.

As El Confidencial revealed, Aguirre Newman engaged Atlas Capital in February to organise a sales process that could result in a valuation for the company of between €80 million and €100 million, given that the consultancy firm’s turnover amounts to €80 million and its operating profit (EBITDA) stands at €12 million.

Although there was speculation that venture capital funds, such as Cinven and Apax Partners, may be interested in acquiring the real estate consultancy firm, to take advantage of the recovery in the sector, the underlying reasons that caused the company to organise the sales process in the first place rule out a movement of this kind, a priori.

According to the explanation provided by the head of the group to the workforce, the engagement of Atlas forms part of Aguirre Newman’s new Strategic Plan, which seeks to grow in size and importance, at both the domestic and international levels. The idea is that it may be able to handle that leap in magnitude more quickly if it is able to reach some kind of agreement with another firm in the sector.

Aguirre Newman is the only domestic brand of the large companies that operate in the world of real estate consultancy – the market is dominated by multinationals such as CBRE, JLL, Knight Frank, BNP Paribas Real Estate, C&W, Colliers and Savills. The largest eight players account for more than 90% of the turnover in this market in Spain.

With almost 400 professionals, Aguirre Newman stands out due to its good position in the Spanish capital and due to its architecture division, a “rare species” in the sector, which some of the firms that have expressed interest in the sales process have valued as a differential sign when considering the operation,

In addition to the usual work undertaken by these types of firms – advisory, valuations, appraisals, management… – the Spanish firm has tried to pursue new avenues of growth and expansion, like it did in the past with the fund Zaphir and, more recently, with the creation of a specific business unit for the ‘fintech’ world.

Original story: El Confidencial (by R. Ugalde)

Translation: Carmel Drake

Who’s Buying A Home In The Exclusive Lagasca 99 Building?

7 April 2017 – ABC

The structure has not even been erected yet (it is due to be finalised at the end of the month) and yet half of the 44 homes, distributed over eight floors plus the penthouse level, have already been sold. The smallest properties have a surface area of 330 m2 and the largest span 700 m2. They are the most expensive new build homes on the market and their asking prices range between €10 million for the smallest and more than €16 million for the largest, such as the case of one of the six duplex penthouses located on the eighth floor, which has already been sold, exceeding all expectations. That sale significantly beat the record in terms of the price per m2, paid 7 years ago for a home on Calle Serrano (€15,000/m2). Nevertheless, the average asking price for homes in this property ranges between €10,000/m2 to €14,000/m2).

The building, measuring 26,203 m2, belongs to the Lagasca 99 development and is located in the heart of the Golden Mile, on the only available plot, which makes it the most sought-after in the neighbourhood of Salamanca. It is located between Calles Juan Bravo, Maldonado, Claudio Coello and Lagasca. And 51% of the total volume has already been sold, including the two commercial premises, to domestic firms: Banca March and Actiu, a company that specialises in designer furniture.

On the one hand, the buyers are wealthy Latin American families from Venezuela, Colombia and Mexico, in line with the trend in the luxury real estate market in Spain (…). The remainder are Spaniards. The percentage varies, but on average the split is around 50-50%, said Antonio Pan de Soraluce yesterday, Director at Colliers Internacional in Spain, the entity responsible for marketing the development.

Freedom in terms of design

“Now is a great time to invest. Lagasca 99 is incredibly appealing and so the development is attracting interest from buyers at home and overseas, as well as from business people and firms interested in living in Madrid”, he added.

Word of mouth has played an important role amongst the potential buyers of these luxury homes and the hope is that when the construction work is completed and these homes are handed over, in August 2018, they will have all been sold. For the time being, the commitment is to high quality rather than to worry about the rate of sales, concluded the Director of Colliers. (…).

Original story: ABC (by M. J. Álvarez)

Translation: Carmel Drake

Generali Acquires c/Preciados, 9 For c. €100M

14 March 2017 – Real Estate Press

CBRE GI and IBA Capital have sold the building located on Calle Preciados, number 9, in Madrid for around €100 million. The property, which is currently being renovated, is leased to the Inditex brand Pull & Bear. The real estate consultancy firms JLL and Colliers have advised the sale operation.

Inditex will open a flagship Pull & Bear store in the property, which it leased on the advice of the real estate consultancy Inmored, itself part of The International Retail Network. The store will have a surface area of 2,400 m2, on one of the busiest high streets in Madrid, and is located just a stone’s throw away from La Puerta del Sol.

The former owners, IBA Capital and CBRE GI, entrusted the sales mandate to JLL and Colliers.

The property was acquired from El Corte Inglés by IBA Capital, which subsequently allowed CBRE GI to enter the deal in an operation that included the ABC Serrano shopping centre.

Generali Real Estate, the new owner, is one of the largest global mangers, with a presence across the main markets in Europe. Generali has made its first foray into the retail segment in Spain in a prime location and with one of the world’s leading retailers as its tenant.

Original story: Real Estate Press

Translation: Carmel Drake