JLL: Foreign Investment in Catalan Real Estate Rose by 137% in 2018

15 June 2019 – La Vanguardia

According to data published by the real estate consultancy JLL, overseas investment in the Catalan real estate sector rose by 137% during 2018, despite the fact that total investment fell from €1.13 billion in 2017 to €995 million in 2018.

In fact, domestic investment plummeted by 85% to €363 million from €859 million, but almost all of that decrease was offset by the arrival of funds from overseas. Of those, investment funds deposited 57% YoY more in 2018 (€574 million) and Socimis invested 47% YoY more (€326 million).

Having overcome the political uncertainty seen in 2017, international investors showed their commitment to Cataluña in general and Barcelona in particular, not least because the city has been declared as one of the world’s influencer cities by JLL.

In the business context, the city is particularly attractive for investment in the office, logistics and commercial sectors, ranking in first place in all 3 markets when compared with its European counterparts.

Specifically, the Catalan capital’s offices generate yields of 3.75%, whereby outperforming Milan (3.6%), London, Madrid and Stockholm (all 3.5%). Its logistics assets generate returns of 5.10%, compared with 5% in Madrid, and its shops in central locations generated yields of 3.25% in Q1 2019, compared with Madrid (3.15%) and Paris (2.75%).

All of this is welcome news for the region that has been hit hard by the political uncertainty of recent years.

Original story: La Vanguardia (by Pilar Blázquez)

Translation/Summary: Carmel Drake

Redevco on the Hunt for Mixed-Use Buildings to Join the Rental Housing Bandwagon

3 June 2019 – El Confidencial

A few months ago, Redevco, one of the largest players in the commercial real estate sector in Europe, announced the launch of a €500 million fund aimed at creating a pan-European portfolio of 2,500 rental homes. The aim is to focus primarily on the Netherlands and Germany, but with Spain and the UK accounting for a significant share.

In Spain, the company is now analysing various operations with the aim of closing one or more during the second half of this year. The shopping centre specialist is considering all kinds of strategies, from acquiring properties already for rent to teaming up with property developers and buying assets to renovate.

It is mainly focusing on mixed-used properties in Madrid, Barcelona, Valencia and Bilbao, with an average investment volume of around €20 million per asset. Its aim is to acquire entire properties, rather than small or dispersed assets and it is looking for two-bedroom homes with an average monthly rent of €1,000.

In Spain, Redevco’s commercial portfolio comprises 32 properties worth €800 million. It also operates a joint venture with Ares to invest €500 million in shopping centres, which currently owns the Mercado de San Miguel and Parque Corredor, both in Madrid.

Original story: El Confidencial (by R. Ugalde)

Translation/Summary: Carmel Drake

Vukile to Inject €600M into its Socimi Castellana Properties

5 March 2019 – Eje Prime

Vukile is going to inject €600 million into its Spanish Socimi, Castellana Properties, to enlarge its portfolio. The aim of the South African fund is to debut the Socimi, which specialises in shopping centres, on the main stock market during 2019.

The company currently owns 19 commercial assets in Spain worth €898 million and has a leverage ratio of 48%, but before making the leap onto the main stock market, the company wants to increase its asset portfolio to €1,500 million and reduce its leverage ratio to below 45%.

The plan is to carry out a €600 million capital increase, to finance the additional asset purchases, which will be subscribed by its main shareholder, Vukile.

Original story: Eje Prime

Translation: Carmel Drake

Ores Doubles its Portfolio in a Year & Closes 2018 with Assets Worth €357.4M

11 February 2019 – Eje Prime

Olimpo Real Estate (Ores) is establishing itself in the market. The Socimi owned by Bankinter and Sonae Sierra closed last year with a portfolio comprising 34 assets worth €357.4 million. In this way, the company has doubled the valuation of its assets since the end of October 2017, a few months after it made its debut on the stock market. At that time, the firm held a total of 16 investments worth €172.6 million.

At the end of 2018, the value of the Socimi’s portfolio amounted to €357.4 million across 34 assets, comprising mainly hypermarkets (28.5%) and supermarkets (14.7%), retail parks (15.2%) and out-of-town stores (14.4%), as well as premises (8%) located on the main streets of large cities.

During the last four months of 2018, four investment operations were undertaken for a total value of €27.5 million. Specifically, the firm completed the purchase of two supermarkets, an out-of-town store in Santander and a commercial premise in Vigo.

“These operations are in line with Ores’ investment strategy, in urban locations in Spain’s main cities, and with first-class operators as tenants and long-term and stable lease contracts”, said the company in a statement sent to the Alternative Investment Market (MAB).

Ores is a company whose main activity is the acquisition and management of commercial real estate assets, both in Spain and Portugal. The company was created in December 2016 by Bankinter and Sonae Sierra, made its stock market debut at the end of February 2017 and has been increasing its investments and assets ever since.

Original story: Eje Prime

Translation: Carmel Drake

M&G Real Estate Purchases 3 Commercial Premises in Madrid & Granada

29 May 2018 – Eje Prime

M&G Real Estate is continuing its shopping spree in Spain. The real estate division of the British fund M&G Investment has acquired two commercial premises in Madrid and a third in Granada. Moreover, the firm has also added two industrial assets in the Spanish capital to its portfolio.

The commercial premises in Madrid are located at number 68 Gran Vía, whilst the asset acquired in Granada is located on Calle Reyes Católicos, where the Swedish fashion retailer H&M recent opened a store. In the Spanish capital, the tenants of the retail spaces are the restaurant chain Tony Roma’s and the financial entity Banco Sabadell, which will open its flagship branch in the premises soon.

Meanwhile, in the logistics sector, the real estate investment firm has purchased a logistics platform in Corredor del Henares, which is leased to Teka, and an industrial complex in Getafe. In total, those two assets span a surface area of more than 55,000 m2.

Original story: Eje Prime 

Translation: Carmel Drake

IBA Capital Creates a Fund to Invest up to €300M in Spain’s High Street

25 May 2018 – Eje Prime

IBA Capital is gaining strength as one of the investment funds with the most potential in the Spanish market. The company has just launched an investment fund specialising in the retail high street segment, through which it plans to invest up to €300 million in the purchase of commercial assets located on the main streets (high streets) of Spain’s secondary cities, according to Thierry Julienne, founder of the investment vehicle, speaking to Eje Prime.

This new vehicle from IBA Capital will bet on buying commercial premises on streets such as Calle Larios in Málaga and Calle Tetuán in Sevilla, for example. Also on IBA Capital’s radar are assets located in cities such as Valencia, Santander, Coruña, Oviedo and Vigo, amongst others.

“We want to create a portfolio of prime assets – we are not looking for properties to create value, but rather buildings are profitable with operators such as H&M, Mango and chains from the Inditex group as tenants”, explains Julienne, who also added that the stores that may interest the fund should have a surface area of around 1,000 m2.

“It is a safe fund, which has been created with an investment capacity of €100 million, but which may reach €300 million over the next few years”, he says. The type of investor to which this new vehicle from IBA Capital will be directed are “conservative and Spanish”, explains the director. “Family offices, for example, are target investors of this new fund”, he concludes. (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Barcino Acquires c. 20 Assets in Barcelona for €2.15M

16 May 2018 – Eje Prime

The Socimis are continuing to party in Spain. Although the experts said that 2018 would be a year for portfolio management, the fact is that many of these companies are continuing to add new assets to their portfolios. The latest is Barcino Properties, which is continuing to specialise in the residential sector with the purchase of a package of 20 assets in Barcelona for more than €2 million, according to a statement issued by the group.

Barcino, which signed the purchased deed on 14 May, has acquired the property at number 18 Calle Olivera for €2.15 million. The asset comprises two commercial premises and 14 homes, and the current occupancy rate stands at 79%. To finance this purchase, the company has signed a mortgage loan with Bankinter for €1 million.

The Socimi debuted on the MAB last December with a share price of €1.33 and a market value of €19.1 million. Specialising in real estate investment and management, the Catalan entity has eight properties in its portfolio, all of which are located in the Barcelona metropolitan area. Most of its assets are rental homes, although it also owns some office buildings and commercial premises. Currently, the Socimi is controlled by Barcino Management (50.01%) and managed by a related party company Vistalegre Property Management.

The company’s most recent purchases include a residential building in Barcelona, which it bought just 48 hours after making its stock market debut. In that case, the company executed a €1.2 million purchase option that it had signed over the property, located at number 92 Calle Girona, after paying €493,000 euros in November for the rights to acquire the asset.

That building contains two commercial premises and seven homes in total, all of which are currently occupied. For the operation, the company made use of its own available funds, without having to resort to additional leverage.

Created in 2015 

Barcino defines itself as a company whose main activity is the “acquisition and renovation of urban assets for their subsequent rental”. The company primarily invests in central locations in the Barcelona metropolitan area. In terms of the characteristics of its desirable assets, the company must be able to purchase the entire building and subject it to a comprehensive renovation.

The group was constituted in January 2015 and since February 2016 it has been registered as a Socimi. The company is chaired by Mateu Turró, who is also an honorary director of the European Investment Bank (EIB), where he worked from 1988 until 2009 (…).

Turró is accompanied in the management of Barcino by Francesc Ventura, an architect who has held roles as director and secretary of the management board and executive committee of APCE (Association of Property Developers of Barcelona) and as CEO of La Caixa de Pensions de Barcelona.

Moreover, the company is also led by Ralph Weichelt, Investment Director at Triple Point Social Housing, a public company listed on the main London Stock Exchange, which operates in the social housing sector in the United Kingdom. The executive has also served as the director of several companies including BNP Paribas Real Estate and JLL.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Sareb Sold Almost 5,000 Properties During Q1, Up by 12%

14 May 2018 – Eje Prime

Sareb sold almost 5,000 properties during Q1. During the first three months of the year, the bad bank placed 4,782 units, of which 2,358 corresponded to own properties and 2,424 to loan collateral properties that were transferred from the balance sheet of property developers, according to a statement issued by the company. Compared to the first quarter of 2017, that sales figure represented an increase of 12%.

88% of Sareb’s sales between January and March involved homes, whilst 7% corresponded to the sale of plots of land and the remaining 5% to the sale of commercial assets that the bad bank held relating to the tertiary market.

Similarly, the real estate company has announced the proposal to its General Shareholders’ Meeting to appoint Juan Ignacio Ruiz de Alda as a new board member, as a representative of the Restructuring Fund (Frob). The executive, with experience at Metrovacesa and Banco Santander, amongst other companies, would take over from Lucía Calvo, who left the company in January.

In 2017, Sareb ended the year with a real estate portfolio worth €37,179 million and €3,050 million of repaid debt, meaning that the company had managed to reduce its indebtedness by 25% during its first five years of life.

Original story: Eje Prime

Translation: Carmel Drake

Lar España Sells Retail Assets to French Fund Pierre Plus for €33M

13 March 2018 – Expansión

The Socimi Lar España has sold some commercial assets to the French investment fund Pierre Plus SCPI for €33.2 million. Specifically, the firm has sold two out-of-town stores in the Nuevo Alisal retail park in Santander (pictured above) and a commercial building in Villaverde (Madrid).

Original story: Expansión

Translation: Carmel Drake

Lar’s Assets in Valencia Now Worth 34% More than Purchase Price

26 February 2018 – Expansión

The Socimi Lar España values its assets in the Community of Valencia at €210.5 million, up by 34% compared to their combined purchase price. The value of the Vidanova project in Sagunto has appreciated by 77% in two years.

At the presentation of its annual accounts, the Socimi Lar España said that the land that it purchased less than a year ago from Bertolín, next to the Cheste circuit (in Valencia), is already worth more than twice the amount that it paid for it.

According to the Socimi, the logistics plot, measuring 112,813 m2, named Newlogis, which it acquired in May, had a market value of €5.2 million at the end of 2017. In other words, it had appreciated in value by 136% in just eight months.

With those percentages, it is hard not to remember the last real estate bubble of just a decade ago when expressions such as “pelotazo” were so typical in the property sector.

According to the detailed information about the project, the cost of the land has increased significantly because it also includes the urbanisation costs. In this way, the total cost of the land has increased to €16.5 million by including the amount of the urbanisation works that correspond to it and which are in fact being undertaken by a company belonging to the Bertolín family. The Socimi expects that the first warehouses may be ready by the end of 2019.

Lar España has also accumulated significant latent gains on the rest of its investments in Valencia, according to the market value attributed to them by reports from JLL and Cushman & Wakefield. The Socimi owns five assets in the region, specifically, three shopping centres and two industrial properties. At the end of 2017, Lar España valued them at a market price of €210.5 million, compared to the €156.3 million that it paid for them between 2014 and 2016.

The largest asset is the Portal de La Marina de Ondara shopping centre (Alicante), which generated €7.6 million in rental income last year, making it the Socimi’s third best-performing asset by revenues. According to the valuation, it is now worth around €120 million; the Socimi paid almost €90 million for it between 2014 and 2016.

Meanwhile, the Vistahermosa de Alicante shopping centre is now worth €50 million, when it was acquired in 2016 for €42.5 million.

Another asset that has multiplied in value in the Vidanova commercial development in Sagunto, which is worth €24.8 million, up by 77% compared to the purchase price of €14 million.

Finally, the Socimi’s logistics platform in Almussafes has seen its value increase from €8.4 million to €10.3 million in two years.

Original story: Expansión (by A. C. A.)

Translation: Carmel Drake