La Generalitat Resumes the Auction of Various Rental Homes in L’Hospitalet de Llobregat

12 June 2019 – El Confidencial

La Generalitat de Cataluña is resuming the public auction of a rental home portfolio for which it hopes to obtain proceeds €6.2 million, having applied a discount of 20% to the asking price last year (€7.7 million).

The assets in the portfolio are all located in L’Hospitalet de Llobregat (Barcelona) on Calle Ciencies 15-23, next to Plaza Europa and the Gran Vía 2 shopping centre. They comprise 16 homes, 2 commercial premises, 23 parking spaces with storerooms plus 3 terraced single-family homes located in the urbanisation behind that building on Calles Mileva Maric 33 and 49 and Hanna Arendt, 3. In total, the assets have a combined surface area of 2,448 m2 and are leased almost in their entirety, with just one home and the commercial premises vacant.

The assets are owned by Fira 2000, in which the Catalan government holds a 50%, alongside the Town Halls of Barcelona and L’Hospitalet de Llobregat.

The deadline for bids is 22 July and the online auction will be held on 29 July through Addmeet.  

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Madrid’s Regional Government Gives Green Light to Operación Madrid Nuevo Norte

19 May 2019 – El Mundo

According to information obtained by El Mundo, the Community of Madrid is going to send its Environmental Assessment Report regarding Operación Chamartín to the Town Hall of Madrid on Monday, which will leave the path clear for the municipal plenary to vote on the plan before the local elections are held on Sunday 26 May.

The urban development project, which is now known by its new name, Madrid Nuevo Norte, will see the construction of 10,500 homes at the northern end of Paseo de la Castellana, together with the development of offices, retail areas, green spaces and three new metro stations.

The only requirement stipulated in the definitive report issued by the Community of Madrid is that agreements be made upfront about who is going to pay for the public building works, including the Canal de Isabel II installations, the construction of the three new metro stations and the preparation of the surrounding roads.

According to the protocol of execution signed a month ago by the Town Hall of Madrid, Adif – the public entity that owns the land – and Distrito Castellana Norte (DCN) – the private company that is promoting the development – the three leading players will share the cost of developing the aforementioned infrastructures, whereby ensuring that local taxpayers do not have to foot the bill.

Original story: El Mundo (by Marta Belver & Isabel F. Lantigua)

Translation/Summary: Carmel Drake

Inbest Prepares New Investment Vehicle for Retail Parks & Finalises MAB-Debut of its Socimis

15 May 2019 – Eje Prime

Corpfin Capital Real Estate is planning to launch a vehicle to invest up to €60 million in retail parks. Meanwhile, it is working towards the debut of its four Socimis on the Alternative Investment Market (MAB) in June.

To date, the company has been channelling its investment in retail parks through a vehicle it created in 2015, Corpfin Capital Retail Parks, with an investment volume of €44 million. But now it is going to create a second vehicle, Inbest Parks II, which will have €60 million to spend, with the aim of providing continuity and attracting new investors.

In parallel, the company is focused on the MAB debut of its four Socimis, which are due to list for the first time on 27 June. In total, the companies have an investment volume of €400 million, comprising own funds and debt. Most of that figure (€378 million) has already been invested in the purchase of three buildings from El Corte Inglés and the acquisition of the commercial premises in Edificio España.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

El Corte Inglés Reduces the First Phase of its RE Sales Process to €1bn

29 March 2019 – El Confidencial

El Corte Inglés is refining the plan for its real estate divestment strategy. After hiring Javier Catena as the new Director of Real Estate, the group has decided to sell off its assets in phases and will begin by activating the sale of 95 assets, from an initial perimeter of 130.

The department store giant has engaged PwC to open the tender process for investors, with the aim of receiving final offers by the end of April.

The revised portfolio includes 14 commercial premises, 16 plots of land and 65 assets of various types, such as flats and parking spaces, which together span a total surface area of 1.2 million m2 and which are primarily located in Madrid, Barcelona, Málaga and Sevilla.

Investors may bid for all or part of this first portfolio, or even for specific assets only. Most of the properties for sale are being offered with the option of a sale and leaseback arrangement, whereby the vendor would remain as the tenant following the sale.

By reducing the perimeter of this first phase to 95 properties, ECI has decreased the proceeds that it expects to receive from RE sales this year to €1 billion, compared to the figure of between €1.5 billion and €2 billion that it had announced in December.

Original story: El Confidencial (by R. Ugalde)

Translation/Summary: Carmel Drake

Grupo Iffe Acquires Promorent & Implements a Change in Strategy

25 February 2019 – Eje Prime

Promorent, the second Socimi to enter the Alternative Investment Market (MAB), is changing hands. The company has been acquired by the Institute of Financial and Business Training (“el Instituto de Formación Financiera y Empresarial” or Grupo Iffe), which has purchased a majority stake through a capital increase amounting to €33.7 million, according to confirmation provided by David Carro Meana, CEO of Iffe, speaking to Eje Prime.

Following the operation, the company will cease trading as a Socimi and it has already filed a request with the MAB to enter the segment of expanding businesses under the name Iffe Futura. The group has also approved an increase in its share capital, at an extraordinary shareholders meeting, to take the leap into the field of property development.

Until now, Promorent was a Socimi with a real estate disposition. Now, with the entry of Grupo Iffe, it will also be a property developer. Moreover, the company’s new statutes provide for the possibility of acquiring and administering shares in other companies, even if they are not Socimis.

The new Board of Directors of Iffe Futura will be led by David Carro Meana. The President of Grupo Iffe will become the President and CEO of the company (…).

With this operation, Grupo Iffe is taking control of a listed company and consolidating its business as a property developer. The company, which is headquartered in Oleiros, A Coruña, already operates three other main lines of business: a business school, a financial consultancy and a business incubator.

Promorent, constituted in November 2011, has been a real estate company until now. It was promoted by the Pavón Olid family group and it was the second Socimi to make its debut on the MAB in December 2013. The company has a diversified portfolio comprising 18 assets: 11 homes in the centre of Madrid, 4 commercial premises and 3 plots (…).

Original story: Eje Prime (by Roger Arnau)

Translation: Carmel Drake

Thor Equities Finds a Tenant for its Jewel on Gran Vía

20 February 2019 – Eje Prime

Thor Equities has found a replacement for Sfera in the heart of Madrid. The US fund, which last year acquired number 30 Gran Vía for €75 million, has leased one of the commercial premises in the property to the sports fashion retailer Décimas.

The company has taken over the space measuring 600 m2 from Sfera, the fashion chain owned by El Corte Inglés. That retail company had occupied the premises since 2005 but decided to vacate it last year because it was too small for its new commercial format (…).

For Décimas, this new store represents a new step onto a prime thoroughfare. The chain concentrates the bulk of its store network in shopping centres, although it also has a flagship store on Calle Fuencarral (…).

Original story: Eje Prime (by Silvia Riera)

Translation: Carmel Drake

Saint Croix Buys an Office Building in Madrid for €24M

31 January 2019 – Diario Vasco

The Socimi Saint Croix Holding has acquired an office building located on Calle Juan Ignacio Luca de Tena 17 in Madrid for €23.95 million.

The price of the building, which also includes 166 parking spaces, has been paid in part with two commercial premises owned by the company whose value amounts to €3.5 million, according to the Spanish National Securities Market Commission (CNMV).

Specifically, the commercial premises are located on Calle Caleruega 66, 68 and 70 as well as on Calle Rutilo 21, 23 and 25, both in Madrid.

In addition, the company has paid €20,385,500 in cash to complete the purchase price.

During 2019, the Socimi is planning to undertake a comprehensive renovation of the building to reposition it and adapt it to the standards demanded by the market.

Original story: Diario Vasco 

Translation: Carmel Drake

MK Premium Acquires Another Building in Barcelona for €3.8M

31 January 2019 – Eje Prime

MK Premium is starting the year with new purchases. The company has acquired another building in Barcelona for €3.8 million. The asset is located at number 5 Calle Milans, a street in the ‘Gótico’ neighbourhood where the company already owns another property.

According to explanations provided by the company, it is a historical property, constructed in 1870, with a total surface area of 1,107 m2, comprising seven homes and two commercial premises.

In 2017, MK Premium acquired the building located at number 4, with a total surface area of 2,700 m2, worth €10 million. With this purchase of number 5 Calle Milans, the Spanish property company has invested almost €14 million and owns assets spanning more than 3,700 m2.

The Spanish property firm, specialising in real estate assets ended 2018 with a profit of €2.12 million, which represented an increase of 135% with respect to 2017. The company’s turnover for the year amounted to €14.63 million (…).

Original story: Eje Prime

Translation: Carmel Drake

Urban View to Debut on the MAB with a Valuation of €38M

23 January 2019 – Eje Prime

Urban View is finalising its debut on the MAB. The rental home Socimi is going to start trading on the Alternative Investment Market (MAB) on Friday for a price of €7.20 per share, which represents a valuation of €38 million.

The group, created in March 2017, is owned by the Urban Group holding company, which specialises in the acquisition and management of residential real estate assets. The firm will make its debut on the MAB with a portfolio of 454 assets, including homes, garages, commercial premises and a warehouse, through a dozen family Socimis.

The assets owned by Urban View Development are distributed across five autonomous regions: Cataluña and Madrid, which account for 96% of the portfolio; the Balearic Islands, Andalucía and the Community of Valencia. Currently, 31.7% of the company’s homes are leased.

Original story: Eje Prime 

Translation: Carmel Drake

Andalucía’s Culture Department Approves ‘La Equitativa’ Hotel Project in Málaga

18 January 2019 – Málaga Hoy

The majority owner of the La Equitativa building, which is behind the partial restoration of the property for the installation of a 5-star hotel, now has the path clear to obtain the building permit for the work. The Delegation of Culture of the Junta de Andalucía has just issued a favourable report for the renovation project, plans for which were submitted almost eight months ago, which paves the way for the Urban Planning Department to grant permission for the intervention.

That was confirmed to this newspaper by sources close to the owner company, who indicated that it was the last procedure that was pending with the municipal entity. In terms of the timeframes that the company is working with to launch the work, the same sources said that it will depend on the announcements made by the municipal entity, which will have to validate compliance with the other technical requirements before proceeding to grant the permit.

The unblocking of the hotel project came on 22 June, when Key International, an investment fund headquartered in Miami, acquired 100% of the east part of the building, which comprises a ground floor plus seven upper storeys, through the firm Alameda Retail. The sale and purchase operation also involved one home and a commercial premise, and although they barely account for 3% of this section of La Equitativa, they were limiting the possibility of the project going ahead as a hotel.

That circumstance forced the private firm to not rule out the possibility of opting for residential use for that part of the building. Having closed the purchase of the remaining buildings, an operation that required several weeks of negotiations with the tenants, the investment fund has free reign to push ahead with its first objective: hotel use. It was precisely that purpose that sparked the firm’s interest in buying La Equitativa in the first place, closing the purchase of 60% of the historical building, which had been owned by Rubcapel until that time.

At the end of April, through the company Key Continental, a request was filed with the Urban Planning Department to proceed with the renovation of the property for that purpose. The data points to an establishment with capacity for around 80 rooms, with an investment of around €14 million. In addition, there will be commercial premises on the ground floors.

Once the position of Delegation of Culture, which is in favour of the intervention, has been defined, then the company may soon resume contact with hotel chains to close an agreement for the management of the establishment.

The other part of La Equitativa corresponds to the tower, comprising 14 floors, which will also be renovated but which will retain its residential use. For that, the owner, Ingomar, also requested a building permit from the Urban Planning Department last October.

The restoration of this building, which is still in the processing phase, is part of a major transformation process currently on-going in La Alameda area, with the future arrival of the metro and the semi-pedestrianisation work, promoted by the Town Hall, as some of the main features.

Original story: Málaga Hoy (by Sebastián Sánchez)

Translation: Carmel Drake