Insur Teams Up with Wealthy Andalucían Families to Grow its Property Business in Madrid

18 April 2019 – El Confidencial

Wealthy Andalucían families are teaming up with the real estate group Insur to work on projects in the housing, office and commercial sectors. That is according to various sources in the property sector speaking to El Confidencial. The company itself has declined to comment.

Having previously joined forces with the Moya Yoldi (Persán) and Cosentino families, the company is now looking to expand beyond Andalucía in partnership with other family offices. Possible candidates include the Domínguez de la Maza family, owner of Mayoral and the Guillén family (owner of Acesur-Coosur), with which it has already invested in Sevilla.

Insur is keen to diversify its geographical market (75% of its assets are currently located in Andalucía) and Madrid is an obvious option, thanks to the liquidity of the market. The firm is already building 250 homes there in the towns of Valdemoro, Boadilla and Villaviciosa.

The aim of the company chaired by Ricardo Pumar is to generate stable annual revenues of €20 million from rental income, up from the €12 million recorded last year.

Original story: El Confidencial (by Carlos Pizá)

Translation/Summary: Carmel Drake

Castellana to Merge the Kinépolis & Alameda Shopping Centres in Granada

2 November 2018 – Eje Prime

Castellana is making changes in Granada. The Socimi owned by the South African fund Vukile is going to merge the Alameda Retail Park and the Kinépolis shopping centre into a new brand, called Granaita, according to explanations provided in a corporate presentation that the firm has distributed to potential investors.

The company, which has been listed on the Alternative Investment Market (MAB) since July, will invest €5 million in the process to reposition and integrate its two shopping centres in Granada.

Castellana is one of the emerging players in the current retail market in Spain, in which it specialises. The objective of the company is to be “the leading Socimi in the retail sector”, adds the company, whose objectives include the optimisation of its asset portfolio. The operation that it is going to carry out in Granada sits firmly within that framework.

The real estate manager acquired Kinépolis in June 2017, through the company Junction Parque Granada. The asset, inaugurated in 2004, comprises eight stores with a gross leasable area of 18,508 m2 and is worth €32.5 million.

Meanwhile, Alameda Retail Park was incorporated into Castellana’s portfolio in December last year. Located in the municipality of Pulianas, in Granada, the park began operating in 2014 and comprises four stores with a gross leasable area (GLA) of 27,256 m2. The monthly rent at Alameda amounts to €10.71 and its market value stands at €55.3 million.

The fund that sustains the Socimi financially, Vukile, is going to inject up to €200 million over the next few years to continue with its plan to conquer the commercial sector in Spain, where it hopes to form a portfolio worth €1.2 billion. Castellana is going to look for new shareholders to inject the resources necessary to carry out this plan, which seeks to enable the Socimi to make the leap from the MAB to the main stock exchange within the next three years.

In pursuit of this goal, Vukile acquired four shopping centres from Unibail-Rodamco for €489 million last summer, which were placed in Castellana’s portfolio, as reported by Eje Prime.

Castellana Properties closed 2017 with revenues of €9.31 million, whilst it registered turnover of €5.15 million during the first three months of 2018. The net result for 2017 amounted to €18.61 million, and the firm earned €6.65 million during the first quarter of 2018. The group’s debt at the end of 2017 amounted to €146 million.

Original story: Eje Prime (By Jabier Izquierdo)

Translation: Carmel Drake

Portal del l’Ángel is Still Spain’s Most Expensive High Street: €280/m2/month

19 February 2018 – Eje Prime

The retail sector strengthened its market during 2017. During the second half of the year, it saw growth in the demand for rental properties of 14%, whilst the number of premises for sale rose by 9%. Of all of the high streets across the land, Portal de l’Ángel in Barcelona retained its position as the most expensive in Spain, with an average rent of €280/m2/month, ahead of the Madrilenian street Calle Preciados, where the average price of a retail premise stands at €270/m2/month.

Last year, €4 billion was invested in the Spanish retail sector, in contrast to the crisis that the same market is currently experiencing in the USA. The reasons for the growth in Spain include, amongst other aspects, the strong economic outlook, the boom in commercial tourism and the dynamism of retail trade, according to a report from the real estate consultancy firm Forcadell.

The upward trend, which has now seen two years of increases, is encouraging demand for retail assets. Nevertheless, in cities such as Barcelona, the supply of premises for rent remains at very low levels, above all on the first and second line, which has led to a reactivation of the third line, according to the report.

This lack of commercial space has resulted in a scarcity of prime assets in the Catalan capital. Some companies have already chosen to move to less central locations or to opt for other formats to invest in retail.

Between June and December, the restaurant sector was the segment that grew by the most in the commercial sector in Barcelona, followed by the fashion operator segment, which increased its commitment to flagship stores and showrooms, and the food retail market, which is immersed in a process of positioning itself close to its customers. The profile of investors in retail in the city are Socimis and foreign investment funds.

Investments in Barcelona  

One of the most noteworthy operations closed during the second half of 2017 in Barcelona saw the opening of Uniqlo’s flagship store on Passeig de Gràcia, the Japanese firm’s first store in Barcelona, which spans a surface area of 1,800 m2.

On the same street, Adolfo Domínguez is also going to open a mega-store measuring 682 m2, whilst nearby, on Rambla de Catalunya, the French lingerie brand Etam has inaugurated a store measuring 500 m2. Finally, Leroy Merlin is finalising the opening of an establishment measuring 2,450 m2 on Calle Fontanella, near Plaça de Catalunya, scheduled for before the spring.

Original story: Eje Prime

Translation: Carmel Drake

Neinver & Tiaa Acquire Six New Outlet Centres

24 November 2016 – Expansión

The Spanish real estate firm Neinver and the financial services firm Tiaa have signed an agreement to acquire six outlet centres in Europe, three of which are located in Spain.

Through their joint company, the firms have acquired a block of six outlets which Neinver has been managing and whose value amounts to €700 million. The funds belonged to the fund Irus European Retail Property Fund, in which Neinver holds a 25% stake.

The overseas outlets are located in Poland (Poznan) and Italy, specifically Castel Guelfo, close to Bolonia, and Vicolungo, located in the vicinity of Milan and Turin.

In Spain, the company has acquired Neinver’s three large outlets, located in San Sebastián de los Reyes, Las Rozas and Getafe. In addition, the alliance between Neinver and Tiaa has also finalised the purchase of the Nassica shopping centre, which they have purchased from KKR for €140 million.

Once this latest operation has been signed, which is expected to happen during the first quarter of 2017, the joint venture will have a gross asset value (GAV) of more than €1,200 million, making it one of the most important investors in commercial assets in the country.

At the beginning of 2015, Neinver and TH Real Estate (a subsidiary of Tiaa) signed a strategic alliance, in which they each hold a 50% stake, to create a leading platform for outlet centres in Europe. This joint company already owns three centres in Poland and one in France, as well as the Viladecans The Style Outlet, which opened recently in Barcelona.

Original story: Expansión (by R.Ruiz)

Translation: Carmel Drake

CBRE: RE Inv’t Amounted To €6,191M In YTD Sept 2016

3 October 2016 – Expansión

After two years of record breaking figures, the Spanish real estate sector is heading into the final stretch of the year with more modest forecasts. According to a report prepared by the real estate consultancy CBRE, investors spent €6,191 million buying real estate assets during the first nine months of 2016. That figure represents a 21% decrease compared to last year and is 11% lower than the level recorded during the same period in 2014.

Nevertheless, the amount has been very well received in the sector, given that the last two years have been regarded as “exceptional”. “The trend is still very strong, investors are still putting their faith in the Spanish real estate sector, given the lack of other types of alternative investment options and because real estate in the rest of Europe is very expensive”, said Lola Martínez, Director of Research at CBRE.

This optimism is reflected in the forecasts for the year end close, which are expected to amount to between €8,500 million and €9,000 million. “If we exclude the value of Metrovacesa’s assets to be included in the upcoming merger with Merlin, the year will close in line with the forecasts, thanks to several large-scale operations that are expected to be signed during the last quarter”, said sources at the consultancy firm.

Operations in the pipeline

In this sense, they highlighted Amancio Ortega’s purchase of Torre Cepsa on Friday for €490 million; the sale of the Adequa business park in Las Tablas (Madrid), which the Socimi Merlin will acquire in December for €380 million; and the sale of Edificio España, which the Murcian group Baraka, led by Trinitario Casanova, is due to sign on 15 October, for around €272 million.

Alongside them, experts expect El Corte Inglés to close the sale of its logistics portfolio for between €250 million and €300 million and for Gas Natural to sell several corporate buildings and remain as the tenant (in an operation known as sale & leaseback) for another €200 million.

These five operations alone amount to more than €1,500 million. “If we add up only the transactions that have already been announced, then we reach the forecast figure; and other deals may come up – there is always activity during the final quarter of the year”, said Martínez.

By type of property, commercial assets have taken over the number 1 spot from offices, which traditionally accounted for most of the investment in Spain. “The sales of Adequa and Torre Cepsa mean that the office market is going to make a come back. Nevertheless, we have just had two years of madness, with the Socimis proving themselves to be particularly active in 2015; now, there are fewer products, and prices are not as attractive for the experts”.

In the case of shopping centres, forecast indicate a slightly lower volume than recorded in 2015, despite the signing of major operations such as the purchase of Diagonal Mar in Barcelona, for around €500 million by Deutsche Bank and the acquisition by the Socimi Lar of Gran Vía de Vigo for €141 million.

In the case of the logistics business, “until the first half of the year, it was the best performing segment compared with 2015, but, it lost strength to the commercial segment during the third quarter. Nevertheless, operations such as the sale by El Corte Inglés will help it recover”.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Lar To Invest €145M In Leisure Complex in Sevilla

6 March 2016 – Expansión

On Thursday, the Socimi Lar announced that it is going to invest €145 million in what will become the largest retail and leisure complex in the province of Sevilla. Specifically, it will build the complex in Palmas Altas, an area to the South of the city, known for being home to Abengoa’s huge headquarters

Original story: Expansión

Translation: Carmel Drake

Real Estate Investment Reached 10.300 Million In 2015, Lower Than That Of 2007

15 February 2016 – La Vanguardia

The investment in the tertiary real estate sector in Spain reached EUR 10,300 million in 2015, an amount surpassed only in the past decade by the 10,800 million registered in 2007, according to a report by Cushman & Wakefield.

The last quarter of 2015 saw unremembered business volumes with 3,800 million invested, well above the quarterly average for the last years, resulting in a growth of 61% over the previous quarter and 33% over the same period of 2014 .

The major players in the market were the SOCIMIs, which reached 68% of the investment in the fourth quarter.

Nearly 83% of the investment is concentrated in offices and commercial sectors, with the office sector the one capturing the most investment with nearly 69% and EUR 2,600 million.
A percentage that contrasts with the 48% registered in the previous quarter.

The commercial sector was second with 600 million, 33% lower than the previous quarter. Activity in the industrial sector increased again after the downturn of the third quarter and captured 6% of the total investment.

In addition, in 2015 there has been a decline in large transactions. While in 2014 the weight of transactions over 100 million represented more than two thirds of the amount invested, in 2015 it only reached half of that amount.

Last year, the activity of domestic investors increased its relative weight, representing 60% of the total volume and much of the foreign investment came from the traditional Europe, approximately 15%.

In 2015 yields have continued to fall in almost all sectors. However, this yield drop has been slowing in the industrial sector.

By 2016, the consulting firm expects that investment in commercial assets goes back to show high activity, since they are trading large transactions as that of El Corte Ingles and the placing on the market of more shopping centers, which is expected to be closed between the short and medium term.

The office sector is expected to remain strong, but it is foreseeable that the levels seen in the fourth quarter of 2015 are reduced.

Original story: La Vanguardia

Translation: Aura Ree