Knight Frank: RE Sector Becomes A Safe Haven For HNWIs

2 March 2016 – Expansión

The property sector is becoming a safe haven for HNWIs (High Net Worth Individuals), who are expected to increase their exposure to this business over the next ten years, at least that is according to the findings of The Wealth Report 2016, prepared by Knight Frank. The consultancy firm considers that, given the current economic context, characterised by global stock market volatility and low bond yields, the residential and commercial segments are the best option for this type of investor.

According to the study, the number of ultra rich people – those individuals with a net worth of more than $30 million, excluding their usual residence – decreased by 10% in Spain, compared with a decrease of 3% at the global level, mainly due to turmoil on the stock markets. Specifically, 467 ultra rich people live in Madrid and 227 live in Barcelona, down by 14% and 48%, respectively. In the case of Spain, the consultancy firm considers that, with attractive prices in comparison with other countries and clear signs of a strong, but sustainable, recovery, the real estate sector is gaining strength, as a clear alternative for this investor profile.

In terms of the impact of the current political situation, the CEO of Knight Frank España, Alberto Prieto, revealed that international investors have ruled out the possibility of a “pro-business” Government. Prieto warns that another option for Government, including Podemos, may have an impact on investment due to the fear of an effect on political security and he adds that “the worst thing” that could happen in this “perverse loop” would be a lack of clarity regarding the rules of the game.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Patron Capital Buys 43 Retail Outlets For €35M

4 February 2016 – Expansión

The British investment fund Patron Capital has purchased a batch of 43 retail outlets, mainly supermarkets, from Blackstone for €35 million.

The properties are located all over Spain, although the majority are found in the regions of Asturias and Castilla. 32 of the premises are supermarkets in urban areas, five are cash & carry establishments and six are retail premises located in prime areas of several Spanish cities.

The tenants of the properties include: the supermarket chain El Árbol, owned by the Día group; the fashion house Cortefiel; and the bank ING Direct.

As a result of this acquisition, Patron Capital has increased its commitment to the commercial segment, which now accounts for 50% of its portfolio. Residential assets and hotels make up the remainder, accounting for 20% and c. 30%, respectively. The operation has been advised by Garrigues, Cuatrecasas Gonçalves Pereira, Aguirre Newman, Deerns and CBRE.

Patron Capital is headquartered in London and operates in Spain from its office in Barcelona, led by Pedro Barceló. The Spanish office has a budget of €200 million to invest in 2016 not only in the commercial sector, but also in the office, residential and hotel segments.

Original story: Expansión (by M. Anglés)

Translation: Carmel Drake