The Bidding Opens for the Largest Plot of Tertiary Land in Madrid

20 March 2019 – Expansión

Savills Aguirre Newman is marketing more than 180,000 m2 of land for the development of retail, hotel and office properties in the Valdebebas area of Madrid. It is the largest undeveloped tertiary use plot in the capital and the surface area for sale has been divided into three zones, all of which are being managed by the Valdebebas Compensation Board. The owners of the land include Monthisa, Bisbel, Vivienda Económica, Celteo, Coindeco and Inmobiliaria Espacio.

The plan is for the sale of the land to be completed by the beginning of the summer, which means that a large number of investors will be able to participate. Retail, hotel and office property developers have already expressed interest in the site, although no firm offers have been received yet.

The development of this new area was unblocked in February, after five years on the backburner, when the Town Hall of Madrid dismissed all of the appeals against the approval of the economic reparcelation project of the Valdebebas land.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Socimi VBare Acquires a Building in Madrid for €5.3M

9 January 2019 – La Vanguardia

The Socimi VBare Iberian Properties Socimi has purchased a building comprising 27 homes and 2 commercial premises in Madrid for €5.3 million plus transaction costs.

In order to purchase the property, which is located on Calle Vallehermoso in Madrid, VBare has signed a mortgage loan with Banca Pueyo for €3.43 million, contributing the rest of the purchase price through available cash.

The property is mainly dedicated to residential use and the expected net approximate yield will amount to 4.3% once the refurbishment work has been completed.

The building has a surface area of approximately 1,500 m2 and is the second most significant acquisition carried out to date by VBare in terms of investment volume, after the operation it completed on Calle Luchana in Madrid in October 2018.

Original story: La Vanguardia

Translation: Carmel Drake

Corp Promotors Acquires Plot Next to La Sagrera Station in Barcelona for €10.4M

17 October 2018 – Europa Press

The real estate company Corp Promotors has acquired a plot of land spanning 1,512 m2 located next to the future La Sagrera AVE train station in Barcelona for €10.44 million.

The Catalan firm has fought off competition from three companies in the bid for the plot, which was opened by the public company responsible for the development of the station, an entity in which the Ministry of Development, La Generalitat de Cataluña and the Town Hall of Barcelona all hold stakes.

The plot, which is located in an area that has “great potential for growth” in Barcelona, can be used for building both homes and commercial premises.

Specifically, it has a buildability of 8,221 m2, of which 7,346 m2 will be used for homes and the remaining 875 m2 will be used for shops.

The land forms part of the plots freed up for railway use generated by the construction of the station. The amount obtained from its auction will contribute to financing the new railway.

In fact, the joint venture company that is developing the station has obtained 63% more than the estimated sales price for this plot, of €6.4 million. That was what allowed Corp Promotors to acquire the land and fight off competition from the other three firms that were also bidding for it.

The company behind the construction of La Sagrera station is owned by the Ministry of Development through its companies Adif, which holds a 37.5% stake, and Renfe, which owns another 12.5% stake. The Town Hall of Barcelona owns 15% and La Generalitat the remaining 25%.

Original story: Europa Press

Translation: Carmel Drake

Former Bacardi Factory Plots in Málaga to go up for Sale for €15M

7 June 2018 – La Opinión de Málaga

Yesterday, the consultancy firm Savills Aguirre Newman announced the upcoming sale of almost 75,000 m2 of land on the site of the former Bacardi factory in Málaga, an operation for which it is acting as the broker and which could reach a market value of around €15 million.

The land, which is classified as buildable industrial, could prove very attractive for investors, given the current lack of available spaces of this kind in Málaga on which to locate industrial or logistics facilities. The director of the consultancy in Málaga, José Félix Pérez-Peña, described the land as “one of a kind”, despite the fact that it is located on the Guadalhorce flood plan, and mentioned several high-profile “international funds” as possible interested parties. The consultancy firm, which indicated that the plots will come onto the market “soon” is placing the focus on the use of the site for office buildings.

Another attractive plot that Savills Aguirre Newman is brokering the sale of is the former Salyt brick factory, spanning almost 13,000 m2, although it is still unknown whether that will be allocated to industrial or commercial use. A Dutch group had expressed interest in building a shopping centre on the site although the price being requested by the Town Hall paralysed that operation. There has also been talk recently of the land housing a logistics warehouse. Pérez-Peña said that the final destination of these plots would be revealed over the next few months.

In terms of Astoria, he said that “several international groups are interested”, including one in particular that has properties of this kind in Spain and Europe and which may soon make contact with the Town Hall. In theory, the Town Hall is planning to convene a tender at the end of this year or the beginning of 2019 in which anyone who wants to will be able to participate (…).

Another one of the projects that is being “followed very closely” by Savills Aguirre Newman is that of Martiricos, where two residential towers are going to be built, plus an office building measuring 7,000 m2 and another commercial building measuring 3,000 m2. The consultancy firm classified it as one of the “star projects” in Málaga, which “is going to change” the city.

Pérez-Peña also summarised other matters such as the future of Pier 4, which has a surface area of 26,500 m2 and which, in his opinion, could become a great space for offices or homes. He also said that Repsol, spanning 117,000 m2, could be a wonderful enclave for making a city of offices, although that would be up to the Town Hall and Sareb to decide. And he also alluded to the potential of the Correos building (3,352 m2) as an office block, although he admitted that it would generate higher yields if it was allocated for residential or hotel use.

Original story: La Opinión del Málaga (by José Vicente Rodríguez)

Translation: Carmel Drake

CBRE GI to Invest €800M in Spain in 2018

18 May 2018 – Expansión

The real estate asset manager CBRE Global Investor (CBRE GI) is redoubling its commitment to Spain. After ending last year with a record investment of €800 million and starring in several mega-operations, the firm wants to establish a new record this year, exceeding the milestone set in 2017. From its offices in Madrid, CBRE GI manages assets worth €3.2 billion in the retail, office, logistics and student hall sectors, located in Spain and Portugal, and is getting ready to enter the residential sector.

“Last year was very important given the significant transaction activity undertaken, of which €800 million corresponded to purchases. This year, we hope to match that figure and even exceed it”, explained Antonio Simontalero, Head of Operations for Spain and Portugal at CBRE GI, speaking to Expansión.

The firm works with eight funds and owns a portfolio comprising 19 shopping centres, 37 logistics platforms, three office buildings and 33 halls of residence for students.

Although retail is still the main market for the manager, accounting for 70% of its portfolio, CBRE GI has decided to attack new businesses. Thus, last year, it entered the market for student halls with the purchase, together with AXA IM Real Assets and Greystar, of Resa, the market leader in Spain, for €400 million. “We are continuing to analyse opportunities in the student hall market. We want to grow the portfolio and increase our exposure”, says Antonio Roncero, Head of Transactions for Spain and Portugal at CBRE GI.

Another milestone in 2017 was the consolidation of the manager in the logistics sector following the joint venture signed with Montepino for the development and promotion of logistics assets. “The initial objective of the investment in the joint venture with Montepino was €300 million, but we hope to exceed that figure soon. With the developments underway, we have 80% of the investments committed”.

Simontalero points out that CBRE already had 700,000 m2 of logistics assets under management and the agreement with Montepino will allow the firm to exceed the 1 million m2 threshold. The logistics sector is thereby becoming the manager’s second segment by volume, accounting for almost 15% of its total assets. “The differentiating feature of this joint venture is that all of the assets are going to be latest generation, which is what the main operators require”, adds Roncero.

Rental homes

In terms of next steps, CBRE GI is preparing to attack a new market, specifically, the residential rental market. “We are analysing various options with different partners, either through the development of new-build properties or by investing in a business through the purchase of portfolios”, say the directors.

For Simontalero, the size of the rental market vs. the purchase market in Spain is going to grow and will move into line with the rest of Europe. “There is latent demand that is not being fully satisfied with the current supply in the market”, he said.

For Roncero, the key is in the service. “We see an opportunity for offering a professionalised service in the rental home segment, providing security to the tenant and placing emphasis on the maintenance of properties”.

Roncero says that the objective of CBRE GI involves gaining “critical mass” in the sectors to which it is least exposed in order “to diversify and be more versatile”.

Sales

In addition to growing its portfolio with new properties, the company is continuing to rotate its assets. Specifically, last year, it sold four shopping centres (two in Spain and two in Portugal), and it is now preparing to sell three more – Gran Casa (Zaragoza), Valle Real (Cantabria) and Max Center (Barakaldo) – whose ownership it shares with Sonae.

“Our business involves identifying investment opportunities, managing them and selling them to generate returns for our investors”, he said.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Vitruvio Doubles its Real Estate Portfolio to €107M

1 May 2018 – Expansión

The Socimi is growing its real estate portfolio following the integration of CPI (the investment vehicle of Banca March’s manager), the entry of the Borbón family and several purchases.

The Socimi Vitruvio closed last year with a 91% increase in profits and a 95% leap in revenues. “Vitruvio closed a very positive 2017 with a 130% increase in EBITDA, and the doubling of its size, as well as of its number of properties and tenants. And all of that, whilst maintaining a very low level of indebtedness: from 35% in December to 24.6% at the end of the first quarter”, highlighted Joaquín López-Chicheri, CEO of Vitruvio.

This outstanding growth is due, to a large extent, to the integration of CPI, a real estate investment vehicle created by Consulnor (the manager in which Banca March holds a 48% stake).

The agreement, which was closed at the end of 2016 and formalised during the second quarter of last year, involved the incorporation of around twenty properties into Vitruvio’s portfolio, which closed the year with 36 assets worth €107 million. “We doubled the number of assets in the portfolio and their value between 2016 and 2017. Moreover, the average appreciate in the value of the portfolio was 7.85%, plus dividends”, explained the senior executive.

Dividend

In total, the listed real estate company (which has been trading on the MAB since July 2016) recorded revenues of €4.1 million, an EBITDA of €2.3 million and a profit of €1.1 million.

On 11 May 2018, Vitruvio is going to pay an interim dividend of €0.05 gross per share against its profits for 2018, as part of its quarterly dividend payment policy. In 2017, it paid 15% more than expected, distributing dividends amounting to €1.014 million in total.

“Vitruvio is the Socimi with the most disperse shareholding, excluding the Socimis owned by banks, with 206 shareholders at the end of 2017 and 284 as at 31 March 2018”, said López-Chicheri.

Currently, Vitruvio’s real estate portfolio is split between residential (38%), commercial (28%), offices (22%) and logistics assets. By location, 78% are situated in the central area of Madrid capital, 10% in Vizcaya and 4% in Barcelona.

Brand new projects

Following the strong results recorded in 2017, the Socimi plans to continue its good run, with a further increase in revenues, thanks to the incorporation of two high-profile assets, which are currently undergoing renovation: Sagasta 24 (pictured above) and Fernández de La Hoz 52, where building work is going to be completed this month (May). “The rental of both buildings is going to multiply turnover next year. In the case of Sagasta, we expect revenues to increase by four-fold, whilst in the case of Fernández de la Hoz, where the investment has been much lower, we estimate that the increase will be 1.7 times”.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Kronos To Build A New Shopping Centre In Galicia For €35M

28 September 2017 – La Región

Kronos, a company that develops and manages both residential and commercial assets and that has projects all over Spain, is going to embark on an important operation on the San Cibrao das Viñas industrial estate (in Ourense). The firm is going to build a large retail park on a plot of land measuring 40,000 m2, of which 18,100 m2 will constitute the net sales area. The park will be located on the site of the former Muebles Calvo factory, on the main road of the industrial estate, next to the access roundabout, by the Reboredo exit. The property’s façade overlooks the road, along which more than 20,000 vehicles travel per day (…).

Kronos has been looking for a site for this retail park for a year and a half “in areas where the market is interesting, and Ourense undoubtedly appealed to us for that reason”, says Manuel Holgado, Partner at the property developer. In addition to the 18,100 m2 of sales space, the retail park will have 750 parking spaces and the total investment is expected to amount to around €34.5 million. The company calculates that 250 direct jobs will be created as a result of the operation, as well as 96 indirect roles.

The largest store will be occupied by a DIY company

Enrique Feduchy, Partner at Kronos, says that the names of the commercial brands that are going to move into the park cannot be confirmed yet “because we are still holding negotiations”, but he did reveal that the largest retail space, around 8,000 m2, will be reserved for a DIY company.

In addition, there will be a food space, which will occupy 2,000 m2; another space measuring 1,500 m2 for domestic appliances; and the rest of the stores will house retail, sportswear, household goods, textiles and leisure goods, according to the first version of the plans “which may be subject to changes”, according to the company.

Feduchy specifies that the model that they are going to introduce in San Cibrao “does not exist in Ourense, because it is going to be a retail park with specialist stores, serving a sector of the public that will travel from Vigo, Santiago and A Coruña”. According to the developer’s plans, the first phase of the construction work will be undertaken during the first half of next year (…) and the park is expected to be open by the end of 2019 (…).

In terms of other opportunities, Manuel Holgado says that “we are looking at other options in Galicia for residential and commercial operations, but we have not signed anything yet” (…).

Original story: La Región

Translation: Carmel Drake

The CNMV Approves Housers As A RE Platform

9 May 2017 – Cinco Días

Housers markets itself as “the leading real estate investment platform”, which allows users to invest in property in the best areas of large cities for as little as €50. It pays rental income to its users and allows them to benefit from the appreciation in real estate prices when the property they invest in ends up being sold.

It is the largest platform in the sector, with more than 42,000 users, of which around 40% have already invested. Since it began life in April 2015, its users have invested more than €22 million. And, following extensive negotiations with the CNMV, the platform has now received approval from the supervisor chaired by Sebastián Albella. (…).

Sources familiar with the situation say that, since the beginning, Housers has been in contact with the supervisor, chaired in theory by Elvira Rodríguez, and then its conversations intensified with Sebastián Albella. In this way, the problem with Housers was that it joined together fund-raising activity with the promotion of that activity, and that was not permitted by law.

Sources close to the entity explain that the platform has spun off both activities. (…).

As such, Housers Global Properties will now be called Housers Global Properties PFP SL. In an email sent out to its users, the firm explained that since it began operations in April 2015, it has managed to finance 92 properties: 73 in Madrid, 9 in Barcelona, 7 in Valencia, 1 in Marbella and 2 in Palma de Mallorca.

Housers generates a return, known as a dividend, which varies by project, but the historical average amounts to around 3.6%. On the firm’s website, it advertises a return of 6.6% from investing in Zurbano. In addition to the rental income, investors benefit from rises in property prices, amounting to more than 12%, on average.

Sources close to the platform highlight that its mantra is to obtain certainty around its investments, which is why it has to buy homes in central areas, as a way of saving. Its core cities are Madrid, Barcelona, Valencia and Palma de Mallorca. Housers mainly invests in housing and retail premises for rent, as well as in properties for renovation and subsequent sale. (…).

How does the platform earn money? Housers charges a 10% commission on the dividends it pays out, as well as on the proceeds from its property sales. (…).

Original story: Cinco Días

Translation: Carmel Drake

Socimi Quonia Will Debut On The MAB On 18 July

13 July 2016 – Expansión

The Socimi Quonia will debut on the Alternative Investment Market (MAB) on Monday (18 July), to become the twentieth listed property investment company to join the market.

On the basis of the valuation report from the independent expert, Ernst & Young Servicios Corporativos, the company’s Board of Directors has set the reference value for each one of its shares at €1.65, which represents a market capitalisation for the company of €41.97 million.

The company will list using the price fixing system, according to a statement by Spain’s Stock Exchanges and Markets (BME).

The company owns a portfolio comprising rental properties used for residential and commercial purposes, located in Barcelona, Sevilla and Langreo (Asturias), with a total gross leasable area (GLA) of 12,197 sqm, excluding one ground-level car park containing 50 spaces and another underground car park containing 93 spaces.

VGM Advisory Partners is the registered advisor of the company and Santander Investment Bolsa is acting as the liquidity provider.

In the last two weeks, the Socimis Vitruvio Real Estate and Asturias Retail and Leisure, have also joined the MAB. The latter owns the Intu Asturias shopping centre, amongst other assets.

Original story: Expansión

Translation: Carmel Drake

Villar Mir: Canalejas Homes Will Cost c. €12,000/m2

15 October 2015 – Expansión

Juan Miguel Villar Mir says that “although the prices of the homes have not yet been determined”, “they are set to be the most expensive in Madrid” and amount to around €12,000/m2.

The luxury homes that the Villar Mir Group will construct as part of Project Canalejas, the commercial, hotel and residential complex that it is developing in some of the historical buildings in the centre of Madrid, will be the “most expensive” in the capital, since they will cost around €12,000/m2. At least, that is according to Juan Miguel Villar Mir, the President and owner of the business corporation that bears his name. (…).

“Currently, the most expensive apartments in the capital are being sold for more than €6,000/m2, but in Canalejas, we will be talking about figures close to double that amount”, said the businessman in comments made to the Cadena Cope radio station.

By virtue of Project Canalejas, Villar Mir is developing a large residential, commercial and hotel complex in a group of seven century-old buildings that it acquired from Santander, a stones throw away from Puerta del Sol in the capital. The project will involve an estimated investment of around €400 million. (…).

The plans for the project involve carrying out construction work inside the buildings and whereby preserving their designs and century-old structures. Features will include a luxury hotel, to be operated by the American chain Four Seasons, a shopping arcade and around twenty luxury apartments, occupants of which will have access to the hotel’s services.

These apartments will be the most expensive in the capital, according to Villar Mir. The price per square metre mentioned by the businessman would result in a final price of €1.2 million for a home with an average surface area of 100 m2.

Similar project in London

Villar Mir added that his company is currently carrying out a similar project in London, in a former Ministry of Defence building, and he said that the future homes in the British capital will be much more expensive.

He said that apartments located near to that project “are being sold for €100,000/m2”. “We are not going to reach those levels in Madrid, but Canalejas will be the most expensive development in the city”.

The businessman’s company is also working on another major project in the capital, namely, the construction of a fifth tower on the plot of land next to the four skyscrapers at the northern end of the Paseo de la Castellana in Madrid. Villar Mir currently owns one of those towers, but has now put it up for sale.

Original story: Expansión

Translation: Carmel Drake