TH Real Estate Changes its Focus in Spain to Purchase Logistics Properties, Offices & Alternative Assets

11 June 2018 – Eje Prime

After ten years in Spain, TH Real Estate is changing its focus in terms of acquisitions. The company, which has historically purchased retail assets in the country, is going to change strategy to strengthen its portfolio with logistics properties, office buildings and alternative assets, such as halls of residence for students. That is according to Marta Cladera (pictured below), Director General of TH Real Estate Iberia, talking to Eje Prime in an interview.

“Traditionally, and due to the type of active funds, we have been very focused on the purchase of retail products” – said Cladera – “Now, we want to nurture our portfolio with logistics buildings, offices and alternative assets, such as halls of residence”. “We are analysing the market, we have a good track record in other types of assets, and so we will be able to create a portfolio with new types of assets and we will begin this year”, she added.

TH Real Estate will carry out these purchases through its fund European City Fund, which is one of the most active at the moment in terms of acquisitions and which has sufficient resources to undertake new purchases. By type of asset, the plans in terms of alternative assets involve not only the purchase of properties but also “teaming up with other operators, which may be from other parts of Europe”. In this way, TH Real Estate will follow in the footsteps of other funds such as CBRE GI and Axa, which, in their strategy to enter the hall of residence business, purchased Resa, the largest student hall company in Continental Europe.

In terms of the office sector, Cladera assures that “the competition is fierce” and the supply “is scarce”. “We are looking for buildings costing upwards of €50 million, but the supply that we are finding is not prime and those that are prime due to their location need a lot of renovation work, and that is something that holds us back, given that the numbers have to make sense for us to proceed and we have to focus on returns”, said the director.

Currently, TH Real Estate manages a portfolio worth €103 billion around the world, although Spain represents a small proportion of that, accounting for just 2% of its total business. In the Spanish market, the company owns assets worth €2 billion. “Although it is small compared to other markets, you have to look at the evolution: when we arrived in 2007, the portfolio was worth €200 million, as such, the growth over the last ten years has been significant”, she said. TH Real Estate’s team in Spain comprises nine people.

Socimi: under consideration 

Although this move is still in an embryonic phase, TH Real Estate does not rule out joining the Socimi party that is raging in Spain with some of its assets (…).

Currently, TH Real Estate owns fifteen assets across the Iberian Peninsula, of which fourteen are located in Spain and one in Portugal. Of those, two are logistics assets (acquired in 2017), and the rest are retail properties. One of the formulae that the group has used in the country has been to create joint ventures with different players for the acquisition of assets. Such was the case of the purchase of 50% of Xanadú from Intu for €264.4 million, for example (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

The Hatchwell Family Launches a Luxury Housing Developer

21 December 2017 – Expansión

The Excem group, led by the second generation of the Hatchwell family, has decided to strengthen its commitment to the Spanish real estate sector, which it broke into a few months ago with the launch of several Socimis.

Now, the Hatchwell family has placed its focus on the house building sector, a booming market in Spain. To this end, the company has created a property developer specialising in luxury housing: LOV Real Estate. “Our objective is to position ourselves in the medium-high end market. For that reason, we are launching LOV Real Estate now; it is going to be the brand of our property developer for building luxury homes with a forecast return for investors of more than 20%”, says Andrés Sánchez Lozano, CEO of Excem Real Estate.

Following its creation, LOV has already chosen its first project: the building located at number 142 Calle Fuencarral in Madrid, in the heart of the Chamberí neighbourhood. There, Excem has purchased a seven-storey building and with a total investment of around €14 million, it will build 25 homes, with between 1- and 3-bedrooms and prices ranging between €400,000 and €1.5 million. “LOV RE’s commitment on Fuencarral includes design architecture, bioclimatic features and ecological mobility elements. The large garden terrace with swimming pool, gym and meeting room for residents also stands out as a unique feature in the area.

LOV Real Estate has been structured as another investment line within the Hatchwell family’s real estate business, launched at the beginning of the year (2017) with the aim of investing €600 million in homes, hostels and offices through three Socimis. Currently, two are operational: one specialising in the residential sector, which owns 27 properties after investing around €14 million and which will debut on the MAB in May 2018.

The other, specialising in hostels and tourist apartments (Situr) has invested €22 million in a single asset in the centre of Madrid.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Cerberus Buys Property Developer Inmoglacier

15 December 2017 – Expansión

On Friday, the investment fund Cerberus announced the purchase of the property developer Inmoglacier. According to sources in the sector consulted by Europa Press, the fund has taken control of 75% of the firm controlled until now by the Moreno family.

The transaction represents a new bet by the US fund for the Spanish real estate market. At the end of November, BBVA sold 80% of its real estate portfolio to Cerberus for €4 billion.

Cerberus, which has not revealed the amount involved in this operation, plans to use the company as a platform to strengthen its commitment to the sector and undertake new purchases.

Inmoglacier plans to deliver more than 1,000 homes in 2018 of the almost 2,000 that it has under construction. Currently, the real estate company is focusing its construction activity in Madrid, Barcelona, Tarragona, Zaragoza and Granada.

The head of the European advisory office at Cerberus, Lee S. Millstein, has said that this operation has been carried out due to the growth opportunities that the Spanish market offers at the moment.

Meanwhile, the CEO of Inmoglacier, Ignacio Moreno, has said that for his company, the sale means consolidating its position financially over the long-term with a “major strategic partner”.

Original story: Expansión

Translation: Carmel Drake

Hispania Sells A Hotel To Its Socimi With Barceló For €26.6M

17 November 2017 – Eje Prime

Change of tack in the Socimi universe in Spain. Hispania has sold the Hotel Sandos San Blas, located in Tenerife, to the Socimi Bay Hotels & Leisure for €26.6 million, according to sources at the company. The Socimi is owned by Hispania (80% stake)and the hotel chain Barceló (20%).

This is the first purchase operation that the Socimi has carried out since it started to trade on the Alternative Investment Market (MAB) in July. Bay has acquired all of the shares in the company Eco Resort San Blas, owner of Hotel Sandos San Blas, which has 331 rooms and a five-star rating.

The purchase has been financed using own funds and intra-group loans, and according to Hispania, the acquisition price of Eco Resort has been calculated on the basis of the valuation of Hotel Sandos San Blas (performed by CBRE in June) and the company’s net debt.

Bay’s most recent operations include the purchase of all of the shares in the entity Armadores de Puerto Rico for €6.2 million. That company owns a plot of land in Lanzarote on which the Socimi plans to build a luxury hotel with 225 rooms.

In July, the Socimi also completed the purchase of Fergus Tobago, located in Palmanova, Mallorca, for €20.5 million and Hotel Selomar, located in Benidorm, for €16 million. In terms of future investments, the group held real estate investment commitments amounting to €19.4 million as at 30 June 2017 (…).

The Socimi Bay Hotels & Leisure debuted on the stock market with a portfolio of 22 real estate assets, worth €790.39 million. They include 19 hotels, with 6,900 rooms, worth €756.29 million. Moreover, the Socimi owns two shopping centres, El Castillo I and II, and the Escala marina, all of which are located in the Canary Islands.

According to the latest available results, the Socimi Bay increased its profit by 87% during the first half of the year, to €102 million. Rental income from its hotels and shopping centres rose by 26.5% to €38 million.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Amenabar Will Complete 4,000 Homes In 3 Years

12 June 2017 – Expansión

With more than three decades of experience under its belt, the Basque property developer Amenabar is now immersed in a new growth phase, which includes a review of its strategic plan to update it with more ambitious numbers. “At the moment, we have more than 2,500 homes under construction, at various stages. Furthermore, we have made a commitment to our clients to sell 4,117 units between 2017 and 2020”, explained Enaut Saiz, CEO of Amenabar Promociones (pictured above) in an interview with Expansión.

Headquartered in San Sebastián, Amenabar is currently focusing the majority of its development efforts in Madrid, where it owns land to build 2,000 homes, and Euskadi, where it is working on around 1,700 units across several developments. “Since 1981, we have developed and built more than 223,000 homes (…)”.

Over the last 18 months, the Donosti-based property developer has spent more than €200 million buying up land. “(…). These investments have taken place in Madrid, País Vasco, Cataluña, Navarra and the Costa del Sol, but we are now also looking at investment opportunities in other provincial capitals”, said the CEO, who added that the firm is likely to continue to invest over the next few months.


“We have exceeded the objectives set in our strategic plan, and so we are currently reviewing it since it is likely that our objectives will increase in line with our new investments. In any case, we are very prudent in terms of our investment policy and we prioritise land in good locations with buildable status”, explained the CEO. According to the company, its portfolio of land, which spans 570,000 m2, is worth €900 million.

Last year (2016), Amenabar recorded turnover of more than €380.34 million, up by 13% compared to the previous year and that figure will only rise with the completion of all of the homes it now has under development. (…).

The property developer’s commitment to build 4,117 homes between 2017 and 2020….represents a figure that exceeds the plans even of Neinor Homes, owned by the US fund Lone Star, which debuted on the stock market at the end of March and which is currently building 4,000 homes. (…).

Amenabar’s ambitious growth plan coincides with the emergence of several new property developers that are not being led by Spanish families and businesspeople, like during the previous cycle, but rather by overseas funds.

“Nowadays, there are new real estate operators, in particular, property developers owned by international investment funds or managers who finance one-off projects through this type of entity. Although we cannot generalise (about our competitors), we are committed to a totally different kind of model. Our focus is on the construction of homes using our own means and with our commitment to the concept of customised housing, which we have been developing for more than 30 years”, said Saiz.

Unlike its competitors, Amenabar is not planning to debut on the stock market to raise more funds. “A stock market debut is not on the cards for us. We are in an excellent financial position to fulfil our annual investment budget and we don’t need to go down that route. Moreover, we are fortunate that our shareholders are committed to a long-standing tradition of reinvesting profits in the development of the business itself”, he said.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Altamira Appoints Vicente Aliño As Its New Director Of RE

1 June 2016 – El Mundo

Altamira Asset Management has hired Vicente Aliño (pictured above) as its new Director of Real Estate and member of the Board of Directors, as part of its commitment to strengthen its real estate business, according to a statement issued by the company.

The Group has explained that Aliño’s main challenge will be to lead the strategy, management and organisation of the entire real estate division, focusing on fulfilling the ambitious targets set by the company’s clients in the departments that make up the area.

Over the last 15 years, the new director has held different roles on Grupo Lar’s management team and he has extensive experience in the real estate sector, having served as the Group’s regional manager for Levante, leading the opening and development of the real estate business in Mexico and taking charge of the Group’s financial management.

Similarly, over the last six years, Aliño has worked as the group’s CEO in Brazil, where he defined the strategy, analysed investments and developed the business in the country.

In addition, the company explained that this appointment reinforces Altamira’s commitment to the real estate business.

Original story: El Mundo

Translation: Carmel Drake

Soros Will Inject €37M Into Hispania’s €231M Capital Increase

12 May 2016 – El Economista

Hispania has resolved to launch a capital increase amounting to €230.7 million, with the aim of raising funds to allow it to continue investing in the purchase of new real estate assets, according to reports by the Socimi.

The company’s largest shareholder, George Soros, has already expressed his attention of participating in the operation, in line with the 16% stake that he holds in the firm. That means he will inject another €37 million into the business.

By virtue of the increase, Hispania will issue 25.8 million new shares at €7.95 per share, a price that represents a 37.5% discount with respect to the closing price on the stock market on Wednesday (€12.74).

The company expects that the increase will be completed by 9 June, when the new shares should start trading. The operation will begin within the next few days, just as soon as Spain’s National Securities Market Commission (CNMV) gives the green light to the information brochure.

This is the second capital increase that Hispania has launched within the last year, following the accelerated capital increase that it completed in April 2015, through which it raised €337 million.

In this case, the Socimi is resorting to its existing shareholders once again, given that “it has already committed all of its investment capacity” and because it has already identified investment opportunities amounting to €1,500 million and is in “advanced negotiations” to complete the purchase of new real estate assets amounting to around €200 million.

In this way, the company chaired by Rafael Miranda expects to continue increasing its asset portfolio, which comprises hotels, offices and residential properties, worth €1,425 million at the end of 2015, up by 14.8% on the purchase price.

Original story: El Economista

Translation: Carmel Drake