Tag: committed investment

Unibail Will Invest at Least €800M in Spain Over 6 Years

26 January 2018 – Expansión

Unibail-Rodamco, the largest European real estate group, has committed investments for projects in its portfolio in Spain amounting to, at least, €800 million between now and 2024; it has already disbursed €120 million of that figure.

The Director of Development and Investments at Unibail-Rodamco in España, Javier Solís (pictured above, left), explained yesterday at a meeting organised by IESE, Tinsa and Savills Aguirre Newman, that the company has projects in its portfolio spanning a new gross leasable area (including extensions) of 187,000 m2 and a total committed investment of more than €800 million, reports Efe.

Of the projects underway, the director highlighted the shopping centre in Benidorm (Alicante), whose construction has already commenced and which is expected to open in 2020. In his opinion, the increase in visitor numbers and sales at shopping centres suggests “that returns have the potential to rise”.

The director explained that some of the investment planned for the coming years will be spent on improving its assets so that “they are more than just a place to shop”. In this sense, Solía advocates transforming them into centres for meeting up, having fun and being entertained, for enjoying new gastronomic experiences and with higher standards in terms of energy efficiency and sustainability.

In terms of future possible purchases, Solís said that the company’s intention is to incorporate new assets that are already operational, although, for the time being, it does not have any operations on the table.

In Spain, Unibail-Rodamco owns a dozen shopping centres and has two more under development. Its most high profile assets include Parquesur and La Vaguada (in Madrid) and Les Glòries and La Maquinista (in Barcelona), worth around €3.7 billion.

Westfield

Unibail-Rodamco, which has a presence in 11 European countries, reached an agreement at the end of 2017 to purchase its Australian rival Westfield for $24.7 billion (€19.8 billion).

The operation will result in the creation of a colossus with a gross asset value of €61.1 billion and a presence in 13 countries. Following the integration, Unibail-Rodamco will extend its competitive distance over its main European rivals, Klépierre and Hammerson. Indeed, one month ago, the latter announced an agreement to purchase Intu and grow in the shopping centre segment.

Original story: Expansión

Translation: Carmel Drake

Hispania Records Net Profit Of €17.5m In Its First 9 Months

25 February 2015 – Hispania Press Release

GAV as of year-end amounted to €422M, with an EPRA NAV of €555M

CBRE’s valuation has recognised capital gains in the acquired assets of €14 M, 5.5% above purchase price and 3.4% over its book value

As of 31 December 2014, €433M for investment had been committed

With the hotel investment announced earlier today (c. €368M total investment in a resort hotel REIT along with Grupo Barceló), Hispania will have invested fully the proceeds raised in its IPO and reaches committed investments for c.€800M, equivalent to 90% of its full investment firepower

Hispania Activos Inmobiliarios, S.A., (hereinafter, Hispania) closes its first year of activity with Net Profit amounting to 17.5 million euro. As of 31 December, 25 assets had been acquired, 55% in offices, 23% in residential and 22% in hotel assets.

In just 9 months, Hispania has implemented the strategy announced in its IPO and has fulfilled the commitments acquired with its investors. As of year-end, according to CBRE’s valuations, consolidated GAV amounted to 422 million euro. This implies the recognition of capital gains amounting to 14 million euro, which represent a revaluation of 5.5% on purchase prices and of 3.4% on book value.

NAV according to EPRA’s recommendations amounted to 555 million euro, implying an NAV of €10.08 per share (vs. NAV of €9.77 per share as of 30 September 2014).

It is remarkable that 76% of these acquisitions have been executed as a result of off-market negotiations with a relevant degree of complexity. This has allowed Hispania to access high-quality assets, with important repositioning possibilities and at exceptionally attractive entry prices.

Outlook for 2015

Considering the hotel investment announced today, Hispania will have committed total investments amounting to c.800 million euro in hotels (60%), offices (22%) and residential (12%). Moreover, Hispania still has an abundant pipeline of opportunities which perfectly fit the strategy and return targets of its business plan.

Regarding the assets which currently conform Hispania’s portfolio, the company foresees a relevant total capex investment of 27 million euro for its improvement and repositioning to be implemented in 2015 and a further 12 million euro over subsequent years.

“2014 has been a very fruitful year in terms of our investment activity, thanks to the abilities of the management team when it comes to identifying and executing the acquisition of assets with a clear revaluation potential, as it is already becoming evident”, highlighted Concha Osácar, Board Member of Hispania. “2015 has started with the announcement of the Barceló transaction, which will represent a total investment for Hispania of c. 368 million euro. During the rest of this year it will be equally important for Hispania to continue with an intense investment activity as to go on managing, repositioning and financing the assets which already conform our portfolio”, she added.

Original press release: Hispania

Edited by: Carmel Drake