Blackstone Sells 19 Plots of Land in NW Madrid to Ibosa

12 March 2018 – El Confidencial

A large-scale operation has been closed in the real estate market in Madrid. Grupo Ibosa has purchased the largest batch of “finalist” land – also known as land that is ready to be built on – in the north of Madrid from the US fund Blackstone for €16 million. The plots are located in one of the areas with the highest purchasing power in the whole Spanish capital, next to La Zarzuela race track, in Valdemarín (Aravaca), where properties, the vast majority of which are family homes, cost upwards of €1 million.

According to various sources, the cooperative manager is working with Gran Roque Capital, the real estate management company owned by the Venezuelan businessman Miguel Ángel Capriles, and the fund Urbania Internacional, with whom it has constructed various projects in the area.

The acquired land is divided into 19 plots – with surface areas ranging between 500 m2 and 750 m2 each (…). They used to belong to Jardines del Hipódromo, a company owned by Inmobiliaria Monteverde, which filed for creditors’ bankruptcy at the end of 2011. At the end of 2016, Mercantile Court nº8 in Madrid convened the auction of the plots – the company’s only asset – which ended up in the hands of Blackstone, one of its creditors after it purchased the debt that the company had taken out with Banco Sabadell and La Caixa (…).

Grupo Ibosa has also purchased land in Aravaca from Blackstone, specifically, on Calle Diplomáticos, where it is going to build eight luxury family homes measuring 700 m2 on plots spanning 1,000 m2. And, it has an agreement with another owner for another plot in Valdemarín to build another dozen houses.

In total, three transactions – which amount to around 24,000 m2 in total – involving a very scarce asset in the capital, which has led to real competition between property developers and investment funds and an important upwards pressure in prices. In total, Grupo Ibosa is going to build almost 40 units from whose sale it expects to obtain revenues of more than €55 million. In all three cases, the developments will be carried out under the cooperative regime (…).

A sought-after neighbourhood

Valdemarín is one of the most sought-after neighbourhoods in Madrid for young directors and Spanish executives. A neighbourhood where homes cost upwards of €1 million and where plots of land – like in the neighbouring El Barrial – are really scarce. New build properties are also in short supply, which has led to significant price increases of 20% (10% per annum) in recent years. According to the sources consulted, everything that comes onto the market is sold very quickly.

“Within Aravaca, Valdemarín has become fashionable thanks to its good schools and access to Madrid,” say sources at Engel & Völkers, which places the maximum price that can be paid in the area at €6,300/m2 (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Domo’s Socimi Debuted On The MAB On 21 September

22 September 2017 – Eje Prime

The countdown has started for the debut of Domo Activos, the socimi of the cooperative manager of the same name. The company will make its debut on Thursday 21 September on the Alternative Investment Market (MAB), where it will list at €2 per share, a price that represents a market valuation for the company of €7 million, according to the BME.

The company, which is the 41st to make its debut on this market under the Socimi framework, owns just one asset, a plot of land in Madrid, located in El Ensanche de Vallecas, which it purchased in March from Sareb for €6.55 million. The land has a maximum buildability of 9,348 m2 and the firm plans to build 80 homes on the site, plus six ground floor commercial premises and parking.

For the next two years, the firm will focus on developing this project, according to details contained in the information brochure that accompanies its stock market debut. It estimates that the homes will be ready to lease “from September 2019”.

Domo has a business plan that includes taking on new land purchases to develop real estate assets, with the aim of subsequently making cash from them by leasing them out “for at least three years”, and ultimately, selling them.

This strategy includes the development of homes, hotels and tourist apartments, primarily in the Community of Madrid, Cataluña, País Vasco, Málaga, Sevilla, Granada, Córdoba, the Community of Madrid, the Balearic Islands and the Canary Islands.

The Socimi chaired by Feliciano Conde Anguita (pictured above) plans to pay for this business plan through capital increases, in such a way that the firm will undertake operations of that kind, “to the extent that investment opportunities arise”. Current shareholders will have preferential subscription rights in future capital increases.

Original story: Eje Prime (Original article dated 19 September 2017)

Transltion: Carmel Drake