Axiare Acquires 2nd Phase Of Logistics Project In San Fernando De Henares

3 July 2017 – Observatorio Inmobiliario

Axiare Patrimonio has completed the acquisition of the second phase of its logistics park in San Fernando de Henares (Madrid) after having pre-leased a significant part of the first phase, which it acquired just one year ago.

This latest acquisition represents the culmination of a pre-agreement reached in 2016, during the purchase of the first phase of the project, for which the Socimi reserved the right to develop a second, turn-key, phase.

The CEO of Axiare Patrimonio, Luis López de Herrera-Oria, stated that “this operation shows once again our capacity to act outside of the market, acquiring assets with great potential in complex operations. We continue to faithfully fulfil our business plan, with the ultimate objective of maximising value for our shareholders”.

The Socimi has invested €38 million in the acquisition of this second phase. This new investment will add two new logistics warehouses, with a gross leasable area of 60,000 m2, to the three already planned for the first phase of the project, all integrated within the same logistics complex. The handover of this second turnkey phase is scheduled for the second half of 2018.

In total, Axiare Patrimonio will invest €81 million in the development of the two phases of this logistics park, which is located in the first ring of Madrid, in the best area of the Corredor de Henares. It is one of the most important logistics centres in the country, located just 10km from the airport and 18km from the city centre. High-profile first-rate tenants, such as Amazon, TNT and XPO, also have their logistics centres close to this site.

The technical specifications of the new warehouses will be identical to those constructed during the first phase, which means that they will be high-quality facilities, with LEED environmental certificates.

With this off-market operation, Axiare Patrimonio has invested €195 million in the acquisition of five properties in line with its investment strategy.

The project will be developed by Grupo Barral, a company specialising in the logistics sector.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Blackstone Sells Logicor To Chinese Sovereign Fund For €12.5Bn

5 June 2017 – Real Estate Press

Logicor’s Spanish logistics portfolio, which covers more than 1 million m2, has been included in the second largest real estate operation ever to be closed in Europe. The deal has involved the sale of Logicor by Blackstone to the sovereign fund China Investment Corporation CIC, for €12,500 million, according to a statement issued by the US group on Friday.

Logicor, a company created by Blackstone in 2012, owns a portfolio comprising more than 600 high-quality European logistics assets, which have a combined surface area of 13 million m2, located in 17 countries, although more than 70% of the properties are concentrated in the United Kingdom, Germany, France and Southern Europe. All of the assets are located in major European economies, along the main transport corridors and very close to major population centres. The portfolio is in an ideal position to benefit from the structural changes in demand that is currently being driven by the rapid growth in on-line trade.

In Spain, the company owns a portfolio covering more than 1.2 million m2, located primarily in Madrid and Barcelona, after having acquired assets from Axa, CBRE GI, SEP Investment, Gran Europa and General Electric, amongst others. Half of the Spanish portfolio is located in the Corredor de Henares. Logicor’s most recent acquisitions in Spain have included two warehouses spanning 70,000 m2 in Torrejón de Ardoz from IDI Gazeley, a purchase that formed part of a larger European operation covering 200,000 m2; and a 82,000 m2 space, which itacquired from Godman, also as part of a larger European operation.

With the sale of Logicor, Blackstone has repeated the move it made with IndCor in the United States in December 2014. On that occasion, the buyer was the Singapore sovereign fund, GIC, which paid $8,500 million for IndCor’s logistics assets, which covered a total logistics surface area of 12 million m2. And it was Blackstone that was the first to predict the effect that logistics spaces would have with the arrival of e-commerce, in addition to its great capacity to raise capital.

Antony Meyers, Director of Real Estate at Blackstone in Europe said: “We have constructed Logicor, through more than 50 acquisitions, to be a leading pan-European logistics company”. “Now, it will have an excellent new owner, with a long-term vision and we have no doubt that it will maintain its strength in a sector that has a very positive outlook”.

CIC fought off competition in the bid for Logicor from Mapletree Investment and Temasek, a joint venture formed by two Singapore state funds, according to a person familiar with the bid process, as well as Global Logistics Properties, a company controlled by the Singapore sovereign fund, GIC.

Logistics spaces are going to have enormous value for e-commerce companies, such as Amazon. Logicor has focused on the growth of its business in Western Europe, where on-line shopping is less developed than in the United Kingdom. The agreement is expected to be closed before the end of the year.

Original story: Real Estate Press

Translation: Carmel Drake

Axiare Buys 2 Logistics Warehouses For €14M

5 December 2015 – Valencia Plaza

Axiare has purchased two logistics warehouses, located in Madrid and Guadalajara, which have a combined surface area of 30,000 m2, for €14.2 million, according to a statement made by the Socimi, in which Colonial holds a stake.

Following this operation, logistics assets now account for 20% of the company’s total asset portfolio, which has a total surface area of 400,000 m2.

The warehouses are leased out and are located in the so-called Corredor de Henares, which is one of the key areas in the Spanish logistics market. One of them is located in Alcalá de Henares (Madrid) and the other one is located in Azuqueca de Henares (Guadalajara).

Original story: Valencia Plaza

Translation: Carmel Drake

US Investor Cordish Presents New Leisure Mega-Complex For Madrid

2 December 2016 – Expansión

After the fever of Eurovegas in Madrid, the fiasco of the Gran Scala macro-complex in the Los Monegros desert, the mirage of El Reino de Don Quijote in Ciudad Real, another mega leisure complex project is now being planned for Spain, in the form of Live! Resorts Madrid. The proposal has been presented by the US property developer Cordish Companies, and according to comments made by the group’s representatives yesterday, it is backed by the group’s extensive 100-year history and the rigourousness of its modus operandi. “This is a completely private initiative. We are not asking for any subsidies or regulatory changes. The regulatory framework is perfectly adequate for the project”, said Joseph Weinberg, one of the group’s partners.

Cordish plans to invest €2,200 million initially to launch this leisure and entertainment giant, although the total spend may exceed €3,000 million in subsequent phases if the plans are extended beyond the original project. According to the property developer, this initiative would create 56,433 new jobs.

The family group, founded by Louis Cordish in 1910, has four generations under its belt. It has chosen the Madrilenian municipality of Torres de Alameda, in the Corredor de Henares, as the stage for the development of the “largest integrated entertainment centre in Europe”. “We think that Madrid is the ideal location in Europe for the complex”.

To this end, Cordish has purchased a plot of land measuring 134 hectares and has registered information about the project with the Ministry of Economy, Employment and Finance. It is waiting for the Community of Madrid to study the feasibility of the plans and to open a public competition inviting other investors to submit their proposals. This process, which may take around six months, needs to happen before the first phases of the project can start, which are expected to take between “18 and 24 months”.

Weinberg wanted to differentiate his Live! Resorts from the frustrated initiative of the magnate Sheldon Adelson, who also planned to build a Eurovegas in Madrid, and he emphasised the “family nature” of the proposal. “The gambling area will only account for between 5% and 10% of the project”.

Weinberg said that the plan includes more than 100,000 m2 of space allocated to shops and leisure; four and five-star hotels, with 2,700 rooms; 275,000 m2 of space for three conference centres; and 45,000 m2 of space for offices.

Weinberg said that the group has own funds as well as experience raising financing. In addition, he appeared open to the idea of forming a joint venture with large local and international hotel chains for the management of the hotels.

The President of the Community of Madrid, Cristina Cifuentes, acknowledged yesterday that the regional government has held “some conversations” with the company and added that it is a “solvent, trustworthy and powerful group”.

According to Cifuentes, this project does not bear “any resemblance” to Eurovegas and she highlighted that, in contrast to Adelson’s project, Cordish has already officially registered the proposal and is not demanding any regulatory changes. She also said that whilst Eurovegas involved the construction of casinos, 80% of this proposal is dedicated to leisure and “only a small portion” to gambling.

Nevertheless, the Chairman of the Community of Madrid appeared “cautious” and warned that the initiative will be analysed “with the greatest care”. (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Valdeluz: Another Icon Of The RE Bubble Shows Signs Of Life

19 September 2016 – El Mundo

The recovery of the real estate market is spreading like an oil slick out from the major cities out to the rest of the country. The strength of the recovery is such that it is even reaching places that were synonymous with the real estate bubble. Just a few months ago, this newspaper reported the resurgence of the PAU de El Quiñón – El Pocero’s city in Seseña. Now, the awakening of the residential market has also reached the reviled PAU of Ciudad Valdeluz, in Yebes (Guadalajara).

The streets of the development, which contain four- and five-storey residential blocks and whose design is reminiscent of the PAUs in Madrid, are exuding life. The area has 2,220 finished homes – with an occupancy rate of 83.1% – and 2,611 registered inhabitants (a figure that the Town Hall says actually reflects 4,380 residents). Although perhaps the best symptom of the health of the housing market could well be the lack of For Sale signs. It is estimated that the stock here amounts to just 100-150 units after the banks placed some of their supply on the market in one go at cheap prices, marketing homes that once cost more than €200,000 in the golden years, for less than €70,000 and family homes that used to cost more than €400,000 for just €120,000.

The limited supply and strong rate of sales has even revived the property development sector. In August, the Town Hall granted its first building permit for 10 years. Moreover, and this is significant, it was to resume a project that had been suspended in 2008 and which was one of the last embers of the real estate bubble. Ibercaja is driving this development. “It is proof that development in Valdeluz is becoming profitable again and we think that it will be the starting point for the new real estate market here”, said Vidal Gaitán, Town Planning and Environment councillor in Yebes.

Gaitán is not at all surprised by Ibercaja’s decision: “A year and a half ago, the bank received around 80 or 90 homes and sold almost all of them in six months. It has seen that there is business here”. The councillor believes that this first building permit will have a “magnetic effect”, which is already being felt at the Town Hall. “Over the last few weeks, several architectural studios have asked about the status of certain plots of land. They have even asked about the licence relating to a shopping centre that has been half built”, he said. The municipal technicians have been instructed to prioritise these calls.

The available product belongs almost in its entirety to the banks and Sareb. For this reason, servicers such as Altamira, Solvia and Servihabitat are the main commercial players in the area. Javier Muro, Regional Director of the Central Region at Altamira Asset Management, describes the current activity at Valdeluz as “a new phase”. His company sold an 80-home building in just a few months. “With updated prices and affordable financing”, he said “sales of these kinds of developments are proving successful once more”.

“Price is critical in Valdeluz” said Muro, who recalled that the PAU has had to overcome the setback of not having a shuttle between the AVE station in Valdeluz and Madrid. Gaitán still dreams about that train, which would link the town with Atocha in 18 minutes. (…).

Nevertheless, Javier Román, Regional Director for Madrid, Castilla and the Northeast at Solvia, highlights Valdeluz’s location. “It is five minutes away from Guadalajara and it is easily accessible from Madrid and the Corredor del Henares by the A-II and R-2”, he said, at the same time as extolling the virtues of its 272,000 sqm of green space. (…).

Original story: El Mundo (by Jorge Salido Cobo)

Translation: Carmel Drake

Urbas’ Share Price Rises By 8% Boosted By H1 Results

19 September 2016 – Expansión

Urbas was one of the best performing companies on the stock market on Thursday. The share price of the real estate company, which has a strong presence in Madrid’s Corredor de Henares, rose by around 8% to €0.013 per share. The major catalyst for the increase was the fact that, during the first half of this year, the group left behind seven years of losses to record a consolidated net profit of €0.74 million.

The figure contrasts with losses of €4.7 million that it recorded in 2015. As at June, the net value of the group’s assets exceeded €415 million thanks to the reverse merger with Aldira Inversiones Inmobiliarias in 2015, which allowed it to strongly capitalise the company.

The strong increase in the share price of Urbas – which is constructing a hotel and resort in Cienfuegos (Cuba), which will consist of a marina, six golf courses, six 5-star hotels, three apart hotels, 1,500 villas and more than 3,000 apartments – is being accompanied by an unusual increase in trading volume.

More than 210 million shares have changed hands, a figure that significantly exceeds the average of just over 15 million during 2016.

Original story: Expansión

Translation: Carmel Drake

Segro Acquires Coslada II Logistics Centre From Royal Premier

27 April 2016 – Press Release

The British company Segro has acquired the Coslada II Logistics Centre, located on Avenida de la Cañada in Coslada, from Royal Premier in an operation advised on the buy-side by Proequity and on the sell-side by CBRE.

Through this acquisition, Segro becomes the owner of one of the most emblematic industrial parks in the Corredor de Henares: the industrial, business and residential hub located between Madrid and Guadalajara. The asset, one of the most flexible parks in the prime market in Madrid, has a constructed surface area of 16,202 m2, divided into four platforms measuring approximately 4,000 m2 each. Currently, the property is leased to several tenants occupying modules with a minimum surface area of around 1,000 m2 each.

Marco Simonetti, Business Director at Segro for Southern Europe said that: “This is a major operation for Segro, in line with our strategy for expansion in Southern Europe. We believe in the potential and growth of Spain, and so we have acquired this industrial park, which has an ideal location, in one of Madrid’s most important hubs”.

Segro will carry out an improvement plan at the park this year to upgrade the existing facilities and offer better services to the property’s current and future tenants.

Original story: Press Release

Translation: Carmel Drake

CBRE: Investment In Logistics Sector Equals €205M In YTD15

5 June 2015 – ABC

The industrial and logistics sector recorded an investment volume of €205 million during the 5 months to June, i.e. double the amount recorded during the same period last year, as a result of eight transactions, according to data from the real estate consultancy, CBRE.

One of the most important transactions was Rockspring’s purchase of two logistics warehouses under construction in Torrejón de Ardoz from Montepino, with a surface area of 49,000 m2, which will be completed during the first quarter of 2016.

The increase in purchase activity has resulted in a rapid compression of prime rents, which now stand at around 7%, down from 8.50%-8.75% in 2013.

Last year, the hiring of logistics space in Madrid reached almost 400,000 m2, the highest figure seen in the last 4 years; whilst in Barcelona, more than 200,000 m2 was hired during the first quarter of 2015, showing a strong performance even during the worst years of the recent crisis.

In this sense, CBRE believes that rentals in Barcelona during the first half of 2015 may equal the figure recorded for the whole of last year.

The Corredor del Henares continues to be the favourite area for logistics companies in Madrid; whilst in Barcelona, demand is still primarily distributed between the “segunda corona” or ‘suburbs’ (Vallés Oriental y Occidental) and the “tercera corona” or ‘greater metropolitan area’ (the provinces of Gerona and Tarragona).

CBRE expects the buy-side pressure to continue, with the entry of a greater number of players, all in an environment characterised by greater ease of access to financing.

Original story: ABC

Translation: Carmel Drake