Azora Acquires HQ of the Former Cortefiel Group for €28.3M

24 January 2019 – Eje Prime

Another operation has been closed in the office market in Madrid. The Socimi GMP, controlled by the Montoro family and the sovereign fund of Singapore, has sold the building located at number 51 Calle Llano Castellano to Azora. The price of the operation amounted to €28.3 million.

The property now controlled by Azora, the real estate manager founded by Concha Osácar and Fernando Gumuzio, is occupied in its entirety by Tendam, previously known as the Cortefiel Group and owner of the fashion chains Cortefiel, Women’secret, Springfield and Pedro del Hierro.

The rental contract for the building, which has a gross leasable area of 23,108 m2 and 145 parking spaces, is due to expire in 2023.

The building was constructed in 1990 and had been controlled 100% by GMP since 2015. Until then, the property was in the hands of the real estate division of General Electric through the company Renta Gestión Fuencarral.

Its new owner, Azora, specialises in the investment and management of real estate assets for third parties and has a portfolio comprising more than €4.5 billion in assets. The company was the promoter of Hispania, the first Socimi to be constituted, which made its debut on the stock market in Spain in 2014.

Azora was considering its own stock market debut, but in the end, it suspended that process last year. Azora and Hispania ended their agreement last year, after Blackstone’s successful takeover of the Socimi.

Since then, the company has focused on the residential rental market through the creation of a joint venture with CBRE Global Investment and Madison to reach a portfolio of 10,000 homes over the coming years.

Azora manages the real estate portfolios of funds and wealthy investors, such as George Soros, CBRE Global Investors, Goldman Sachs, Axa Investment Management and Bank of Montreal, amongst others (…).

Original story: Eje Prime (by P. Riaño and I. P. Gestal)

Translation: Carmel Drake

GGC Acquires El Mirador de Jinámar Shopping Centre for €45M

30 November 2018 – Eje Prime

General de Galerías Comerciales is now the owner of El Mirador de Jinámar. The Socimi led by the Murcian businessman Tomás Olivo has acquired the commercial complex located in the Canary Islands for €45 million. The company has been advised by Cushman & Wakefield during the operation.

El Mirador de Jinámar is the largest retail space in the Canary Islands. The asset has a total surface area of 50,000 m2, of which 11,300 m2 is dedicated to the first hypermarket that Eroski opened in the region. In fact, the Spanish supermarket chain is one of the drivers of the complex, together with the property developer Ambrosio Jiménez.

Since November 2010, the Mirador de Jinámar has housed a total of 120 establishments in its commercial area. Distributed over two floors, some of the tenants of the property include firms from the Inditex group, as well as H&M, Cortefiel and Primark (whose store exceeds 5,000 m2, making it the Irish company’s largest in the Canary Islands).

The complex is located in Jinámar, a neighbourhood located between the municipalities of Las Palmas de Gran Canaria and Telde, the two most important cities on the island. The complex also has a parking area with capacity for more than 40,000 vehicles. In a second phase, which is still pending, the centre is planning to expand its offer to include 45,000 m2 of additional space, which will be allocated to DIY and homeware firms (…).

Meanwhile, General de Galerías Comerciales made its debut on the Alternative Investment Market (MAB) in July 2017. The company has twenty years of experience undertaking its activity right across the value chain, from the purchase of land to the management of assets.

The main assets in its portfolio are retail parks and shopping centres in Spain, such as La Cañada (Marbella), Mediterráneo (Almería), Mataró Parc (Mataró), Gran Plaza (Almería), Las Dunas and Nevada Shopping (Granada). The company also has an extensive portfolio of residential assets and retail premises, as well as land, primarily in the south of Spain. When the company made its debut on the MAB, its portfolio of assets was worth €1.9 billion.

Original story: Eje Prime 

Translation: Carmel Drake

Tomás Olivo set to Acquire El Mirador Shopping Centre in Gran Canaria

13 September 2018- Eje Prime

General de Galerías Comerciales is bidding exclusively for the largest retail space in the Canary Islands. Eroski, the owner of the Mirador de Jinámar, is holding exclusive negotiations with the company owned by the Murcian businessman Tomás Olivo, the Socimi General de Galerías Comerciales, with a view to selling the asset. The offer is expected to amount to around €45 million, according to sources close to the operation speaking to Eje Prime.

Valued at between €45 million and €100 million, General de Galerías Comerciales is not the only company that has expressed interest in the shopping centre in Gran Canaria in recent months. In fact, Eurofund’s investment fund offered €46.6 million in July for the asset, which opened its doors to the public in 2010.

Although sources at General de Galerías Comerciales have indicated to Eje Prime that the process is still “in its infancy”, sources in the sector explained that the operation is causing controversy because the company owned by Tomás Olivo has offered less than Eurofund’s bid.

The Mirador de Jinámar is a commercial area promoted by Eroski and the property developer Ambrosio Jiménez. The shopping centre spans a total surface area of 50,000 m2, of which 11,300 m2 is dedicated to the largest hypermarket that the cooperative distribution company belonging to Corporación Mondragón owns in the Canary Islands.

Since November 2010, the Mirador de Jinámar has been home to a total of 120 stores. Spread over two floors, some of the tenants of the property include firms in the Inditex group (its Zara store has a surface area of 2,000 m2), H&M, the Cortefiel and Primark brands (the latter’s store spans 5,000 m2 making it the Irish company’s largest in the Canary Islands).

The complex is located in Jinámar, a neighbourhood located between the municipalities of Las Palmas de Gran Canaria and Telde, the two most important cities on the island. The complex also has a parking area with capacity for more than 40,000 vehicles.

In a second phase, which is still pending, the centre is planning to expand its offer to include 45,000 m2 of additional space, which will be allocated to DIY and homeware firms (…).

General de Galerías Comerciales, on the hunt for new assets

Controlled by Tomás Olivo,  General de Galerías Comerciales made its debut on the MAB in July last year, to become one of the largest Socimis by capitalisation in the sector. The company has twenty years of experience undertaking its activity right across the value chain, from the purchase of land to the management of assets.

The main assets in its portfolio are retail parks and shopping centres in Spain, such as La Cañada (Marbella), Mediterráneo (Almería), Mataró Parc (Mataró), Gran Plaza (Almería), Las Dunas and Nevada Shopping (Granada). The company also has an extensive portfolio of residential assets and retail premises, as well as land, primarily in the south of Spain. When the company made its debut on the MAB, its portfolio of assets was worth €1.9 billion (…).

Original story: Eje Prime (by B. Seijo and P. Riaño)

Translation: Carmel Drake

ECE and J&T Bid in RE Operation of the Year

12 June 2018 – Expansión

One of the real estate mega-operations of the year is entering the home stretch. The German manager specialising in retail ECE and the Slovakian real estate leader J&T Real Estate are positioning themselves as favourites to acquire the Valle Real (Santander), Max Center (Bilbao) and Gran Casa (Zaragoza) shopping centres, currently owned by Iberian Assets, a joint venture in which the fund managers CBRE Global Investors (CBRE GI) and the multi-national Sonae Sierra both hold 50% stakes.

In the case of the Slovakian firm, the operation would be carried out through an alliance with Sonae Sierra and would represent J&T Real Estate’s debut in Spain.

Market sources explain that, in both cases, the bids for these assets exceed €450 million and reveal that the transaction could be closed within the next few weeks.

The portfolio, baptised as Project Summit, includes almost 117,000 m2 of gross leasable space in total (owned by Iberian Assets) and together, the three centres received 24 million visitors last year. CBRE GI and Sonae Sierra engaged the real estate consultancy firms CBRE and JLL at the beginning of the year to sell the three shopping centres.

The assets

Valle Real, opened in November 1994, has a gross leasable area of 47,725 m2, spread over two floors and is fully occupied (100%).

The shopping centre, located in Santander, closed last year with 5.9 million visitors. Valle Real includes a Carrefour hypermarket, which occupies almost 16,000 m2. Its other main tenants include Primark, Inditex, H&M and Forum Sport.

Meanwhile, Max Center is located in Bilbao and it opened its doors for the first time in 1997. The asset was remodelled in 2000 and its tenants include Inditex, H&M, Cortefiel, La Tagliatella, Foster’s Hollywood and Cinesa.

The shopping centre also has an adjoining leisure space, Max Ocio, which opened in 2002.

In total, the centre has a surface area of almost 40,000 m2 and it also received 5.9 million visitors last year.

Gran Casa, inaugurated in 1997, has a gross leasable area spanning 80,000 m2, almost half of which is occupied by Hipercor, and with an overall occupancy rate of 93%. Last year, the shopping centre, located in Zaragoza, received 12.2 million visitors.

If the transaction goes ahead, it will be the largest (non-corporate) operation in the real estate sector so far this year by transaction volume.

Moreover, the sale of the Summit portfolio would clear the way for the sale of another major commercial portfolio by Unibail Rodamco.

The shopping centre giant has hung the “for sale” sign up over four of its shopping centres in Spain – Los Arcos (Sevilla), Bahía Sur (Cádiz), Vallsur (Valladolid) and El Faro (Badajoz) – an operation that may exceed the volume of Project Summit.

Investment

According to data from the Spanish Association of Shopping Centres and Retail Parks (AECC), last year 29 transactions, involving 36 assets, were closed for a total sum of €2.7 billion, which represented growth of 35% YoY.

So far this year, several significant operations have been closed such as the sale of a portfolio of 14 premises by Inditex to the German fund Deka for €370 million (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Mazabi’s Socimi Silicius Plans to Double its Portfolio in 2018

18 December 2017 – Eje Prime

Mazabi is backing Silicius growth. The Socimi is ending the year by drawing a new roadmap for its future and setting itself new challenges for 2018. According to explanations provided by the company, one of its objectives is to reach an asset volume of €300 million next year, compared to its current property portfolio value of €120 million.

Currently, Silicius receives annual rental income of approximately €6 million. Recently, the company purchased a new asset in the north of the country: it acquired the property at number 2 Plaza Arroka in San Sebastián, owned until then by the supermarket chain Eroski (…).

Silicius is also currently in the middle of developing its plans for the Obenque building in the Spanish capital, which has undergone a complete renovation, according to Eje Prime. The total surface area of that property amounts to 5,870 m2 and it is used as office space, with 140 parking spaces. The work on Obenque will finish in February, but the company has already started marketing the asset, which may be leased in its entirety by a single operator or shared between several tenants. The average rental cost of the building is approximately €14/m2/month or €1.12 million per year (…).

At the beginning of October, the company signed a €29 million loan with two Spanish banking entities. With that loan, the real estate company may accelerate the purchase of assets (worth €44 million) forecast in its business plan before the end of the year.

According to Juan Díaz de Bustamante, the CEO of Silicius, these acquisitions will primarily be retail premises, out of town stores and office buildings leased over the long-term. “The strategic locations for us are the main cities in Spain and the provincial capitals, with a special focus on the north of the country”.

The company is not going to limit its acquisitions to Spain and will analyse opportunities in Europe’s major capital cities as well. Specifically, the company is currently looking at the possibility of closing an acquisition in Portugal.

The new phase for Silicius will be divided into two, according to sources at the Socimi. “Firstly, the Socimi will incorporate family groups and real estate firms into the project through the contribution of rental assets by the respective groups to diversify their investment and risk with the aim of finding liquidity and management efficiency”. In this sense, Silicius expects to be able to finance its plans with a capital increase, through contributions, ranging between €25 million and €50 million.

In the second part of the new phase, the Socimi will incorporate a contributing equity partner to its share capital. The group has set itself the objective of listing on the stock market in 2018 with a value of around €250 million. Once listed, the company’s aim is to incorporate institutional shareholders to achieve the minimum target of €400 million, the amount that the group considers necessary for the Socimi’s shares to be considered liquid.

Currently, the firm holds in its portfolio a hotel in Conil (Cádiz), two office buildings in Madrid and four retail assets with tenants such as Cortefiel on Paseo de la Castellana and another leased to Vips on Calle Velázquez.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Drago & Murias Invest €50M To Build Melilla’s First Shopping Centre

25 October 2017 – Eje Prime

Drago Capital is adding a new project to its portfolio. The real estate manager is finalising the launch of Parque Melilla, the first shopping centre located in the autonomous city of Melilla. The group, which has joined forces with Grupo Murias (to take care of the construction work) has invested €50 million in the project, according to explanations provided by company sources to Eje Prime.

The shopping centre, which is being commercialised by LyC Consultores, has been built on land that formerly housed the Valenzuela Barracks. It will have a gross leasable area (GLA) of 34,600 m2 in total, spread over two open floors, with parking for 1,350 vehicles.

The centre will be a mixed format retail park style (given that the gross leasable area will range between 20,000 m2 and 39,999 m2), with an area that will house a hypermarket along with small and medium-sized stores for fashion and services, and another space where the large format operators will compete.

According to Drago, the construction work is being carried out in record time: the starting gun was fired in September 2016 and more than 80% of the property has already been built. At the moment, Drago is working on fine-tuning the premises of the various operators and the centre is expected to open before the end of the year. The whole project will generate around 580 direct jobs and around 800 indirect roles when it opens its doors.

The centre is almost completely occupied. 85% of the premises have been leased to fashion, electronics and sports groups, as well as restaurant chains. Some of the brands that are going to open stores in the centre include H&M, Decathlon, Springfield, C&A, Inditex, Eroski, Worten, Inside, Multiópticas, Cortefiel, Primor, Guess and Levi’s.

As a result of this shopping centre, Melilla will lose its title as the only Spanish region without this format of retail offering, which will serve as a gateway for brands that do not have a presence in the city yet. The population in Parque Melilla’s catchment area amounts to almost 400,000 inhabitants.

Since its inception, Drago Capital has launched and managed fourteen investment vehicles encompassing more than 1,200 properties in Spain and Portugal. The company is dividing its business in two. On the one hand, Drago Capital has developed its asset management business, which offers services ranging from administrative management to property management, as well as the implementation of divestment and refinancing strategies.

The group also manages several investment vehicles on the Iberian Peninsula, in which large institutional investors hold stakes. Drago primarily manages two types of vehicles, those involving private capital and those involving managed accounts and joint ventures, which are specific vehicles oriented at covering the specific real estate investment needs of institutional investors (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Merlin Raises Issues 12-Year Bonds Worth €300M

12 September 2017 – Expansión

Merlin Properties has returned to the capital market, taking the Socimi‘s visits so far this year to two. Yesterday, it managed to raise €300 million from the issue of 12-year bonds, in an operation for which it offered a coupon of 2.375%

To effectively manage the placement, Merlin engaged the services of Morgan Stanley. The issuance received robust demand, which allowed the firm to reduce the cost from 150 basis points above mid-swap (the reference rate for the placement of fixed income bonds in euros) considered initially, to 140 basis points above mid-swap.

This is the fifth issue that Merlin Properties has undertaken since its constitution. The first three, for a cumulative sum of €2,350 million, were carried out in 2016. This year, the Socimi has already raised €900 million.

According to the company, the funds raised will be used to early repay its mortgage debt, as well as for “general corporate purposes”. Merlin is the fourth non-financial company to resort to the debt market after Telefónica, Iberdrola and Cortefiel.

Original story: Expansión (by A. Stumpf)

Translation: Carmel Drake

Tomás Olivo Buys Cortefiel Building In Granada For €29M

3 July 2017 – Ideal

Last week, the owner of General de Galerías Comerciales, businessman Tomás Olivo, purchased the property known as the Cortefiel building on the corner of Reyes Católicos and Gran Vía, in Granada, owned until now by BMN. The price of the operation amounted to €29 million for a property that dates back to the beginning of the 20th century, which houses the aforementioned textile firm on the ground floors and offices on the upper levels. According to sources at Galerías Comerciales, the new owner intends to continue the lease contract with Cortefiel and subject the upper four floors to a “new renovation”, but no further details have been provided about the project at this stage.

The Cortefiel building – as it is known popularly – dates back to 1908 and at the time cost 500,000 pesetas. The property development group was formed by bankers Manuel Rodríguez-Acosta and Enrique Santos, architect Francisco González Arévalo and industrialist Juan López Rubio, amongst others, and the original idea was to use the property as a hotel to compete with the Victoria and the Washington Irving. But the Hotel Colón never took off and the building was later split into rental apartments. On the ground and first floors, La Paz warehouses set up shop, owned by the fabric merchant Ramón García Ruiz, who over time, ended up taking ownership of the whole property. (…).

The former Caja General de Ahorros y Monte de Piedad de Granada acquired the building in 1984 for 250 million old pesetas to avoid it being taken over by a foreign entity. That entity then invested another 300 million pesetas on the renovation and on 28 November 1991, the iconic building was unveiled again, to coincide with the savings bank’s centenary celebrations. (…).

Following the merger, the building was transferred to BMN’s estate, and that entity is now selling the property for €29 million – almost 5,000 million old pesetas – and the historical Cortefiel building is passing into the hands of Tomás Olivo, who also owns the Nevada Shopping Centre.

In parallel, Olivo has ruled out the acquisition of Serrallo Plaza, an opportunity that sources had been speculating about for several months. (…).

Original story: Ideal 

Translation: Carmel Drake

Eurofund Capital & Patron Acquire 3 Shopping Centres

6 April 2017 – Inmodiario

The European investment funds Eurofund Capital Partners and Patron Capital have strengthened their presence and operations in Spain with the acquisition of three shopping centres: El Mirador, located in Cuenca; Los Alcores, in the town of Alcalá de Guadaira (close to Sevilla); and Alzamora, in Alcoy (Alicante).

Over the next few months, it will invest approximately €13 million in these centres to renew their retail offering, as well as to incorporate new domestic and international firms in the sector, and to increase the leisure and restaurant offer.

El Mirador de Cuenca is one of the iconic shopping centres in Castilla La Mancha and has no competitors in Cuenca. Inaugurated in 2002, it has a gross leasable area of 16,400 m2 and is home to more than 60 stores, including several high profile brands such as H&M, Cortefiel and Carrefour.

Los Alcores forms part of the Parque Guadaira retail area, next to the town of Alcalá de Guadaira. With a gross leasable area of 12,400 m2, its tenants include firms such as H&M, Lefties, Bershka and Stradivarius (…).

Meanwhile, the Alzamora shopping centre is also the main operator in the Alcoy area. It has a gross leasable area of 16,000 m2 and houses a wide range of retail (Zara, Massimo Dutti, Springfield) and leisure firms (cinemas, gym).

This is the second joint operation by Eurofund Capital Partners and Patron Capital in Spain, following their acquisition in July 2015 of the Dolce Vita Odeón shopping centre in Narón, near Ferrol, where it is carrying out a complete refurbishment both inside and outside the property, which, including the improvements made over the last two years, amount to €10 million (…).

Patron Capital and Eurofund

Patron Capital is an institutional investor specialising in real estate assets. It currently manages assets worth more than €5,000 million belonging to sovereign funds, universities, pension funds, private foundations and individual investors from the USA, Europe, Asia and the Middle East. Patron is headquartered in London and manages its investments in Spain from its offices in Barcelona. (…).

Meanwhile, the Eurofund Group has developed the shopping resort concept in Spain, which has had enormous success in Puerto Venecia (Zaragoza), winning the MAPIC prize in 2013 for the best shopping and leisure centre in the world. (…).

Original story: Inmodiario 

Translation: Carmel Drake

Casanova Completes Lightning Operation On Calle Preciados

3 March 2017 – Cinco Días

Trinitario Casanova has completed his second lightning operation in Madrid. (…). On Wednesday, the Murcian businessman formalised the purchase of a building on Madrid’s Calle Preciados, the most expensive street for retail premises in the city, and immediately sold it to the Texan fund Hines.

The property acquired on c/Preciados by the owner of the Baraka Group has a surface area of almost 1,700 m2, spread over a basement floor, ground floor and four above ground floors. The idea is that the whole building will be renovated for commercial use and converted into a flagship store for a major brand.

This is the same approach to a deal that Casanova adopted when he purchased a Bankia branch on Gran Vía in Madrid last year. In that case, the end buyer was also Hines, after the hamburger chain Five Guys confirmed that it would lease the space. In exchange, Casanova obtained a fast profit.

It also resembles the major operation that the businessman has signed in Madrid recently – the purchase of Edificio España from the Chinese group Dalian Wanda. That transaction, amounting to €272 million, has not been closed yet, but the hotel chain Riu has confirmed its participation as a partner investor and brand, as well as the manager of the future hotel. Nevertheless, in September, the Murcian businessman admitted that he still needed to find €200 million to finance the renovation work (…).

In the case of the property at number 13, Calle Preciados, Casanova has purchased it from several families, in an operation advised by Pérez-Llorca and Cushman & Wakefield. The parties have not revealed the consideration paid.

Cortefiel has decided to close the store of its Springfield brand, which occupied this building until now. The property also currently houses a local fashion company called Símbolo.

Original story: Cinco Días (by A.S.)

Translation: Carmel Drake