ING Grants a €75M Green Loan to Colonial

5 March 2019 – Idealista

ING has granted a sustainable improvement loan to the Socimi Colonial amounting to €75.7 million. The terms of the loan are linked to the company’s performance in this field in that the interest rate varies depending on the rating that Colonial obtains from the Sustainability Agency GRESB for ESG (environmental, social and corporate governance) compliance.

It is the first loan of its kind to be granted to a Spanish company in the real estate sector and Colonial’s first sustainable transaction in the market. The real estate firm will use the funds to finance the LEED Gold certified building that it owns on Calle Almagro in Madrid, which is leased to the law firm Cuatrecasas.

Colonial has set itself the objective of having a portfolio of efficient buildings that consume fewer resources and reduce CO2 emissions and the amount of water used, amongst other factors.

Original story: Idealista 

Translation: Carmel Drake

Marathon Acquires 2 Office Buildings in Madrid from CaixaBank

14 February 2019 – El Confidencial

The US fund Marathon Asset Management, one of the first to back the recovery of the residential property development sector in Spain, has set its sights on the peripheral office market. According to sources speaking to this newspaper, the firm has purchased a complex measuring 17,557 m2 in Madrid from CaixaBank.

The complex comprises two office buildings and 300 parking spaces, as well as several commercial premises and is located at number 43 on Avenida Institución Libre de Enseñanza in the Julián Camarillo area, which is home to the offices of companies such as Atos, Indra and Prisa.

It is the second operation of its kind that Marathon has carried out in the past three months, given that in November, it acquired a mixed-used complex, also in this area from Credit Suisse. That complex comprised an office building and a hotel managed by Barceló.

Specialising in value-added operations, as demonstrated in the past, with its anticipation of the recovery of the residential property development market with its investments in Habitat and San José Desarrollos (now Vía Célere), the fund is convinced about the potential of the secondary office market in Spain, which it has placed at the centre of its investment target.

In fact, Marathon is interested in closing more acquisitions of this kind both in Madrid, where it plans to continue growing in the Julián Camarillo area, and in Barcelona, where it is looking at opportunities in areas such as 22@.

Last sale by CaixaBank

The fund, which has been advised in its purchase from CaixaBank by Cuatrecasas, Arcadis and Doble Dígito Brokerage, is planning to carry out a comprehensive repositioning of the asset, given that its current occupancy rate amounts to just 30%, according to market sources. They also indicate that the acquisition price will have amounted to around €15 million.

This complex was originally promoted by Grupo Veintidós in 2010, a company that ended up transferring ownership of the complex to CaixaBank, which lodged it in its real estate subsidiary Building Center.

Meanwhile, the bank reached an agreement with Lone Star last year to sell 80% of its real estate business, which means that this could be one of the last operations that the real estate subsidiary carries out under the control of the entity.

Original story: El Confidencial (by R. Ugalde)

Translation: Carmel Drake

CBRE GIP & Pygmalion Join Forces to Acquire 9 Hotels

13 November 2018 – Iberian Property

CBRE GIP and Pygmalion Capital Advisers LLP have recently established a new joint venture for the acquisition and repositioning of hotel assets in Europe, including Spain.

The partnership was launched through a formal tender, the acquisition of NPL’s debt and a portfolio of 9 four-star hotels in Spain, formerly belonging to construction group Urvasco.

The portfolio includes 1,650 rooms in hotels in Sevilla, Madrid, Bilbao, San Sebastian, Santander, Tenerife, Valladolid and Ciudad Real. Hoteles Silken will operate the assets through a long-term deal established with the joint venture, as part of a full repositioning program.

Alexander van Riel, in charge of CBRE GIP for Western Europe, said in a release: “We have entered the Spanish hotel market for the first time with the acquisition of a much sought-after portfolio. This transaction is in line with our global strategy to create strategic joint ventures with experts in the sector”.

And he added that “We will generate value through selective actions of added value and at the same time we will benefit from the stable and safe flow of stays. In time, we will make additional investments in hotels with indexed rentals”, he concluded.

Christophe Beauvilain, founding partner at Pygmalion Capital Advisers LLP, added that «This alliance underlines our vision for the market of buying, at desirable prices, a pan-European portfolio of businesses and hotels, taking advantage of the special circumstances provided by the growing market of bad loans (NPL)  which exists in Europe. The combination of European banks which remain highly exposed to bad loans and the countless debt funds that have been actively buying NPL portfolios, provides a large source of opportunities for investment and for our specialised strategy. Silken’s hotel portfolio provides us with a solid basis to carry out a fast expansion in the Spanish market given our growing flow of investment opportunities”, said the release.

Cuatrecasas law firm, directed by Fernando Bernad Ripoll, provided legal assistance. Christie & Co and JLL carried out the commercial and technical due diligence respectively.

Original story: Iberian Property (by Ana Tavares)

Edited by: Carmel Drake

WeWork Leases 2 New Office Spaces in Barcelona

4 October 2018 – Eje Prime

The US group, WeWork, is continuing its conquest of Spain and is getting ready to make its mark in the centre of Barcelona. The company, which specialises in flexible office spaces, will add a new complex to its portfolio in the Catalan capital after signing the lease on a building. The Corner, located at number 444 Avenida Diagonal, owned by Emesa. In parallel, the group is finalising the lease of the former headquarters of Banco Popular on Paseo de Gracia, in a property controlled Hines.

The building on La Diagonal is owned by Emesa, the investor group owned by Emilio Cuatrecasas, and used to house the headquarters of the law firm Cuatrecasas. The Corner, located at the intersection of La Diagonal and Paseo de Gracia has a surface area of 3,400 m2 distributed over seven floors (plus a basement), with an average surface area of 400 m2 each.

Emesa has owned the property on La Diagonal since 2017, when it paid €35 million to acquire it. The asset had been on the market since the beginning of the year after Cuatrecasas abandoned its traditional location to move to the 22@ district. Emesa had considered the possibility of leasing the building to several tenants, but in the end, it will be occupied in its entirety by WeWork.

In the meantime, the coworking giant is finalising another major operation. The company is close to signing the lease on the former headquarters of Banco Popular on Paseo de Gracia, a building that has been owned by Hines since March 2017, which paid €90 million for it.

Spaces, one of WeWork’s main rivals, expressed interest in that building in July. Nevertheless, sources at the company indicate that its operation never materialised. The building, located at number 17 Paseo de Gracia, has a surface area for offices and a retail premise, and has just been renovated by its owner.

With these moves, the US giant is taking positions in the centre of Barcelona; until now it had focused its presence on the 22@ district. In May, WeWork leased 4,500 m2 of space in the WIP building, owned by the Swiss fund Stoneweg.

That building is located next to the first complex that the group opened in Spain, in the Luxa building on Calle Tánger of the technological district. In Madrid, WeWork operates a space at number 43 Paseo de la Castellana, another at 77 on the same street, and a third at number 27 Calle Eloy Gonzalo.

Companies specialising in the management of these types of work spaces are revolutionising the office market all over the world. WeWork and Spaces are just two of the largest players on the global stage and both arrived in Spain in 2017.

Original story: Eje Prime (by Pilar Riaño & Jabier Izquierdo)

Translation: Carmel Drake

Dazia Capital Creates a Property Developer JV with French Fund Eurazeo

25 May 2018 – Expansión

The real estate group Dazia Capital and the French private equity fund Eurazeo Patrimoine have joined forces to tackle the residential sector in Spain. This alliance is being manifested in the launch of the joint venture Dazeo.

With a time horizon of three years, Dazeo will have an investment fund from Eurzaeo amounting to €70 million to undertake acquisitions in Madrid, Barcelona, Valencia, the Costa del Sol and other urban nuclei in Spain. The joint venture, controlled by Eurazeo, will achieve a business volume of up to €250 million, according to the forecasts. The agreement has been advised by Montalbán, Cuatrecasas and Uría Menéndez.

Dazeo has been created with a portfolio comprising three buildings in Madrid on Calles Alcalá, Santa Engracia and Santa Isabel. The entity is going to begin a new build project soon in the capital’s Salamanca neighbourhood, which will comprise 23 luxury homes with gardens, a garage and a gym.

Dazia Capital will be responsible for managing the projects from the acquisition through to the development and subsequent sale of the homes with Dayra Homes, its promoter brand.

It is not the first time that Dazia has reached a such an agreement to grow and boost its business, focusing on the residential market in urban nuclei, where last year it accumulated an investment of €185 million.

In 2017, it signed an agreement with the British fund Chenavari. Over the last four years, it has acquired buildings and land with a surface area of 86,000 m2 and 500 homes in Madrid and Costa del Sol.

Daniel Mazín (pictured above) is the CEO of Dazia Capital.

Original story: Expansión (by Elisa Del Pozo)

Translation: Carmel Drake

Emesa Segregates its Activity & Creates a Dedicated Real Estate Company

14 May 2018 – Eje Prime

Emesa is showing that it’s serious about its real estate business. The investor group owned by Emilio Cuatrecasas is immersed in a company reorganisation, which will lead him to segregate his business into two: one division will be destined to corporate investment and the other to real estate investment. The group has recently created the first company to this end, Emesa Real Estate, which will have Emesa Corporación Empresarial as its sole shareholder and Ferrán Forrellad as the administrator.

According to the Official Bulletin of the Mercantile Registry, the constitution of Emesa Real Estate is the first step being taken by the group to initiate its corporate restructuring. Although the company already operated its real estate business through the holding company Emesa Corporación Empresarial, from now on, it will channel all of its operations in the real estate sector through one specific company.

Meanwhile, the other arm of Emesa’s business, Emesa Capital, will be managed by Vanessa Llopar, who has served as the CEO of that division since March. Through that subsidiary, Emesa is investing in companies in various sectors, from healthcare companies, such as Devicare, to companies specialising in urban storage, such as Boxinfiniti.

Thus, Emesa’s new plans in the Spanish real estate sector will be conducted directly by this new division. The group is going to invest more than €100 million in Barcelona and its surrounding area, as revealed by Eje Prime, in order to launch new residential projects, office buildings and hotels.

Even so, the company’s involvement in the real estate sector dates back years. Emesa first leapt into the property development world with a building in the heart of Barcelona’s 22@ district, which is now the headquarters of the law firm Cuatrecasas in the Catalan capital.

The group, which has increased its workforce by threefold over the last three years, from seven employees to twenty-one, is now in the preliminary phase of constructing a new office building in the same area, at number 184 Calle Pallars. Designed by the architecture studio BAAS, Emesa is going to invest €25 million in that new asset, which will have an above ground surface area of 9,200 m2 and 5,000 m2 of space below ground level.

Moreover, in recent months, Emesa has starred in several high-profile operations in the Barcelona real estate market, such as the purchase of the Diagonal 444 building, the former headquarters of Cuatrecasas; and of the Diagonal 632 building, which is the headquarters of the Quirónsalud’s Ophthalmological Institute in Barcelona.

And from one side of Avenida Diagonal to the other. As Eje Prime revealed, Emesa acquired 37,000 m2 in Finestrellas, an up and coming area, which will include offices, residential properties and a commercial area. The project in which Emesa is participating involves an office development spanning 90,000 m2, in which it has invested €80 million and which is expected to be fully operational by 2023 (the construction work will begin in 2020).

Emesa also plans to make headway in the residential sector over the next few years. The company is going to build a development containing 40 homes for rent in Badalona after investing €12 million in this project.

Currently, the portfolio of Emesa Corporación spans more than 180,000 m2 and is worth more than €750 million. Emesa Corporación Empresarial generated revenues of €8.07 million last year.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Emesa Plans to Invest €100M in New RE Projects Between Now & 2023

13 April 2018 – Eje Prime

Emesa Corporación, the investment company owned by Emilio Cuatrecasas, is committed to the real estate business. The group is going to invest more than €100 million in Barcelona and the surrounding area to launch new projects in the residential, office building and hotel sectors, according to explanations provided by Ferran Forrellad (pictured below), CEO of Emesa, speaking to EjePrime in an interview.

Launched in 1980, Emesa Corporación has been turning its activity, step by step, into a business model in which it can operate comfortably. “The turning point came in 2015 when we went from being a company that bought, managed and operated, into being a company that develops and creates business”, explains Forrellad. “We want to be a player in the real estate sector that controls its projects from the beginning until the end”, he adds.

Emesa, which in addition to its real estate arm also has a business area destined to acquiring stakes in the share capital of companies in full growth (such as the case of the company specialising in storerooms Boxinfiniti), threw itself wholeheartedly into property development with a building in the 22@ district of Barcelona, which is now the headquarters of the law firm Cuatrecasas.

The group, which has multiplied its workforce by three-fold over the last three years, from seven employees to twenty-one, is now in the preliminary phase of constructing a new office building in the 22@ district, at number 184 Calle Pallars. Designed by the architecture firm BAAS, Emesa is going to invest €25 million in the new asset, which will have an above-ground surface area of 9,200 m2, as well as 5,000 m2 below ground. “It will be finished during the third quarter of 2020”, says Forrellad.

“We want to create unique buildings in Barcelona and we are on the lookout for new plots in 22@ on which to build more offices since we firmly believe that it is one of the areas of the future in the city, both for business and homes”, said the company’s CEO.

In recent months, the company has starred in several high profile operations in the Barcelona real estate market, such as the purchase of the Diagonal 444 building, the former headquarters of Cuatrecasas; and the Diagonal 632 building, which houses the headquarters of Quirónsalud Barcelona’s Ophthalmological Institute.

And from one side of La Diagonal to the other. As Eje Prime revealed, Emesa acquired 37,000 m2 of land in Finestrellas, a new development area, which is going to include offices, residential properties and a commercial area. The project in which Emesa is participating constitutes a 90,000 m2 office development, in which it has invested €80 million and which is hopes will be fully operational by 2023 (construction work begins in 2020).

Emesa will also focus on the residential business over the next few years. The company is going to build a development comprising forty homes for rent in Badalona after investing €12 million in this project. According to the forecasts of Emesa, which is on the verge of receiving approval for its licences, the project will be launched in 2020 and has been designed by the architecture firm Barozzi Veira (…).

Last year, the company also purchased the Ullastret Palace in Girona, with the aim of turning it into a high-end hotel, which is going to be the first of a chain of select hotels in El Empordà. (…).

Currently, the portfolio owned by Emesa Corporación spans more than 180,000 m2 and is worth more than €750 million. Emesa Corporación Empresarial generated turnover of €8.07 million last year.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Lladó Family Buys Office Building in Madrid from Axiare for €30M

22 December 2017 – Eje Prime

Axiare is ending the year by starting a new divestment phase and the Lladó family is growing its portfolio of assets. José Lladó, President and majority shareholder of Técnicas Reunidas, is exercising his real estate leg with the purchase of a building on Calle Fernando el Santo, owned by the Socimi Axiare, for €30 million. The asset will become the new headquarters of the European investment fund Eurofund Capital Partners.

The Socimi has begun its divestment phase and has decided to get rid of its Fernando el Santo property, a prime building located in the centre of Madrid, for which it will receive proceeds of €30 million.

The property, measuring 3,254 m2 spread over six floors, is located at number 15 Calle Fernando el Santo.  It has 42 underground parking spaces and currently houses the headquarters of the Argentinian embassy and consulate in Spain. It is adjacent to the current residence of the Argentinian ambassador.

The Socimi has obtained a return of 82% from this asset in just three years, after having purchased the property in 2014 for €16.5 million. Moreover, the building’s rent has risen by 43% during the three years that the company has managed it.

The new owner of the building is the Lladó family, which in recent months has opted to acquired assets located in prime areas where the value of those assets may exceed their prices over the coming years. Before acquiring this property from Axiare, the company purchased another building from the Socimi Hispania, which will house the future headquarters of the law firm Uría y Menéndez for €29 million.

In recent years, the owner of Técnicas Reunidas has also purchased a building at number 2 Marqués de la Ensenada, located just a stone’s throw from Plaza Colón in Madrid, for €6 million. In July 2014, the family office also purchased a building from Vía Célere at number 15 Paseo de Recoletos, for almost €20 million. The Lladó family also owns the property at number 33 on the same street.

Axiare starts divesting at the height of its takeover bid

The Socimi Axiare, which on the offensive, after Colonial launched a takeover bid to take control of the Socimi, is beginning a new divestment phase with the sale of this asset.

Axiare’s portfolio appeals to Colonial because it mainly comprises offices (74%), but also contains other types of assets, such as commercial premises, which account for 9% of the total, and logistics assets, which represent 18% of the total. The Socimi is led by Luis Alfonso López de Herrera-Oria.

The main assets of Axiare, whose tenants include companies such as eBay, Cuatrecasas, Konecta, McKinsey&Company and Alantra amongst its clients, are its office buildings on Calle Sagasta in Madrid, measuring 7,054 m2; on Calle Velázquez, measuring 16,816 m2; and on Calle Manuel de Falla, measuring 6,252 m2.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Bain Establishes Joint Venture To Manage Real Estate Asset Portfolio From Liberbank

24 October 2017 – Bain Capital Credit

Bain Capital Credit, LP announced today that it has entered into a binding agreement to establish a joint venture company, which will own and manage a portfolio of repossessed real estate assets from Liberbank. Bain Capital will control and manage the JV with an 80% stake; the two other shareholders are Liberbank and Oceanwood. Bain Capital Credit now owns and manages ten loan and real estate portfolios in Spain.

The portfolio has an appraisal value of more than €600 million and primarily comprises residential units, land and work-in-progress (WIP) assets across Spain. Bain Capital Credit will actively manage the portfolio, including developing some of the land and WIPs.

“We are excited to expand our position in the Spanish real estate market and to control the majority of this JV alongside Liberbank and Oceanwood,” said Alon Avner, a Managing Director and Head of Bain Capital Credit’s European business.

“We continue to consider Spain one of the most attractive real estate markets in Europe and this portfolio’s concentration in central and northern Spain provides a great degree of diversification for our portfolio,” said Fabio Longo, a Managing Director and Head of Bain Capital Credit’s European non-performing loan & real estate business. “This is a great opportunity to participate in Spain’s recovery and to further expand our footprint in the Spanish residential development sector. Furthermore, this investment showcases our expertise in executing complex transactions that require close collaboration with the seller under compressed timelines,” added Mr Longo.

The support in executing this deal was provided by Altamira Asset Management, as real estate servicing specialists; Aura REE and Basico, as real estate valuation specialists; and Cuatrecasas, as legal counsel.

Original story: Bain Capital Credit

Edited by: Carmel Drake

 

French Fund Primonial Makes First Purchase In Spain

4 September 2017 – Expansión

The Spanish real estate market has a new investor: Primonial Reim, a French real estate fund manager that, with a portfolio of more than €10,700 million under management, has just completed its first purchase in Spain.

Primonial has acquired the Sant Antoni nursing home and clinic in Barcelona. The centre, located in La Marina del Port, has 300 beds, with a total surface area of 16,000 m2. For this asset, Primonial Reim has disbursed €20 million, in an operation that has been advised by Cuatrecasas, JLL and Grant Thornton, which has performed the financial due diligence.

The Sant Antoni centre, owned until now by the firm Hucasve, will be incorporated into the portfolio of its subsidiary SCPI Primovie, whilst the management of the centre (engaged to the Catalan Health Service) will remain unchanged, under the terms of the long-term contract in place.

Alternative assets

The Spanish real estate sector has been on the radar of all overseas investors for several months now, given the expectations of a macroeconomic recovery and the affordable prices of assets compared with those in other similar locations. Due to this high demand, the assets most favoured by investors (such as offices and commercial assets) are scarce, and so properties known as alternative assets are becoming a highly attractive option. These properties include medical centres, nursing homes and halls of residence.

According to Deloitte, investment in alternative assets in Europe accounts for 14% of the total, although that figure is much lower in Spain. As such, the segment in Spain offers significant potential, with returns of 6% on average, well above those of other real estate assets.

The most high profile transactions in this market in recent times include a purchase by another French group, the investment fund Eurosic Lagune – owner of the Socimi Eurosic – which bought 16 nursing homes from the SARquavitae Group for €116 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake