Principal Acquires an Office in Barcelona’s 22@ District for its European Office Fund

20 January 2020 – Press Release

Principal Real Estate Europe, the European real estate investment arm of Principal Global Investors, has completed the acquisition of the Torre Llacuna office building in Barcelona from Goldman Sachs.

Located at 166 Calle Llacuna in the Catalan capital’s 22@ technological district, the 13-storey multi-let office building is occupied by several tenants including the video game developer Social Point and the hospital operator Quiron Salud.

Cushman & Wakefield (technical & commercial), SDH and EY advised Principal Real Estate Europe on the acquisition.

Original story: Press Release

Edit/Summary: Carmel Drake

Soldeu Hotels Acquires Hotel in Andorra for €7.85 Million

21 November 2019 – Soldeu Hotels has acquired the Hotel Kyriad Andorra Comtes d’Urgell, in Andorra, from the Daguisa Hotels Group for 7.85 million euros. Hotansa, a subsidiary of Soldeu, will manage the 169-room hotel.

Cushman & Wakefield new Spanish hospitality division advised Daguisa on the sale.

Original Story: El Economista

Adaptation/Translation: Richard D. K. Turner

Hotel Sector Sees Continued Strength in Year to June

29 July 2019 – Richard D. K. Turner

According to the Hotel Sector Barometer, Madrid and Barcelona saw RevPAR growth of 15.1% and 12.7%, respectively, in the first half of 2019. The study stems from a partnership between STR, a global benchmarking, analytical and market knowledge provider, and Cushman & Wakefield Spain.Cushman & Wakefield

Continuing a trend that began at the beginning of the year, RevPar in the Canary and Balearic Islands fell by 4% and 3.6%, respectively. Brexit fears and increased competition from countries such as Turkey, Egypt, Tunisia and Israel have weighed on demand.

The average daily rate per occupied room rose by 2.8% in Marbella, 6.5% in Barcelona and by 13.2% in Madrid. Malaga, Seville and Valencia also posted ADR growth above 5%, while the ADR fell by almost 2% in the Balearic and Canary Islands. ADR grew by 5.3% for Spain as a whole.

Original Story: Hosteltur

Socimi Lar Sells its Last Office Building in Madrid to Swiss Life for €40M

24 April 2019 – Idealista

Lar España has sold the last office building left in its portfolio as it continues its strategy to specialise in the retail sector.

The Socimi has sold the property located at number 27 Calle Eloy Gonzalo, in the centre of Madrid, to the manager of the Swiss insurance company Swiss Life for €40 million. The building spans a surface area of 6,300 m2, distributed over 9 floors with various retail premises on the ground floor. The upper floors are leased in their entirety to the US coworking specialist WeWork.

Lar España acquired the property, which was constructed in the 1960s, for €12.7 million at the end of 2014.

Following this sale, the Socimi can now focus on the 14 assets in its retail portfolio (shopping centres and retail parks), which will become 15 after the summer, once the Lagoh shopping centre has been opened in Sevilla.

This represents the Swiss manager’s second purchase in Spain, following its acquisition of 13 retail premises from Corpfin Capital Prime Retail Assets in July 2018 for more than €83 million.

Various high-profile consultancy firms participated in the operation, with Cushman & Wakefield advising on the buy side and JLL and Knight Frank on the sell side.

Original story: Idealista (by Ana P. Alarcos)

Translation/Summary: Carmel Drake

C&W: More Than 300,000 m2 of Logistics Space was Leased in Q1 2019

5 April 2019 – Eje Prime

According to a report published by Cushman & Wakefield, the volume of logistics space leased in Barcelona rose by 21% YoY in Q1 2019 to 227,000 m2. Meanwhile, in Madrid, 73,700 m2 of logistics space was contracted during the first quarter.

According to the consultancy firm, fifteen operations were closed in the Catalan capital during the first three months of the year and rents rose to €6.75/m2. Moreover, in Madrid, rents continued their gradual increase to reach €5.25/m2 in prime areas.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

WeWork to Launch its ‘Custom Buildout’ Business in Spain

28 March 2019 – Idealista

The US co-working company WeWork is studying the rental of entire buildings in Spain to dedicate to its custom buildout business. The service offers large corporations assets fitted out and managed by the brand. The company is already looking at potential properties in Barcelona.

WeWork now has ten co-working office spaces in Madrid and Barcelona (5 in each city), but its plan is to offer large corporations a new service that would house their headquarters and manage all of their needs, leveraging the firm’s know-how in the office management segment.

According to its business model, WeWork speaks to its clients first to understand their needs and desires. It then searches for the best offers, assumes the risks of a long-term contract and the capital investment, and manages the property for the company on an on-going basis, offering services such as fresh fruit, water and security, as well as events for employees.

In this way, the firm would start to compete directly with stalwarts of the sector such as CBRE, JLL, Savills Aguirre Newman and Cushman&Wakefield.

WeWork already offers this service to several corporates around the world, including Starbucks, Facebook, Adidas, Salesforce, Blackrock and Citi, amongst others.

Original story: Idealista (by Custodio Pareja)

Translation/Summary: Carmel Drake

C&W: Investors Spent €300M on Student Halls in Spain in 2018

25 March 2019 – Eje Prime

Investors galore have set their sights on the market for student halls in Spain. Three major institutional investors, Axa, Invesco and Nuveen, have launched themselves into the construction and management of these types of properties, which they consider are reliable bets that generate high returns.

According to Cushman & Wakefield, investment in student halls in Spain amounted to almost €300 million in 2018. And the consultancy firm expects that figure to be exceeded in 2019.

Spain currently has 1.6 million students, of whom around 15% are potential users of student halls. Nevertheless, the accommodation stock comprises just 95,000 beds, which represents 6% of all matriculated students. As such, there is a lot of potential in the market.

In summary, demand is growing, supply is limited and returns are high, currently averaging 5.25% in Spain. As such, the market has captured the attention of global investors.

Indeed, investors in Spain generally fall into one of two categories: institutional investors with an international profile, such as the three players mentioned above; and European investors specialising in student halls, particularly those from the North of Europe, such as the British firms GSA and Collegiate, the Dutch firm The Student Hotel and the German company Corestate.

Meanwhile, the consultancy firm Savills Aguirre Newman calculates that around twenty major operations could be closed in this segment in 2019, which could result in investment of more than €2 billion over the next few years.

Original story: Eje Prime (by Roger Arnau)

Translation/Summary: Carmel Drake

C&W: Investment in High Street Premises Soared by 70% in 2018 to €1.7bn

6 March 2019 – Eje Prime

According to the latest edition of Cushman & Wakefield’s Investment Insight report, investment in high street assets in Spain soared by 70% in 2018 to reach €1.7 billion. In total, 52 operations were closed last year, accounting for 38% of all investments in commercial assets. The fashion and banking sectors accounted for the most deals.

Meanwhile, 32 operations were closed in the shopping centre segment, where the total investment amounted to almost €1.9 billion, down by 25% compared to 2017. In addition, 7 retail parks were sold last year for €236 million.

In the office sector, investment rose by 29% YoY in 2018 to reach €3.1 billion, with Madrid accounting for 66% of that total (€2.1 billion) and Barcelona accounting for 31% (€950 million).

In the logistics sector, e-commerce drove a sharp increase in investment to reach €1.2 billion, with 890,000 m2 of logistics space leased in Madrid and 345,000 m2 in Barcelona.

In terms of alternative assets, investment in student halls amounted to €220 million in 2018, whilst investment in nursing homes leapt to €281 million.

Original story: Eje Prime

Translation: Carmel Drake

Busining Leases 4,900 m2 in one of the Kio Towers to Open a Coworking

20 February 2019 – Eje Prime

Busining is going to create a new business centre in Torre Realia The Icon, one of the former Kio Towers in Madrid. The company, which specialises in coworking spaces, has leased 4,900 m2 of space from Realia, the owner of the property. The space is distributed over five floors in the iconic building located at number 216 Paseo de la Castellana where it is going to open offices and meeting rooms. The operation has been advised by Cushman&Wakefield.

The tower, known as The Icon, is one of the most iconic buildings in the Spanish capital and is considered to be the first skyscraper in the world to be built at a sloping angle. Its architect, Philip Johnson, was the first recipient of the Pritzker award.

With this operation, Busininng, which has five business spaces in Madrid, is expanding its offer in the business district of the Spanish capital. “This new operation is another example of the consolidation and growth of the coworking phenomenon in the Spanish market”, said Ignacio Oyarzun, Associate in the Business Space area at Cushman & Wakefield.

Original story: Eje Prime

Translation: Carmel Drake

Sales at Shopping Centres Up By 1.3% in 2018, Driven by Cosmetics and Sporting Goods

6 February 2019

The turnover at fashion and accessories stores fell by 0.5% last year due to climate changes and the companies’ commitment to online fashion.

The turnover of shopping centres is increasing. Sales at large stores increased by 1.3% in 2018, boosted by a rebound in cosmetics and sporting goods. On the other hand, sales of fashion and accessories retreated last year, posting a 0.5% drop in turnover.

Turnover at cosmetics and sporting goods stores increased by 5.6% and 4.4%, respectively. Growth in the two sectors allowed shopping centres to offset the 0.5% decrease in sales by fashion and accessories stores, according to Cushman & Wakefield’s index of comparable sales at shopping centres.

2018 brought an end to a series of positive results for the fashion and accessories sector over the last few years, despite an increase of 5.3% in the fourth quarter. Climate changes and increasing investments in online sales largely account for the declines.

Sporting goods stores posted a 4.4% increase in sales in 2018

On the other hand, sporting goods stores posted a 4.4% rise in turnover in a year marked by alterations to store concepts and operators’ strategies, with an increased focus on the footwear and casual fashion segments. Also, the increase in 2018 exceeded those of 2017 and 2016 (1.1% and 1.4%, respectively).

Meanwhile, cosmetics and perfumes saw a breakthrough in 2018, with a 5.6% rise in turnover. Also, these stores combined participation in total turnover at shopping centres managed or marketed by Cushman & Wakefield has grown 1.5 points since 2014.

Original Story: EjePrime

Translation: Richard Turner