Stoneweg Finalises the Sale of a Tower Containing 300 Rental Homes for €130M

20 May 2019 – Eje Prime

Stoneweg is joining the rental home development market. The fund is going to build a 300-home tower block on the land that it purchased from Dragados, the subsidiary of ACS, on Paseo de la Dirección in Madrid. The operation will amount to €130 million.

The company is holding advanced negotiations with the manager Ares and the US group Greystar, which specialises in student halls, regarding the development. Ares had been the favourite to acquire the tower but now Greystar is gaining ground.

Ares is on a mission to buy up rental homes. In the last few months, the company has agreed to buy 500 rental homes from Aedas Homes, 121 homes from Metrovacesa and 223 homes from Momentum.

Stoneweg purchased the plots from Dragados with the aim of building two residential blocks containing 600 homes in total. The first block will be handed over as a turnkey operation containing rental homes, whilst the second will contain homes with asking prices of €4,500/m2.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Locare Buys a Rental Home Development from Vía Célere

15 May 2019 – El Economista

In just one year, Locare Real Estate has become one of the main drivers of affordable rental housing in Spain, with a portfolio of more than 700 homes at different stages of completion. To this end, the firm has just signed an agreement with the property developer Vía Célere to acquire one of its developments in the Madrilenian town of Valdemoro.

Locare is already working on another development in the same town and together the two estates will contain 180 homes and will involve an investment of €23 million. The homes will be adapted to Locare’s style, which means that they will be suitable for rental.

This operation represents the first step by the property developer led by Juan Antonio Gómez-Pintado into the rental market and sees the firm follow in the footsteps of Aedas Homes and Metrovacesa.

In its first year of life, Locare has already disbursed €90 million of the €120 million in funding that it raised and has launched five other developments in Móstoles, Torrelodones, Collado Villalba and Alcalá de Henares, containing almost 1,000 units in total. The firm is already working on the launch of a second fund to continue its work in this field.

Original story: El Economista (by Alba Brualla)

Translation/Summary: Carmel Drake

VGP Invests €22M in 2 Logistics Platforms in Cheste (Valencia)

15 May 2019 – Levante EMV

The Czech group VGP has announced that it is going to invest €22 million in the construction of two latest-generation logistics platforms on plots spanning 75,000 m2 in Cheste. The logistics platforms will span 15,000 m2 and 26,000 m2, respectively, and the projects are expected to create around 400 new jobs.

The logistics industrial estate in Cheste is enjoying a boom in recent times driven, in particular, by the Lidl logistics platform. It sits within the first logistics ring of Valencia and has direct access to the Manises airport, as well as to the Port of Valencia.

VGP will add these assets in Cheste to the other sites that it is already developing in Spain, including VGP Park San Fernando de Henares, VGP Park Lliçà d’Amunt, VGP Park Fuenlabrada and VGP Park Zaragoza, which together span 360,000 m2.

Original story: Levante EMV (by Ramón Ferrando)

Translation/Summary: Carmel Drake

Investment Funds Seek Land for Student Residences in Sevilla, Málaga & Granada

13 May 2019 – ABC de Sevilla

According to CBRE Spain, many investment funds are searching for land in Sevilla, Málaga and Granada on which to build new halls of residence for students. Ideally, they want plots that are located close to the university campuses or in well-connected areas of those cities.

Specialist student residence companies are also in the market for land, such as the company Syllabus by Urbania, which is actively looking for new plots in Sevilla and Granada.

The British firm Amro is already working on two projects, in Granada and Sevilla, and is now searching for land in Málaga, as well as in Salamanca, Alicante, Bilbao and Barcelona.

Similarly, Greystar, which is building a 322-bed hall of residence in Málaga, also wants to expand its footprint in Sevilla and Granada.

Lack of beds for students

In Spain, there are 1.5 million students, of which around 600,000 do not live in their home towns or cities. Nevertheless, there are less than 100,000 beds available for students and they are primarily located in Madrid, Barcelona, Salamanca, Granada, Valencia, Málaga and Sevilla. Moreover, most of the existing supply is obsolete. The need to expand and renew the stock is clear.

Original story: ABC de Sevilla (by María Jesús Pereira)

Translation: Carmel Drake

Platinum Buys the Park Hyatt Site Near Sotogrande to Open its Own Hotel

25 April 2019 – El Confidencial

Platinum Estates has just completed the purchase of Finca Doña Julia, a plot spanning 40,000 m2 located in Casares, between Marbella and Sotogrande, where the Hong-Kong based fund is planning to open a 4-star hotel.

The future establishment is going to be built on the structure that the property developer Evemarina designed for Park Hyatt. Work was suspended on that project after the company filed for bankruptcy when the economic crisis hit.

The debt ended up in the hands of seven banks, which have now sold their stakes to Platinum for an undisclosed amount. The fund led in Spain by Juan Luis Segalerva has been advised by Garrigues.

The same financial institutions have also transferred another plot to Platinum next to Finca Doña Julia, measuring 11,000 m2.

All of these assets are located next to Finca Cosentín, where KKR, together with Altamar and Single Hom are going to invest €450 million in the development of exclusive villas and apartments.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Villar Mir Seeks Partners to Develop Inmobiliaria Espacio’s Land Portfolio

23 April 2019 – Idealista

The Villar Mir Group is looking for partners to inject capital into the development of the land owned by its subsidiary Inmobiliaria Espacio. The firm is going to put a portfolio of assets worth between €250 million and €300 million on the market. Its aim is to continue as the minority shareholder of the developments or to carry out the development of each promotion.

The plots of land are located all over Spain, including in Madrid (Valdebebas, Pozuelo de Alarcón and Alcorcón), Murcia, La Línea de la Concepción and Algeciras (Cádiz), Marbella (Málaga), San Juan (Alicante), Almería, Mallorca and Valencia. At the end of 2017, the plots were worth €256.9 million.

Original story: Idealista 

Translation/Summary: Carmel Drake

OHL Negotiates the Sale of Canalejas for €200M to Raise Liquidity

15 April 2019 – Expansión

The construction group OHL is considering selling its 50% stake in the Canalejas complex in order to raise cash. The other half was acquired by the PokerStars founder, Mark Scheinberg, in February 2017.

Canalejas, which is located in the centre of Madrid, just a stone’s throw from Puerta del Sol, and which is going to house Spain’s first Four Seasons hotel, with 200 rooms and a 15,000 m2 high-end shopping arcade, is one of the jewel’s in OHL’s crown. Nevertheless, the construction company chaired by Juan Villar-Mir de Fuentes, needs funding to undertake new projects and return to growth, and so it is considering selling its 50% stake in the complex.

Although no formal competitive process has been opened, sources report that preliminary conversations are being held with interested investors, including one international fund.

Canalejas spans a surface area of 50,000 m2 and its development has involved the investment of €525 million. The complex is due to open in the final quarter of this year.

Original story: Expansión (by R. Arroyo & C. Morán)

Translation/Summary: Carmel Drake

Property Developer Vital Inmobiliaria Launches its First Development in Marbella

17 April 2019 – Eje Prime

Vital Inmobiliaria is launching its first residential development in the centre of Marbella with the construction of 16 villas spanning 8,000 m2 in total. The properties are going to be located on Avenida Huerta Belón and will comprise thirteen terraced houses and three detached homes.

Each home will have a surface area of 360 m2 distributed over two floors and an attic, as well as a communal garden and swimming pool. The construction work is due to begin in September, and the homes are expected to be ready for delivery by the summer of 2021.

The property developer is currently marketing nine other residential developments across Spain, two of which have already been constructed. The other seven are located in Tenerife (3), A Coruña (2), Asturias (1) and Marbella (another 1).

Original story: Eje Prime (by Milana Mishchenko)

Translation/Summary: Carmel Drake

ADU Purchases the Mestalla Plots from Valencia FC for c. €115M

17 April 2019 – Idealista

The manager ADU Mediterráneo and CONCOVI (the Confederation of Housing Cooperatives in Spain) has reached an agreement with Valencia CF to purchase the plots on the site of the current Mestalla stadium.

It is the largest land transaction to be signed for a decade in Valencia, with a surface area of 97,225 m2, of which 55,769 m2 will be dedicated to residential use and 41,456 m2 for tertiary purposes.

According to the newspaper Las Provincias, the consideration for the deal could amount to more than €115 million. Valencia FC will move to its new stadium during the 2022-2023 season. CBRE will exclusively manage the sale of the tertiary and residential properties.

Original story: Idealista 

Translation/Summary: Carmel Drake

Aedas Revolutionises the Property Development Sector by Building 500 Turnkey Homes for Ares

12 April 2019 – El Confidencial

Aedas Homes has decided to launch a new line of business by building complete housing developments for other companies. In this way, the listed property developer hopes to generate value from its production over-capacity; it anticipates recording revenues of around €70 million from the initiative.

In this vein, the company led by David Martínez has reached an agreement with the fund Ares to build 500 homes in its name in three different locations: Torrejón de Ardoz, Alcalá de Henares and El Cañaveral (all in Madrid).

This is the largest turnkey project in the sector since the outbreak of the real estate crisis, a decade ago and as such, represents a real milestone.

The three largest listed property developers in Spain, Neinor, Aedas and Metrovacesa, are all living by the famous mantra “reinvent yourself or die”. As such, they are expanding their operations as they seek to actually generate the high turnover figures that they promised when they made their stock market debuts.

With this latest announcement, Aedas is sending a clear message to its competitors. It has over-capacity in its production model, which means that it can handle turnkey projects on a large scale, as well as deliver the roadmap that it is already committed to.

With the additional 500 homes from this project, Aedas Homes could end the year with more than 3,000 units launched, compared with the 2,580 initially planned for the year.

Meanwhile, Ares Capital is immersed in its commitment to the Spanish real estate market, with a particular focus on the residential segment, with homes both for sale and for rent.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake