Starwood Finalises the Purchase of 5 Buildings from Oaktree for €150M

4 June 2019 – Eje Prime

Starwood is finalising the purchase of four office buildings in Madrid and one in Barcelona from Oaktree and the German company Freo for €150 million in total.

Together the five buildings span a surface area of 78,428 m2 and have 1,323 parking spaces. They are currently leased to a number of companies, such as Indra, BBVA, Air France KLM and Hoist Finances, amongst others.

Specifically, the properties are located on Calle Julián Camarillo, numbers 4 and 6, Avenida de Manoteras, 44 and Valportillo Primera, 13 in Madrid; and on Calle Samontà in Sant Joan Despí in Barcelona.

The US fund is teaming up with the Spanish real estate company Drago Capital, as it continues to strengthen its position in Spain. In recent months, the alliance has purchased assets worth €400 million.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Allianz Acquires the Castellana 200 Complex for €250M

12 April 2019 – Expansión

Allianz is going to be the new owner of the Castellana 200 office and retail complex located just a stone’s throw from Plaza Castilla in Madrid. The Socimi Silvercode, in which the Canadian pension fund manager PSP and Drago Capital both hold stakes, is going to sell the property to Allianz Real Estate for €250 million, five years after buying it from Reyal Urbis for €144 million.

The complex, which was developed by Reyal Urbis in 2009, comprises 20,295 m2 of office space, 6,415 m2 for commercial use and 844 parking spaces. It has additional buildability of 14,000 m2 for a hotel or residential project, which is currently suspended, although that space is excluded from the operation. Castellana 200 is currently managed by Drago Capital.

Original story: Expansión (by R. A.)

Translation/Summary: Carmel Drake

Allianz RE Negotiates the Purchase of Castellana 200 for c. €250M

2 April 2019 – El Economista

The office and retail complex Castellana 200 in Madrid is on the verge of changing hands once again. Its owner, the pension fund of the Canadian armed forces, PSP, is negotiating its sale with Allianz Real Estate in a deal that could amount to €250 million.

The property is listed on the MAB through the Socimi Silvercode, which made its debut on the stock market in 2016. The company’s majority shareholder is Java International, (97.51%), which is in turn owned by PSP Britannia (87.76%) and Enavap Investments (9.75%). The latter is controlled by Luis Iglesias, founder of Drago Capital, which is the current manager of the complex.

Castellana 200 was last sold in July 2014 for €144 million, after opening its doors in April 2013. It is located on Paseo de la Castellana, just 300 m from Plaza de Castilla, and comprises two office buildings, spanning more than 20,000 m2, plus a shopping centre measuring 6,416 m2 and 817 parking spaces. There are also plans for a hotel in the pipeline with a surface area of 18,000 m2.

Through this deal, Allianz Real Estate, the strategic real estate division of the Allianz Group, would strengthen its position in Spain, a market it first entered in 2016.

Original story: El Economista (by Alba Brualla)

Translation/Summary: Carmel Drake

Starwood Purchases Omega Park in Madrid and an Office Building in Barcelona

24 January 2019 -El Confidencial

The US fund Starwood Capital has taken another important bite out of the Spanish office market with the purchase of the entire portfolio of Autonomy, the Socimi whose main asset was the Madrilenian Omega Business Park, a giant corporate complex comprising four buildings spanning more than 33,000 m2, and which houses the headquarters of multinationals such as BP and Samsung.

The transaction, whose consideration amounted to €125 million, also includes an office complex in the sought-after 22@ district of Barcelona, which allows the US fund to also expand its presence into the Catalan capital and to make strides in its commitment to build an office portfolio in Spain worth €500 million.

To reach this objective, Starwood joined forces last year with Drago Capital, together with which it starred in the purchase of the Madrilenian San Fernando Business Park for €120 million, and which has also accompanied it in its purchase from Autonomy (…).

The Socimi, meanwhile, had put the for sale sign up over its whole portfolio a while ago. It constructed the portfolio with a clear opportunistic appetite during the worst periods of the crisis and it is now able to undo its positions with juicy gains.

In fact, at the end of 2017, Autonomy sold the jewel in its crown in Spain, the building located at number 4 Gran Vía, to the Riberas family, owner of Gonvarri and Gestamp, for €43 million, an amount that generated a gain of 40% for the opportunistic investor.

Following the sale of the office portfolio to Starwood, the Socimi is going to distribute €44.7 million as an issue premium, as well as an interim dividend of €51 million, amounts that in both cases will be paid into the accounts of shareholders on 30 January.

Moreover, once all of these operations have been completed, Autonomy will still have €10 million in cash and no assets under ownership, which means that it will have completed its objective of divesting all of its positions in Spain with juicy gains.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Starwood Capital Finalises the Purchase of an Office Portfolio for €125M

24 January 2019 – Expansión

The fund Starwood Capital is seeking to strengthen its presence in Spain with the purchase of a portfolio of offices in Madrid and Barcelona. Specifically, Starwood is finalising the purchase of an office complex in Madrid, comprising four buildings, and another one in Barcelona from the Socimi Autonomy for €125 million, according to explanations from market sources speaking to Expansión.

In the case of Madrid, the four office blocks are located in the north of the city, inside the Omega business park, in the Arroyo de la Vega area. They span a combined surface area of 33,458 m2 and have 940 parking spaces.

The Omega Business Park, which is home to the headquarters of companies such as Samsung, BP and Allianz, is located next to the airport of Madrid and has become one of the most established areas in the north of the capital.

Besides the offices in Madrid, the operation also includes a new build property in the 22@ district of Barcelona, with a surface area of 12,596 m2.

The building in Barcelona comprises two towers connected by a common entrance hall, with twelve and four floors, respectively. The building also contains commercial premises and 216 parking spaces.

The building on Calle Pallars is occupied by tenants such as Regus, General Electric and Ticketmaster. The operation has been advised by the real estate consultancy CBRE, on the vendor side, and by Drago Capital, which has advised the buyer and which will manage the properties (…).

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Azaria Rental Debuts on the MAB with a €125M Investment Plan

25 September 2018 – Eje Prime

Azaria Rental made its debut on the stock market today with the clear intention of expanding its asset portfolio. The Socimi, specialising in the rental market and managed by Drago Capital, started trading at a price of €5.40 per share, which means that its valuation amounts to €45 million, according to a statement filed by the company with the Alternative Investment Market (MAB).

On its first day on the MAB, the Socimi confirmed its plan to search for new investment opportunities to increase returns for its shareholders. Specifically, according to Mayte Medina, CEO of Drago Capital, the firm’s future acquisitions are expected “to amount to €125 million in total”.

Currently, Azaria Rental owns just one asset: a 100% stake in Bifur Investments, the owner of the industrial and office complex located at number 40 Calle Miguel Yuste in Madrid, which houses the headquarters of the El País newspaperThe property spans a surface area of 46,480 m2 and comprises five buildings, leased to the Prisa group until 2033 for €4.9 million per year, according to Expansión.

Azaria Rental is the 19th Socimi to debut on the MAB so far this year. The objective of the company is to create a real estate investment vehicle to generate returns of between 4% and 5%, “from rental contracts with a net triple income profile over the long-term”.

Meanwhile, Drago Capital is a real estate asset management company that operates in the Spanish market as well as in the United States of America. Founded in 2001 by a group of professionals from the sector, it has offices in Madrid, Lisbon and Miami.

Original story: Eje Prime

Translation: Carmel Drake

The USA’s Largest RE Firm Launches its Second Socimi in Spain

15 December 2017 – La Información

The largest real estate company in the United States, Lennar Corporation, has just redoubled its commitment to the Spanish market with the creation of a second Socimi. The aim is to reinforce the role already being played by its company Al Breck Socimi, to optimise the performance of the real estate assets that the US giant owns in Spain, through this special tax regime.

The operation has been formalised through the company Rialto Capital Management, one of the investor vehicles – headquartered in Luxembourg – that Lennar uses to carry out real estate operations in Europe and the only one that has a stable structure in Spain. Rialto Captial is listed on the Mercantile Register, according to information provided by the website Informa, as the sole shareholder of the new company, Ceres Real Estate Socimi. In turn, Ceres is the heir of Clearfield Invest, a firm constituted just over two months ago and whose administrators form part of the team in Spain of Grupo TMF, a company specialising in the provision of all kinds of services for companies.

This singular sequential corporate structure is identical to the one that preceded the launch of Rialto Capital’s other Socimi, Al Breck, between September 2014 and October 2016. In that case, a parent company Cornwall Invest was constituted with three subsidiary companies. Two months after the creation of those companies, the firm Al Breck Luxembourg, which Rialto Capital owns outright (100%), acquired Cornwall Invest, which acquired the three subsidiary companies a week later, as the prologue to the formal application for adopting the special tax regime afforded to Socimis.

Al Breck Socimi took over the management of the portfolio of real estate assets acquired by Rialto Capital and Drago Capital from Inverseguros, the collective investment platform created back in the day by several insurance companies and which was the first real estate fund to be registered with the CNMV. The package included parking spaces, offices, shops and homes, most in very central areas of Madrid, and was valued by the company in the MAB incorporation document, at €110 million.

According to Lennar’s annual report for 2016, besides that operation, the company only formalised one other operation last year, namely a real estate development in which it invested USD 1.6 million (…).

Rialto Capital’s new Socimi is feeding a market on the rise; this year alone 17 new companies with a combined asset portfolio of more than €4.5 billion have joined the MAB (…).

In October, Lennar Corporation became the largest real estate company in the USA after closing the absorption of Cal Atlantic, the most important company in the state of Virginia. According to the local press, the operation has resulted in the creation of a giant with annual revenues of USD 17 billion (€14.4 billion), a market capitalisation of USD 18 billion (€15.26 billion) and a portfolio of more than 240,000 properties.

Original story: La Información (by Bruno Pérez)

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

Gas Natural Sells Its HQ In Madrid To IBA Capital For €120M

24 November 2016 – Expansión

Gas Natural has had a change of heart in its strategy to sell its real estate jewels in Madrid. The firm chaired by Isidro Fainé, which engaged the real estate consultants CBRE and Cushman & Wakefield in the summer to sell its main real estate assets in the capital, has decided to divide up its batch of four properties and sell the most sought after asset, located on Avenida de San Luis, in a separate transaction.

In this sense, the energy company has reached an agreement with IBA Capital, through its Socimi Zambal, to sell its headquarters in the capital located on Avenida de San Luis 77. The transaction will be completed within the next few days for around €120 million, once the bureaucratic procedures have been completed.

The firm has opted for the sale & leaseback formula, involving the sale of the property and its subsequent lease for a period of ten years.

The real estate fund manager, which purchased Vodafone España’s headquarters in Madrid just over a year ago, has knocked out the Spanish real estate and investment manager, Drago Capital, from the process, which until now was the favourite candidate for taking over Gas Natural’s buildings in Madrid. Drago Capital, which has been in exclusive negotiations with the energy firm for several weeks regarding the purchase, was unable to complete the operation as it failed to obtain financing from the banks.

In terms of the rest of the buildings up for sale – one property on Avenida de América 38; the Acanto 11 complex; and the Antonio López complex, on Antonio López 193– , the company has decided to reopen the process and invite those investors who expressed interest in the initial process to participate. Besides Drago Capital, the finalists also included Henderson Park and Has Capital.

In total, the combined surface area of the four complexes amounts to 57,000 m2. In addition, this asset portfolio includes 1,695 parking spaces. Specifically, Gas Natural’s headquarters on Avenida de San Luis 77 has a surface area of almost 32,000 m2, which is dedicated to office space. With this operation, Gas Natural is taking advantage of the real estate sector’s current strong performance to generate value from its properties and earn some cash, without having to move its staff by remaining as the tenant.

The office market in Madrid and Barcelona has heated up a lot in recent months due to the shortage of high quality products in good locations. During the first three quarters of this year, investment in the office market amounted to €2,200 million, according to data from Aguirre Newman.

Gas Natural’s approach is in line with that of some of its rivals, which have also opted to divest their real estate investments. For example, Torre Cepsa, located in the Cuatro Torres complex in Madrid, was sold to Amancio Ortega’s investment vehicle, Pontegadea, two months ago for €490 million. Meanwhile, Endesa’s headquarters in the capital is owned by the Socimi Merlin and Iberdrola’s head office in Bilbao is partly owned by Kutxabank.

Original story: Expansión (by R. Arroyo & M. Á. Patiño)

Translation: Carmel Drake

Drago Capital Buys 75% Of The Company Foujita 16

17 November 2016 – Cinco Días

Drago Capital has acquired 75% of the company Foujita 16, which owns three plots of urban land in Estepona (Málaga). The fund will construct its second housing development on the Costa del Sol on the plots. This project comes after Drago Capital made its first move into the construction sector with the Ocean Hills residential development.

The company has launched itself into the residential market on the Spanish coast. Until recently, funds of this kind invested almost exclusively in tertiary assets (offices, shopping centres and logistics platforms), but the economic recovery and the slight improvement in the property sector has led domestic and international investors alike to search for high returns in the construction of homes. In the case of the Spanish firm, it is firmly committed to the Costa del Sol.

The real estate fund has acquired 75% of Foujita, a Málaga based company that owns three plots of urban land in Estepona. These plots are adjacent to the existing urbanisation that Drago has already built in the area (Ocean Hills), near the Selwo adventure park, where 62 homes have already been built.

Drago will construct 136 apartments on the three new plots, which will be followed by two new developments containing 28 and 33 additional homes. In total, it will build around 260 homes on the Málagan coast, on a plot of land that has a buildable surface area of 30,000 m2.

The fund is making its investment through its subsidiary Esvernia Investments, the same company that developed Ocean Hills. The firm plans to spend between €30 million and €35 million on the development of the site. Several individual investors will join Drago in the project.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake