Invesco Develops Luxury Homes On Madrid’s Golden Mile

29 December 2016 – Expansión

Invesco joins forces with the Barba Group / The partners are going to invest more than €26 million in 30 high-end apartments. The construction work will begin in 2017.

A plot of land measuring more than 700 m2, next to Paseo de la Habana and Calle Serrano in Madrid, is one of the latest additions to Invesco’s real estate portfolio in Spain. The German fund manager has invested more than €25 million to buy this plot of land, located in Plaza Valparaíso, where it will create 30 luxury homes. “We have been negotiating the purchase of this plot of land for a year now. It was owned by a family and a religious congregation. In the end, we have completed the acquisition and we have requested a licence to begin construction”, say sources at the fund.

The German fund has been one of the most active investors in Spain in 2016, and after acquiring several important retail assets such as Prada’s flagship store on Paseo de Gracia and a batch of eleven Eroski hypermarkets, it has placed its focus on the residencial segment. “Spain is one of the largest markets for Invesco. We have purchased profitable assets for several funds there, such as on Paseo de Gracia and the hypermarkets. But, in addition, we have entered the world of property development, like we have in other countries such as the USA and certain Asian markets, with funds that seek added value opportunities; Spain is one of the first countries where we have begun”, explained Tim Nalder, Head of Invesco Real Estate in Spain.

Added value

To this end, the German firm has teamed up with the real estate company Barba Group and, through a joint venture, has started to develop high-end homes in the most exclusive areas of Madrid. “Last year, Invesco told us about its plans to invest across Europe with an added value fund that offers high returns and we have already invested more than €100 million through the joint venture”, said César Barba, CEO of the Barba Group.

The latest major project is this plot of land on Paseo de la Habana, where 30 homes will be constructed and then sold for around €6,500/m2. There will be several ground floor and penthouse duplexes, with swimming pools and terraces. The most expensive home will be sold for €1.5 million. But the jewel in Invesco and Barba’s project will be a sky terrace, located on the top floor of the block, which will have a gym and swimming pool, amongst other services. The construction work at this exclusive development, which has already started to be marketed, will begin between April and May next year.

Currently, Invesco’s most advanced project in the capital is a development containing nine 3- and 4-bedroom homes, with terraces and solariums, located in the Arturo Soria neighbourhood, which will be ready for its first residents in the spring. Moreover, this joint venture recently bought the building at number 53 on Calle Serrano in Madrid, where it will create high-end homes on the upper floors and a retail store for a luxury brand on the ground floor.

In total, Invesco is working on four developments in the capital and another housing complex in Valencia. Invesco has invested more than €500 million in the Spanish market during 2016 between its residential and retail asset purchases. “Currently, Invesco has €200 million to invest across Europe and Spain is going to be one of our primary markets”, said Nalder.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

17 Luxury Homes Go Up For Sale In Madrid

7 October 2016 – El Economista

The luxury housing market in Madrid is booming, however, the supply of newly built homes is very limited. In fact, José Abascal 48, located in the sought after Madrilenian neighbourhood of Chamberí is marketing itself as the only luxury development in the centre of the capital with an occupancy licence.

Knight Frank and Lucas Fox will be responsible for marketing the 17 homes that comprise this exclusive development. The properties will go on the market priced at between €600,000 and €5 million.

“Four units have already been reserved and we have 65 visits booked for the next few days”, explained Humphrey White, the CEO of Knight Frank in Spain. Given the product shortage and the high quality of these apartments, both consultancy firms expect that these homes will be sold very quickly.

The project, which comes onto the market today, is not what was originally designed for this nine-storey property, which was initially going to contain twice as many homes. “We have adapted the building to the current needs of the market, given that the previous plans were designed during the real estate boom”, explained Frédéric Mangeant, Director of Shaftesbury Asset Management in Spain. The fund is the owner of this property, which was constructed in the 1940s and will now set the bar for prime house prices in this area of Madrid.

The properties in José Abascal, 48 will be sold for between €6,000/sqm and €12,000/sqm following a comprehensive renovation, carried out by the architect firm Touza. It contains apartments ranging from 100 sqm properties with one bedroom to two- to five-bedroom attics and duplexes measuring more than 400 sqm in some cases, as well as some four-bedroom homes.

Behind the protected, neo-classical façade, which represents the bourgeois scenery of the street, the homes contain living rooms measuring between 70 sqm and 100 sqm, with large terraces, bedrooms with en suite bathrooms, dressing rooms and large kitchens with islands.

The common areas represent a particularly important part of this project. The building has a gym and 160 sqm of water, with a spa comprising a jacuzzi, sauna and Turkish bath. The new residents will also have a very large atrium with natural light, thanks to the skylight, and events may be held there on the ground floor.

The luxury of this development is also evident in the garage. With a robotised parking system, managed by the company Integral Park Systems (IPS), the residents of this building will not have to park their own vehicles and may also request their cars from their living rooms, because the homes are all automated.

(…). In this way, the software records the activity of each car and if several users tend to pick up their cars at 8am, the system will move the vehicles so that they are as close as possible to the pick up point at that time.

That is the icing on a cake that has already whetted the appetite of many potential buyers of luxury homes in Madrid.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Housers Will Build First Building In Spain Using Collective Financing

26 August 2016 – El Economista

The real estate market has evolved so much in recent years that now anyone can become a residential developer without triggering the start of a new real estate bubble, as happened before the crisis, when many entrepreneurs decided to enter this business without any prior knowledge of it.

This has been made possible thanks to an initiative developed by Housers, which has started to raise funds, through crowdfunding, for the construction of the first residential building in Madrid to be financed by this shared investment model, and the subsequent sale of its homes. This is also the first real estate project of its kind to be undertaken in Spain.

The project involves the purchase of land, the demolition of a small existing residential property on the site, as well as the complete construction of a residential building, which will comprise five homes and three duplex lofts.

According to the company, the turn-key construction projectwill begin once the financing has been raised, and will take approximately 24 months. The homes will go up for sale when the building work commences.

The cost of the real estate project is estimated to amount to €1.041 million, of which €255,228 corresponds to the gross acquisition cost of the existing building, €539,000 relates to the construction of the new building, and the remainder corresponds to processing costs, taxes and a cushion for unforeseen expenses.

The project aims to raise €748,000 (71.8% of the project) through crowdfunding, with each investor able to participate from as little as €50; and €293,000 through a mortgage to improve returns for investors.

The term for the sale of all of the homes is 24 months. During this period, the gross yield is expected to amount to 44.06% and the net yield will reach 27.94%; those profits will be distributed in the form of dividends to all of the participating investors. Housers estimates that the sale of all of the homes in the building will generate €1,242,000. The residential building will be located in Madrid, in the district of Tetuán, an area that has very high potential given the scarce stock of new homes there.

Housers celebrated its first birthday a month ago and in that time, it has created a community of more than 8,000 investors and has received contributions amounting to more than €8.5 million to finance the purchase of 38 properties in Madrid, Barcelona, Valencia and Marbella.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake