BNP Paribas: Investment in the Real Estate Sector Amounted to €2.0bn in Q1 2018

1 April 2019 – Eje Prime

Investment in real estate assets amounted to €2.0 billion during the first quarter of 2019, down by 5% compared to the same period in 2018, according to data from the consultancy firm BNP Paribas Real Estate.

Investment in the office sector amounted to €900 million, accounting for 47% of the total, with prime yields remaining stable at 3.25% in Madrid and 3.5% in Barcelona.

Investment in the retail segment amounted to €410 million, where prime yields reached 3% on high street stores, 5% on shopping centres and 5.75% on retail parks.

Investment in alternative assets amounted to €305 million, with investors increasingly interested in halls of residence for students and nursing homes for the elderly.

Finally, in the logistics sector, investment amounted to €206 million, boosted by the growth in e-commerce and consumption.

By type of investor, 50% of the transacted volume proceeded from investment funds, whilst Socimis contributed 18% of the total volume.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Resa’s Former CEO Creates 12 Investment Vehicles & Finalises the Purchase of Land for Tertiary Use

27 June 2018 – Eje Prime

Jorge Guarner (pictured below) used to be the boss of the student hall sector in Spain and now he is looking to do the same in the nursing home sector. The director, formerly the CEO of Resa from 1996 to 2002, is guiding the path of Healthcare Activos, a real estate asset manager operating in the healthcare segment, which is pushing ahead with financial support from the fund Oaktree and one aim: to debut on the stock market in 2020. In its process of becoming a Socimi, the company is going to create twelve vehicles to purchase tertiary land throughout Spain.

During the first half of the year, the company has constituted the seventh and eighth of its series of vehicles, whose aim is “the performance, both in Spain and overseas, of property development and construction activities for all kinds of real estate developments, urban planning and land development projects, be they for industrial, commercial or residential purposes”, as noted yesterday in the Official Gazette of the Mercantile Registry (Borme).

Guarner, as the sole representative of the company, has created the companies with the minimum required share capital (€3,000) and he has domiciled them all at the manager’s Madrilenian headquarters, number 26 Calle Raimundo Fernández Villaverde.

Over the next two years, until it debuts on the stock market, a priori, on the Alternative Investment Market (MAB), Healthcare Activos plans to invest almost €500 million in properties in Spain, primarily in nursing homes for the elderly.

The group’s first investment came in December 2016, when Guarner’s firm purchased four buildings that are today leased to the nursing home operator Amavir. Since the first acquisition to date, the group has invested €107 million in eleven assets, of which €62 million were disbursed in 2017 and the remaining €45 million have been spent since 1 January 2018.

The future Socimi also has €14 million committed for the creation of a portfolio of more than forty properties, in different degrees of progress, such as nursing homes, hospitals and clinics, be they fully operational, ready for renovation and launch, or as land development projects.

Guarnar has funds to invest up to €150 million per year until 2021 in the acquisition of assets and development of new nursing homes for the elderly across the country. The latest operation that the manager carried out was the purchase, a month ago, of a property in Vitoria from the specialist operator Abertia-Etxea, for which it paid €5 million.

In addition, in April, Healthcare Activos spent €40 million on three nursing homes in Gijón, Burgos and Valladolid. For that project, the company joined forces with La Saleta Care, owner of the buildings until then, which will continue to manage the properties for the next 25 years.

Guarnar, who was also the CEO of Sarquavitae for twelve years, the main Spanish company in the nursing home sector, has his company central headquarters in Barcelona, where last summer, he invested €15.5 million in the purchase of the Los Tilos nursing home (…).

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

La Saleta Invests €60M in its Expansion Across Spain

2 May 2018 – Eje Prime

La Saleta is committed to becoming one of the leading operators of nursing homes in Spain. The Valencian company, which has been owned by the Belgian firm Armonea for the last two years, has completed the acquisition of six nursing homes so far this year in operations worth €60 million.

La Saleta already owns its first centres in Valladolid, Burgos and Asturias, which it integrated with the purchase of the company Bau Gestión at the beginning of the year. To that, it has added the acquisition of a new property in Álava, the Albertiaetxea home, and it is now negotiating new purchases in the País Vasco. La Saleta has also added two centres in the province of Alicante, one in El Vergel and the other in the capital, with a management agreement, according to Expansión.

These six additions contain 935 beds and increase La Saleta’s total capacity to 4,500 beds. Moreover, the firm has started work on the construction of two new nursing homes in Tomares (Sevilla) and Lugo, which involve €16 million of investment and 310 additional beds.

La Saleta transferred the ownership of three properties acquired from Bau Gestión to the fund Healthcare Activos and also sold another six properties in the Community of Valencia to the French fund Primonial Reim for €35 million. “The aim of La Saleta is to expand (capacity) by 2,000 beds and so we are already halfway there”, said Fernando Ruiz Castillo, CEO of the group. La Saleta closed 2017 with turnover of €58.1 million.

Original story: Eje Prime

Translation: Carmel Drake

Veracruz Acquires 2 Nursing Homes Whilst it Prepares its MAB Debut

30 April 2018 – Planta Doce

Veracruz is growing its portfolio whilst it prepares to debut on the stock market. The Socimi, which is looking to become the first Valencian manager to debut on the Alternative Investment Market (MAB), has purchased two nursing homes in its home autonomous region from the French group Omega, which specialises in nursing homes for the elderly. The company will continue as the tenant of both assets.

Located in Valencia, the two properties allow Verazcruz to diversify its real estate portfolio, which until now has comprised four shopping centres, worth €92 million in total. The Socimi is the owner of the Plaza Mayor retail parks in Xátiva and Gandía, according to Expansión.

This operation follows another signed recently between La Saleta and Primonial Reim, also in the Community of Valencia. The French fund purchased six nursing homes for the elderly from the local operator. Those assets are going to be managed by BNP Real Estate.

Veracruz was created in 2014 by a group of Latin American investors and is currently led by Salvador Fonduer, a businessman linked to the Dominican company Agilant. Besides the Plaza Mayor shopping centres in Gandía and Xátiva,the Socimi owns two other assets in Spain: Parla Natura, in Madrid, and El Arcángel, in Córdoba.

Original story: Planta Doce

Translation: Carmel Drake

Healthcare Activos Acquires 3 Nursing Homes for €40M

7 February 2018 – Eje Prime

The assets in question are located in Gijón, Burgos and Valladolid. For this operation, the group has teamed up with La Saleta Care, which will manage the nursing homes for the next 25 years.

Healthcare Activos is continuing to expand its portfolio of investments in Spain. The fund’s latest operation has involved the purchase of three nursing homes for the elderly in Gijón, Burgos and Valladolid, for which it has paid €40 million. With this disbursement, the fund has now invested €102 million since it started operating in 2016.

To date, Healthcare’s new assets were owned by Baugestión, a group that has now been integrated into La Saleta Care. To seal the operation, the company has teamed up with that Valencian group, which has signed a contract to be the tenant of the three nursing homes for the next 25 years.

This portfolio of alternative assets spans a surface area of 22,000 m2 and operates in a market that has recorded a significant increase over the last year. Nevertheless, these kinds of residential properties, be they for the elderly or for university students, are attracting a great deal of interest, primarily from international funds.

Under the leadership of Jorge Guarner, its founder and CEO, and Oaktree, Healthcare Activos now owns a portfolio that has reached a dozen assets in just two years. Headquartered in Barcelona, the fund started to acquire properties in 2016 with three centres in Amma, for which it paid €25 million. A few months later, it added two assets in Logroño and one in Barcelona, for which it paid €16 million.

Healthcare Activos’ plans for 2018 include investing €150 million during the course of the year to reach a size of €450 million over the next few years. All of this, without leaving the domestic market, for the time being.

Original story: Eje Prime 

Translation: Carmel Drake

Baraka To Build Nursing Home In Barcelona For €300M

18 July 2017 – Eje Prime

Baraka is setting its sights on the healthcare market. At the beginning of July, the real estate investment company completed the purchase of 600,000 m2 of land and a roof spanning 300,000 m2 for €300 million in Montcada i Reixac (Barcelona), where it will build a complex for the elderly.

The area acquired is located in Can Cabanyes, a zone that borders Barberà and Santa Perpètua de Mogoda. According to Manuel Abadía (pictured above, right), the representative in Cataluña of Trabis (the group’s construction company) (…) once the sale has been signed, work will begin to define the project in more detail.

The company does not have any experience managing these kinds of facilities, and so it will have to team up with a partner specialising in hospital care and management, according to Expansión.

“We intend to create a complex for the elderly, with villa-type homes and garden areas, which will be accompanied by personal care and also, one or two hospitals”, explained Manual Abadía. The representative for Trabis in Cataluña said that the construction phase alone will provide work for 400 people and that when the complex begins operating, “we think that it will sustain at least 200 permanent jobs”, he added. For the time being, no dates have been set for the opening of the facilities.

Baraka set up shop in Cataluña a year and a half ago with the intention of becoming a leading company in the real estate market, especially in the industrial and logistics sector. One of its most recent operations was the purchase, in June, of Edificio España from Wanda. The firm wants to grow its residential projects, amongst other initiatives.

Original story: Eje Prime

Translation: Carmel Drake

Four Investors Compete In CaixaBank’s Nursing Home Sale

20 May 2016 – Expansión

There are four players in the race to purchase the Amma residences. The private equity giant Pai Partners and the Maison de Famille, Emera and Armonea groups are the candidates that have made the first cut in the acquisition process and, therefore, will battle the critical bid to acquire the nursing homes and day centres controlled until now by CaixaBank, according to sources familiar with the process.

The four investors have already performed detailed due diligence of the assets with a view to presenting a binding offer, say sources in the market, and they have until “next week” to submit their final proposals. The initial prices valued the nursing homes at around €200 million.

This amount represents just over ten times the company’s EBITDA in 2015, which amounted to €18 million, according to industry estimates. Meanwhile, its total revenues amounted to almost €100 million. Although CaixaBank is the owner of almost 70% of the shares, the sale affects 100% of the capital, because the minority owners (the Caja Duero corporate business group, Grupo Norte, Inverduero, Kintoa, Uve, Bella Castilla and Horizontes de Castilla) are also willing to transfer their stakes, according to financial sources.

Given the identity of the potential investors, industrial players are prevailing in the transaction, which was launched at the beginning of the year. The majority of the candidates of a financial nature who participated in the sales process – which included the fund Permira, amongst others – have been excluded, and all of the parties involved in the final round of bidding have prior experience in the sector. (…).

Consolidation in the sector

The sale of the Amma Group, which is scheduled to be closed before the summer, is another sign that the effervescence of transactions in the nursing home sector in Spain is continuing to peak.

Last year, three significant operations were closed: as well as the sale of Geriatros (to Pai Partners), SARquavitae purchased Novaire and the Spanish private equity fund Portobello took control of Vitalia Plus. So far in 2016, BBVA is immersed in a process to sell off Sanyres. And financial sources confirm that Gala Capital has begun the divestment of Geroresidencias La Saleta, a company that it inherited from the portfolio of Ahorro Corporación’s private equity manager.

The appeal of the nursing home sector, whose total turnover amounts to €4,000 million per year, is due to the rosy forecast for revenue growth that the accelerated aging population is causing and the shortage of available places in care centres for the elderly. The possibilities for consolidation that results from the fragmentation of this market is another significant factor that is stirring up the industry.

The Amma Group, with a staff of 2,800 professionals, manages 30 nursing homes and 27 day centres in Spain, with the capacity to serve more than 5,500 users across eight autonomous regions: Madrid, Cataluña, Navarra, Castilla y León, Castilla-La Mancha, the Canary Islands, Cantabria and Murcia.

Original story: Expansión (by Mamen Ponce de León)

Translation: Carmel Drake