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8 April 2016 – Mis Oficinas
The Chairman of Merlin Properties, Ismael Clemente (pictured above), has said that the company is observing an emerging recovery in office rents and a clear recovery in the yields on logistics and commercial assets.
Speaking at the company’s General Shareholders’ Meeting, he confirmed that he expects to see less investment activity this year, and for that information to be focused primarily on logistics assets.
Given the company’s portfolio, which is worth around €6,000 million, the company says that it can afford to be more selective when it comes to committing to new investments and it recognises that international investors have uncertainties given the political landscape in Spain.
The company has also launched an energy certification program for its office buildings, which will affect around 37 of the 47 properties in its portfolio, will cost around €10 million and will last for three years.
Similarly, it is developing an office building at the junction of the M-11 and A1 motorways on the former Levitt site, whose works will go up for tender soon. It is also working on a turnkey logistics product.
During his speech, Clemente said that, following the purchase of Testa, Merlin is now the undisputed market leader with rental assets worth €6,000 million. It is also the market leader in the office, retail outlet and logistics segments.
“The magnitude of what has been achieved is enormous. The integration of Testa has been completed in record time, which has allowed the consolidation of the team that is already operating at full capacity”, he added.
Merlin’s commitment is to develop a model based on high quality assets, with solvent tenants and a policy of acquisitions and financing without risks.
“We depend on a political, economic and regulatory environment that provides us with security, but that is also where some of the uncertainty lies”, he acknowledged.
Original story: Mis Oficinas
Translation: Carmel Drake