Tag: Eroski

Meridia Capital Acquires Logistics Platform in Guadalajara for €10M

8 March 2018 – Eje Prime

Meridia Capital is fattening up its asset portfolio. Today, the company announced the purchase of a logistics platform spanning 27,500 m2 in Alovera (Guadalajara) for €10 million. The asset has been acquired through the real estate vehicle Meridia III.

Constructed in 2006, the warehouse is located on the Corredor de Henares axis, an industrial area where companies such as Volvo, Eroski and Mahou are situated. The first warehouse that Meridia III acquired in April 2016 is also located there.

Following the signing of this agreement, Meridia Capital’s logistics portfolio will span a surface area of 112,000 m2 in total, of which 73,000 m2 has been purchased through Meridia III.

Meridia Capital is an independent manager that manages assets worth almost €1 billion (including debt). In recent years, it has established itself as one of the main regulated alternative investment managers in Spain.

Original story: Eje Prime

Translation: Carmel Drake

German Fund Deka Puts Ballonti Shopping Centre (Vizcaya) Up For Sale

26 February 2018 – Expansión

Deka wants to make some cash and has hung the “for sale” sign up over the Ballonti shopping centre, located in the municipality of Portugalete (Vizcaya). The German fund, which acquired the asset in 2010, at the height of the economic crisis, has decided now, eight years later, to put it up for sale and has engaged the consultancy firm CBRE to manage the process, according to reports from market sources speaking to Expansión.

The German group purchased the shopping centre from Eroski for €116 million and the current valuation could reach €150 million, in such a way that Deka could obtain significant capital gains from the sale.

In any case, sources in the sector consider that the timing of the operation will depend on the evolution of the sales process involving a portfolio of three shopping centres by Sonae and CBRE Global Investors, which is expected to come onto the market within the next few days. That portfolio of assets, which includes the Gran Casa shopping centre (Zaragoza), the Valle Real shopping centre (Cantabria) and the Max Center (Barakaldo), may be sold for around €500 million.

Ballonti, inaugurated in 2008, has a surface area of more than 50,000 m2 spread over two floors, and its tenants include Primark, H&M, Springfield, Bershka, Pull & Bear, Stradivarius, Lefties and Women’s Secret. Moreover, the shopping centre is home to a large Eroski hypermarket spanning a surface area of more than 13,000 m2.

The retail space includes an upper floor dedicated to leisure with a cinema, an adventure park, a gym and a restaurant area with brands such as Burger King, Foster’s Hollywood, 100 Montaditos, Krunch, Mr Wok, Café and Bodega Ballonti.

Investor appetite

After the significant investment drive in shopping centres last year, which ended with a transaction volume of around €2.7 billion, thanks to record operations such as the purchase of Xanadú, in Arroyomolinos (Madrid) for €530 million, investor appetite is expected to be maintained this year.

According to data from the Spanish Association of Shopping Centres and Retail Parks (AECC), last year, 29 transactions were closed involving 36 assets for €2.7 billion, which represents growth of 35% with respect to the previous year.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

ASG Purchases 19 Gas Stations in Northern Spain from Axa

6 February 2018 – Eje Prime

Activum SG is backing alternative investments. The company, which operates in Spain under the name ASG, has acquired 19 gas stations in the north of Spain, which had been owned until now by Axa Real Estate.

The assets are located in areas adjacent to large shopping centres and hypermarkets and are linked to long-term lease contracts with Eroski and Carrefour. The purchase has been carried out through Fund V, which ASG has just closed and which forms part of its diversification strategy, according to El Confidencial.

In 2011, Axa Real Estate acquired a portfolio of 28 gas stations from Eroski for €55 million. Following that operation, the supermarket group continued its gas station activity on the basis of a 20-year rental regime.

ActivumSG is expanding rapidly in Spain. At the beginning of the year, the company announced the creation of a new €500 million fund for real estate investments across Europe, as Eje Prime revealed. Of those, three are located in the Spanish market.

Original story: Eje Prime

Translation: Carmel Drake

Lidl Boosts its Real Estate Business with €300M Investment

27 December 2017 – El Economista

Lidl is strengthening its commitment to the real estate sector. The German supermarket chain is planning to invest around €300 million next year (2018) buying up land and stores on/in which to open new supermarkets. Contrary to what most of the distribution sector is doing (the majority of retailers are selling their properties and leasing stores instead so as to focus on their core retail businesses), the German giant is standing firm in its commitment to the real estate recovery in Spain and so will continue investing.

With a current network of 540 stores, the idea is to own the largest possible number of stores. The average sales area amounts to around 1,500 m2, and so Lidl is looking for spaces measuring between 4,000 m2 and 9,000 m2, to allow space for warehouses and parking.

“Although we haven’t set an exact figure yet, the idea is to maintain the same rate of store openings as this year (2017), which means that we would open between 30 and 40 establishments in 2018”, explain sources at the company. Lidl arrived in Spain in 1994 and closed 2016 with a turnover of more than €3.335 billion, which represented an increase of 9.5% compared to the previous year. The company has also consolidated its position as the fifth largest operator in the sector with a market share of 4.3%, behind only Mercadona, Dia, Carrefour and Eroski, according to the latest market research published by the consultancy firm Kantar Worldpanel.

Presence at real estate fairs

Loyal to its real estate strategy, Lidl has already attended the recent exhibitions of the Barcelona Meeting Point fair to search for business opportunities. Moreover, it has decided to diversify its store opening strategy and enter, for example, traditional food markets (‘mercados de abastos’) and shopping centres.

In the case of the first, the German company has committed to opening stores in Barcelona, in the Sant Antoni and Vall d’Hebrón markets, and in Madrid, in the Tetuán market, in a strategy similar to the one being carried out by Mercadona. In the case of shopping centres, it has already opened its first store in this type of space in Islazul, in Madrid. Moreover, as well as new stores, Lidl is also making very significant investments in improving and modernising its existing stores.

Original story: El Economista (by Javier Romera)

Translation: Carmel Drake

Mazabi’s Socimi Silicius Plans to Double its Portfolio in 2018

18 December 2017 – Eje Prime

Mazabi is backing Silicius‘ growth. The Socimi is ending the year by drawing a new roadmap for its future and setting itself new challenges for 2018. According to explanations provided by the company, one of its objectives is to reach an asset volume of €300 million next year, compared to its current property portfolio value of €120 million.

Currently, Silicius receives annual rental income of approximately €6 million. Recently, the company purchased a new asset in the north of the country: it acquired the property at number 2 Plaza Arroka in San Sebastián, owned until then by the supermarket chain Eroski (…).

Silicius is also currently in the middle of developing its plans for the Obenque building in the Spanish capital, which has undergone a complete renovation, according to Eje Prime. The total surface area of that property amounts to 5,870 m2 and it is used as office space, with 140 parking spaces. The work on Obenque will finish in February, but the company has already started marketing the asset, which may be leased in its entirety by a single operator or shared between several tenants. The average rental cost of the building is approximately €14/m2/month or €1.12 million per year (…).

At the beginning of October, the company signed a €29 million loan with two Spanish banking entities. With that loan, the real estate company may accelerate the purchase of assets (worth €44 million) forecast in its business plan before the end of the year.

According to Juan Díaz de Bustamante, the CEO of Silicius, these acquisitions will primarily be retail premises, out of town stores and office buildings leased over the long-term. “The strategic locations for us are the main cities in Spain and the provincial capitals, with a special focus on the north of the country”.

The company is not going to limit its acquisitions to Spain and will analyse opportunities in Europe’s major capital cities as well. Specifically, the company is currently looking at the possibility of closing an acquisition in Portugal.

The new phase for Silicius will be divided into two, according to sources at the Socimi. “Firstly, the Socimi will incorporate family groups and real estate firms into the project through the contribution of rental assets by the respective groups to diversify their investment and risk with the aim of finding liquidity and management efficiency”. In this sense, Silicius expects to be able to finance its plans with a capital increase, through contributions, ranging between €25 million and €50 million.

In the second part of the new phase, the Socimi will incorporate a contributing equity partner to its share capital. The group has set itself the objective of listing on the stock market in 2018 with a value of around €250 million. Once listed, the company’s aim is to incorporate institutional shareholders to achieve the minimum target of €400 million, the amount that the group considers necessary for the Socimi’s shares to be considered liquid.

Currently, the firm holds in its portfolio a hotel in Conil (Cádiz), two office buildings in Madrid and four retail assets with tenants such as Cortefiel on Paseo de la Castellana and another leased to Vips on Calle Velázquez.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Silicius Socimi Acquires Eroski Store in San Sebastián

4 October 2017 – Press Release

Eroski and Silicius Socimi, managed by Mazabi, have signed the sale of a property owned by the supermarket chain on Plaza Arroka, 2 in San Sebastián. The establishment, which operates under the Eroski City brand, will continue its normal activity under a lease arrangement.

“The operation forms part of our business plan, which involves divesting real estate assets to focus on our retail activity”, explained the Director of Property Development and Services at Eroski, Javier España.

The retail store has a surface area of almost 2,000 m2 and is located on the ground floor of a building inside the new San Bartolomé Muinoa urban development (…).

The operation fits within the Socimi’s new growth phase. Silicius plans to invest up to €300 million in these types of assets over the coming months. Currently, the firm owns assets worth €120 million, which generate annual rental income of €6 million (…).

About Silicius

Silicius is a Socimi, managed by Mazabi, specialising in the purchase and active management of rental assets that generate stable long-term rental income for its shareholders to provide them with an annual dividend (…).

About Eroski

Eroski is the largest cooperative distribution group in Spain and is a leading player in the regions of Galicia, País Vasco, Navarra, Cataluña and the Balearic Islands. It has a commercial network of 1,784 establishments, more than 6 million customers and more than 32,000 cooperative partners and employees.

Original story: Press Release

Translation: Carmel Drake

Barings Pays €17.6M For Logistics Centre In Zaragoza

17 November 2017 – Eje Prime

International logistics operation in Zaragoza. The investment fund Barings has paid €17.6 million to the manager Deka Inmobilien for a logistics centre in Plaza, one of the largest logistics parks in Europe. Currently, the space is leased to the Basque supermarket chain Eroski, which operates a distribution centre from the site.

Constructed in 2006, the plot comprises a gross leasable area of 29,000 m2 and 159 parking spaces, according to Europe Real Estate.

The German fund will use the money from the sale of this asset to take advantage of the opportunities currently being offered by the strong demand in the well-established retail market in Spain to optimise its portfolio. The German company has been advised in this operation by the consultancy firm CBRE.

Original story: Eje Prime

Translation: Carmel Drake

Deutsche Bank Negotiates Purchase Of L’Aljub Shopping Centre

9 November 2017 – Expansión

The real estate sector is heading for a new investment record this year and shopping centres are one of the star segments on the rise. Deutsche Bank, which marked a milestone in 2016 with its purchase of Diagonal Mar, wants to strengthen its position in this market and to this end, is negotiating the acquisition of the L’Aljub shopping centre, located in Elche. The operation could be closed for a price of more than €170 million, according to market sources.

L’Aljub is currently owned by the fund Seva (Southern European Value-Add Mandate), managed by TH Real Estate for the investors TPG Real Estate – the real estate platform of the international manager TPG – and Partners Group. The consultancy firm Cushman & Wakefield is advising the vendor and CBRE the buyer.

This investment vehicle, which also owns two other retail assets in Italy, has a combined value of €300 million. The three assets were acquired a year ago from TH Real Estate for €250 million.

In addition to the retail and leisure premises, L’Aljub also houses an Eroski hypermarket on the ground floor. TH Real Estate purchased that store from Eroski a month ago through this investment vehicle for €18.7 million.

This investment in L’Aljub includes the hypermarket, which has a surface area of 9,900 m2, as well as the space leased by Primark (4,500 m2) and the gas station (200 m2), operated by Eroski.

The shopping centre was inaugurated in August 2003 and has a surface area of more than 60,000 m2, spread over two floors, as well as an extensive underground car park. The centre is home to 120 stores and 3,200 parking spaces (free of charge). Some of its most high profile operators include Inditex, H&M, Primark, Mango and Cines ABC.

If the negotiations prove fruitful, Deutsche Bank would strengthen its position in the retail segment in Spain. Last year, the company purchased the Diagonal Mar shopping centre (Barcelona) for almost €500 million. After the purchase of Xanadú, that operation was the second largest ever closed in the shopping centre segment.

Investment

Another example of the interest in this type of asset was the purchase of Xanadú by Intu Properties in March for €530 million. Subsequently, the British created a company with TH Real Estate to share ownership of the Madrilenian shopping centre.

Banca March has also decided to back this kind of asset with the purchase of the ABC Serrano shopping centre in Madrid this summer for €130 million, debt included. Meanwhile, Klépierre acquired Nueva Condomina in Murcia for €230 million earlier this year.

In this way, investment in the segment during the 10 months to October amounted to €2,300 million, which suggests a high volume year, behind only the historical maximum, recorded last year, of €2,700 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

TH Real Estate Buys Hypermarket In L’Aljub Shopping Centre For €18.7M

17 October 2017 – Observatorio Inmobiliario

TH Real Estate has purchased the hypermarket premises in the L’Aljub Shopping Centre in Elche, from Eroski, through its investment vehicle SEVA (Southern European Value-Add Mandate) for €18.7 million. SEVA is a vehicle managed by TH Real Estate for the investors TPG Real Estate and Partners Group, focusing on value-added investments and returns within the retail sector in Southern Europe. Including L’Aljub, this vehicle includes three assets managed in Spain and Italy, worth more than €300 million.

This investment in L’Aljub involves 9,900 m2 of space corresponding to the hypermarket, as well as 4,500 m2 of space occupied by Primark and a 200 m2 petrol station, operated by Eroski.

TH Real Estate is planning to carry out improvements at the property. Eroski will continue as the tenant and will undertake a restructuring of the space, which will reduce the hypermarket space to 5,100 m2. That will free up approximately 4,800 m2 of leasable space for the entry of new operators, whereby expanding the shopping centre area, which currently receives more than 7 million visitors per year, on average.

The L’Aljub shopping centre, which is owned by TH Real Estate, has a constructed surface area of 43,000 m2 and contains more than 100 stores. It is home to many of the major fashion, leisure and restaurant brands, such as H&M, Inditex, Primark and ABC cinemas. It is located in the city of Elche, 20km away from Alicante and 50km from Murcia, which makes it a strategic enclave on the southern axis of the Mediterranean Arc.

“We are very happy with the completion of this transaction and we are hoping to carry out the activities and remodelling work necessary to equip this asset with greater added value, as well as promote the incorporation of new operators, which will be very positive for clients visiting the centre”, said Marta Cladera de Codina, Director of TH Real Estate for the Iberian Peninsula.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Ores Socimi Buys 4 Retail Assets In Northern Spain For €63M

4 October 2017 – Eje Prime

Ores is fattening up its portfolio of assets with some new purchases. The company, which had invested just over €60 million in the acquisition of commercial assets in Spain prior to August, has taken its chequebook out again and broken its own record. The Socimi, owned by Bankinter and the Portuguese firm Sonae Sierra, has purchased four commercial assets in the north of Spain for €63 million, according to confirmation from the company itself to Eje Prime.

Ores has acquired four hypermarkets in different parts of the north of Spain. It has purchased one commercial asset in Logroño, on Calle Rio Lomo, which is operated by Carrefour and which has a surface area of 14,912 m2. In Calahorra, Ores has bought a property operated by Eroski, located on the Logroño road, which has a surface area of 10,252 m2.

The Socimi has also carried out purchases in Tolosa and Guernica. In Guipúzcoa, the company has acquired a commercial establishment in Barrio de San Blas, measuring 4,147 m2, whilst in Guernica, it has bought a commercial asset measuring 4,348 m2 in the Txaporta neighbourhood. Both of those properties are operated by Eroski.

“With this acquisition, financed entirely using own funds, the company is continuing to fulfil the investment objectives set out in its business plan and in accordance with the financial parameters that we committed to our shareholders”, say sources at the group.

In recent months, Ores has been expanding its asset portfolio in Spain and Portugal. At the beginning of August, Ores acquired a property, which is leased to and operated by the supermarket chain Pingo Doce, located in Lisbon, Portugal. That asset has a gross leasable area of 2,200 m2 and is located in the Alta neighbourhood (…).

Ores is aimed at clients of Bankinter’s private bank segment. Although its portfolio of assets is limited, for the time being, the Socimi came to the stock market with the aim of investing €400 million in high street retail premises, supermarkets, retail parks (spanning a maximum surface area of 20,000 m2), bank branches and single assets with long-term leases and solvent tenants.

Bankinter and Sonae Sierra launched their new venture into the real estate business in record time. The two groups constituted Ores on 15 December last year, completed the process to create the vehicle and raised sufficient capital to give it a head start and debut on the stock market.

Ores was created with contributions from clients of Bankinter’s private banking segment (in other words, wealthy investors) through a capital increase amounting to €196.6 million. In this way, the private banking clients and some institutional investors control almost 86% of the company’s share capital. Meanwhile, the entity led by María Dolores Dancausa has retained a 10% stake, with Sonae Sierra holding onto just under 4% of the shares.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake