Cerberus & Oaktree in the Final Round to Buy ‘Solvia Desarrollos Inmobiliarios’

5 April 2019 – Expansión

Banco Sabadell is on the home stretch for the sale of 100% of its property developer, Solvia Desarrollos Inmobiliarios (SDIn). The funds Cerberus, through its property developer Inmoglacier, and Oaktree have made it through to the final round of the operation, which could be closed within the next few days or weeks.

The consultancy firm Savills Aguirre Newman has estimated that SDIn’s assets are worth more than €1.3 billion and the entity chaired by Josep Oliu (pictured above) is hoping to record proceeds of around €1 billion from the sale.

The portfolio comprises 270 buildable plots for the construction of around 15,000 homes, half of which are in Cataluña, although it also contains plots in Madrid, Andalucía and Valencia.

It has been reported that two other investment funds may have also been selected for the final round (out of Apollo, Goldman Sachs and CPPIB) but Oaktree is understood to be the favourite. Rothschild is advising the divestment process.

Original story: Expansión (by R. Sampedro and S. Saborit)

Translation/Summary: Carmel Drake

Sareb’s Sale of Témpore Enters Final Phase with TPG as the Favourite

28 March 2019 – Cinco Días

Sareb’s sale of its rental home Socimi Témpore Properties is entering the home stretch. The bad bank has selected three candidates to pass through to the final round, all of which are US funds, namely, TPG (Texas Pacific Group), Ares and Round Hill, with the former currently the favourite.

Témpore, which is listed on the MAB, has a market capitalisation of €305 million and, according to the most recent assessment performed by Savills Aguirre Newman, an asset portfolio worth €338 million.

In just over a month, Sareb will announce the name of the winning investor, which will take ownership of the Socimi and its 2,249 residential properties.

Original story: Cinco Días (by A. Simón & P.M. Simón)

Translation/Summary: Carmel Drake

Renta & Arcano Bid for Bankia’s Former Branch on c/Alcalá (Madrid)

5 April 2018 – Eje Prime

The number of parties interested in one of Bankia’s star commercial assets in Madrid is being whittled down little by little. As Eje Prime revealed, last month, the entity opened an auction for its branch located at number 1 Calle Alcalá. After a period receiving offers, Arcano and Renta have been chosen to participate in the final round. Within the coming days, a decision will be taken as to who will end up acquiring the asset, according to sources close to the auction, who indicate that Arcano is currently best positioned in the race.

According to the same sources, a third group reached the final round but then withdrew due to the value that the asset may reach in the last round of offers. Arcano is one of the best-positioned players given the type of property up for sale; in recent months, it has acquired a handful of other assets with similar characteristics, such as the store at number 202 Calle Bravo Murillo that it purchased from Redevco for €12 million.

The highest offers submitted to Bankia for this latest asset amount to around €18 million, with those presented by Arcano and Renta Corporación proving most attractive to the banking institution (amounting to €18.3 million and €18.2 million, respectively, according to sources close to the operation). The asset, which is likely to interest restaurant operators rather than fashion firms given its (limited window) façade, comprises two floors: the first spans 458 m2, whilst the basement measures 405 m2.

In the event that Renta Corporación’s bid proves successful, something that is unlikely according to market sources, it could be the first move in a larger deal to acquire the whole building. Renta Corporación does not specialise in commercial assets but is an expert in the acquisition of entire buildings for their subsequent renovation. Moreover, the building did go up for sale in 2014.

Indeed, following the success of the sale of several assets, such as those located at numbers 18 and 3 Gran Vía for more than €26 million, and at number 8 Plaza Chamberí for more than €40 million, the Community of Madrid decided to try its luck with this property, located on Calle Alcalá, for which it was asking €10.7 million at the time.

The asset, constructed in 1880, has a total surface area of 3,209 m2 and used to house the offices of the Community of Madrid’s Ministry of Economics and Finance. Although nowadays it is used as offices, and its compatible uses include hotel, commercial, administrative, healthcare, education and even residential. Nevertheless, the Community of Madrid pulled out in the end and did not end up selling the building.

Bankia’s other prime assets

In addition to the premises on Calle Alcalá, Bankia’s portfolio of assets contains a second branch located in a prime enclave in the Catalan capital. It is the former headquarters of Bankia in Barcelona, located at number 9 Plaza Cataluña. That property has a surface area of 1,000 m2 and has received attention from a large number of operators.

Sources are Bankia have explained to Eje Prime that whilst the aim with the branch in Madrid was to sell it, the plans for the property in the Catalan capital are not as clear. According to the entity, it is considering several options, including a sale, but it may also lease the property to an operator and even invest in generating value from the asset by undertaking a renovation (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake