Andorran Banks Finance FC Barcelona’s Repurchase of Land in Can Rigalt

16 October 2018 – Eje Prime

FC Barcelona has obtained Andorran financing to purchase Can Rigalt. The Catalan club has signed a €20 million loan over four years with MoraBanc to comply with the ruling won by the real estate company La Llave de Oro for the plots of land, located in L’Hospitalet de Llobregat, according to the sports newspaper Palco23.

The operation in Can Rigalt dates back to 1998 when the board, chaired at the time by Josep Lluís Núñez, acquired those plots near the Camp Nou to build a sports city. Nevertheless, the project was abandoned and it was not until 2005 when the former-President Joan Laporta managed to transfer them to the real estate firm La Llave de Oro for €35.4 million. Nevertheless, the purchase contract included a series of clauses whose breach allowed the company to undo the purchase and recover its money. And that is what has ended up happening.

The most important point and the one that ended up tipping the balance against FC Barcelona during the arbitration proceedings was the obtaining of permits to build homes. The first arbitration award established that 30 July 2014 was the deadline for the club to fulfil and ensure that the Town Hall of L’Hospitalet and the other players involved had facilitated the urban planning process. Nevertheless, the burst of the real estate bubble left the operation up in the air and the group requested a new arbitration award to resolve the operation.

That ruling came in June 2016, when the Arbitration Court of Barcelona corroborated that, after ten years, the requirements established in the purchase contract had not been met. For that reason, it forced the sports entity to return the €35.4 million that it had charged for the land, as well as some legal interest amounting to €11.6 million. The entity tried to negotiate a discount, although its annual report confirms that, in the end, it made the payments established in the ruling.

In the Camp Nou offices, there is not too much hope regarding the future of these plots, which spans 10,000 m2 and have a significant volume of buildable space. In fact, a decision was taken to impair the potential of this asset by €29 million in the accounts for 2016-2017, placing its accounting value at €8.44 million, as revealed by this newspaper. It is “a reasonable valuation established by an independent expert”, says the entity, which trusts that the evolution of technology will allow it to reduce the costs of converting the electricity sub-station next to the land and its transformation is what makes the real estate operation unviable today.

This is not the only urban planning project that FC Barcelona has faced problems with. Laporta also forecast the construction of Barça Park in 2007-2008, a thematic space, next to the Barcelona-El Prat Airport. The club paid €18.74 million for the land, but never managed to overcome the administrative procedures due to the breach of several environmental rules that prevented the development there of any kind of sporting, leisure or training activity. Last year, it applied an additional depreciation of €1.13 million and today its value amounts to just €3.07 million.

Original story: Eje Prime (by M. Menchén)

Translation: Carmel Drake

Socimi Tander Acquires Gran Vía 6 (Bilbao) for €7.5M

26 June 2018 – Eje Prime

Tander is expanding its geographical reach. The Socimi, present in Barcelona and Santander until now, is growing in the north of Spain with the purchase of its first asset in Bilbao. The company has acquired number 6 Gran Vía in the Basque city for €7.5 million, in its first operation since it made its debut on the MAB in January.

According to a statement filed by the company with the Alternative Investment Market (MAB), the operation includes “two properties that comprise a single commercial premise”, with a constructed surface area of 257.33 m2.

“These premises have been leased recently, and are on the verge of being handed over to the new lessee, something that will happen within the next few days”, says the company, owner of a fund in which the Canadian manager Première Alliance holds a stake.

To carry out the operation, Tander has required external financing. In June, the company granted various guarantees to ING to “free up” €8.32 million of the financing committed with the financial entity, which amounts to €54.27 million in total. Similarly, the company drew down €4.27 million more.

The Socimi is using that amount to finance the purchase of the asset in Bilbao as well as to strengthen “its financial capacity to comply with its real estate asset acquisition strategy”. Tander’s investment plan for 2018 amounts to €25 million, which will serve for the acquisition of between three and four assets outside of Madrid and Barcelona, according to Eje Prime.

The company debuted on the MAB in January with a valuation of €50 million. Tander owns five assets in prime areas of Barcelona and a sixth in Santander, which constituted a portfolio that was worth €80.3 million at the beginning of the year.

From Vía Laietana to Paseo de Gracia

Tander’s footprint in Barcelona is located in the centre of the city. The Socimi’s largest asset is an office at number 6-20 Calle Casp, which has a surface area of 3,457 m2. That building houses the offices of Cadena SER, owned by Grupo Prisa, just above Teatro Tívoli.

At number 15 Paseo de Gracia, the manager owns a retail premise measuring 527 m2, which is currently leased to FC Barcelona, which has opened a flagship store. In the same street, at number 27, the Socimi has leased a store measuring 792 m2 to the brand Cos, part of the H&M group.

Tander completes its portfolio in Barcelona’s city centre with part of number 47 Vía Laietana, an office building in which the Socimi has leased 1,100 m2 to Banco Sabadell. The financial entity also leases a branch measuring 155 m2 at number 171 Travessera de Gràcia, which is also owned by Tander Inversiones.

Original story: Eje Prime

Translation: Carmel Drake

Socimi Tander Signs a €55M Loan to Finance New Purchases

11 June 2018 – Eje Prime

Tander Inversiones wants to continue nurturing its asset portfolio and for that it requires capital. The company, owned by a fund in which the Canadian manager Première Alliance holds a stake, has just signed a €55 million loan to carry out new purchases, according to explanations provided by Clara Casales, Property Manager of the Socimi, speaking to Eje Prime.

Last week, the company agreed, under the framework of its Ordinary General Shareholders’ Meeting “to repay and cancel the debt that it has subscribed to date, also cancelling all of the guarantee instruments relating to it, with the aim of refinancing, expanding and unifying the company’s debtor position under a new financing arrangement amounting to €55 million”, explain sources at the Socimi.

Tander will allocate these new funds to the purchase of new assets in the Spanish market. The Socimi has established an investment plan of up to €25 million for 2018 with the aim of expanding to more cities in Spain, with Madrid as a priority, according to comments made to Eje Prime. Tander’s objective is to purchase between three and four assets this year.

The Socimi concentrates its current investments in Barcelona, where it has five assets in prime areas of the Catalan capital. The sixth asset in the portfolio with which it leapt onto the Alternative Investment Market at the beginning of 2018 is located in Santander. When it rang the bell, the value of Tander’s portfolio amounted to €80.3 million.

Now, Tander’s aim is to expand its investments to the main cities in Spain. Some of the areas that the Socimi is analysing include Bilbao, Valencia, Sevilla and San Sebastián, although it is also interested in Málaga and A Coruña. Tander is analysing different operations, but it does not have anything identified yet.

From Vía Laietana to Paseo de Gracia

Tander’s current portfolio in Barcelona is distributed around the main shopping area of the Catalan capital. The Socimi’s largest asset is an office space at number 6-20 Calle Casp, which has a surface area of 3,457 m2. It houses the offices of Cadena SER, owned by Grupo Prisa, just above the Teatro Tívoli.

Very close by, at number 15 Paseo de Gracia, the manager owns a retail premise measuring 527 m2, which is currently leased to FC Barcelona, which has opened a flagship store there. On the same street, at number 27, the Socimi leases a 792 m2 store to the Cos brand, part of the H&M group.

Tander completes its portfolio in the central area of Barcelona with part of number 47 Vía Laietana, an office building in which the Socimi leases 1,100 m2 to Banco Sabadell. This financial institution also leases a 155 m2 branch at number 171 Travessera de Gracia, which is also owned by Tander Inversiones.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Tander To Invest €25M in Spain’s High Street Sector in 2018

13 February 2018 – Eje Prime

Tander Inversión is looking to get its teeth into the retail high street sector. The Socimi plans to invest up to €25 million in 2018 during which time it hopes to expand to more cities in Spain, with Madrid as the priority. That is according to comments made by the firm’s Director General, Sergi Mirapeix, speaking to Eje Prime. Tander’s objective is to buy between three and four assets during the course of this year.

Owned by a fund in which the Canadian manager Première Alliance holds a stake, the real estate company’s current investments are concentrated in Barcelona, where it owns five assets in prime areas of the Catalan capital. The sixth asset in the portfolio, with which it made its debut on the Alternative Investment Market (MAB) at the beginning of 2018, is located in Santander. When the MAB’s bell rang, the value of Tander’s portfolio amounted to €80.3 million.

Now, the objective of Mirapeix is “to expand our investments in the main cities in Spain”. Some of the locations that the Socimi is analysing include Bilbao, Valencia, Sevilla and San Sebastián, although it is also interested in Málaga and A Coruña.

Meanwhile, in Cataluña, beyond Barcelona, Girona is another city that is in Tander’s line of sight “because it has a high income per capita, above the Spanish average, and it is also an attractive commercial market”, says Clara Casales, administrator of the Socimi’s properties. “Our shareholder is very conservative and seeks very specific assets”, says Mirapeix.

Tander is analysing different operations but has not identified anything yet. In this regard, Mirapeix says that retail high street assets “are a complicated type because, when they are already on the market, they are very burned out, which makes it difficult to obtain the margin that you want”.

The executive also highlights the high degree of competition that exists for these types of properties, especially between family offices, which “have a higher investment margin”, he said.

On the other hand, in addition to expanding to more Spanish cities, Tander’s roadmap could involve expanding and crossing the border within the next few years. “We are going to explore entering Portugal, focusing on Lisbon and Porto”, said Mirapeix, “although, for that, we still need to establish ourselves in Spain”.

Prime stores on Vía Laietana and Paseo de Gracia  

Tander’s current portfolio in Barcelona is located in the most luxurious commercial area of the Catalan capital. The Socimi’s largest asset is an office space at number 6-20 Calle Casp, which spans 3,457 m2. That is home to the offices of Cadena SER, owned by the Prisa Group, just above Teatro Tívoli.

Very close by, at number 15 Paseo de Gracia, the manager owns a retail store spanning 527 m2, which is currently leased to FC Barcelona, which has opened its flagship store there. On the same street, at number 27, the Socimi owns a store measuring 792 m2, which it has leased to the Cos brand, from the H&M group.

Ten minutes towards the sea by foot, Tander completes its portfolio in the central area of Barcelona with part of number 47 Vía Laietana, an office building where the Socimi has leased 1,100 m2 of space to Banco Sabadell. In addition, the financial institution has a branch measuring 155 m2 at number 171 Travessera de Gracia, which is also owned by Tander Inversiones.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Messi Buys Hotel Avenida Sofia In Sitges For €30M

8 June 2017 – Expansión

Leo Messi wants to take advantage of the strong performance of the tourism sector and has purchased a 4-star superior hotel in the town of Sitges (Barcelona). FC Barcelona’s striker has paid around €30 million for the building, which has 77 rooms and he has engaged the Majestic Group to manage the establishment. None of the parties involved wanted to confirm the operation, which has been completed with the utmost discretion.

The hotel, recently renamed MiM, is located two roads back from the sea, very close to the beach and to Sitges’ seafront. Specifically, it can be found at number 12 Avenida Sofía, behind Hotel Calípolis and the top floor terrace looks out over the sea. In high season, rooms at the Hotel MiM go for between €250 and €300 per night.

Close to the sea

The town of Sitges, which primarily receives leisure tourists, but which also hosts business meetings, conferences and conventions, is located around 40 km from Barcelona. It is precisely due to its proximity to the Catalan capital and the beach that this coast has been chosen by several football players for their primary residences, including by Leo Messi himself. The Barça star lives in the neighbouring town of Castelldefels, very close to other teammates such as Luis Suárez.

The hotel that Messi has purchased in Sitges was constructed in 2013 and belonged to a local businessman, Francisco Sánchez, who owns other hotels in this tourist town. Until now, the property operated under the name of Avenida Sofía and was managed directly by the previous owner. The property has 77 rooms, including 5 junior suites and one superior suite. It has 300 m2 of meeting rooms, a spa with a hydrotherapy circuit, cabins for couples and oxygen treatments and a rooftop terrace with a swimming pool, bar and panoramic views.

FC Barcelona’s striker recently constituted a new company to invest in hotels and apartments under the name Rosotel. According to the Commercial Registry, in April, the holdling company that channels Leo Messi’s investments, Limecu España 2010, created Explotaciones Rosotel, with the corporate purpose of “operating businesses relating to the hospitality sector, in particular, the management of bars and restaurants, and the acquisition, sale and ownership of hotels and apartments”. The sole administrator of this new company is Limecu, whose president is Leo Messi himself and whose sole administrator is his brother Rodrigo.

This is not Messi’s first investment in the Catalan real estate sector, given that the player already owns the Rostower Building, in El Eixample, Barcelona.

Meanwhile, the family chain that will be responsible for operating the establishment has many years of experience in the hotel sector. The Majestic Group operates six hotel establishments in total, located in Barcelona, Palma de Mallorca and now Sitges, as well as two tourist apartment buildings and six restaurants. Last year, the chain recorded revenues of €44 million, up by 5% compared to the previous year (…).

Original story: Expansión (by Marisa Anglés and Sergi Saborit)

Translation: Carmel Drake