Aliseda Offering Finalist Land With Just a 5% Down-Payment

6 November 2019 – Aliseda, the real estate company controlled by Blackstone and Santander, has launched a new campaign aimed at both local developers and individuals looking to build new homes but currently, lack access to the necessary financing. The firm announced that it would allow potential buyers to buy land with just a 5% deposit from now until the end of the year.

After that point, those buyers would have 12 months to raise the rest of the cost of the land and finalise their purchase by the end of 2020. Investors would lose their 5% down-payment if they are unable to raise the rest of the funds.

The developer is currently listing 2,115 plots of land on its website. That land bank represents about 30% of Aliseda’s entire portfolio of finalist land, worth an estimated 300 million euros. The firm expects potential buyers to reserve 15% -20% of that by the end of the year.

Original Story: El Confidencial – Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

Stoneweg Finalises Purchase of Land in Madrid from Dragados for €120M

14 December 2018 – Eje Prime

Stoneweg is buying land in Madrid. The Spanish-Swiss investment fund is finalising the purchase of a plot located in the Spanish capital from Dragados for €120 million. The operation, which is expected to close within the next few days, will represent a record in Madrid in terms of the volume of finalist land sold.

The plot spans a total buildable surface area of 45,000 m2 and is located on Paseo de la Dirección, in the Madrilenian district of Tetuán. Stoneweg plans to build two residential-use towers on the site comprising 25-storeys each. The price for the land could amount to around €5,000/m2, according to reports from Expansión.

CBRE has participated in the operation, as advisor to the buyer, whilst Colliers International Spain has advised the vendor. The residential development in Madrid will be added to eight other projects that Stoneweg has underway in Spain, four in Barcelona and another four on the Costa Brava.

The investment platform was created in 2015 by the former private banking real estate team at Edmond de Rothschild and by the founding partners of CBRE in Switzerland. Currently, the fund is chaired by Claude Messulam and its management team includes Jaume Sabater as the CEO and Joaquín Castellví, as the Director of Investment and Acquisitions.

Original story: Eje Prime 

Translation: Carmel Drake

David Martínez: “Aedas Has Land on which to Build Homes for the next 4 Years”

8 September 2018 – Expansión

Aedas, the property developer in which the US fund Castlelake holds a stake, is continuing to push ahead and take on new challenges. As the first anniversary of its debut on the stock market approaches and with its business plan on track, the company is considering starting to buy plots of land that still require urban planning approval to anticipate possible price rises and improve margins, as well as to launch projects to sell to specialists companies in the rental sector, such as Socimis.

“We have a land bank spanning more than 1.5 million m2, which will allow us to build more than 14,000 homes. That gives us four years of visibility with respect to our business plan”, explains David Martínez, CEO of the company.

Aedas became the second largest property developer, after Neinor, to make its debut on the stock market after ten years of drought following the burst of the real estate bubble. It was followed shortly after by Metrovacesa, and several other companies are lining up to take the plunge, including Vía Célere and Aelca.

Aedas is sticking to the objectives announced in the listing brochure and unlike its rivals is not contemplating a reduction in its initial forecasts. “Our objective is to hand over more than 200 homes this year, more than 1,000 homes in 2019 and to exceed 2,000 homes in 2020. In total, by the end of 2020, we will have handed over more than 3,200 homes and we already have 114 developments underway, with more than 4,000 homes in different phases of development, which gives us a great deal of visibility over the objectives. We designed a realistic business plan and we will fulfil the forecasts for 2018, 2019 and 2020”, said the director.

Investment in land

The CEO of Aedas explains that during the first half of 2018, Aedas invested almost €100 million and purchased land for 1,905 homes, almost doubling the planned investment figure for the entire year. In addition, the company signed a corporate financing line for €150 million to continue expanding its land bank.

“We have detected interesting opportunities that fit with our investment criteria that are not going to be available in six months time. For that reason, we decided to bring forward our investment plan. Recently, we formalised a loan amounting to €150 million to provide us with sufficient financial resources to continue bringing forward the purchases planned in the business plan between now and 2023”, he explained.

At this point, Martínez opened the door to the possibility of purchasing non-finalist land. “There is a lot of land classified as “urbanisable” that still requires urban planning. Given that we now have land to cover our requirements for the next four years and we are not in any hurry, nor do we need to buy finalist land, we are considering land in areas with demand that has the partial plans approved but that still require some urban planning management”, he revealed.

Martínez highlighted that a significant percentage of the €150 million resulting from the loan formalised a few weeks ago will be used to buy non-finalist land. “With the economic recovery, new property developers are emerging who need to buy finalist land to get to work. For this reason, in some places, the prices of some plots of finalist land now exceed our expectations. We want to take advantage to buy land at more affordable prices even if that requires more management subsequently (…).

Rental

Similarly, the property developer is exploring other business opportunities, such as the sale of homes to Socimis and other vehicles specialising in the rental market. “One of the challenges involves supplying homes to young people. Aedas is exploring formulae that allow the construction of homes for rent, basically developing projects that we can sell to companies that specialise in rental. We have a very extensive and urban land bank”.

The director anticipates a “long” upwards cycle. “We are at the beginning of a cycle and notwithstanding the fact that we may see some adjustments in prices in certain specific towns, in general, it is going to last”, he predicted.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

C&W: 86 Office Spaces Spanning 101,000 m2 were Leased in 22@ in 2017

2 July 2018 – Mis Oficinas

According to the Marketshot report issued by the real estate consultancy Cushman & Wakefield, Barcelona’s 22@ district closed 2017 with 86 rental operations, spanning a total surface area of 101,000 m2, which represents the highest figure in the last ten years.

The 22@ district is continuing at record levels for another year. According to the Marketshot report from the real estate consultancy firm Cushman & Wakefield, the district closed 2017 with a total of 86 rental operations, spanning a surface area of 101,000 m2, which represents the highest figure in the last ten years and 34% more than in the previous two years. This leasing figure accounted for 30% of the total office space leased in Barcelona and was led by pre-lease operations, such as the case of Amazon in the Luxa Silver building (10,241 m2), Activision (King) in Ciutat de Granada 150 (8,837 m2), Hewlett-Packard in the building located on c/Tanger 62 (8,132 m2) and WeWork in the Luxa Gold building (6,572 m2).

Potential tenants in the district are mainly looking for sustainable, high-quality spaces. In this sense, 78% of the surface area leased belongs to buildings with A or B+ ratings. The district had only 60,000 m2 of space available at the end of the first quarter of 2018, which represented a 15% decrease in the available surface area in one year and an availability rate of 7%. If we take into account high-quality buildings only (those with A and B+ ratings), the percentage of available space in the 22@ district decreases to 5.7%. Leasing levels recorded at the moment and forecast for the next few months support the development of new properties.

The 22@ district currently has 129,000 m2 of space under construction, scheduled to be handed over between the second half of 2018 and 2019. The potential space for offices in the district amounts to more than 800,000 m2, of which 350,000 m2 is located on finalist land.

Investor interest in the district broke all records in 2017. In terms of investment volumes, the 22@ district received total investment of €161 million, which tripled the €51 million recorded in 2016. In square metres, the investment volume amounted to 173,000 m2, well above the figure at the end of 2016, which amounted to 33,000 m2.

New construction in the area has reactivated in recent months, due to the type of demand and, to a large extent, the growth in rents. On the basis that this trend is going to continue, there will be an impact on capital markets, where we will start seeing operations again soon.

Flexible and coworking spaces are enjoying an unprecedented boom in Barcelona at the moment. The rise in coworking spaces in the city is clear and during the first six months of 2018, 52% more space was leased in this segment than during the whole of 2017.

In Barcelona, the 22@ district is still the main hub of innovation in the city, attracting technological companies, startups and the digital eco-system. The main coworking operation this year, amounting to 4,500 m2, was completed in 22@ and these types of spaces already account for 3.5% of the constructed stock in the district (…).

Original story: Mis Oficinas 

Translation: Carmel Drake

Aelca Invests €99M in Construction of 468 Homes in Madrid, Cataluña & Andalucía

25 April 2018 – Eje Prime

Aelca is investing almost €100 million to strengthen its portfolio as it prepares for its stock market debut in 2019. The Spanish property developer is spending €99.2 million on the construction of 468 new homes, spread across seven developments in Madrid, Cataluña and Andalucía.

Construction work on all of them already started during the first four months of this year. The land acquired by the property developer spans more than 56,000 m2 of buildable surface area, with the projects that it is going to build in the Community of Madrid standing out in particular.

Not in vain, four of the developments are located on the outskirts of the Spanish capital. In Boadilla del Monte, Residencial Nacari is going to have 96 homes; in Paracuellos del Jarama, Residencial Aquam is going to comprise 36 homes; and in El Ensanche de Vallecas, the Monet and Nueva Gavia urbanisations are going to add 60 and 56 properties, respectively, to Aelca’s portfolio.

Meanwhile, in Cataluña, the property developer is going to build Residencial Aviació, with 42 homes, close to the El Prat Airport, whilst in Andalucía, the company led by Javier Gómez and José Juan Martín Montes is building two projects in the province of Málaga. In the Costa del Sol’s capital, it is constructing the Navis Building with 67 homes and in the town of Torrox, it is working on Duna Beach containing 111 homes.

Currently, Aelca owns a portfolio of finalist land with the capacity for the construction of more than 13,000 homes, after investing €500 million over the last two years. Since its creation in 2012, the property developer has handed over more than 1,200 homes and in 2017, the company generated profits of €25 million.

Original story: Eje Prime 

Translation: Carmel Drake

Metrovacesa Sells Tertiary-Use Plot in Barcelona for €22M

26 April 2018 – La Vanguardia

Metrovacesa has sold a plot of tertiary-use land in Barcelona, located in the 22@ district of the Catalan Capital, to the property developer La Llave de Oro for €22 million, according to a statement from the real estate company.

The company in which Santander and BBVA hold stakes says that with this transaction, it has now achieved 75% of the total land sales target that it set itself for 2018.

Metrovacesa has closed the sale of this land after completing all of its urban planning management procedures in December. The plot forms part of a portfolio of tertiary-use land owned by the real estate company spanning 1.3 million and worth around €700 million, which represents 27% of its total portfolio.

Original story: La Vanguardia

Translation: Carmel Drake

Marathon & Colliers Team Up to Finance €200M of Land Purchases in Spain

25 April 2018 – Expansión

MCAP, one of the funds managed by Marathon, is going to offer financing to property developers and cooperatives for the acquisition of finalist land amounting to €200 million.

The current objective of many international investment funds is to take advantage of the strong performance of the house buying market in Spain at the moment, either through the launch of their own property developers or by forming alliances with third parties.

The latest to join the bandwagon is the US manager Marathon Asset Management. The firm has announced that it is going to allocate €200 million to finance the purchase of finalist land in the Spanish market through its London-based subsidiary.

The resources, which come from funds managed by MCAP Global Finance UK, will be shared between property developers and cooperative managers in search of alternative financing and bridge loans for their projects.

The objective is to finance up to 75% of the land value (LTV) depending on the commercial viability of each project, explained sources at Colliers Internacional, Marathon’s partner in this plan. “We expect to close financing agreements amounting to more than €100 million over the next six months”, said Mikel Echavarren, CEO of Colliers International.

The team at Colliers plans to close the first agreements with cooperatives and property developers that are carrying out projects located in Madrid, Málaga, Valencia and Sevilla over the next few weeks. The minimum investment volumes will amount to between €2 million and €3 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Socimis & Property Developers: Two Sides of the Same Coin

4 March 2018 – Expansión

Property developers and Socimis are two sides of the same coin on the stock market. The two large segments of the listed real estate sector in Spain are moving at different speeds on the stock market after the 2017 results season. Whilst the Socimis, which specialise in the rental of non-residential buildings, are maintaining their cruising speeds, the purely residential property developers are being punished by investors, especially in the case of Neinor.

The company led by Juan Velayos has recorded a share price decrease of 18% this year, reaching its lowest levels since it started trading on the stock market at the end of March last year.

The property developer has just presented its results for 2017, which reveal that it registered a loss of €4.6 million despite generating revenues of €225 million. Moreover, just €77 million of the revenue figure proceeded from the property development business, with the delivery of 313 homes, a rate that is well below the 4,000 units that the firm promises to reach within two years (2020). For 2018, its objective is to hand over 1,000 homes. Investors have penalised the announcement that the company is not going to be able to maintain the volume of house deliveries forecast in its initial roadmap either this year or next.

Punishment

The market’s reaction against Neinor has been virulent. “The time it takes to obtain licences is getting longer and the curve of expected deliveries for 2019 is being delayed until 2020”, explains Velayos, who acknowledges that “we measured poorly”. The company has revealed that it is going to change its strategy of buying only “finalist” land (plots that already have the necessary licences for development) and is going to invest €200 million buying land under management, which is more abundant in terms of supply but which will involve much longer construction times.

Like Neinor, Aedas is also trading below its debut price on the stock market. Its share price has lost just over 9% of its value so far this year and did not vary following the results. During its first year of activity, the real estate company created with land purchased by the fund Castlelake over the last few years recorded revenues of €38.6 million, with a net margin of €12.2 million and a loss of €40.1 million. The losses are due primarily to non-recurring expenses relating to the company’s stock market debut, which had a negative impact of €31.55 million, and a one-off cost of €26.1 million linked to the incentive plan for senior management (…)

Following the cumulative punishment this year, the discount on the net value of their assets amounts to around 5% in the case of Neinor and reaches the double digits in the case of Aedas. But, are they attractive prices? (…). For the time being, analysts are maintaining their ‘buy’ recommendations for the pair (…).

Moreover, the experts consider that both Neinor and Aedas have a bullish potential of around 35% from their current levels (…).

In the case of the classic real estate companies, the results have been varied. Quabit (…) saw its turnover decrease significantly, by more than 80%. The company has handed over just six homes this year, after years focusing on its financial restructuring and the sale of its stock. Now, it has launched an ambitious business plan, which will allow it to resume its property development activity and its share price is up by 6% on the stock market so far this year.

Meanwhile, the Socimis are experiencing a different reality. The four large real estate investment companies (…) debuted on the stock market in 2014 with a combined valuation of €2.6 billion and no assets on their balance sheets. Now, their combined market capitalisation stands at more than €9.3 billion and their portfolios are worth more than €18.6 billion. Including Colonial, the combined profit of these companies has grown by almost €1 billion YoY.

The valuations of the Socimis are much more adjusted. The large players have closed the first two months of the year with share price gains of between 4% and 5%, with the exception of Axiare, which has been limited by the takeover price set by Colonial (…).

Original story: Expansión (by Rocío Ruiz and Enrique Utrera)

Translation: Carmel Drake