Tag: financial district

Spaces Launches its Third Co-Working in Madrid on Paseo de la Castellana

24 October 2018 – Eje Prime

Spaces is launching its third project in Madrid. The co-working space brand, owned by Regus, has opened a complex located at number 200 Paseo de la Castellana, in the heart of the Spanish capital’s business district.

The company leased 5,155 m2 of space in the complex in February. The facilities comprise more than 160 offices and 700 workstations. The space is owned by the Socimi Silvercode Investments, although it is managed by Drago.

The Castellana 200 property is the third office that Spaces has opened in the Spanish capital, where it also has another complex in Madrid Río and another in Atocha. In addition, Regus has a fourth asset in the 22@ district of Barcelona.

Castellana 200 was built in 2011 and spans an office area comprising two buildings, one smaller one, which Spaces has moved into, and another measuring 15,127 m2, which is home to tenants such as Discovery Channel, Linkedin and CBRE. The companies that have already decided to move into Spaces Castellana 200 include Ikan Biotech, Pervasive Technologies and Alliance Borntein, amongst others.

Spaces, founded in Amsterdam in 2008, competes directly with other groups such as WeWork. The company is experiencing exponential growth with the opening of 130 new centres, whereby it hopes to close 2018 with 150 centres in total all around the world. Moreover, it is consolidating its position in large markets such as in the USA, the UK, France and another 30 countries around the world.

Original story: Eje Prime

Translation: Carmel Drake

Meridia III Doubled its Revenues and Cut its Losses by 76% in H1

24 October 2018 – Eje Prime

Meridia III is reducing its losses. The Socimi owned by Meridia Capital recorded losses of €522,124 to June, which represented a reduction of 76% with respect to the first half of 2017, according to reports from the company to the Alternative Investment Market (MAB).

The company recorded revenues of €8 million during the first six months of the year, doubling its turnover in comparison with the same period last year. The firm’s EBITDA amounted to €3.3 million, reversing the negative figure of €964,673 recorded between January and June 2017.

In recent months, Meridia III has continued with its growth plans and has completed two high-profile divestments. The first was the sale to Barings of five office buildings that it owned in Avalon, as revealed by Eje Prime. That deal was followed by another at the start of October when it sold the property that houses Nestlé’s headquarters in Barcelona to Igis for €87 million.

Listed on the MAB since the end of 2017, Meridia Capital’s Socimi has also made some significant investments in the Spanish office market such as the purchase in March of a building in the financial district of Madrid for €26.5 million. The building, measuring 7,500 m2, is located at number 4 Calle Juan Hurtado de Mendoza, close to Paseo de la Castellana. Moreover, in Barcelona, the Catalan manager has leased its new building in the 22@ district to the international consultancy firm Everis.

At the beginning of October, Meridia Capital completed a capital increase of €13 million in Meridia III. The increase in funds will give the Socimi “greater guarantees to face and develop future projects and investments”, according to explanations provided by the manager in a document published on its website.

Original story: Eje Prime

Translation: Carmel Drake

Utopicus Opens its 4th Co-working Centre in Madrid

24 October 2018 – Expansión

Utopicus, the co-working platform owned by Colonial, has opened its fourth centre in Madrid, in the heart of the Azca financial district. The new office building, which has a surface area of 2,000 m2 spread over three floors, is located at number 62 Calle Orense.

This building is the fourth office that Utopicus has inaugurated in Madrid, after the opening of Duque de Rivas, Colegiata and Doctor Esquerdo, and the fifth in Spain, after the opening of its Plaza Cataluña space in Barcelona, located on Ronda Sant Pere, 16

The company has plans to operate 10 centres in Spain over the coming months with new openings in the pipeline in Madrid on Príncipe de Vergara and in Barcelona on Clementina, Gal·la Placidia, Gran Vía and Ciutat de Granada.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Offices & Logistics Assets will Drive Spain’s Real Estate Sector over the next 5 Years

20 September 2018 – Eje Prime

Spain is consolidating its position as one of the most powerful real estate markets in Europe. The Spanish real estate sector has been strengthened in recent years by the creation of employment and, in particular, by investments undertaken in the office and logistics segments. Looking ahead, it is expected that the scarce supply of these assets will lead to a rise in prices, especially in Madrid.

The sector expects the office business to maintain an upward trend over the next five years in light of the outlook for the creation of employment in Barcelona and Madrid. During this period, both cities are predicted to generate around 200,000 to 300,000 jobs, respectively.

Good news is also expected in the logistics sector. Above all thanks to the boom in e-commerce, the market for industrial centres and warehouses in Spain is currently one of the most powerful in Europe. Despite the great demand for assets, in cities such as Barcelona and Madrid, the rate of available stock stands at just 4%, which is pushing rental prices up. For DWS, the challenge until 2022 will be to “adapt existing buildings to the new needs of companies”.

In terms of the rest of Europe, an increase of 2% per year is expected in the prime office market. Together with Madrid and Barcelona, other areas that will see an increase in demand for such spaces until 2022 include Berlin and the financial district of Paris.

Logistics will be, undoubtedly, the most dynamic segment of the European real estate sector over the next five years. It is expected that, in light of an availability rate for industrial spaces of 5% in most of the large cities, rents will rise by 2.2% per year, on average. Germany, the UK and Poland are expected to lead that growth.

Original story: Eje Prime 

Translation: Carmel Drake

Madrid Nuevo Norte: Carmena Unveils the Latest Plans

28 July 2018 – El País

More green spaces, sustainable transport and a new financial district (city), which is going to change the face of the Castellana over the next 20 years. The thoroughfare that crosses the north of Madrid is going to grow up around Chamartín station, which will become a large hub due to its proximity to the airport. The mayor of the city, Manuela Carmena, having reached an agreement with the Minister for Development, José Luis Ábalos, the Community of Madrid and the property developer Distrito Castellana Norte (DCN) presented the Madrid Nuevo Norte project, also known as Operación Chamartín, on Friday. It is going to be one of the largest urban planning developments in Europe, and its aim is to launch the Spanish capital into the 21st century.

In numbers, Madrid Nuevo Norte is going to involve the renovation of an area spanning 2,600 km2, where the property developer Distrito Castellana Norte (DCN), the Town Hall, the Ministry of Development and the Community of Madrid are going to build a financial centre with large green spaces, modern buildings for latest generation offices and a new train station, which will be at the heart of the new financial district.

The future Chamartín station will become a domestic and international hub. Its strategic position, given its proximity to the Madrid-Barajas airport, will allow for journeys in record time. Adif is considering creating a direct connection between the station and the airport. The public company controlled by the Ministry of Development also announced that it is going to work on a direct connection between Chamartín and Atocha train stations.

The new business centre will be home to three skyscrapers, one of which will stand 250 m high, the tallest in Spain. The project is being inspired by the north of Europe from an urban planning perspective (experts highlight the similarities with the new financial district in Amsterdam). Specifically, due to the coexistence of work areas and residential spaces. In fact, leisure areas and housing will be created in Madrid’s new city. The idea is to build a centre that will be “open 24 hours a day, 7 days a week”, according to explanations provided by the Councillor for Sustainable Urban Development, José Manuel Calvo (Podemos).

The project will divide the space into four zones: Chamartín station, the business centre and the neighbourhoods of Malmea-San Roque-Tres Olivos and Las Tablas Oeste. In total, the Town Hall, which has led the project and  the negotiations with the private operators, has ensured that up to 20% of all the homes built in the area will be social housing properties (compared with 10% proposed by Ana Botella’s previous plan) (…).

In terms of the timings, the Town Hall expects to raise the project to the plenary this year. Nevertheless, the Community of Madrid still needs to approve several reports, including the environmental study, which is mandatory. The Community of Madrid is expected to approve the plan next year. If so, the first bricks will be laid in three or four years time. According to estimates from the property developers, this project will generate 200,000 jobs and involve an investment of €6 billion.

Original story: El País (by Luca Costantini)

Translation: Carmel Drake

Málaga Vies to Compete with Madrid & Barcelona in the Office Sector

11 April 2018 – La Opinión de Málaga

The yields for investors (in Málaga) range between 5% and 7.5%, and exceed these reference areas, although the experts agree that more tertiary development is needed. The real estate sector highlights the recovery of its activity and rules out signs of a bubble in the housing sector.

The real estate market in Málaga is on the rise and is in the spotlight of all investors both in the residential sphere as well as in the tertiary and office segments, according to comments made by several experts yesterday at a forum organised by Málaga’s Association of Construction Companies and Property Developers (ACP). They also ruled out that that there is currently a risk of a bubble since the rate of growth is being sustained. In the office sector and from the point of view of investors, Málaga capital, specifically, is positioning itself as a great alternative to the saturated markets of Madrid and Barcelona, which are showing signs of “depletion” with the lowest yields for 20 years (3.2% in the prime areas and 6.25% in the more peripheral districts), according to explanations provided by the Director of Investments at Savills Aguirre Newman, Pablo Méndez. By contrast, yields in Málaga range between 5% and 7.5%, with potential for returns that exceed by 1.5 points the markets that have traditionally monopolised investors’ interest.

“The office market has to look for new destinations to house its money and, after Madrid and Barcelona, Málaga is in an enviable position. We need to take advantage of that. There is office demand that is not being met in Málaga, which means that a great investment opportunity is opening up”, said Méndez. A recent study by his consultancy firm revealed that Málaga capital, with an office stock spanning 600,000 m2, has reached leasing and occupancy levels not seen since before the crisis, with percentages of 90% in the prime areas, the financial district and the area around Vialia, established as the Business Centre.

Rents amount to €12/m2/month on average, with maximum values of €18/m2/month for buildings on the most sought-after streets. This trend will continue in 2018, with the forecast that rental transactions could reach record volumes, boosted by sectors such as real estate, services and technology, which means that properties that have been available for almost a decade may have new tenants.

In light of this scenario of a “shortage” of sites, Méndez warns that the city needs new tertiary developments and office buildings given that the spaces that currently have most availability, on the Andalucía Technology Park (PTA), do not meet the expectations of companies who prefer a more urban environment for their workers. Areas such as Martiricos and La Térmica, in his opinion, represent development enclaves that could be used to alleviate this situation.

“Right now, the decisions as to whether to change headquarters are taken by considering the human resources team, the communications, the flexibility of hours, the services in the vicinity. There has been a substantial change in terms of the demand from tenants. The way of working has changed. Companies want to be more central and in their own environments”, he said (…).

Original story: La Opinión de Málaga (by José Vicente Rodríguez)

Translation: Carmel Drake

BNP Paribas: Office Rentals Rose by 22% in Madrid in 2017

5 January 2018  – Eje Prime

The good news is never-ending for the office sector in Spain. In Madrid in 2017, the market recorded its highest level of office rentals since 2007, increase the absorption of this asset type by 22%, thanks to greater demand from public administrations, according to a report from BNP Paribas Real Estate.

According to the entity, last year, 525,000 m2 of office space was leased in Madrid. The office rental figures recorded in Madrid still do not approach the almost 1 million m2 of space that was leased ten years ago. Nevertheless, it is worth taking into account the fact that companies no longer need such large spaces to undertake their activity because working practices have changed, and there is now a trend to optimise spaces.

The increase in demand was also accompanied by an increase in prices, which rose to €31/m2/month in the most exclusive areas. Nevertheless, some lease contracts were also signed for prices of up to €36/m2/month in certain buildings in the Spanish capital’s financial district.

Original story: Eje Prime

Translation: Carmel Drake

Savills & Aguirre Newman Complete Their Merger

3 January 2018 – Eje Prime

Without any fuss whatsoever, Savills and Aguirre Newman ended the year by completing their merger. On the last working day of the year, the British company announced to the London Stock Exchange that it had finally signed the agreement to buy the Spanish real estate consultancy. The company, which announced its intention to acquire the Madrid-headquartered business through the same channel on 28 July 2017, will pay €67 million by way of consideration.

According to the document that proves the purchase of Aguirre Newman, the British consultancy firm paid €42 million at the time of the signing and will pay the remaining balance in instalments of €5 million over the next five years, to reach the €25 million agreed between the two parties.

In theory, Savills had planned to complete the purchase before 30 November, however, administrative setbacks delayed the signing. Nevertheless, the company said that all of the paperwork was completed before the end of 2017 (…).

The need of both groups to sign their merger before the end of the year was also an administrative priority, given that they wanted to start the new year afresh to operate under the brand, Savills Aguirre Newman, from the beginning of 2018. Moreover, this change will result in a significant number of changes to its operations in Spain. The first will see it move to a new headquarters in the financial heart of Madrid.

The Spanish subsidiary of Savills has set the wheels in motion to move its offices to one of the capital’s main skyscrapers. After lots of negotiations, the new consultancy firm will move into the Castellana 81 building, better known as the Torre BBVA. The company will lease 8,000 m2 of space after reserving six floors in the building from the Socimi GMP, which owns the asset.

Built in 1981, Torre BBVA is one of the symbols of the Azca financial district in the Spanish capital. GMP renovated the asset after buying it and, coincidently, Aguirre Newman, along with CBRE, were appointed to look for new tenants for the building. The consultancy firm plans to move into its new offices as soon as the integration of the two companies has been formalised.

In terms of the business of the two consultancy firms in Barcelona, sources in the Catalan capital indicate that it is very likely (although not definite) that the Savills staff located in the Catalan capital will move to the offices that Aguirre Newman has on La Diagonal in Barcelona, given their location and capacity.

Another matter still up in the air is the duplication of the entire organisational structure of both companies. Savills’ intention is to maintain the entire workforce, although it is more than certain that many of the directors will leave the company voluntarily, according to sources consulted by Eje Prime.

The Presidents of Aguirre Newman, Santiago Aguirre and Stephen Newman, and the President of Savills España, Rafael Merry del Val, will be appointed to the Board of Directors of the combined company, in the following roles: Santiago Aguirre, Chairman of the Board; Stephen Newman and Rafael Merry del Val, Executive Co-Vice-presidents.

The senior management team of Aguirre Newman and Savills España will retain and include José Navarro, current CEO of Savills España; Javier Echeverría, CEO of Aguirre Newman; Jaime Pascual-Sanchiz, Executive Director General of Aguirre Newman, and Ángel Serrano, Director General of the Business at Aguirre Newman. The office in Barcelona is going to be led by Anna Gener and Arturo Díaz, as the CEO of Savills Aguirre Newman and President of the group in Barcelona, respectively. The real headache for Savills Aguirre Newman will come with the next level of management, although those roles will not be assigned for several weeks yet (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Gesvalt Moves Its HQ To The Cuzco VI Building

22 September 2017 – Eje Prime

Gesvalt is packing its bags to move to a new location in Madrid. The company, which specialises in consultancy and the valuation of assets is going to move its headquarters to the Cuzco IV building, at number 141 on Paseo de la Castellana. CBRE and Valliance have advised Gesvalt on the operation.

The company has leased an entire floor of offices in the property, spanning a surface area of 1,300 m2, according to a statement issued. The office building is owned by Inpacsa and is located in the main financial and business district of Madrid.

Original story: Eje Prime

Translation: Carmel Drake

“Valdebebas Is Ready To Welcome Companies Post-Brexit”

27 June 2017 – Expansión

Valdebebas – one of the largest urban planning projects in the Community of Madrid, with a land surface area of 10.6 million m2 – has fired the starting gun for what is expected to become the city’s “new financial and technological district”.

“We have land spanning more than 1 million m2 (equivalent to the surface area of almost 140 football pitches) available for tertiary use. People talk about Castellana Norte, but there is no development in Spain quite like Valdebebas. It is already ready to welcome companies from London searching for new locations after Brexit and any other multi-national companies”, explains Marcos Sánchez, Managing Director of the Valdebebas Compensation Board, which represents the owners of the land. Market sources indicate that the land owners include Monthisa, Bisbel, Vivienda Económica, Celteo, Coindeco and Inmobiliaria Espacio.

This business park will comprise twenty blocks, with buildabilities ranging between 9,000 m2 and 110,000 m2. It will house buildings that have between five and fourteen storeys.

The director said that, although they have not yet started “to sell” Valdebebas as a destination for companies, international investors, funds and hotel chains have already expressed their interest in the development: “We are still in the preliminary conversation phases. Until now, contact has been made because interested parties have been approaching us”.

For Sánchez, the aim of Valdebebas is to attract fin-tech companies and others relating to that sector. Moreover, it has the capacity to accommodate between three and four hotels and restaurant brands. “We have direct access to the airport and are well connected to the city centre. It is an unbeatable location in Europe and the world”.

In this sense, it is worth remembering that a bridge is being constructed to connect this area with Barajas Airport – T4, with a forecast investment of more than €20 million. “We have already moved earth and started building the foundations on both sides. The work, which was started in February, is going well and will be finished within two years”, he said.

Valdebebas has several advantages over the potential Operación Chamartín: the immediacy – with “windows of opportunity that can be benefitted from now” – its size and location, according to Sánchez. “Castellana Norte is our natural competitor; despite that we want that site to be developed as soon as possible and in the best way possible because we will all end up winning as a result”, he said.

Legal journey

In terms of the legal position, Sánchez acknowledges that, although Valdebebas has always been very judicialised – construction of between 800 and 1,000 homes has been suspended following a ruling by the Supreme Court – almost 100% of the residential property has been sold, the population already stands at 10,000 people and is set to reach 18,000 by the end of the year. In his opinion, it is “perfectly feasible” to reach agreements before the urbanisation is completed. “All of this administrative and judicial chaos will end when the urbanisation is handed over in two years time”, he said.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake