Corestate to Invest €100M in Student Halls By 2019

4 December 2018 – Eje Prime

Corestate is growing in Spain three years after its arrival. The Luxembourg-based fund manager is going to invest €100 million in the development of new student halls in the Spanish market between the end of this year and 2019, according to comments made by Christopher Hütwohl, the Head of the company in the country, speaking to Eje Prime.

Currently, the group has several plots in its sights, located in the main provincial capitals of Spain. “Valencia, Málaga, Pamplona, Sevilla, Madrid, Barcelona, Bilbao and Alicante are on our radar”, explained the executive, who also confirmed that between December and the first quarter of next year, the company plans to close at least three operations.

Corestate’s main objective involves becoming one of the top three players in the student hall market in Spain. “It is a segment that still has a lot of potential, which is why we do not want to limit ourselves to a specific number of projects”, says Hütwohl. In fact, the director confirmed that the company plans to develop around three developments in each city, with capacity for between 200 and 350 beds, “except for in Alicante due to the limitations of that territory”.

Similarly, the group has the intention of expanding its range of investments in Spain from 2019 onwards. “Now we are very focused on the market for student halls, but we also want to undertake more operations, especially in the office, retail and residential segments across the whole Iberian Peninsula”, explained the executive. In this way, Hütwohl made clear the company’s objective of entering the Portuguese market before 2020.

Corestate sweeps across Europe

This year, Corestate has undertaken one of the largest operations in Europe in the market for student halls of residence with the purchase of CRM Students for €17 million. It is the largest manager of student halls, which operates in the United Kingdom, with 24,000 beds spread across 145 cities. “The type of collaboration that we will carry out has yet to be determined, but thanks to that acquisition, we have exceeded the 30,000-bed threshold in the European market”, said the executive.

Headquartered in Luxembourg and with 560 employees, Corestate has 41 offices around the world, located in cities such as Frankfurt, London, Madrid, Singapore and Zurich. In Spain, the company’s team comprises three people, a number that will grow as new projects are delivered.

The company led by Michael Bütter ended 2017 with revenues of €195 million and the group expects to achieve a turnover of €230 million in 2018. The gross operating profit (EBTIDA) amounted to €123 million in 2017, whilst the net result amounted to €93.3 million.

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

Savills IM: Inv’t of €500M per Year Until 2022 Following Purchase of Aguirre Newman

26 June 2018 – Eje Prime

Savills Investment Management (Savills IM) is getting its chequebook out in Spain. The fund manager of the real estate consultancy firm is looking for new investments in the country six months after integrating Zaphir Asset Management into its structure under the framework of the acquisition of Aguirre Newman by Savills. Savills IM’s plans involve investing €500 million per year in Spain until 2022.

According to explanations provided by Fernando Ramírez de Haro, Director of the Savills IM office in Spain, speaking to Eje Prime, the fund manager forecasts building an asset portfolio on the Iberian Peninsula worth €2 billion, up from its current value of €480 million.

The company is now starting an ambitious positioning strategy in Spain, “having completed the integration of Zaphir”. Ramírez de Haro, who leads Savills IM’s office following the corporate operation, served as the Director General of Zaphir since 2007. Savills announced the acquisition of Aguirre Newman in July last year, but the operation was not completed until December when Savills IM integrated Zaphir.

The company is currently analysing investments worth €750 million in Spain, although the group is also considering entering the Portuguese market. Even though in 2017, the company’s most active markets were the United Kingdom, Italy and Japan, the forecasts of Ramírez de Haro indicate that Spain will become the fourth most important European market for the group, behind the United Kingdom, Italy and Germany.

Savills IM’s current portfolio in Spain comprises thirteen assets or projects. Half of them correspond to investments in offices, 25% to retail, 17% to residential and 7% to logistics, according to Ramírez de Haro. One of the most recent operations signed by the group was the purchase, in May, of a hypermarket operated by Eroski in San Sebastián for €48 million.

The executive maintains that the company is looking for opportunities across the four segments, especially in retail and offices. “I do not want to say that logistics is not important, it is and very much so, but it is the segment that is suffering from the most acute shortage in terms of supply”, he said. “In terms of retail, a negative vision is coming from the USA, but for us, that is not the case, provided you look for assets that are not so dependent on online sales, such as retail parks, high street stores, outlets and shopping centres linked to food”, he maintains.

Savills IM combines three types of operations: the first is the management of funds raised in Europe (especially in Germany): the second involves the mandates of global investors; and the third is to support value-added funds in their investments in Europe. Whilst in the first case, the average investment in terms of own funds is between €20 million and €80 million, international mandates tend to be upwards of €100 million and value-added operations typically range between €15 million and €100 million.

The fund manager has a workforce of sixteen people in Spain, fifteen of whom come from the former Zaphir structure and one from Savills IM. The group expects to have 22 employees in five years time.

On the global stage, Savills IM has a workforce of 300 employees and eighteen offices. In 2017, the group recorded transactions worth €5.5 billion: €4.5 billion in Europe and €1 billion in Asia. The company plans to spend €1 billion in own funds in 2018 for the acquisition of new assets in Europe and Asia.

Original story: Eje Prime (by J. Izquierdo & P. Riaño)

Translation: Carmel Drake

M&G Invests €80M to Strengthen its RE Portfolio

29 May 2018 – Expansión

The real estate division of the London-based firm M&G Investment has decided to bet significantly on the Iberian market, where its exposure now exceeds €500 million. “We are partners of institutional investors looking for core properties in the best locations across Europe. We opened our office in Spain in 2016, but we completed our first operations there a year earlier”, explains Federico Bros, Director of Asset Management for Spain and Portugal.

Its first operation involved the purchase of the former headquarters of Telefónica located on Calle Ríos Rosas (Madrid) and leased to the advertising giant WPP. “It is an example of what we look for, well-located assets with long-term contracts, 17 years in this case. Between the renovation and purchase we will invest €175 million in that property”, says Bros.

After that acquisition came others, such as an office building in Barcelona’s 22@ district and, recently, five operations with a very diverse profile. On the one hand, M&G purchased three commercial assets: two in Madrid and one in Granada. “The premise in Granada, measuring 2,500 m2, is located on Reyes Católicos, the best shopping street in the city”, explains Bros. In the case of Madrid, M&G acquired two retail premises on Gran Vía 68. “We closed this operation in May but we have been negotiating it for months, given that the building was being renovated. A few months ago, a large Tony Roma’s restaurant opened there and Sabadell is going to open its flagship branch in the other premise in a matter of days”, he said.

Similarly, the firm acquired two industrial assets in Madrid, specifically a logistics platform, leased to Teka, in the Corredor del Henares, and another complex in Getafe. Those two sites span more than 55,000 m2. In total, the firm has invested €80 million on its latest operations, channelled through two funds: MEP and EuroSPIF.

More opportunities

Following these investments, the manager is still looking for opportunities in the Spanish market.

“We are involved in several processes, both official and off-market, in Madrid, Barcelona and prime locations in other cities. Spain is a priority country for us”, says Bros.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Savills IM Buys a Hypermarket in San Sebastián for €48M

23 May 2018 – Expansión

The fund manager Savills Investment Management (Savills IM) has purchased a hypermarket in the Garbera shopping centre in San Sebastián for €48 million.

The agreement, closed with an international institutional investor, has been completed in an off-market operation.

The investment, made by Savills IM on behalf of the European investment fund European Retail Fund (ERF) reflects a net yield of approximately 5%.

The hypermarket has a total surface area of 14,200 m2 and is operated by Eroski.

Specifically, the hypermarket is located on the ground floor of the Garbera shopping centre, which is owned by Unibail Rodamco. It is the dominant shopping centre in the region, according to the fund manager.

Fernando Ramírez de Haro, Director General at Savills Investment Management for Spain and Portugal, said that, with this operation, the fund manager is growing its footprint in the Iberian Peninsula, with a regional portfolio of assets under management amounting to almost €500 million.

“Spain and Portugal are a strategic priority for 2018 and the next few years, both for Savills IM and for its clients and strategic partners. To that end, we are going to continue studying the market in an active way and we are convinced that we will be able to bring to fruition several investment opportunities over the coming months”, added Ramírez de Haro.

Savills IM, with offices in almost twenty cities around the world, was managing assets with a total value of approximately €16.6 billion at the end of last year.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Union Investment Puts Marsans’ Former HQ up for Sale

16 January 2018 – Expansión

The fund Union Investment, which is headquartered in Frankfurt, has decided to cash in one of its most high profile real estate assets in Spain.

The firm has put the Edificio Pórtico in Madrid up for sale. Designed by the architecture studios SOM and Rafael de La-Hoz, this office building is leased in its entirety to several companies including Pullmantur, Redexis Gas, Nautalia, Beam España and Pepsico, amongst others. Nevertheless, it is well-known because it housed the headquarters of the tourist group Marsans for several years. The company created by Gerardo Díaz and Gonzalo Pascual purchased the property in 2009 from Hines and Monthisa for an amount that was never disclosed. Years later, Marsans reached an agreement with Union Investment to sell the building for €115 million through a sale & leaseback contract, whereby the tourist group remained as the tenant paying a monthly rent of more than €700,000.

A year later, Marsans received an eviction notice due to the non-payment of the rent, and it abandoned the property in 2011 once it had filed for liquidation. The departure of its main tenant did not represent a problem for Union Investment, which soon found replacements.

Currently, the building, which has a gross leaseable area (GLA) of 27,000 m2 spread over eight floors, is leased in its entirety. That, together with the quality of the property and the stamp of two recognised architecture studios, raises its appeal in the market.

For the sale, the German fund has engaged the real estate consultancy CBRE, which has already started to reach out to the usual investors in the office market in Madrid. The sales price amounts to around €130 million, say sources in the know, and the operation is expected to be closed during the first half of this year.

Investment in offices in Spain amounted to €2.21 billion in 2017, according to JLL, down by 20% compared to the previous year.

Lack of supply

That decrease was much more marked in Madrid, which although continued to lead the investment market in Spain, with investment of €1.374 billion, suffered a decrease of 38% in 2017 with respect to the previous year.

“Nevertheless, that reduction was not due to a decrease in investor interest, but rather a lack of supply, given that the two previous years saw record figures”, explains Borja Ortega, Director of Capital Markets at JLL (…).

Meanwhile, Union Investment is one of the largest investment fund managers in Germany. In Spain, its recent operations include the sale of the Área Sur shopping centre, located in the Cadiz town of Jerez, which it sold last year to a joint venture controlled by Axa IM-Real Assets and the Portuguese real estate company Sonae Sierra for €110 million. At the global level, the German firm manages assets worth more than €250 billion.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Savills IM Buys Retail Park In San Sebastián For €16M

15 March 2017 – Real Estate Press

The real estate fund manager Savills Investment Management (IM) has completed the purchase of a retail park located on the Lanbarren de Oiartzun industrial estate, close to the city of San Sebastián. 

The asset has a surface area of 10,300 m2 and is leased to companies such as the DIY chain Brico Depot and the food retailer Mercadona, which is the main tenant. The Valencian distribution group opened this establishment in November. It has a sales hall covering 1,500 m2, and represents the fourth store that Mercadona has opened in the province of Guipuzcoa and the thirteenth in the País Vasco.

Savills IM has paid €16 million for the property, which it has acquired from a local property developer, through its fund Europe II – Retail. It is the first retail property that the fund manager has purchased in Spain. Until now, the fund has focused on acquiring residential properties in the country.

“This is the fund’s first acquisition in Spain. It is a newly built prime asset in San Sebastián, in the País Vasco, and it is already generating results that exceed expectations (…)”, said Michael Reinmuth, Director of Savills IM in Spain.

The fund manager, which has offices in Amsterdam, Copenhagen, Frankfurt, Hamburg, Hong Kong, Jersey, London, Luxembourg, Madrid, Milan, Munich, Paris, Singapore, Stockholm, Sydney and Tokyo, is one of the largest real estate asset investors in Europe. As at 30 September 2016, Savills IM managed assets with an approximate combined value of €17,000 million.

Last week, Savills IM announced its plans to launch a pan-European investment fund, through which it hopes to raise €500 million, which it intends to invest in retail assets in several cities, including Madrid, as well as in various capital cities in the north of Europe.

Original story: Real Estate Press

Translation: Carmel Drake

Catella Buys 216 Homes In Madrid For €23.5M

13 February 2017 – Eje Prime

Catella Asset Management Iberia, the real estate fund manager that the Catella Group operates in Spain and Portugal, is continuing to invest in property in our country. The company has acquired 216 homes in Madrid, in an operation worth €23.4 million, according to a statement.

This operation follows a transaction that the company completed last month, when it acquired two residential properties in the Madrilenian suburb of Pinto for €24 million. Those two buildings have a total constructed surface area of 18,092 m2, distributed over 216 homes, 216 parking spaces and 216 storerooms. Those properties have an occupancy rate of 93% of the leasable surface area.

Following these two operations, Catella has accumulated a portfolio under management worth €100 million, during its first year of activity. Just over two months ago, it completed four transactions: three operations involving the purchase of residential properties located in Madrid (in Barajas and on Calle Génova) and Barcelona (in Poblenou); plus the purchase of the Portal Mediterráneo shopping centre in Vinaroz (Castellón).

Catella specialises in the real estate investment and management sectors, as well as in fund management and banking. It has a strong presence across Europe, with 500 professionals distributed across its offices in 12 countries. In Spain, the group operates two distinct activities: Catella Asset Management Iberia (Catella AM) and Catella Property.

Original story: Eje Prime

Translation: Carmel Drake

Invesco Develops Luxury Homes On Madrid’s Golden Mile

29 December 2016 – Expansión

Invesco joins forces with the Barba Group / The partners are going to invest more than €26 million in 30 high-end apartments. The construction work will begin in 2017.

A plot of land measuring more than 700 m2, next to Paseo de la Habana and Calle Serrano in Madrid, is one of the latest additions to Invesco’s real estate portfolio in Spain. The German fund manager has invested more than €25 million to buy this plot of land, located in Plaza Valparaíso, where it will create 30 luxury homes. “We have been negotiating the purchase of this plot of land for a year now. It was owned by a family and a religious congregation. In the end, we have completed the acquisition and we have requested a licence to begin construction”, say sources at the fund.

The German fund has been one of the most active investors in Spain in 2016, and after acquiring several important retail assets such as Prada’s flagship store on Paseo de Gracia and a batch of eleven Eroski hypermarkets, it has placed its focus on the residencial segment. “Spain is one of the largest markets for Invesco. We have purchased profitable assets for several funds there, such as on Paseo de Gracia and the hypermarkets. But, in addition, we have entered the world of property development, like we have in other countries such as the USA and certain Asian markets, with funds that seek added value opportunities; Spain is one of the first countries where we have begun”, explained Tim Nalder, Head of Invesco Real Estate in Spain.

Added value

To this end, the German firm has teamed up with the real estate company Barba Group and, through a joint venture, has started to develop high-end homes in the most exclusive areas of Madrid. “Last year, Invesco told us about its plans to invest across Europe with an added value fund that offers high returns and we have already invested more than €100 million through the joint venture”, said César Barba, CEO of the Barba Group.

The latest major project is this plot of land on Paseo de la Habana, where 30 homes will be constructed and then sold for around €6,500/m2. There will be several ground floor and penthouse duplexes, with swimming pools and terraces. The most expensive home will be sold for €1.5 million. But the jewel in Invesco and Barba’s project will be a sky terrace, located on the top floor of the block, which will have a gym and swimming pool, amongst other services. The construction work at this exclusive development, which has already started to be marketed, will begin between April and May next year.

Currently, Invesco’s most advanced project in the capital is a development containing nine 3- and 4-bedroom homes, with terraces and solariums, located in the Arturo Soria neighbourhood, which will be ready for its first residents in the spring. Moreover, this joint venture recently bought the building at number 53 on Calle Serrano in Madrid, where it will create high-end homes on the upper floors and a retail store for a luxury brand on the ground floor.

In total, Invesco is working on four developments in the capital and another housing complex in Valencia. Invesco has invested more than €500 million in the Spanish market during 2016 between its residential and retail asset purchases. “Currently, Invesco has €200 million to invest across Europe and Spain is going to be one of our primary markets”, said Nalder.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Freo Buys An Office Building In Madrid For €15M

14 October 2016 – Expansión

The German fund Freo, which opened offices in Madrid and Barcelona at the end of last year with the aim of investing in the Spanish market, has completed its first purchase. The private equity manager has acquired an office building on Avenida de Manoteras in Madrid for €15 million. The property, known as Edificio Orion, used to be owned by the German fund manager Triuva, formerly known as IVG Institutional Funds.

The asset, constructed in 2001, is located at number 26 on the Madrilenian street and has a surface area of 7,300 sqm. According to sources in the real estate sector, the offices are fully occupied and currently house twelve tenants in total, including Whisbi Technologies, Sacyr, TPI Edita, Tento and several companies from the ACS Group. The operation will generate a return of 6% for the buyer.

Team

Freo is a private equity fund manager that also has its own investment vehicle. It was founded in Frankfurt (Germany) twenty years ago and has offices in all of Europe’s major cities.

Last year, Freo hired Daniel Mayans, former Director at GE Capital Real Estate in Spain, as the CEO of its Spanish subsidiary. It also appointed Óscar de Navas, who also came from the US multinational, as the Vice-President of Investment at Freo for the Spanish market. The firm’s purpose is to look for buildings such as Orion to add value to them, in terms of investment by renovating the offices, as well as in terms of returns by making improvements to the rental contracts.

Investment focus

That is the goal of the most international funds, which, given the shortage of assets in the most central areas of Madrid and Barcelona and the strong pressure to buy, are acquiring assets in more peripheral areas of Spain’s largest cities. Other funds that have recently made purchases on the Manoteras thoroughfare include: IBA Capital Partners, Axa Real Estate, Lone Star and Blackstone, as well as the Socimis Trajano Iberia and Merlin Properties.

The seller of the property in this case, the company formerly known as IVG Institutional Funds, which has been called Triuva since 2015, is the largest institutional real estate fund manager in Germany, with 45 funds in total. The subsidiary in Spain and Portugal manages assets worth €300 million, which have a combined surface area of 78,000 sqm.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

TH Real Estate Sells L’Aljub Shopping Centre For €100M+

13 May 2016 – Mis Locales

According to El Confidencial, the fund manager TH Real Estate has sold the L’Aljub shopping centre, located in the Alicante town of Elche, for more than €100 million. In addition, the firm has purchased a shopping centre in Bolonia, Italy, through its European Cities Fund, which represents the first acquisition by the fund that aims to secure financing amounting to €3,000 million – €3,500 million over the next five years.

The operator has taken the decision to sell off L’Aljub as part of a divestment strategy that will involve the sale of other assets all over Europe. TH Real Estate made its first investment in the Alicante shopping centre in 2007, although it did not complete its acquisition until 2014.

In Spain, TH Real Estate manages the following shopping centes: Bulevar (Getafe), Mexueiro (Vigo), Islazul (Madrid), Vialia (Málaga), Miramar (Fuengirola), Nervión (Sevilla), as well as Norteshopping (in Porto-Portugal). It also manages the Alovera Industrial Park (Guadalajara).

Original story: Mis Locales

Translation: Carmel Drake