CNMV Approves Millenium Hotel’s Stock Market Debut

26 March 2019 – El Confidencial

A new hotel giant is getting ready to make its stock market debut. Millenium Hotels, the platform that Javier Illán has been growing for the last two years, has just received approval from Spain’s CNMV to make the leap onto the stock market before the summer. The company will begin a road show with investors in April, with the aim of making its debut between the end of June and the beginning of July.

Millenium Hotels will start by trading on the MAB, before moving onto the main stock market once it is sufficiently large enough. The firm owns eight assets, including the 4-star Hotel Vía Castellana in Madrid, and has already received funding amounting to €100 million from mutual, insurance companies and family offices. Moreover, it is negotiating the purchase of four more properties.

Original story: El Confidencial (by R. Ugalde)

Translation/Summary: Carmel Drake

Habitat’s Land Portfolio Now Spans 1 million m2 with Capacity to Build 10,000 Homes

9 March 2019 – Expansión

The property developer Habitat now owns more than 1 million m2 of land after investing €121 million last year to expand its portfolio. As such, the firm led by José Carlos Saz (pictured below) has the capacity to build around 10,000 homes. Specifically, the firm backed by Bain Capital acquired 27 plots last year on which to build around 2,500 homes. 5% of those plots were non-buildable (in the process of being approved for construction).

The company expects to reach cruising speed with the delivery of 2,000 homes per year from 2021 onwards. Last year, it handed over 270 homes across 4 developments in Barcelona, Málaga and Madrid, to generate turnover of €89 million, EBITDA of €1.83 million and a net profit of €250,000. The company plans to invest €500 million in land purchases until 2021, financed by Bain.

Moreover, like its competitors Neinor, Aedas and Metrovacesa, Habitat is also considering entering the rental home sector and may even begin to build developments for Socimis.

Original story: Expansión (by Rebeca Arroyo)

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

IBA’s Socimi Zambal to Complete €80M Capital Increase

30 July 2018 – Eje Prime

Just over a year after expanding its share capital by more than €91 million, Zambal is preparing to undertake a new operation. The Socimi managed by IBA Capital has convened its shareholders for a General Meeting in September to carry out a new capital increase, in this case, amounting to €80 million.

According to a statement filed by the company with the Alternative Investment Market (MAB), the capital increase will be undertaken through the issue of 80 million shares with a nominal value of €1 and an issue premium of €0.25, which “will be subscribed and fully paid up through the offsetting of loans”.

Without resorting to bank financing, Zambal has built a portfolio worth more than €730 million. The company’s main assets include, for example, the property at number 77 Avenida San Luis (which houses the headquarters of Gas Natural in Madrid); the Vodafone Building on Avenida de América, and number 18 Avenida de Burgos, which is leased in its entirety to BMW.

The Socimi, which started life in 2013, is an investment vehicle managed externally by IBA Capital Partners. The company specialises in the investment and subsequent management of assets in cities such as Madrid and Barcelona in the office and retail segments, although the company is also looking at other assets such as nursing homes, hospitals, retail parks and logistics platforms.

One of the most recent operations undertaken by Zambal was the purchase of two office buildings on Calle Albarracín in Madrid, which is leased to the French multi-national Atos. That operation involved an investment of €38 million.

Original story: Eje Prime 

Translation: Carmel Drake

Dazia Capital Creates a Property Developer JV with French Fund Eurazeo

25 May 2018 – Expansión

The real estate group Dazia Capital and the French private equity fund Eurazeo Patrimoine have joined forces to tackle the residential sector in Spain. This alliance is being manifested in the launch of the joint venture Dazeo.

With a time horizon of three years, Dazeo will have an investment fund from Eurzaeo amounting to €70 million to undertake acquisitions in Madrid, Barcelona, Valencia, the Costa del Sol and other urban nuclei in Spain. The joint venture, controlled by Eurazeo, will achieve a business volume of up to €250 million, according to the forecasts. The agreement has been advised by Montalbán, Cuatrecasas and Uría Menéndez.

Dazeo has been created with a portfolio comprising three buildings in Madrid on Calles Alcalá, Santa Engracia and Santa Isabel. The entity is going to begin a new build project soon in the capital’s Salamanca neighbourhood, which will comprise 23 luxury homes with gardens, a garage and a gym.

Dazia Capital will be responsible for managing the projects from the acquisition through to the development and subsequent sale of the homes with Dayra Homes, its promoter brand.

It is not the first time that Dazia has reached a such an agreement to grow and boost its business, focusing on the residential market in urban nuclei, where last year it accumulated an investment of €185 million.

In 2017, it signed an agreement with the British fund Chenavari. Over the last four years, it has acquired buildings and land with a surface area of 86,000 m2 and 500 homes in Madrid and Costa del Sol.

Daniel Mazín (pictured above) is the CEO of Dazia Capital.

Original story: Expansión (by Elisa Del Pozo)

Translation: Carmel Drake

Blackstone Includes its own RE Manager in the Popular Divestment Deal

3 May 2018 – La Información

Blackstone’s real estate platform, Anticipa, is going to collaborate with Aliseda – founded at the time by Popular – in the management of its voluminous property portfolio. The US fund acquired Anticipa in 2014 when it was awarded Catalunya Caixa’s portfolio, and it has just taken control of Aliseda, as part of the mega-operation signed with Santander. The Cantabrian group included the real estate platform, together with a dozen real estate companies, in the €30 billion gross portfolio of properties that it transferred to the new company, in which Blackstone owns 51% of the capital and Santander held onto the remaining 49%.

Blackstone decided not to merge the companies but they are going to collaborate together, according to information submitted to the market about the syndicated loan signed to close Popular’s transaction. The toxic exposure divested by Santander in the deal known as “Project Quasar” has been valued at €10 billion net, given that there was a provision cushion amounting to 63% of the original value in the case of the foreclosed assets and 75% in the case of the loans.

The transaction was structured with the contribution of 30% in capital and 70% in debt. The bank and the fund are going to contribute almost €3 billion in capital and the remaining almost €7.333 billion will proceed from a financial structure led by Bank of America Merrill Lynch, together with Deutsche Bank, JP Morgan, Morgan Stanley, Parlex 15 Lux, The Royal Bank of Scotland and Sof Investment. The operation has been advised by the law firm Allen & Overy, amongst others.

The “Neptune” portfolio constituted to obtain the financing includes Aliseda in the perimeter along with numerous real estate companies and stakes held in them by Popular, including Tifany Investments, Corporación Financiera ISSOS, Pandantan (Mindanao), Taler Real Estate, Vilarma Gestión, Marina Golf, Popsol, Elbrus Properties, Cercebelo Assets, Eagle Hispania, Las Canteras de Abanilla and Canvives. A large proportion of the assets transferred are plots of land, together with residential homes, industrial warehouses, commercial properties, offices, garages and almost €1 billion gross exposure in hotels.

This operation is going to allow Santander to dramatically reduce its exposure to foreclosed assets from €41.1 billion to €10.4 billion – a figure that is reduced to a net of €5.2 billion thanks to the provisions it has recognised amounting to 50% of the initial value – but enabling it to benefit from the divestments as a shareholder of the company receiving the portfolios with a 49% stake.

The plan includes the use of Socimis

The fund’s divestment plans include constructing or transferring some of the assets to Socimis, a vehicle that Blackstone has made use of for previous operations because it offers tax benefits such as avoiding the need to pay Corporation Tax if they distribute dividends. In gross terms, residential assets accounted for almost one-third of the perimeter of the original properties involved in the transaction.

After leaving the Popular portfolio in the hands of Blackstone, Santander still has €4 billion net in foreclosed assets and €1.2 billion in doubtful financing that it wants to get rid of soon. The bank plans to repackage the assets by batch and put them on the market, where half a dozen entities and Sareb are exploring how to get rid of almost €48 billion gross – the bad bank alone is looking for a buyer for the €30 billion whose sale is being managed by Haya Real Estate, and Sabadell has several batches up for sale amounting to almost €11 billion.

The Cantabrian group acquired Popular when it had closed the chapter to clean up its real estate and now it wants to return to that position quickly. It was its real estate division to leave behind the “red numbers” this year or by the early stages of 2019 at the latest.

Original story: La Información (by Eva Contreras)

Translation: Carmel Drake

Corpfin Begins its Divestment Period by Placing Assets Worth €160M Up For Sale

23 March 2018 – Eje Prime

Corpfin Real Estate is rotating its asset portfolio. According to sources familiar with proceedings, the company has started to divest some of its assets, and to this end, has placed on the market commercial premises and out-of-town retail parks worth €160 million. Currently, Corpfin Real Estate manages four investment vehicles in the Spanish market.

“The investment strategy of Corpfin Capital Real Estate Partners includes the rotation of assets once they have reached their maturity period”, explain sources at the group. “Specifically, the two vehicles that Corpfin Capital Real Estate Partners is managing at the moment, Corpfin Capital Prime Retail Assets and Corpfin Capital Retail Parks, are nearing the end of their investment periods, and so the group has not ruled out divesting some of the assets owned by those vehicles”, they said.

Corpfin Retail Parks, a vehicle with an investment capacity of €150 million, specialises in retail products “with a high management component”. Meanwhile, Corpfin Capital Prime Retail Assets was created in 2011 and completed its investment phase in 2016.

In parallel, the company has been fattening up its portfolio with the investment vehicles that remain active. Through its vehicles Corpfin Capital Prime Retail II Socimi and Corpfin Capital Prime Retail III Socimi, the company purchased two commercial premises last year, in Madrid and Vitoria (…).

In addition, with Corpfin Capital Retail Parks, the company has also been purchasing assets until recently, although it still has a small percentage of its funds left to invest before it finalises that vehicle’s purchasing process. Corpfin’s most recent operations with CPRP include the purchase of a plot of land measuring 4,345 m2 from the General Foundation of Madrid’s University of Complutense.

For now, Corpfin has signed a contract to set up an Aldi supermarket on that plot, which will occupy a surface area of more than 1,200 m2 and which will be the chain’s first store in the municipality. The rest of the land is still being marketed.

Other operations undertaken by the fund include the Las Moruchas Shopping Centre in Ávila, inaugurated in June 2016, and the construction of a new shopping complex in Alcorcón (Madrid), which is currently under development.

New director general

In addition, this year, the group is also shaking up its management team and has appointed a new CEO for the Socimi. Ana Granado has served as the most senior executive of the company since February (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Dextra Corporate Launches Residential Fund Focusing on Galicia

2 March 2018 – Eje Prime

The Barcelona-based corporate finance firm has created a fund manager, Swan Real Estate Management, whose first vehicle aims to acquire, renovate and sell on up to ten residential buildings in Galicia.

Dextra Corporate is throwing itself into the housing market. The Barcelona-based finance firm, led by former Deloitte employees Iker Zabalza and Stephan Koen, has created Swan Real Estate Management, a fund manager to invest in the Spanish residential market. Its first investment vehicle, Seagull Real Estate, will get going shortly with €14 million to spend and will travel exclusively to Galicia where it plans to buy up to ten buildings. For this company, Dextra has been supported by Andbank: 90% of the investment is going to proceed from Galician customers of the Andorran bank.

The aim of the project, in which the manager AKM, led by Xavier González, is also involved, is to look for assets in second-tier cities in Spain, which are still in the recovery phase. The plan is to renovate the buildings and sell them on on a home by home basis.

Seagull will focus mainly on properties in central areas of A Coruña and Vigo, which may be of interest to customers with a medium-high purchasing power, according to Expansión. The manager’s forecast is to purchase between five and ten residential buildings.

Although it is going to start off with €14.4 million, Swan hopes to increase the investment figure of its Galician vehicle to €25 million. With the addition of bank financing, the spending capacity of the fund could rise to €50 million.

For Project Seagull, Dextra has teamed up with local businessman Manuel Corbal, who has extensive experience in the Galician real estate sector, in the areas of construction and promotion.

Original story: Eje Prime

Translation: Carmel Drake

Vbare Doubled its Rental Income & Recorded Profits of €2.2M in 2017

26 February 2018 – Eje Prime

Vbare is making profits from its investment in rental assets. Taking advantage of the boom in that market, the Socimi listed on the Alternative Investment Market (MAB) recorded a profit of €2.2 million in 2017, compared to €4.3 million in 2016. Almost half of the amount the company earned last year came from rental income, which amounted to €1 million, up by 122% with respect to 2016.

Vbare’s portfolio, comprising 197 assets, has an occupancy rate of 88.82% and last year saw an average capital appreciation of 61% and returns of more than 6%. At the end of 2017, the valuation of the management company’s portfolio amounted to €28.5 million.

In 2018, the Socimi plans to start investing the money raised over the last few months. After increasing its capital by €7 million in August, the company has started the year by signing a loan for almost €1 million with Sabadell for new acquisitions, as well as a mortgage amounting to €685,000 secured by fifteen of its real estate assets in Madrid.

In this sense, Vbare is finalising the acquisition of an asset worth between €1 million and €1.5 million, a purchase that will be included in the process to identify opportunities in which the Socimi is immersed. The list of potential investments amounts to more than €75 million.

Moreover, the manager wants to branch out of Madrid, with the purchase of assets in other Spanish cities that have “the potential for rental increases in the short and medium term”, according to a statement issued by the Socimi.

Fabrizio Agrimi is the person who will lead roadmap of Vbare, which made its debut on the MAB in December 2016. The executive has headed up the Socimi since last November, following the departure of David Calzada in June. Formerly at Aguirre Newman and a partner at Altan Capital, Agrimi has extensive experience in the business of real estate investments both in the Spanish market as well as in the United Kingdom and Italy.

Original story: Eje Prime 

Translation: Carmel Drake

VBARE Secures an Additional €1.5M to Finance New Investments

2 February 2018 – Press Release

The Socimi has signed three mortgage loans to finance its on-going investments in Madrid, as well as in Spain’s main capitals. 

VBARE Iberian Properties Socimi (VBARE) has raised financing for its next round of investments after signing three mortgage loans amounting to almost €1.5 million (€1,491,786.69) in total and secured by some of the company’s assets in Madrid.

The first loan, from Banco de Crédito Cooperativo, dated 29 January, is secured by 15 assets located in different parts of Madrid and amounts to €675,786.69. The other two have been signed with Banco Sabadell and are secured by two other buildings, also located in Madrid, for a combined sum of €816,000.

According to VBARE’s Director General, Fabrizio Agrimi (pictured above), the Socimi finds itself in a time of great investor appetite, “we are analysing several investment opportunities, not only in Madrid but also in the main Spanish cities”.

Achieving an initial net return of at least 4% without leverage and a discount on the acquisition price of 4% over the market value are the criteria that the Socimi has established in its investment strategy for new assets.

VBARE is a real estate investment vehicle specialising in the acquisition and management of residential assets for rental. It operates under the special Socimi regime and has been listed on the MAB since 23 December 2016 (…).

VBARE currently has a portfolio comprising 197 assets. To date, the company has analysed assets worth more than €500 million and is constantly on the lookout for new business opportunities that fit with its investment policy.

Original story: Press Release

Translation: Carmel Drake