Tag: Garrigues

Platinum Buys the Park Hyatt Site Near Sotogrande to Open its Own Hotel

25 April 2019 – El Confidencial

Platinum Estates has just completed the purchase of Finca Doña Julia, a plot spanning 40,000 m2 located in Casares, between Marbella and Sotogrande, where the Hong-Kong based fund is planning to open a 4-star hotel.

The future establishment is going to be built on the structure that the property developer Evemarina designed for Park Hyatt. Work was suspended on that project after the company filed for bankruptcy when the economic crisis hit.

The debt ended up in the hands of seven banks, which have now sold their stakes to Platinum for an undisclosed amount. The fund led in Spain by Juan Luis Segalerva has been advised by Garrigues.

The same financial institutions have also transferred another plot to Platinum next to Finca Doña Julia, measuring 11,000 m2.

All of these assets are located next to Finca Cosentín, where KKR, together with Altamar and Single Hom are going to invest €450 million in the development of exclusive villas and apartments.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Aena Mobilises Mega-Investments in Barajas & El Prat Amounting to €4.2bn

29 November 2018 – El Confidencial

The largest property developer in Spain is not a real estate company, it is AENA, a company that does not depend on the real estate sector for its business, on the contrary. It has started a race, together with external partners, to mobilise investments worth more than €4.2 billion focused on two projects: the urban development of Barajas and El Prat, annexes of the airports in Madrid and Barcelona. Together they represent the largest real estate project in Spain, and they are very focused on logistics due to the proximity to both airport centres, but also on offices. In office space, alone, the firm wants to promote almost 1 million m2 across the two urban areas.

This contradiction that the largest property developer is not an agent of the real estate sector is due to the fact that AENA is a very large landowner. For years, all of its plots have aged as if they were wine. The airport city in Barcelona, for example, was projected more than 14 years ago. But only now has Deloitte been engaged to look for international funds to mobilise that investment and Garrigues been contracted for legal advice about the monumental project.

And it is a long-term project. In the case of Barcelona, the most advanced of the two, it plans go out 20 years. In Barajas, the proposal is twice as long, 40 years. Moreover, according to sources in the sector, of the 622 hectares of net plots in Barajas, 396 hectares are awaiting development.

Given that the blocks of land are so close to the airports of the two capitals, logistics is the fundamental basis of the proposals. According to the latest report from Jones Lang Lasalle, logistics assets are generating yields of between 6% and 7%, a high rate when interest rates are so low. In the case of Barajas, for example, the planned logistics development represents the bulk of the project, 1.2 million m2 of constructed space, which will be the largest logistics centre in Spain, with the added synergy of connecting the current airport cargo area with the so-called Corredor del Henares.

In terms of office space, the plans also involve enormous dimensions. At El Prat, 362,000 m2 of constructed space is planned, almost as much as in the whole of the 22@ district promoted to date (…). And in the case of Madrid, it is even larger. At Barajas, the volume of planned offices is triple that figure, although it will have to be constructed over four decades.

In addition, there will be hangars, commercial areas, hotels and cargo services for aeroplanes. In practice, it will be like building two new cities, one in Barajas and the other in El Prat.

The immediate plans

The closest projects are the phases that have been planned for the next five to eight years. At the airport in Barcelona, the phase that AENA has called “catalysing” spans the first five years, during which time €387 million will be invested in total to promote almost 400,000 m2 in different types of urban planning projects.

These investments will run in parallel to the airport projects that have already been approved. In this way, AENA has already committed investments amounting to €690 million in El Prat, which include a new satellite terminal (…), to be carried out over the next four years.

This phase is longer at Barajas. It will last for eight years and will involve a forecast investment of €953 million, according to the Adolfo Suárez Madrid-Barajas Real Estate Plan. During this phase, more than 500,000 m2 will be constructed (…).

Original story: El Confidencial (by Marcos Lamelas)

Translation: Carmel Drake

Zambal Socimi Acquires Everis’s Headquarters in Madrid

1 October 2018

Zambal, a socimi managed by the IBA Capital Partner fund, has acquired the Novus Building, the headquarters of Everis, located at 1 Fuente de la Mora (Madrid) for 90 million euros from funds controlled by AXA Im Real Estate.

Market sources explained to Expansión that the price of the transaction, in which the company that owns the property was sold, includes the debt associated with it.

The building, last renovated in 2017, is occupied by Everis NTT Data Company, which occupies 88% of the gross leasable area. In addition to the consultancy, other tenants include Hilti and Eurest.

Novus is located in Manoteras, one of Madrid’s business centres, near the headquarters of Iberdrola, La Caixa and BMW. Overall, the Novus Building has a gross leasable area of 42,945 square meters, divided into five floors of offices, storage areas and common gardens.

The property also has four courtyards and 561 parking spaces. The consultancy Cushman & Wakefield, which had already advised Everis in its leasing operation, and EY Abogados provided services for the seller, while the law firm Garrigues and PwC, the buyer’s financial and tax advisor, advised Zambal.

Other operations

With this transaction, Zambal has strengthened its asset portfolio. The socimi bought two office buildings at the end last year. One is located at 25 Albarracín Street, in the area of Julián Camarillo, in Madrid. The complex is currently leased to the French multinational Atos for about 38 million euros.

The company also acquired an office building located at 77 Avenida de San Luis from Naturgy (formerly Gas Natural) for about €120 million. The gas company is still a tenant. Zambal, created in 2013, debuted on the Alternative Stock Market (MAB) in 2015 and currently has a market capitalisation of 667 million euros.

Original Story: Expansión – Rebeca Arroyo

Photo: zambalspain.com

Translation: Richard Turner

Barings Acquires Five Office Buildings in Avalon Business Park in Madrid

    

Barings Real Estate has acquired five office buildings within Avalon Business Park, Madrid, Spain, as part of a Pan European value add investment strategy on behalf of an institutional investor. The seller is Meridia Capital. The five office buildings comprise 24,495sqm and are best in class in this submarket. The buildings are 97% occupied with more than 20 tenants mainly from the IT/technology and engineering sectors. Additionally, there are 1,291sqm of retail space and 421 underground parking spaces.

The Avalon Business Park comprises in total nine office buildings with 46,952sqm. The business park is located in Julian Camarillo, a 950,000sqm, consolidated office sub-market within the city of Madrid, one of the largest submarkets in terms of take-up in 2018. Formerly an industrial area, Avalon Business Park has already undergone big changes in the past years. It is in very close proximity to the city centre and the airport (15 minutes by car to each). The metro station is within eight minutes walking distance, and the property is served by several bus lines.

“We are delighted to announce our seventh acquisition in Spain and our first investment in the Madrid office market, where we see significant rental and value growth over the coming years. This is a new milestone in the development of our investment strategy in the Iberian Peninsula after a significant capital deployment in both the retail and the logistic markets. As our local team grows, we continue broadening our investment horizon, not only across different asset classes but also in terms of risk profile, from core product to value-add and opportunistic transactions,” Adolfo Favieres, Country Head Real Estate, Spain at Barings, said.

Barings was advised by Dentons (Legal), Deloitte (Financial), Arcadis (Technical) and Knight Frank (Valuation). Meridia Capital was advised by Garrigues and Savills Aguirre Newman.

Paraguayan Magnate Buys Luxury Development on c/General Oráa 9

8 April 2018 – El Confidencial

A new Latin American investor has entered Spain’s luxury residential market. The person in question is Carlos Gill Ramírez, a businessman who was born in Paraguay and who also has Venezuelan citizenship. He has just purchased the high-end development at c/General Oráa 9 in Madrid from Platinum Estates, according to sources.

This sale is the first divestment that the Asian fund has carried out in Spain and forms part of the asset rotation policy that it has launched for its first Spanish fund, to focus on raising and investing €500 million in its new vehicle.

For Gill, this acquisition represents the first step in his growth plans in the country, where he has constituted the company Sari Holdco with a view to continuing to star in operations that will allow him to create his own real estate empire. Uría has represented the Latin American businessman in the purchase of General Oráa and Garrigues has represented Platinum, whilst Engel & Volkers has acted as the advisor.

Having obtained all of the necessary authorisations from the Town Hall of Madrid, construction of this luxury development is almost 70% complete. It will allow the transformation of this building, dating back to 1926, into 10 high-end homes, measuring between 348 m2 and 409 m2 each, plus two penthouses measuring 500 m2, with 250 m2 dedicated to a solarium and private swimming pool. The sales prices range between €3.6 million and €10 million per home.

Since Platinum acquired this development from the Catalan firm Renta, four years ago, it has always been said that it would be aimed at Latin American buyers interesting in owning a home in the Salamanca neighbourhood. Nevertheless, nobody imagined that a businessman from the other side of the Atlantic would also end up taking over the entire project, with the objective of finishing the construction work and putting it on the market.

Industrial wealth

Born in Paraguay, in July 1956, aged just six, Carlos Gill moved with his family to Venezuela, where he ended up being an honorary counsel for his native country. After studying Dentistry at the Central University of Venezuela, the businessman participated in important restructurings such as those of Banco Unión, Mercedes-Benz Venezuela, Grupo Corimón, Banco Capital, Banco Canarias de Venezuela and Bancentro Banco Comercial.

He is currently the President of Grupo Corimón, a Venezuelan corporation that operates in the paint, chemical product and flexible packaging sectors. The firm claims to be the largest conglomerate of its kind on the entire sub-continent and its shares are listed on the Caracas Stock Exchange.

Moreover, four years ago, Gill purchased a controlling share of Ferroviaria Oriental, the company that operates the railways in the east of Bolivia and, months later, he did the same with the country’s western network, by acquiring Ferroviaria Andina from the Chilean firm Luksic. Recent operations include his purchase of Bridgestone Firestone Venezuela.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Cerquia’s Directors Launch New Hotel Development Company: Xpandia

14 February 2018 – Eje Prime

The managers of Cerquia have set their sights on achieving five stars. Carlos Cercadillo, Javier Pérez Picallo and Jesús Salinero, all senior members of the Spanish company, have teamed up with a group of investors to leap into the hotel sector. The executives have launched Xpandia Projects, a company specialising in hotel development with a focus on Spain and Portugal, according to Pérez Picallo, CEO of Cerquia, speaking to Eje Prime.

Picallo will be in charge of the new project, although he will also continue in his position at Cerquia, as will Cercadillo, who is the President of the company and Salinero, who leads the expansion department.

“The hotels will be urban properties and they will be handed over turnkey-style to the operators”, explains the CEO of the company (…). The objective of the property developer is to hand over 800 rooms over the next three years. For the time being, the company is going to work on three projects, two in Lisbon and one in Valencia. The latter, located on Calle Guillem de Gastro, is on the verge of being granted its licence, with the aim of being completed and ready for delivery in 2020. In the case of the Portuguese assets, the delivery will take place in 2018 and 2019, respectively. In total, these three hotels will place 386 rooms on the market. Some of the major operators for which the firm is going to work include groups such as Accor, Iberostar, Hotusa, Vincci and B&B.

The development of the assets will be undertaken through both the renovation of buildings, as well as the construction of new build properties. The first project in Valencia and one of the projects in Lisbon involve the complete renovation of two properties. In addition, during this first phase, the company has pre-agreements to develop hotels in Madrid, Valencia, Alicante, Sevilla, Málaga, Bilbao and Donostia.

Xpandia is not planning to accumulate assets itself. “We will not hold onto the assets, instead we will sell them to investors who will operate them after we complete the building work”, explains Picallo, adding that “in some cases, we will hand over the hotels completely decorated and furnished”. The only hotel that the new company will own is a property in Lisbon, currently owned by Cerquia, which will be transferred from one portfolio to another. Despite the obvious synergies between the group and the property developer, “this is a project that will operate outside of Cerquia”, said its CEO.

The property developer will work on all stages of the projects from the location and selection of the properties to the drafting of the technical plans and the organisation of the construction work. Location wise, the properties will always “be in cities, primarily in central areas, to respond to the tourist interest that operators demand”, says Picallo. The property developer will study 100 potential projects per year.

The company is not going to work in Barcelona for the time being. Although the Catalan capital is the most touristic city in Spain, the property developer considers that “there is too much uncertainty around obtaining hotel licences in the city” (…).

During this first phase, the hotel operators that Xpandia is working with are expected to invest around €30 million. The hotels that the company is going to develop will be 3- and 4-star properties.

The group driving the project, Cerquia, is a company dedicated to the management and operation of its own real estate assets. The company, created in 2006, has offices, hotels and homes for rent in a portfolio that spans a surface area of approximately 20,000 m2 in the office sector alone across the Iberian Peninsula.

The firm’s clients include companies such as Banco Santander, Uria Menéndez, Garrigues, Catalana Occidente, Hoteles Vincci,  Bausch & Lomb, Intermoney, Worx, Lycamobile and Shine Ibérica, amongst others. For 2018, the group’s roadmap is to maintain its activity and continue with the progress of its three residential developments.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Zriser Made a Profit of €14M from Sale of 2 Properties in 2016

5 January 2018 – Valencia Plaza

Inversiones Grupo Zriser, the company that groups together the rental assets of Ana and Pablo Serratosa (pictured below), closed 2016 with the sale of two properties that generated a profit of €14.3 million. That is according to the Directors’ Report in the company’s consolidated accounts, which shows that 2016 was a good year for the investment vehicle owned by the Serratosa siblings.

One of Zriser’s most important sales – at the beginning of 2016 – was the Generali building, located at number 29 Plaza del Ayuntamiento in Valencia, to the businessman Juan Luis Gómez-Trenor, who was the founder of the now extinct Colebega and shareholder of Coca-Cola Iberian Partner.

Zriser purchased the building from Generali Seguros for €29 million and sold it for more than €30 million, almost 50% more. The building, next door to the Town Hall, is located in the financial and retail centre of the city and houses the regional headquarters of Generali Seguros in the Community of Valencia and a branch of the company; the main tenant of the property is the law firm Garrigues.

The other property sold by Zriser in 2016 – in the month of November – is located on Paseo de Ruzafa 18 and is known for housing one of the first Berskha (an Inditex brand) stores in the centre of Valencia. That property has a surface area of more than 2,200 m2 spread over a basement level, commercial space and commercial mezzanine, plus four additional floors, measuring 400 m2 each in a strategic location and where Décimas opened. The two operations were advised by Olivares Consultores.

Turnover rose by 48% in 2016

Inversiones Grupo Zriser, where the siblings also consolidate their other investee companies, generated a turnover of €48 million in 2016, up by 48% compared to 2015, when the figure amounted to €32.4 million. An even greater improvement was seen in terms of profits, which rose from €598,770.15 in 2015 to €7.88 million in 2016.

The accounts also reflect some losses due to impairment as a result of the results obtained by certain companies and a failure to fulfil some of the business plans initially set out. That happened in the case of the machinery company Inrema for a value of €408,957; Punt Mobles XXI, for €974,561.34; and Auditorías de Medios SL, for €1.6 million.

In subsequent events, the accounts also highlight the sale in 2017 of the company Moldcom Composites (McBath), specialising in resin bath products, to Nazca Capital. In this regard, the financial statements indicate that the transaction generated “significant” profits for Zriser.

Original story: Valencia Plaza (by Estefanía Pastor)

Translation: Carmel Drake

AXA & CBRE GI Buy Resa, The Student Hall Giant

19 September 2017 – El Confidencial

Azora, Artá Capital, March Campus (the investment vehicle backed by Banca March clients) and Mutua Madrileña have reached an agreement to sell 100% of Grupo Resa to a group of international investors. AXA IM – Real Assets and CBRE Global Investment Partners – on behalf of their clients – have acquired most of the portfolio, whilst Greyster, which has acquired the operating business, will act as the asset manager.

The operation is subject to final authorisation from the competition authorities and, although the amount of the transaction is unknown, real estate experts say that it will be one of the most important transactions in 2017 by investment volume.

Grupo Resa, which has been on the market since the beginning of March, has consolidated its position as the largest platform of student halls in Spain, with 9,309 beds in 19 cities, including Madrid, Barcelona and Salamanca. Resa is the largest student hall company in Spain, and in Continental Europe. Managed by Azora since 2011, it has experienced significant growth during that period, increasing its portfolio of halls from 26 to 37, of which 33 are currently operational and the remaining 4 are being constructed. BBVA and CBRE have acted as financial advisors to the vendors and Garrigues has been the legal advisor to the operation.

Resa obtained revenues of €46 million in 2016, which represented an increase of 30% with respect to the figure recorded in 2014 (€27 million), when it generated an EBITDA of €26 million. The occupancy ratio of the properties is close to 100%, according to documentation about the company (to which this newspaper has had access) and also according to its ambitious expansion plans for the next decade, which include doubling in size, to achieve a portfolio of around 17,000 beds across Spain.

Resa currently has four projects underway, which will add almost one thousand more beds to its existing supply, in such a way that, in the short term, it will have almost 10,000 beds. To put that in context, the company has seven times more beds than its next largest competitor in Spain (…).

The sale of Resa is the second operation of these characteristics to go ahead in Spain in a year, given that in March last year, the fund Oaktree put Threesixty Developments – formerly Knightsbridge Student Housing – up for sale. It is one of the largest builders and operators of student halls of residence in the United Kingdom, Ireland and Spain, where it has seven projects – five in Madrid and two in Barcelona – which it manages through the Student Housing Company platform and which contain more than 2,600 beds.

Twenty years of experience

(…). Grupo Resa was founded in 1992 and four years later it opened its first hall of residence in Terrasa. (…). Its stock includes accommodation with everything included to the rental of rooms only.

Original story: El Confidencial (by E.S.)

Translation: Carmel Drake

MAB Introduces Tougher Entry Rules For New Socimis

31 July 2017 – Expansión

In August, an amendment to the regulations governing the Alternative Investment Market will enter into force, which has led to a wave of Socimi debuts on the stock market in July to circumvent the new requirements.

Six new Socimis debuted on the stock market in July, an unusually high level of activity compared to previous months. The reason is that on 1 August the new circular published by the Alternative Investment Market (MAB) will enter into force. It introduces changes for debuting on the stock market and will affect all companies wanting to list from next month (August) onwards, in particular, Socimis. The amendment sees a toughening up of the conditions to debut on the stock market, given that it imposes some very demanding requirements for minority shareholders.

The change is very specific: “At the time of listing, companies must have minority investors owning shares that are worth less than €2 million or 25% of the company’s share capital”, explained José Luis Palao, Partner of the Mercantile Department at Garrigues. Minority shareholders are considered to be those that hold less than 5% of the share capital. Until now, the regulations allowed companies a grace period of one year to fulfil this requirement.

Manuel López, Partner of Financial Regulatory Law at Ashurst, considers that some Socimis have formed closed-end funds of sorts that have no interest in allowing access to minority shareholders. The exception to the regulations that existed benefitted this type of company in particular, as they enjoyed additional time to adapt themselves.

In this sense, López understands that the regulations are reasonable and reflect what the Socimis are designed to be – entities with the vocation to expand and attract new investors, aimed at boosting the real estate sector. His colleague, Ismael Fernández Antón, Partner of Real Estate Law at the same firm, considers that “the legislation has not become less flexible, but rather more coherent”.

Although Circular 1/2017 does not explain the reasons for the change, the experts agree that the market for Socimis has reached maturity and does not require any further encouragement. The MAB was prudent at the beginning, offering these companies a certain amount of freedom to promote their growth. Fernández Antón says that “this measure was always going to have a sell-by date”, given that the Socimis already represent an attractive vehicle for real estate investment in Spain. Moreover, the modification represents a guarantee to “limit the desire to use them as a platform for pure fiscal optimisation”, says López.

The change only affects companies that start trading from August, in such a way that those that have debuted recently still benefit from the exception. This has meant that, in the last month, the rate of Socimi debuts on the stock market has multiplied. Those who have acted quickly can enjoy a period of one year to fulfil this requirement regarding the diffusion of shareholders.

Although almost 40 Socimis trade on the stock market, only five are listed on the Main Exchange and only two of those form part of the Ibex 35: Merlin Properties and Colonial. Within the last few days, the entities Numulae, Bay Hotels & Leisure and AM Locales have all debuted on the MAB.

Original story: Expansión (by Jesús de las Casas)

Translation: Carmel Drake

Meridia Capital Acquires 43,400m2 Block In 22@ District

14 July 2017 – Inmodiario

Meridia Capital Partners has announced the acquisition of almost a whole block measuring 43,400 m2 in the technological 22@ district of Barcelona. This prime enclave is located just a stone’s throw from the sea and is one of the main nuclei for the development of offices and residential areas in Barcelona. Located at the northern edge of Villa Olímpica, in recent times, many renowned companies have established their headquarters in this area of Poblenou. The plot is demarcated by Calles Ávila, Doctor Trueta, Badajoz and Avenida Icaria.

Meridia Capital will carry out a comprehensive transformation of the block with the aim of converting it into a cutting-edge mixed-use complex, where both offices and residential buildings will be erected. Around 32,300 m2 of the land will be allocated to the development of high-quality offices and the remainder (11,200 m2) will be set aside for residential use. It is one of the most ambitious projects of those currently being undertaken in the 22@ district.

This site is home to the former La Siberia ice factory and the Industrias Deslite building, both of which form part of the special protection plan set out by Barcelona’s Historical-Artistic Architectural Heritage. Meridia Capital will preserve both the façade as well as the structure of both historical buildings.

The acquisition of this block constitutes the fourth operation completed through Meridia III, the latest real estate investment vehicle launched by the fund manager Meridia Capital. Meridia III has an investment capacity of €500 million. Its predecessor, Meridia II, which had an investment capacity of €400 million, has been disbursed in its entirety.

Juan Barba, Partner and Managing Director of Real Estate at Meridia Capital, said: “This new operation represents a major opportunity for the development of a mixed-use project (residential/office) in an area that is undergoing a complete transformation and where demand is growing”.

Javier Faus, Founding Partner and CEO at Meridia Capital, added: “We are really excited to be contributing to the development of the “Front Marítim” and of the 22@ district, as the real area of innovation in Barcelona. This is one of the most ambitious operations that will be undertaken over the next few years. We are very optimistic about the future of our city and we hope that operations such as the one announced today will help to continue to attract the best companies and talent here”.

Garrigues and Deloitte advised Meridia Capital on this operation.

Original story: Inmodiario

Translation: Carmel Drake