Tag: Garrigues

Trajano Iberia Buys Alcalá Magna Shopping Centre For €100M

3 February 2017 – Expansión

The Socimi Trajano Iberia, which is managed by the real estate division of Deutsche Asset Management, has purchased the Alcalá Magna shopping centre from Incus Capital, for €100 million.

According to a statement released by the Socimi, the shopping centre is located in one of the main residential areas of Alcalá de Henares (Madrid). It has a commercial surface area of 34,165 m2, spread over two levels, and 1,204 parking spaces, spread over two underground floors.

Its tenants include high profile brands from the Inditex group, led by Zara, as well as several recent arrivals, such as Lefties, H&M, Mango, Mercadona, a Virgin Active gym and restaurant groups.

The space, constructed in 2007, has an occupancy rate of more than 95%, receives almost 5 million visitors a year and generates annual sales of around €64 million.

Following this operation, Trajano Iberia has now made investments amounting to €282 million since its launch in June 2015. It currently has five assets in its portfolio, with a total surface area under management of 151,000 m2.

This new investment takes the company to 100% of its investment capacity once again, following its second capital increase, which was carried out in October, amounting to €47.2 million.

For this transaction, the company was advised by Deloitte, JLL and Garrigues. The vendor was advised by CBRE and Dentons.

Original story: Expansión

Translation: Carmel Drake

Axiare Acquires Capgemini’s HQ In Madrid For €43.5M

1 February 2017 – Press Release

Axiare Patrimonio has closed two operations to further strengthen its business plan. On the one hand, it has completed the purchase of an office building and on the other hand, it has signed a financing agreement amounting to more than €34 million with Santander. It will reinvest the new funds into assets.

The Socimi led by Luis López de Herrera-Oria has formalised the acquisition of the Cedro Building in Madrid for €43.5 million. The property is a prime office block, with a gross leasable area (GLA) of 17,032m2 and 381 parking spaces and it is leased almost in its entirety to the consultancy firm Capgemini.

The operation will result in immediate revenues for Axiare Patrimonio, given that the asset has an occupancy rate of almost 90%. The property, constructed in the year 2000, is located on Calle Anabel Segura, in the Arroyo de la Vega area of the capital, where lots of large companies – such as ING, Toyota, Procter & Gamble, Indra, BP and Mercedes Benz – have their headquarters and next to an exclusive residential area. Moreover, this asset has direct access to the A-1 motorway and is well connected to the airport, the CBD and the main ring-roads in Madrid.

Luis López de Herrera-Oria, CEO at Axiare Patrimonio said (…) “The Cedro Building is a very institutional product thanks to its location, its main tenant and the quality of its construction. This operation involves the purchase of a strategic asset, which has great potential for capital appreciation”.

The valuation of Axiare Patrimonio’s asset portfolio currently stands at around €1,350 million. 74% of the Socimi’s assets are offices, of which almost half are strategically located in the CBDs of Madrid and Barcelona; 16% are logistics warehouses, located in key hubs for the distribution of goods throughout Spain; and the remaining 10% are retail parks, which receive large numbers of visitors.

For this acquisition, Axiare Patrimonio has been advised by EY on the legal, technical and commercial side. Meanwhile, the vendor has been advised by Garrigues on the legal side and by Aguirre Newman and JLL on the commercial side.

Moreover, the banks continue to maintain complete faith in Axiare Patrimonio. The new financing agreement that the Socimi has just signed with Santander is another example of this. Specifically, Axiare has signed two financing agreements with the financial institution, taking the total balance of funds that it has received from the banks since its debut on the stock market to €572 million.

The new loans with Santander have been signed with some very flexible conditions and at a very competitive interest rate, in line with the company’s financial strategy. The loans will result in a €34.2 million cash inflow for the company, which it will use to continue expanding and improving its existing portfolio.

Axiare Patrimonio’s CEO said: “The company’s financing structure is one of the most stable and competitive in the market” (…) “Since our debut on the stock market two and a half years ago, we have signed agreements with several banking institutions. Santander, ING and CaixaBank have been our largest lenders, which is proof of the confidence that they have in our portfolio and in our ability to manage the company.

For this operation, Axiare Patrimonio has received legal advice from Gómez-Acebo y Pombo, whilst Santander has been advised by Watson Farley & Williams.

Original story: Press Release

Translation: Carmel Drake

Optimum RE’s Share Price Rise By 10% In First Week On The MAB

7 October 2016 – La Vanguardia

The CEO of Optimum Re Spain, Josep Borrell Daniel, has positively assessed the debut of his Socimi on the Alternative Investment Market (MAB) and highlighted that its value on the stock market has increased by 10% in just a week.

Borrell was speaking at an event “Socimis: the road to a new real estate sector” organised by Garrigues, Gesvalt and Solventis in Barcelona.

He said that the value of Optimum Re Spain, a Socimi that specialises in the residential market in the centres of Barcelona and Madrid, has increased by 10% on the stock exchange in just a week, following its debut on the MAB.

Optimum RE Spain owns around 15 buildings in Barcelona and Madrid, with an average purchase price of €2,000/sqm and average rents of 4.5%, which will increase to 5% or 6% over the next few years.

Borrell highlighted that his objective is to significantly improve the quality of the buildings and increase their rents with the aim of divesting the assets within a period of seven years to obtain an “attractive return”. He acknowledged that those sales may happen “sooner or later” depending on the evolution of the market.

The fact that the Socimi has purchased at the low point of the cycle means the properties will generate significant returns and he hopes to be able to sell them for between €3,500/sqm and €4,000/sqm.

The Socimi has invested around €70 million to date and still has another €4 million or €5 million to spend.

Borrell said that he is considering constituting another Socimi, similar to Optimum RE Spain or a rental Socimi: “we have the capital, the problem is choosing the product”, he said.

Original story: La Vanguardia

Translation: Carmel Drake

Bain Capital Raises €2,770M & Sets Its Sights On Spain

8 August 2016 – Expansión

Bain Capital wants to become one of the largest buyers of real estate in Spain. On Thursday, the US fund announced that it has completed the acquisition of three asset portfolios from Spanish banks, worth €1,146 million, over the last few months. The sellers are Cajamar, Sabadell and Bankia in three separate deals.

The acquisitions have been made through the fund’s Bain Capital Credit business unit, known until now as Sankaty.

And as if that weren’t enough, in the last few days, the US investor has completed the creation of a new fund in the USA worth $3,100 million (€2,769 million) for distressed investments (assets close to bankruptcy) and assets in special situations, according to Bloomberg.

“We see potential for making new investments in the Iberian Peninsula, especially in the real estate and overdue loan markets”, said Fabio Longo, CEO and Head of the real estate and overdue loan business in Europe at Bain Capital Credit. “We are excited about the opportunity to consolidate our position in the market for non-performing real estate assets in Spain through these investments”, added Alon Avner, CEO and Head of Bain Capital Credit’s European business.

Individual transactions

Of the three portfolios purchased, the largest was bought from Cajamar, containing €511 million of overdue syndicated and bilateral loans, granted primarily to real estate developers in different phases of bankruptcy. This deal, known as Project Baracoa, was the first major competitive sale of loans by a Spanish entity.

In addition, Bain Capital Credit acquired a portfolio of loans with a nominal value of €415 million from Sabadell, comprising overdue loans to property developers, mainly secured by residential and tertiary assets. This operation was known in the market as Project Pirene.

The most recent purchase by the US fund in Spain involved the Project Lane portfolio, comprising €220 million of foreclosed assets sold by Bankia. This was the first operation of its kind carried out by the nationalised group after the failed sale of Project Big Bang at the end of last year, through which it had wanted to sell all of the homes, developments and land on its balance sheet. In the end, Bankia was unable to reach an agreement with the investor who had expressed the most interest, Cerberus.

For all of these operations, Bain Capital has been advised by the asset managers Copernicus, HipoGes and Altamira; the consultancy firms Aura REE and CBRE; and the lawyers J&A Garrigues and Cuatrecasas.

Original story: Expansión (by J. Zuloaga)

Translation: Carmel Drake

Zriser Group Sells Generali Building In Valencia For €30M

25 May 2016 – Levante-EMV

The Valencia-based Zriser Group, the investment vehicle owned by the siblings Pablo and Ana Serratosa, has sold the Generali building for €30 million to the businessman Juan Luis Gómez—Trénor, founder of the former Colebega bottling plant and shareholder of Coca-Cola European Partners with a 8.5% stake.

The property was designed in 1930 by the architect Luis Bonetm, a disciple of Gaudí and one of the construction directors at the Sagrada Familia. The building has a surface area covering 6,079 sqm across six floors, containing offices and commercial premises, and its main tenant is the law firm Garrigues.

The Zriser Group purchased the building, located in La Plaza del Ayuntamiento 27, from Generali Seguros for €21 million in 2011, which means that it has obtained a capital gain of almost 50% in five years.

Sources at the investor group declined to provide any information about the buyer or the consideration paid for the operation on the grounds of confidentiality. However, other sources familiar with the sale confirmed that the proceeds amounted to around €30 million and that the purchaser is Juan Luis Gómez-Trénor. The transaction comes at a time when the real estate sector in Valencia is in full recovery.

Luxury development

In just a few days, the Serratosa’s investment group has placed 33 of the 34 homes in its first housing development on the market in Valencia. Zriser is going to construct luxury homes at number 11 on Avenida de Francia in Valencia, next to Hotel Barceló.

Despite the sale in 2011, the insurance group Generalia has continued to occupy the building in La Plaza del Ayuntamiento, as a tenant alongside the law firm Garrigues. The Zriser Group already owns another office building, Edificio Alameda, which it acquired in 2009, for €24.3 million. Moreover, it owns another property on La Alameda (which it leases to PricewaterhouseCoopers) and another one on Alfahuir.

Original story: Levante-EMV

Translation: Carmel Drake

Meridia III Makes Its First Acquisition In Madrid & Barcelona

3 May 2016 – Press Release

Meridia Capital’s new real estate vehicle, Meridia III, makes its first acquisition in Madrid and Barcelona.

On Friday, Meridia Capital Partners, SGEIC, S.A., (“Meridia Capital”) announced the first deal of its recently launched real estate vehicle, Meridia III. The fund has acquired a portfolio of 9 assets in the metropolitan areas of Madrid and Barcelona. The portfolio totalling c.42,000 sqm mainly includes office buildings, as well as a logistics warehouse and 581 parking spaces. The properties are located in established and integrated business areas of Spain’s two main markets. Meridia III acquired this portfolio from the Spanish real estate fund Segurfondo Inversión (managed by Inverseguros).

Six assets, which account for 87% of the portfolio in terms of square metres, are located in Madrid, whereas the remaining 13% (totalling 3 buildings), are situated in Barcelona. The properties have attracted prominent tenants such as BBVA and Telefonica.

Juan Barba, Partner, Managing Director Real Estate at Meridia Capital, said “This is an excellent opportunity to acquire a diversified portfolio with high value creation potential. The country has been showing clear signs of recovery in the office segment, triggered by an increase in occupancy levels as well as gradual rental growth. This transaction brings new office assets to those acquired through Meridia II, thus reinforcing our local presence in this sector.”

Meridia Capital’s Founding Partner & CEO, Javier Faus, stated “The launch of Meridia III and this first deal demonstrate that we continue to be very positive about the prospects that the Spanish real estate sector offers. Through the new vehicle we aim to leverage on our track record and extensive experience in this market, which we believe will allow us to continue achieving attractive returns for our investors.”

Meridia Capital was advised on this deal by Aguirre Newman, Garrigues and Dokei.

Original story: Press Release

Edited by: Carmel Drake

Cinven Buys Tinsa From Advent International

7 April 2016 – El Mundo

The European private equity house Cinven has signed an agreement to purchase the appraisal company Tinsa from Advent International, which acquired the firm in 2010 for €100 million. The consideration to be paid this time around has not been disclosed. The appraisal company was put up for sale at the beginning of 2016 and since then experts have speculated that the company could be sold for up to €350 million.

Tinsa, created in 1985 and headquartered in Madrid, is the largest property valuation and real estate advisory services company in Spain and Latin America, and performs mortgage appraisals on all kinds of properties, including tertiary and residential assets.

Currently the appraisal company operates in more than 25 countries around the world, with a strong presence in Latin America and dedicated offices in Spain, Portugal, Argentina, Chile, Perú, México and Colombia.

Cinven highlights Tinsa’s in-house technology, which is at the forefront of the market and allows it to offer accurate and efficient valuation solutions to its clients, as well as complementary services, such as energy audits and the monitoring of property developments.

Tinsa has 580 employees and a network of around 2,000 appraisal experts. The company performs more than 300,000 appraisals per year around the world and has more than 100,000 clients, including more than 90% of Spain’s banks.

Cinven also highlights that Tinsa is integrated into the process of its main clients, the banks, and that it plays a key role in the risk assessment process for granting new mortgages. In addition, Cinven indicates that the current onerous regulatory context requires properties to be appraised before any new mortgages can be granted, and imposes periodic valuations of banks’ real estate portfolios. (…).

Moreover, Cinven will inherit Tinsa’s strong management team, led by its Chairman, Ignacio Martos, formerly the CEO of Opodo, the portal that used to be owed by Amadeus, and by its Finance Director, Juan Guerra. (…).

Tinsa represents Cinven’s sixteenth investment through its Fondo 5. Advisors to this operation have included Rothschild y Socios Financieros (financial advisors), Clifford Chance (Cinven’s legal advisor), Uría Menéndez (Advent’s legal advisor), Oliver Wyman (Advent’s commercial advisor), McKinsey (Cinven’s commercial advisor), KPMG (accountant), Deloitte (tax) and Garrigues (employment law).

Original story: El Mundo

Translation: Carmel Drake

Patron Capital Buys 43 Retail Outlets For €35M

4 February 2016 – Expansión

The British investment fund Patron Capital has purchased a batch of 43 retail outlets, mainly supermarkets, from Blackstone for €35 million.

The properties are located all over Spain, although the majority are found in the regions of Asturias and Castilla. 32 of the premises are supermarkets in urban areas, five are cash & carry establishments and six are retail premises located in prime areas of several Spanish cities.

The tenants of the properties include: the supermarket chain El Árbol, owned by the Día group; the fashion house Cortefiel; and the bank ING Direct.

As a result of this acquisition, Patron Capital has increased its commitment to the commercial segment, which now accounts for 50% of its portfolio. Residential assets and hotels make up the remainder, accounting for 20% and c. 30%, respectively. The operation has been advised by Garrigues, Cuatrecasas Gonçalves Pereira, Aguirre Newman, Deerns and CBRE.

Patron Capital is headquartered in London and operates in Spain from its office in Barcelona, led by Pedro Barceló. The Spanish office has a budget of €200 million to invest in 2016 not only in the commercial sector, but also in the office, residential and hotel segments.

Original story: Expansión (by M. Anglés)

Translation: Carmel Drake

Indian Tycoon To Convert Café Berlin Into Luxury Hotel

10 December 2015 – El Mundo

An Indian tycoon has purchased the Café Berlin building, close to Plaza de Callao, where he plans to construct a luxury hotel. The current managers of the legendary jazz club must close the venue by 31 December 2015.

On 31 December, the last song will be played in Café Berlín. After more than 40 years lighting up the Madrilenian nights, one of the few jazz clubs still open in the centre of the capital, will be closing its doors. A new hotel will be opened in its place within the next few months. Its new owners are Indian with Hong Kong passports, specifically, the Mohinani family, and they have not only acquired the property that houses the café, Calle Jacometrezo, 4, they have also acquired the two adjoining buildings (Calle Jacometrezo, 6 and 8), an unbeatable location, just 20 m from Plaza de Callao and Gran Vía, to benefit from the high visitor numbers in the area. Work will begin at the site within 6 months.

At first glance, you do not notice anything, but the panel of owners of the properties in the centre of Madrid is changing at top speed. And it is not only the vulture funds and the traditional millionaires, such as Amancio Ortega, who are pouncing on the most coveted buildings. With the stock market in the doldrums and the Chinese economy rather battered, rich Chinese, Philippines, Indians and South-East Asian investors are finding that properties in European capitals are the perfect place for them to put their money for safe keeping.

Buying in Europe is fashionable to such an extent that, in two years, the magnate Harry Mohinani, aged 50, and his partners have invested €180 million in half a dozen properties in Madrid and Barcelona. The Mohinani family comes from the textile trade – Grupo Mulitex – and has been selling cheap clothes in Spain for years. Although their factories are in India, China and Bangladesh, their operational headquarters is in Hong Kong. Alongside them, 10 other families from the Asian textile sector are investing. They arrived in Spain two years ago, following in the wake of the Wanda Group, owned by the Chinese businessman Wang Jianlin. (…).

In Madrid, the family’s real estate company Platinum Estates operates at the hand of Reveals Inversiones, itself owned by the businessman Juan Luis Segalerva and with legal support from Garrigues, the legal firm that is acting as the gateway to capital inflows from Asia. “Before the end of the year, we will buy another three properties for around €100 million”, explains Segalerva. Between the two of them, they have woven a web of property companies, 11 companies in total, which are, in turn, subsidiaries of other companies also headquartered in Hong Kong.

The sellers, wealthy Spanish families, have no liquidity to renew the buildings or are in financial straits. These include the Echevarría family – owner of Jacometrezo – or the Salazar family, historical shareholders of Sos Cuétara (today Deóleo) and owners of the Gran Hotel Velázquez and the El Rocío restaurant, who sold Hotel Asturias, in Plaza de Canalejas to the same Indian family one year ago.

Original story: El Mundo (by José F. Leal)

Translation: Carmel Drake

Merlin Buys Logistics Centre In Meco For €22.2M

13 May 2013 – Mis Naves

The Socimi Merlin Properties has purchased a logistics centre located in the R-2 industrial estate in Meco from the real estate asset management company Kefren Capital for €22.2 million. The property, built on a plot of land measuring 50,727 m2, occupies a surface area of 35,285m2, and contains four modules, 31 loading bays and 4 HGV doors. The Dachser Group leases the entire platform.

The legal advisors to the transaction were Broseta on the sell-side and Garrigues on the buy-side.

KCRE acquired this asset in August 2014 following the bankruptcy of the company Coperfil and it financed the transaction through Nordic investors, which acquired capital, as well as by securing a loan for the project from CaixaBank.

Original story: Mis Naves

Translation: Carmel Drake