Tag: German fund

German Fund Deka Puts Ballonti Shopping Centre (Vizcaya) Up For Sale

26 February 2018 – Expansión

Deka wants to make some cash and has hung the “for sale” sign up over the Ballonti shopping centre, located in the municipality of Portugalete (Vizcaya). The German fund, which acquired the asset in 2010, at the height of the economic crisis, has decided now, eight years later, to put it up for sale and has engaged the consultancy firm CBRE to manage the process, according to reports from market sources speaking to Expansión.

The German group purchased the shopping centre from Eroski for €116 million and the current valuation could reach €150 million, in such a way that Deka could obtain significant capital gains from the sale.

In any case, sources in the sector consider that the timing of the operation will depend on the evolution of the sales process involving a portfolio of three shopping centres by Sonae and CBRE Global Investors, which is expected to come onto the market within the next few days. That portfolio of assets, which includes the Gran Casa shopping centre (Zaragoza), the Valle Real shopping centre (Cantabria) and the Max Center (Barakaldo), may be sold for around €500 million.

Ballonti, inaugurated in 2008, has a surface area of more than 50,000 m2 spread over two floors, and its tenants include Primark, H&M, Springfield, Bershka, Pull & Bear, Stradivarius, Lefties and Women’s Secret. Moreover, the shopping centre is home to a large Eroski hypermarket spanning a surface area of more than 13,000 m2.

The retail space includes an upper floor dedicated to leisure with a cinema, an adventure park, a gym and a restaurant area with brands such as Burger King, Foster’s Hollywood, 100 Montaditos, Krunch, Mr Wok, Café and Bodega Ballonti.

Investor appetite

After the significant investment drive in shopping centres last year, which ended with a transaction volume of around €2.7 billion, thanks to record operations such as the purchase of Xanadú, in Arroyomolinos (Madrid) for €530 million, investor appetite is expected to be maintained this year.

According to data from the Spanish Association of Shopping Centres and Retail Parks (AECC), last year, 29 transactions were closed involving 36 assets for €2.7 billion, which represents growth of 35% with respect to the previous year.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Patrizia Wants to Buy a Property Developer to Become Rental Giant in Spain

8 February 2018 – El Economista

Over the last six months, the German real estate fund manager Patrizia has closed three acquisitions that have turned it into the new property giant in Europe, with assets under management worth around €40 billion.

With a solid structure, the firm is pushing ahead with its plans to grow in Spain through the purchase of a property developer. “A few months ago, we were analysing two operations. We are still looking and would love to close something this year, because we have the funds and the desire”, explained Borja Goday (pictured above), Head of Patrizia Immobilien in Spain, who added that what he is looking for is “a company that is well-balanced in terms of the team and its bank of land”.

“Much of the development that we would be looking to carry out would be focused on homes for rent”, highlighted the director, who added that Patrizia’s objective is to become one of the major players in the rental market in the country.

In fact, the fund manager already has extensive experience in the residential market in some of Europe’s main countries, where it manages the rental of more than 50,000 homes.

In Spain, this business is still emerging, and there are just three large companies operating. “We want to introduce the institutional model that already works so well in other European markets, such as in Germany, and we are backing this segment because we think that the business in Spain will have an institutional base in 10 or 20 years”, explains Goday, who firmly believes that the 23% of the population that currently chooses to rent a home in Spain will grow significantly over the coming years.

Whilst it continues the search for a property developer, the fund manager will take its first steps into the residential rental market in Madrid, where it is finalising the acquisition of a property. “We are also negotiating the purchase of another building, which needs renovating, like we did with our project on Calle Claudio Coello 108, where there is just one home left for sale”, revealed Goday.

Investment strategy

The growth plans of the fund manager, which is finalising the process to integrate Rockspring, Triuva and the Danish firm SPI, are not based solely on the residential market.

“Our portfolio is very diversified, both geographically as well as by asset type, given that we have a presence in the hotel, office, high street retail and logistics segments”, said the director.

Following its recent acquisitions, Patrizia has established a portfolio worth around €1 billion in Spain and is positioning itself as an overseas real estate manager with one of the largest teams in the country, comprising 14 professionals.

“One of the major factors that differentiates Patrizia from other fund managers is that it does not invest in a country unless it has a local team with experience there”, stressed Goday.

“With these three operations, we have doubled our portfolio at the European level and we will now start to look more actively at the shopping centre segment, where we can add value”.

Moreover, the German firm, which works with investors from all over the world, wants to raise Spanish capital. “We are a wonderful partner for institutional investors and family offices who want to get involved in the real estate sector, since we give them the opportunity to also invest in Europe and to do so alongside a listed firm like Patrizia”.

Although the fund manager has doubled its volume of assets, it is committed to maintaining the same profile as always. “We are very comfortable closing operations of between €15 million and €100 million, because we think that that range is very well adapted to the reality of the current supply in the Spanish market”.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Real IS Returns to Spain With Purchase of Terrassa Plaça

12 December 2017 – Eje Prime

Real IS is returning to Spain with the acquisition of an asset that has only just opened. The German investment fund has reached an agreement with the property developer Citygrove to purchase Terrassa Plaça, a retail complex on the outskirts of Barcelona that was opened just over a month ago. It is the first property that the German company has acquired on its return to the country, where it used to invest before the crisis. To this end, the company has recently opened an office in Madrid, with the aim of expanding its asset portfolio in the country, according to a statement issued by the company.

The operation, whose amount has not been disclosed, involves a complex with a gross leasable area (GLA) of 29,466 m2. Inside, Terrassa Plaça is home to brands such as Sprinter, Gifi, Globo and the restaurant chain La Tagliatella, amongst others.

Real IS has a presence in five European countries. For this deal, it has been advised by Savills on the real estate side and by the law firm Monereo Meyer Marinel-Lo, on the legal side.

Original story: Eje Prime 

Translation: Carmel Drake

German Fund ‘Freo’ Plans To Invest €120M In Spain

3 November 2015 – Expansión

The German fund, Freo Group, plans to invest €120 million in the Spanish real estate market over the next year. To this end, it has opened a subsidiary in Spain, headquartered in Barcelona, and today, it will open an office in Madrid.

Freo Group is a private capital fund manager that also has its own investment vehicle. Founded in Frankfurt twenty years ago, the group has offices in Europe’s major cities and is currently expanding its operations into the USA. The group focuses on the investment, development and management of real estate assets.

The change in the cycle in Spain’s economy has encouraged the group to invest here now and it has hired Daniel Mayans (pictured above, right), the former Asset Management Director at GE Capital Real Estate in Spain, as the CEO of the Spanish subsidiary.

The management team of the Spanish subsidiary will focus on buying office buildings in Madrid and Barcelona, although they do not rule out the acquisition of shops and other retail premises. “Between 40% and 60% of our purchases will be financed through bank debt”, said Daniel Mayans. The period between the purchase and subsequent sale of these assets will be between five and six years.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake