Tag: Gmp

Gmp Lets a Madrid Office Building to Havas

7/01/2015 – Inmodiario

Gmp has rented its recently purchased building at 10 Eloy Gonzalo street, Madrid, to Havas. The leased space spans 12.165 square meters and it includes all the six floors and a retail module on the ground level. Additionally, the lessee, one of the world’s largest communications groups, will dispose of 136 parking spaces.

The exceptional property is currently undergoing a renovation. It is situated in the Chamberi district, at a 10-minute walk from the famous Paseo de la Castellana avenue.

Following the rental agreement, Gmp continues with its plan to grow and add value to its portfolio of prime assets.

Wakeman & Cushman advised on the operation. The firm’s Business Space head Javier Bernades stated ‘the deal once more proved that at the moment of picking a location, operative efficiency and the image play the main roles’.

 

Original story: Inmodiario (by Staff)

Translation: AURA REE

GMP, Infinorsa, GreenOak Make It to the Final Bidding For Saint Gobain Skyscraper

9/12/2014 – El Confidencial

Next great battle is taking place in the Azca complex. One of its real estate jewels, known as Torre Saint Gobain and situated at 77 Castellana street (pictured second from the left), will soon get to know the name of its new owner.

Few days back, an alluring plot in this area was acquired by El Corte Inglés for 136 million euros.

The property up for grabs belongs to BBVA. Of the juicy bids it had received, the bank has picked three finalists: GMP, Infinorsa and GreenOak. Their offers are said to oscillate around €90 million, an upper-level in the 70-to-100 million euro range established by the property’s underwriters, the entity and CBRE Spain.

In the meantime, such industry tycoons as Colonial or Pontegadea were left out of the tender process.

GMP is the owner of the Torre BBVA black tower (first on the left), located just in front of the building for sale. In turn, Infinorsa holds Torre Europa, next eye-catching skyscraper of the office area. However, the most prominent building belongs to aforementioned Pontegadea – Torre Picasso.

Sources from the market assure that submitted prices indicate rents of some 35 euros a square meter, in order to obtain good return rates. To compare, today’s prices in the complex vary from 20 to 25 euros per square meter.

The building is nearly 70 meters tall, has 18 stories above the ground level and a 16.000 square meter area. Apart from that, it disposes of six underground stories destined for parking lots, storage rooms, facilities and services.

In 2003, the property was bought by a real estate fund of BBVA for 87.5 million euros. However, more than ten years later, the unit is in need of a comprehensive refurbishment, a cost to be borne by the buyer.

The Ederra building, as it is called inside Azca, once housed the Saint Gobain Cristalería glassware group‘s Spanish headquarters. Last year, the firm’s rental agreement expired and the French tenant moved to its new premises at 132 Principe de Vergara street.

 

Original story: El Confidencial (by R. Ugalde & E. Sanz)

Translation: AURA REE

‘GMP Weights Up Spending €250 Mn on Spanish Offices’

17/11/2014 – Expansion

Winds of change blow above Madrid-based, 35-year old real estate company GMP as its new partner GIC convinced the Montoro Aleman family the time has come to take steps on creating a new strategic plan including ongoing transactions and naming Xavier Barrondo as its new business director.

Mr. Barrondo returns to Spain after acquiring wide professional experience at GE Capital Real Estate and leading the French, the Italian and the Spanish markets from Paris. ‘I had known the Montoros since they had shares in some buildings also held by GE’, he explained.

The Arrival of GIC

‘I am a visionary who has come back just in time for the cycle change’, Mr. Barrondo joked. ‘We are experts in the Spanish office industry, we know how to interprete the real estate cycles and we believe this is the right moment to buy. In spring, we will look for a partner for the new strategic plan’, he explained.

At the beginning of October, Singapore’s Sovereign Wealth Fund GIC bought a 30% stake in GMP. ‘GIC is a long-run player and we appreciate that as we do not strive at bargain-hunting and subsequent sales’.

The Asian partner brought into the company a €200 million investment which will be intended for GMP’s growth. ‘We aim at expanding our property portfolio by 25% by 2015, through adding around 65.000 square meters more. This is the bottomline and we will not refuse any appropriate product when we find such’, the CEO assured. ‘We are presently analyzing some interesting assets which amount to €250 million’. The new resources are not the only available. ‘We are a prudent company with the LTV rate positioning between 40% and 50%’, he said.

The Demand

The ambitious growth plan arrives at the moment of a grand demand on the part of international funds but also of existence of a lot of supply. The fact does not worry the general director, though. ‘Some office stock in Madrid and Barcelona became too obsolete to fit in. Risk on this kind of product cannot be assumed by a fund. This is how we move away from global investor seeking simple management’, the executive pointed out.

Purchase of ‘challenging’ properties, as Mr. Barrondo called them, will be combined with proprietary project development. ‘By nature, we are developers. We have developed many of our buildings and we own land in such areas as Las Tablas and Valdebebas‘.

The Socimi

GMP, which earned €98 million with a €68 million ebitda in 2013, has just fulfilled all requirements to become a Socimi (Spanish REIT vehicle). ‘It’s a tailor-made option for us’. Unlike other Socimis listed on the stock exchange market, the firm yet will not look for debut partners. ‘We will go public next year’.

The new assets will be added up to the 413.486 square meter area portfolio, of which 260.000 square meters correspond to lettable office area. Some of the buildings are rented by upper level tenants such as private companies and public administrations. ‘In the tough times of recession, the key is to give quality to the properties and our services’, he explained.

One of the occupiers was BBVA that abandoned several properties of GMP, including the unit at 81 Castellana street, and moved to its new headquaters ‘Foresta’, located in the Las Tablas business area. ‘This is our portfolio’s jewel asset and we are not bothered by the leave of BBVA. One of the buildings at 14 Goya street was renovated and leased to the National High Court’, remarked Mr. Barrondo.

Except for the office portfolio worth €1.05 billion (87% of the total), GMP owns the Campanar retail park in Valencia and a high-end housing development in Alicante. GIC did not miss the prime quality of the project. ‘We can build up to 200.000 square meters and we have completed only 10% so far. We do not want to possess the biggest buildings in Spain but the highest quality ones’, Mr. Barrondo concluded.

 

Picture: GrupoGMP

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

Pontegadea, GMP & Insurers Vie For Old Saint Gobain Premises

30/10/2014 – Expansion

The sale of the old headquarters of Saint Gobain (pictured in the center), situated at 77 Paseo de la Castellana street in Madrid, has become a special focus of international funds and Spanish companies.

BBVA’s 16-storey property is located in the downtown and within the Azca zone has 16.000 square meter area. It stands just next to the Torre Picasso tower, owned by Pontegadea, and the Torre BBVA, unit of Gmp. In fact, the two neighbors expressed their interest in buying the property, said sources close to the process.

When it comes to Gmp, the real estate firm and its partner Singapore Sovereign Fund (GIC) has recently presented its new strategic plan.

In turn, Pontegadea, owner of the abovementioned Torre Picasso and the 79 Castellana building, has been doing shopping in markets of London and New York. If the firm of Amancio Ortega purchases the property, it will be able to create synergies as ‘the current tenants of its units want to grow and have no available space for that’, the sources assure.

Other potential bidders for the Saint Gobain tower are insurers like Mapfre or Generali, unable to resist an office building on the Castellana street.

The Price

In 2003, BBVA acquired the unit for €87.5 million from Saint-Gobain that have been renting it until last year, when it moved to 4.300 square meter office space at 132 Principe de Vergara street.

It is expected the entity will ask for a similar amount, in spite of the need of an overall renovation of the property, estimated to require an up to €10 million expense. In any way, until now BBVA has preferred to see the bids before setting any price.

 

Original article: Expansión (by R. Ruiz)

Translation: AURA REE

GMP Preps For Going Public As a Socimi, Supported by GIC

21/10/2014 – El Confidencial

GMP, one of the best known real estate companies in this sector and the owner of the iconic black skyscraper let to BBVA (in the center of the picture), became a Socimi (a REIT vehicle in Spain) and now it is planning to go trading on the stock exchange market.

The project of the Montoro family, running GMP, has received full support from GIC, an investment arm of the Singapore Sovereign Wealth Fund. Few weeks ago, the Fund purchased a 30% stake in the property manager, paying €200 million in total.

Thanks to the equity injection, the company obtained resources to establish itself as the key investor in offices and business parks in Madrid and Barcelona. Its new Stategic Plan assumes acquisition of carefully selected office buildings, divestment in non-core assets and refurbishment of a part of its stock.

For instance, this July, GMP sealed a deal on the old headquarters of Altadis located on the Eloy Gonzalo street, Madrid. The firm has just started renovation works for the building.

Even though Socimis have to wait two years before going public, the company which will trade under the name of GMP Sociedad de Inversiones Inmobiliarias Socimi believes it will take the step as soon as an opportunity emerges. However, it is not in hurry as it has not found an underwriting bank yet.

In 2013, GMP earned €98 million with an ebitda of €68 million and a net profit of €5 million. Its loan to value rate shows 52% and promises financial stability in mid-term. When it comes to the firm’s properties’ occupancy rate, it posts 93% and more than a half of the rental contracts expire after 2017.

 

Original article: El Confidencial (by Ruth Ugalde)

Translation: AURA REE

Altadis Sells Its Old Headquarters to GMP For €30 Mn

17/07/2014 – Expansion

The property of a 13.058 square meter area has stood empty ever since the branch of Imperial Tobbaco moved out to its new offices in the Cristalia Business Park of Metrovacesa in summer 2010.

Today, Altadis transfers the old premises situated at 10 Eloy Gonzalo street in Madrid to GMP as a part of its non-core asset divestment plan. The new owner will carry out an integral rehabilitation and a renovation of the unit´s facade.

Neither of the companies revealed the transaction price but real estate sources claim it have reached €30 million.

The property will be placed inside the portfolio of buildings GMP possesses in the downtown Madrid, at 27 Genova st., 3 Hermosilla st. and at 81 Castellana st. occupied by BBVA, to name just a few.

At the moment, GMP plans its future acquisitions and seeks a partner who would take a minoritary stake in the firm.

 

Original article: Expansión (by R. Ruiz)

Translation: AURA REE