Principal Real Estate to Acquire Torre Llacuna in Barcelona for €33 Million

16 December 2019 – Goldman Sachs is finalising an agreement to sell the Torre Llacuna in Barcelona’s 22@ district to Principal Real Estate Investors. Market sources say that the asset will go for approximately 33 million euros.

The Torre Llacuna has tenants including the tech firms Social Point and Localret and is located in one of the most valuable areas of the district, nearby the Torre Glòries.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Cerberus and Tilden Park Each Look to Acquire Lezama Portfolio

4 December 2019 – Cerberus and Tilden Park are vying to acquire Kutxabank’s last large portfolio of bad debts. The two investment funds are looking to buy €400-million portfolio of non-performing loans, called Lezama. Kutxabank’s sale would put its NPL-ratio at less than 2.5%.

The acquisition would be Tilden Park’s first in the Spanish market. Josh Birnbau, a former executive at Goldman Sachs, founded the firm after he became famous for taking a large bet against sub-prime mortgages, one that earned his former company €2.277 billion.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Goldman Sachs Sells Office Building in Valencia to Zriser

6 August 2019

Goldman Sachs sold a historic building in Valencia, one which formerly housed Bancaja’s Cemeco data centre, located on Avenida Cardenal Benlloch, 67. The buyer, Zriser, which is owned by Ana and Pablo Serratosa, has lately been one of the most active local investors in the Valencian real estate market. The building has a surface area of about 11,000 square meters, including offices and parking.Naturgy, Indra and Haya Real Estate are all tenants.

The two firms declined to reveal the sales price. Grupo Zriser’s real estate division operates more than 27,000 square meters of offices in five buildings located in different areas of Valencia, with an average occupancy rate of over 90%.

Original Story: Expansión – A.C.A.

Adaptation/Translation: Richard D. K. Turner

Goldman Sachs Sells Office Building in Central Madrid

16 July 2019 – Richard D. K. Turner

Goldman Sachs has just sold the office building located at Calle Serrano, 39, five years after it acquired the asset together with another 37 residential and office buildings from Bankia. The property is located in Madrid’s CBD, nearby the well-known Paseo de la Castellana. Goldman was reportedly paid about 8 million euros.

The four-floor building, which was once home to the Lazard investment bank, has 1,212 square meters of constructed area, including a semi-basement. The asset comes with an pre-approved rehabilitation project, as the American bank opted not to invest in the renovation itself. The main drawback to the asset is that the building’s main entrance is not on Calle Serrano, but rather in a central courtyard.

Goldman Sachs acquired the building as part of a €355-million portfolio, previously owned by Bankia.

Original Story: El Confidencial – Ruth Ugalde

Blackstone Nears Sale of €950-Million Loan Portfolio

3 July 2019 – Richard D. K. Turner

The British fund CarVal Investors, a leading global alternative investment manager focused on distressed and credit-intensive assets, is said to be leading the race to acquire a €950-million portfolio of mortgages from Blackstone. Goldman Sachs and Elliot Management are also participating in the sale.

Original Story: EjePrime

 

Solvia Joins Forces with Orion Capital & Will Manage an Asset Portfolio Acquired from Goldman

8 April 2019 – Idealista

Solvia has joined forces with Orion Capital, which has entrusted the servicer with managing the portfolio that it purchased from Goldman Sachs at the end of last year.

The portfolio has a nominal value of €400 million and contains loans originated by CaixaBank. As such, Solvia will lead the sales process for all of the real estate assets included in the portfolio and for the properties that are recovered as solutions are found to the non-payment of loans.

Original story: Idealista 

Translation/Summary: Carmel Drake

Cerberus & Oaktree in the Final Round to Buy ‘Solvia Desarrollos Inmobiliarios’

5 April 2019 – Expansión

Banco Sabadell is on the home stretch for the sale of 100% of its property developer, Solvia Desarrollos Inmobiliarios (SDIn). The funds Cerberus, through its property developer Inmoglacier, and Oaktree have made it through to the final round of the operation, which could be closed within the next few days or weeks.

The consultancy firm Savills Aguirre Newman has estimated that SDIn’s assets are worth more than €1.3 billion and the entity chaired by Josep Oliu (pictured above) is hoping to record proceeds of around €1 billion from the sale.

The portfolio comprises 270 buildable plots for the construction of around 15,000 homes, half of which are in Cataluña, although it also contains plots in Madrid, Andalucía and Valencia.

It has been reported that two other investment funds may have also been selected for the final round (out of Apollo, Goldman Sachs and CPPIB) but Oaktree is understood to be the favourite. Rothschild is advising the divestment process.

Original story: Expansión (by R. Sampedro and S. Saborit)

Translation/Summary: Carmel Drake

Goldman Puts the ‘Edificio Mediterráneo’ in Valencia Up For Sale

11 March 2019 – Expansión

Goldman Sachs has put the ‘for sale’ sign up over the building that it owns on Avenida Cardenal Benlloch in Valencia, which used to house Bancaja’s calculation centre (Cemeca) and which has subsequently been renamed Edificio Mediterráneo.

Goldman considers that the recovery of the office rental market in Valencia and the increase in rental prices make now a good time to consider offers.

The US bank acquired the property at the end of 2014 from Bankia as part of a package of 38 real estate assets, which it purchased for €335 million.

Edificio Mediterráneo comprises seven storeys and has a surface area of 10,300 m2, with its own parking lot. Its tenants include Indra, Nedgia Cegas and Haya Real Estate.

Original story: Expansión (by A.C.A.)

Translation/Summary: Carmel Drake

Metrovacesa Explores Entering the Rental Home Sector

21 February 2019 – El Confidencial

Selling new build homes is still proving to be too much of a challenge for the times that are approaching. As such, another of the listed property developers, Metrovacesa, is evaluating its entry into the rental home sector, an option that its competitor Neinor (advised by Goldman Sachs) also has on the table. According to market sources, it is the first of the large players determined to take that step to fulfil its business plans.

Since the end of last year, the large owners of residential land have acknowledged that they are open to entering the rental market, either as owners or as turnkey suppliers for investors. The challenge, nevertheless, is disembarking in this segment without their margins being affected and therefore being forced to revise their business plans, like Juan Velayos already had to do with Neinor.

For the time being, the real estate company controlled by Santander (49%) and BBVA (21%) has recognised that it is considering rental housing as “a valid strategic option”, although it has not made any firm decisions in this regard, according to public declarations made by the property developer’s Head of Corporate Development. In its case, it will always be as a business to sell to a specialist third party operating in the residential property business.

This strategic reflection affects everyone, although the speeds of adoption will vary. In the case of Aedas, it has been working for some time on different scenarios that may open the door following the end of the current cycle, in which property developers with large land portfolios have been constituted, boosted by investment funds, because its not all about land in the main markets, nor are there infinite buyers for flats costing more than €400,000.

In the case of Metrovacesa, its numbers are the most chunky, since it has the largest liquid land portfolio in Spain, worth almost €2.7 billion, on which it estimates that around 38,000 homes could be built, according to official data. In its case, like with the rest of the listed firms, the largest volume of homes will be handed over in 2020, a short-term horizon, for which conservative estimates are beginning to be made.

The lower economic growth in Spain (2.8% in 2018 and 2.2% in 2019, according to the Bank of Spain) is another indicator of the macro-economic environment that is looming. In this situation, the potential impact that it may have on sales forecasts means that “many value alternative (rental) products as options for offsetting a likely slowdown in sales”, say sources at one of the large real estate consultancy firms.

Original story: El Confidencial (by C. H.)

Translation: Carmel Drake

Azora Acquires HQ of the Former Cortefiel Group for €28.3M

24 January 2019 – Eje Prime

Another operation has been closed in the office market in Madrid. The Socimi GMP, controlled by the Montoro family and the sovereign fund of Singapore, has sold the building located at number 51 Calle Llano Castellano to Azora. The price of the operation amounted to €28.3 million.

The property now controlled by Azora, the real estate manager founded by Concha Osácar and Fernando Gumuzio, is occupied in its entirety by Tendam, previously known as the Cortefiel Group and owner of the fashion chains Cortefiel, Women’secret, Springfield and Pedro del Hierro.

The rental contract for the building, which has a gross leasable area of 23,108 m2 and 145 parking spaces, is due to expire in 2023.

The building was constructed in 1990 and had been controlled 100% by GMP since 2015. Until then, the property was in the hands of the real estate division of General Electric through the company Renta Gestión Fuencarral.

Its new owner, Azora, specialises in the investment and management of real estate assets for third parties and has a portfolio comprising more than €4.5 billion in assets. The company was the promoter of Hispania, the first Socimi to be constituted, which made its debut on the stock market in Spain in 2014.

Azora was considering its own stock market debut, but in the end, it suspended that process last year. Azora and Hispania ended their agreement last year, after Blackstone’s successful takeover of the Socimi.

Since then, the company has focused on the residential rental market through the creation of a joint venture with CBRE Global Investment and Madison to reach a portfolio of 10,000 homes over the coming years.

Azora manages the real estate portfolios of funds and wealthy investors, such as George Soros, CBRE Global Investors, Goldman Sachs, Axa Investment Management and Bank of Montreal, amongst others (…).

Original story: Eje Prime (by P. Riaño and I. P. Gestal)

Translation: Carmel Drake