Orinoquia Real Estate to Invest €47.7 Million in Co-Living and Temporary Stay Projects in Spain

30 October 2019 The Venezuelan family Capriles is increasing its bet on the Spanish real estate market, after a major push into the luxury residential market with Gran Roque, its developer. Now, their socimi, Orinoquia Real Estate, will invest more than 47.7 million euros in co-living and temporary stay projects.

The socimi plans to build seven buildings and more than 205 flats. The first two buildings, in Málaga and Valencia, are already under construction. The others will include another in Málaga, two in Seville and one in Madrid.

Original Story: Idealista – Custodio Pareja

Adaptation/Translation: Richard D. K. Turner

The Capriles Family will Set the Tone for Operación Calderón with Flats Priced from €5,700/m2

14 February 2019 – El Confidencial

It is a question of weeks. Gran Roque, the investment vehicle owned by the Venezuelans Miguel Ángel and Áxel Capriles, is going to start marketing homes in its most affordable development in Madrid within the next few weeks. The development comprises 105 homes and is located just 600 metres from the Vicente Calderón stadium. The properties are going to be put on the market for €5,700/m2. That price will, undoubtedly, serve as a reference for the potential buyers of the plots in the future Operación Mahou-Calderón, which is currently on standby until the plans for the urbanisation and Reparcelation of the area have been definitively approved.

As reported by El Confidencial, in October 2017, the Venezuelan clan purchased buildable land from Prosegur, just a few metres from where Operación Calderón is going to be built. For that plot, which has not required any type of urban development procedure and which is designated for residential use, as provided for in the General Urban Development Plan (PGOUM) for Madrid dated 1997, they paid around €25 million, approximately €2,900/m2. That price is close to those what is being considered for the plots owned by Atlético de Madrid.

According to explanations provided to El Confidencial by various sources, the development comprises five 5-storey buildings – except for one that has 4 storeys – and to optimise the price, Gran Roque has decided to start by marketing just two of the blocks, which contain 55 flats. In other words, like other property developers have been doing in Madrid, if the first homes maintain a high rate of sales, all indications are that the prices in the subsequent phases will be higher.

The construction permit will be ready by the end of April or the beginning of May, and so the marketing cannot officially begin until then. Nevertheless, 20% of the 55 units have already been reserved, according to assurances given by those same sources.

The project includes 2-, 3-, and 4-bedroom homes, all of which have a parking space and storeroom included in the price. The smallest units will go on the market from €450,000 plus VAT; the 3-bedroom homes will start at €550,000; and the largest homes will cost more than €600,000. That equates to a price of €5,700/m2, which is very high for many Madrilenians, but well below the prices typically charged for luxury developments.

Located just a few metres from Madrid Río and the Río Manzanares, the development will contain two swimming pools (one for children and one for adults), a gym, a children’s play area, a bicycle room and 24-hour surveillance, amongst other features. In total, it will have 1,719 m2 of common space (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Who is the Largest Residential Property Developer in Madrid

29 November 2018 – El Confidencial

With 12 developments underway comprising 758 homes with some type of protection, the Municipal Housing and Land Company (‘La Empresa Municipal de la Vivienda y Suelo’ or EMVS) is the most active property developer in the city of Madrid. Of the more than 350 residential projects under construction in the capital at the moment, the public initiative (by the Town Hall of Madrid), together with the promotion of cooperative homes or units with some kind of protection, has significant weight in Madrid, given that more than 16% of new build projects underway and 22% of the units under construction are public initiative developments (EMVS) or cooperative promotions.

That is according to data from the consultancy firm CBRE, which has compiled a study to analyse real estate activity in the Spanish capital, using satellites, taking into account both new build projects that require cranes for their completion as well as comprehensive renovation projects that do not need cranes or scaffolding. On the basis of the data obtained, the property developers who are currently carrying out those projects in the 21 districts of Madrid have been identified, be they new build projects, renovations, private homes or social housing units, excluding any homes being marketed on which construction work has not started yet.

The study establishes a ranking with the top 25 residential property developers in the capital on the basis of the number of projects underway and the number of units under construction. That ranking is led by the EMVS both by number of developments as well as by number of homes. Its developments are concentrated in the Pau de Vallecas (8 projects comprising 475 units), Latina (one development comprising 87 homes), Arganzuela (one development comprising 85 units), Villa de Vallecas (one development comprising 72 homes) and Carabanchel (one development comprising 25 homes).

Despite the strong development activity of the EMVS, the reality is that it is the private property developers who lead the activity overall, given that they account for three quarters (78%) of the new home units under construction in the city of Madrid. In fact, there are 12 private property developers with three or more projects under construction, which account for more than a third (34%) of the homes under construction.

Pryconsa and Inmoglacier, the most powerful

The second position in the ranking by number of developments is held by Pryconsa. The company chaired by Marco Colomer currently has seven projects underway, comprising 500 homes (…).

By number of units under construction, the second place in the ranking is held by Inmoglacier, with 748 homes under construction, distributed across just five developments, all of which are concentrated in Parque Ingenieros in Villaverde (…), all with some kind of protection and constructed on land acquired from Sepes more than three years ago. The company chaired by Ignacio Moreno (…) is one of the most active property developers in the capital and is focused towards a segment of the population capable of acquiring a home at affordable prices.

“At first glance, the sector appears to be vey fragmented. The 351 residential projects underway in Madrid are split between 241 companies or cooperatives. However, many property developers assign a separate legal entity to each promotion (…) and so it is not always easy to identify the large groups (and commercial brands) behind each project”, explains Samuel Población, National Residential Director at CBRE speaking to El Confidencial (…).

By area, the main national property developers are committed to constructing large projects in new areas, such as Arroyo del Fresno (Amenabar and Grupo Pinilla), Valdebebas, Parque de Ingenieros and El Cañaveral, where the projects with the largest number of units are concentrated. Companies such as Grupo Ibosa (…) and Vía Celere, along with the newcomer Brosh, complete the ranking (…).

International firms stick to the rich neighbourhoods

In terms of the property developers with a more international profile, by contrast, they are continuing with a strategy focused on the renovation of homes inside the city, in the most sought-after neighbourhoods. Venezuelan property developers have been particularly active, including Gran Roque (…), which has a dozen residential projects underway comprising more than 100 homes in some of the most sought-after areas of Madrid (…).

Also, Grosvenor (from the UK) and Darya Homes or Dazia Capital (France) are concentrating their activity exclusively in the districts of Centro, Chamberí and Salamanca. Those three developers – include Gran Roque – are currently managing 10 residential remodelling projects, which are characterised by the limited number of units (14 on average) and a clear vocation towards the high- and very high-end segments of the market.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake