Qatar’s Emir Acquires Property in Granada

28 July 2019 – Richard D. K. Turner

The emir of Qatar, Tamim bin Hamad al Zani, has just acquired an at least 6,000-m2 carmen, a Granada-style home, overlooking the Alhambra and Sierra Nevada. The emir paid 15.3 million euros for the property, acquiring the house in a personal capacity. The estate has two gardens, several buildings and excellent views.

The carmen belonged to the late businessman Rafael Pérez-Pire, founder of the Puleva dairy company, who acquired the property in 1943. The word carmen comes from the Aramaic kermel, meaning mountain with vineyards and water.

Original Story: Periodista Digital – Manuel Trujillo

JLL: 47 Halls of Residence for Students are Under Construction in Spain

24 April 2019 – El Confidencial

The student hall sector is on a roll. With almost fifty projects underway (47) and 17,500 new beds to be added to the existing portfolio by 2022, experts forecast total investment of €1 billion in the sector over the next 4 years.

In 2017, investment in the sector amounted to €560 million, ten times higher than the figure recorded in 2016 (€50 million). Last year, the number dropped to €141 million, but according to Nick Wride, Director of Living and Alternatives at JLL Spain, that was “due to a lack of residences in operation available for sale”. Moreover, it was still the highest figure ever recorded excluding corporate transactions – the data in 2017 was impacted by the completion of 2 large corporate deals.

Last year, 18 operations were closed involving the purchase of land or buildings for conversion. 55% of the investment was undertaken in Madrid and Barcelona, with the remaining 45% made in the main regional cities, such as Málaga, Sevilla and Granada. The operators behind the new beds under construction include Nexo, Resa, WPCarey, Invesco, CBRE GI, Axa and GSA, amongst others.

Student halls offer some of the highest yields in the sector: 5.5% in the secondary cities and 5% in Madrid and Barcelona, in line with those generated by nursing homes (5.5%) and logistics assets (5%), but well above those seen in other segments such as retail premises (3.15%), offices (3.50%), residential (3.50%) and hotels (4%).

The reason is the enormous demand that exists for these types of assets. In Spain, almost half a million students need accommodation, but there are currently just 91,000 student beds. The gap is clear, and growing, boosted by an increase in the number of domestic and international students travelling away from home to study. Those not finding student accommodation have to rent in the private market – an informal, heterogeneous, inflexible and potentially expensive option (particularly in Madrid and Barcelona where prices are soaring).

All this makes the market for student accommodation extremely attractive.

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Invesco, GSA, Amro & Bankinter are Committed to the Student Hall Sector

6 April 2019 – Expansión

Halls of residence for students have become one of the most sought after assets in the real estate sector in recent years. The demand for beds (which far outstrips supply), the growth forecasts for the market and the lack of suitable supply for the new requirements of the market has led operators and investors to get involved in the promotion and development of new halls of residence.

Four of the largest investors are planning to spend €1.5 billion in the sector over the next few years, as follows:

GSA, which arrived in Spain in 2017, with the purchase of 3 halls of residence from Oaktree, wants to invest €500 million in Spain and Portugal to grow a portfolio of 15,000 beds. It already has four centres in operation and plans to open two more in Barcelona soon.

Meanwhile, Invesco has teamed up with Syllabus, the subsidiary of Urbania, to invest €250 million in new halls of residence with the aim of adding 2,000 beds in Spain and Portugal; and that figure could rise to 3,500.

In addition, the British firm Amro Real Estate is looking to invest €300 million in 5,000 new beds across Spain and Portugal and has just closed its first investment in Granada, where it will build a hall of residence with 360 beds.

Finally, Bankinter has launched a private equity fund to invest between €300 million and €400 million in the construction of student halls across Iberia; its first project will also be in Granada.

The future is bright for the growth of this segment.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Aedas Purchases Land in Granada for 750 Homes

1 February 2019 – Eje Prime

Aedas Homes is expanding its portfolio. The property developer, which specialises in the new build residential market, is strengthening its presence in Granada capital with the acquisition of land for the construction of more than 750 homes in total. The company is thereby adding new assets to its land bank in the city, where it made its debut at the beginning of 2018.

The property developer is going to undertake residential projects in two sectors located in the north and west of Granada. Sergio Gálvez (pictured above), Director of Strategy and Investment at Aedas Homes, highlights that the company has closed these operations after years analysing the evolution of the residential market in Granada.

The new plots of land acquired by Aedas Homes are located in the Ferrocarril Oeste sector. Besides these plots, the company owns land in the Borde Norte N3 sector, an area located on the northern face of the urban nucleus of Granada.

The CEO of Aedas Homes is David Martínez. The company owns a portfolio of land spanning more than 1.5 million m2 for the construction of more than 14,500 homes in key areas of the country, both from an economic and real estate perspective: Madrid and the Central area, Cataluña, Levante and the Balearic Islands, Andalucía and the Costa del Sol.

Original story: Eje Prime

Translation: Carmel Drake

Amro Buys Sevillan Development in Iberian Roll-out

25 January 2019 – EGI

London-based investor Amro Real Estate Partners has bought a site in Sevilla, marking its second acquisition within its student housing platform in Spain and Portugal.

The deal forms part of the company’s strategy to create a 5,000-bed investment platform in the region.

Last year, Amro appointed CBRE to search for a student housing joint venture partner to undertake a €300m (£261m) capital investment in its Iberian expansion.

At the same time, it invested in a 360-bed student housing development site in Granada, which will launch in early 2020.

The site in Sevilla measures around 100,000 square metres (…).

Original story: EGI (by Pui-Guan Man)

Edited by: Carmel Drake

HG Inaugurates its First Urban Hotel & Prepares another Vacation Project

15 January 2019 – Alimarket

The chain HG Hoteles has opened the 4-star HG City Suites Barcelona aparthotel containing 58 accommodation units on Avenida Vía Augusta 89, in the Sarrià-Sant Gervasi district of Barcelona. The establishment is the result of the purchase and complete renovation of a building that used to house the Hotel NH Belagua (3* and 72 rooms), which was active until March 2017. The renovation project has resulted in both an increase in the category of the property from 3* to 4*, as well as a reduction in the number of rooms in order to offer units that are apartment-suites and studios.

The new HG City Suites Barcelona is located just a few minutes walk from Avenida Diagonal and Paseo de Gracia. It is surrounded by services, is next to some of the most prestigious medical centre in Barcelona, and is very close to the Sant Gervasio, Plaza Molina and Fontana metro stops”, explained the company. With his hotel, HG, which has just celebrated its 50th anniversary, is making its debut in the urban hotel segment and is opening a new path of expansion.

Cristian Park will open in 2020

Nevertheless, the company’s next new property will be in the vacation sector and is scheduled for opening at the end of 2020. As Alimarket Hoteles reported, it will consist of the opening of a 4* new build aparthotel, to be operated by the owner, in the south of Tenerife, where HG Hoteles already has several apartment blocks: ‘HG Cristian Sur’ (3* and 90 rooms) and ‘HG Tenerife’ (3* and 189 rooms), in Los Cristianos. Indeed, it will open the future HG Cristian Park in that same town, with 202 accommodation units.

HG’s sun and beach offer is completed with the HG Lomo Blanco apartments (3* and 131 rooms) in Lanzarote, as well as some aparthotels in Menorca, namely: the ‘HG Jardín de Menorca’ (4*-144) and the ‘HG Cala Llonga’ (3*-30). The rest of its portfolio is made up of ski and mountain properties, including: the Huesca hotels ‘HG Alto Aragón’ (4*-134) and ‘HG Cerler’ (3*-101), the Girona-based ‘HG La Molina’ (4*-65), the Navarran ‘HG Isaba’ (3*-49) and the Granada-based ‘HG Maribel’ (4*-30).

Original story: Alimarket (by Paco Mota)

Translation: Carmel Drake

Aedas Homes Buys Land in Granada on which to Build 600 Homes

6 December 2018 – Eje Prime

Aedas is expanding its presence in Andalucía. The listed Spanish property developer has purchased land in Granada, on which it is going to build 600 homes over the coming years. The plots are located in two expansion areas of the Nasrid capital, according to a statement issued by the company.

The property developer is going to start work on the construction of the first homes during the first quarter of 2019, within the West Railway area, an urban development where construction has been suspended for more than a decade. Now, the Town Hall has unblocked the land and the company is working on its urbanisation.

The other plot of land acquired by Aedas in Granada is located in the so-called North Rim N3, an area to the north of the urban nucleus of the capital, where the property developer has the objective of starting the urbanisation project next summer.

Recently, the company began the sale of its sixth development in Sevilla and Málaga capital, where it made its debut with 87 new homes in the Teatinos neighbourhood, one of the trendy areas of the Málagan region.

Aedas owns a portfolio of finalist land spanning more than 1.5 million m2 for the construction of more than 14,500 homes across the country, in the Central region as well as in Cataluña, Levante, the Balearic Islands and Andalucía.

Original story: Eje Prime

Translation: Carmel Drake

Bankinter Creates a Fund to Invest €400M in Student Halls

19 November 2018 – Real Estate Press

Bankinter has launched a venture capital fund that is going to invest €400 million in the promotion of student halls in the main university cities across Spain and Portugal. The fund is called ‘Fondo V Student Iberia’ and is going to be managed by Plenium Partners. To date, it has acquired a plot in Granada and it plans to buy more land in Valencia and Porto.

The fund has an initial capital fund of €150 million, and although it was created with the idea of giving the option for the entity’s private banking clients to invest upwards of €200,000, Bankinter itself has contributed €10 million. In addition, the US real estate manager Valeo – which owns more than 75,000 beds in student halls and nursing homes, primarily in the USA, contributed another €4 million and Plenium Partners, €1.5 million.

From there, “Fondo V Student Iberia” established its main hypotheses, which include the construction within a period of 2 years and the launch and operation a year later of at least four university residences containing 2,500 beds in total, in which it is going to invest up to €200 million.

With that objective in mind, it has already carried out its first acquisition, the purchase of a plot of land in Granada for which it has paid €8.8 million. It calculates that it is going to invest €41.3 million in total to build a 5-storey student residence containing 519 beds there, which will open its doors in September 2020.

Moreover, it is negotiating other alternatives to grow to almost 2,500 beds in the near future and has identified different opportunities to expand its portfolio to 9,000 beds.

The group is seeking to expand initially in the Iberian market, through the development, construction, execution and management of residential assets for students, primarily in Madrid, Barcelona, Valencia, Granada, Sevilla, Málaga, Lisbon and Porto.

The aim is to constitute a portfolio of assets that generate “predictable and recurrent” annual income in the hands of managing partners with proven experience, explains the document.

In this way, Bankinter is continuing its strategy of investing in alternative funds, after launching Helia, a venture capital fund that invests in renewable energy, and launching onto the market the Socimis Ores with commercial properties and Atom with hotels.

But now, it has placed its focus on university residences because Spain has 1.6 million students in total, close to the historical maximum, and also because it is one of the main destinations for international university students (and the top destination for those participating in Erasmus).

It is considered to be a sector with stable and growing demand; and it is estimated that between approximately 400,000 and 470,000 students are looking for accommodation. Moreover, a potential increase is expected in the student population in Spain and of Asian students, especially from China and India, where they have a lower presence than in other European countries such as Italy, Germany and France.

All of this will help the internationalisation strategy of the Spanish universities and the aim of obtaining value from the fact that Spanish is the second most widely spoken language in the world, with 400 million speakers.

Original story: Real Estate Press

Translation: Carmel Drake

Castellana to Merge the Kinépolis & Alameda Shopping Centres in Granada

2 November 2018 – Eje Prime

Castellana is making changes in Granada. The Socimi owned by the South African fund Vukile is going to merge the Alameda Retail Park and the Kinépolis shopping centre into a new brand, called Granaita, according to explanations provided in a corporate presentation that the firm has distributed to potential investors.

The company, which has been listed on the Alternative Investment Market (MAB) since July, will invest €5 million in the process to reposition and integrate its two shopping centres in Granada.

Castellana is one of the emerging players in the current retail market in Spain, in which it specialises. The objective of the company is to be “the leading Socimi in the retail sector”, adds the company, whose objectives include the optimisation of its asset portfolio. The operation that it is going to carry out in Granada sits firmly within that framework.

The real estate manager acquired Kinépolis in June 2017, through the company Junction Parque Granada. The asset, inaugurated in 2004, comprises eight stores with a gross leasable area of 18,508 m2 and is worth €32.5 million.

Meanwhile, Alameda Retail Park was incorporated into Castellana’s portfolio in December last year. Located in the municipality of Pulianas, in Granada, the park began operating in 2014 and comprises four stores with a gross leasable area (GLA) of 27,256 m2. The monthly rent at Alameda amounts to €10.71 and its market value stands at €55.3 million.

The fund that sustains the Socimi financially, Vukile, is going to inject up to €200 million over the next few years to continue with its plan to conquer the commercial sector in Spain, where it hopes to form a portfolio worth €1.2 billion. Castellana is going to look for new shareholders to inject the resources necessary to carry out this plan, which seeks to enable the Socimi to make the leap from the MAB to the main stock exchange within the next three years.

In pursuit of this goal, Vukile acquired four shopping centres from Unibail-Rodamco for €489 million last summer, which were placed in Castellana’s portfolio, as reported by Eje Prime.

Castellana Properties closed 2017 with revenues of €9.31 million, whilst it registered turnover of €5.15 million during the first three months of 2018. The net result for 2017 amounted to €18.61 million, and the firm earned €6.65 million during the first quarter of 2018. The group’s debt at the end of 2017 amounted to €146 million.

Original story: Eje Prime (By Jabier Izquierdo)

Translation: Carmel Drake

Real Estate Developer Invests €87.4MM, Aiming to Build More than 600 Homes in Granada

6 August 2018

The real estate developer Grupo Inmoglaciar signed a contract for the acquisition of a 25,074-square-meter plot of land in Granada, for a total investment of 87.4 million euros. The company plans to develop 608 homes on the property.

As the company announced in a press release, the property has a buildable area of ​​62,493 square meters, in the area of Parque ​​Nueva Granada in the city’s northwest. The future development is expected to be “fully residential. “The two, three and four-bedroom flats will be built in four-storey buildings, with “elegant architecture and modern design.”

The residential developments will consist of four plots that will be developed in different phases. Sales are expected to begin in the fall of this year. The project will have common-use areas such as a swimming pool, a community room, a gym and a playground.

The acquisition is part of the company’s expansion strategy in Andalusia, where it already has two additional projects, one on the Granada’s Costa Tropical, with 192 homes, and a future housing development in Córdoba.

Original Story: Europa Press

Translation: Richard Turner