Tag: growth

Fotocasa: Second-Hand House Prices Rose by 8.4% YoY in March

10 April 2019 – El Confidencial

According to data from the real estate portal Fotocasa, second-hand house prices rose by 8.4% in the year to March 2019, the largest increase since 2007. The average price of a second-hand home now amounts to €1,900/m2, a figure not seen since November 2012.

The data shows that YoY prices recorded 30 months of consecutive increases in March, although a rise of more than 5% has not been seen for 16 months.

The price rises were led by 3 autonomous regions, in particular, which experienced double-digit rises, namely: Madrid (19%), the Balearic Islands (12.5%) and the Canary Islands (11.8%), but prices rose in 16 of the 17 regions. Asturias was the only region to experience a price decrease, of -0.03%.

On average, house prices are still 35.6% below their peak, which was recorded in April 2007 (€2,952/m2).

In terms of average prices, Madrid (€2,976/m2), País Vasco (€2,810/m2) and the Balearic Islands (€2,617/m2) were the most expensive autonomous regions to buy a second-hand home in March. By contrast, Extremadura was the cheapest region (€1,108/m2), followed by Castilla-La Mancha (€1,141/m2), Murcia (€1,164/m2) and La Rioja (€1,402/m2).

By province, 43 of the 50 provinces recorded positive quarterly price variations and seven registered inter-annual price variations of more than 10%, specifically: Madrid (19%), Alicante (15.6%), the Balearic Islands (12.5%), Málaga (12.4%), Las Palmas (12.1%), Santa Cruz de Tenerife (11.4%) and Guadalajara (10.9%).

In Madrid Capital, 18 of the 21 districts saw price increases in March, led by Carabanchel (4%), Vicálvaro and Barajas (both 3.5%). Meanwhile, prices decreased in Chamartín (-3.3%), Latina and Usera (both -0.4%).

Meanwhile, in Barcelona, second-hand house prices rose in 5 of the 10 districts in March, led by Sants – Montjuïc (1.9%), Sarrià – Sant Gervasi (1.4%) and Gràcia (1.2%). The largest QoQ price decrease was recorded in Sant Martí (-1.1%).

Original story: El Confidencial (by E.S.)

Translation/Summary: Carmel Drake

Greystar Invests €200M in Student Halls in Spain & Diversifies into Rental Housing

9 April 2019 – Eje Prime

Greystar is planning to invest €200 million in halls of residences for students in Spain over the next two or three years, and is also seeking to diversify into the management of rental homes.

In the student hall sector, the US firm wants to invest €200 million in the creation of 2,000 beds by 2022 and expand its presence from Madrid, Barcelona and Málaga, to other student towns.

Meanwhile, in the rental home sector, the US company already operates in ten countries around the world, where it administers more than 500,000 homes. In Spain, it plans to launch this business before the end of 2019.

Greystar specialises in the market for multi-family accommodation and halls of residence for students. The company manages 118,500 student beds around the world, of which 50,000 are in Europe.

Original story: Eje Prime (by Milana Mishchenko)

Translation/Summary: Carmel Drake

Habitat Leaves its Losses Behind after €500M Capital Injection from Bain

2 April 2019 – Expansión

Habitat Inmobiliaria recorded revenues of €89 million in 2018, six times more than during the previous year. It also generated a profit, registering an EBITDA of €1.8 million, compared with losses of €9.86 million in 2017.

According to the company, this change in fortune has come about following its purchase by the US investment firm Bain Capital Credit at the end of 2017. Last year, Bain and Habitat’s new management team, launched a new strategic plan for the next three years, which included the contribution of €500 million for land purchases.

In 2018 alone, the property developer invested €121 million buying up land with a total buildability of 300,000 m2. As such, Habitat now owns a land bank spanning more than 1 million m2, which will allow it to build 10,000 new homes over the next few years. Currently, the property developer is working on the construction of 3,400 homes.

Original story: Expansión (by Rocío Ruiz)

Translation/Summary: Carmel Drake

WeWork Doubled its Losses in 2018 Due to Global Property Purchases

27 March 2019 – Eje Prime

The US co-working company WeWork doubled its losses in 2018 to USD 1.9 billion (€1.7 billion), due to the huge outlay it made expanding its business around the world. Nevertheless, it did also double its revenues to USD 1.8 billion (€1.6 billion).

The company founded by Adam Neumann in 2010 closed 2018 with shared offices in more than 100 countries as well as rental contracts with several major corporates, such as Microsoft, Adidas and Citigroup, which account for one third of its tenants.

The valuation of the company, which leases space to 401,000 people globally, amounts to USD 47 billion. In Spain, the company has five spaces in Barcelona and four in Madrid, with new openings imminent.

Original story: Eje Prime

Translation/Summary: Carmel Drake

CVC to Purchase the Universidad Alfonso X for c. €1.1bn

26 March 2019 – El Confidencial

Following Permira’s acquisition of Universidad Europea de Madrid in December for €770 million, CVC Capital Partners is following suit. The private equity firm is on the verge of completing negotiations to buy Universidad Alfonso X El Sabio (UAX), also in Madrid.

The consideration for the operation could amount to €1.1 billion, equivalent to 14 x EBITDA, an investment record that reflects the huge interest in the sector from private equity firms.

The main shareholders of UAX are Jesús Núñez, who owns a 72% stake and Manuel Piñera Gil Delgado, who owns 15.67%, together with his ex-wife María Teresa Gallego García, heir of the alcoholic beverage company DYC. Another 7% is owned by their nephew José Jaime Núñez.

Currently, the most significant investments owned by CVC Capital Partners in Spain are its 20% stake in Naturgy, worth €3.8 billion, which it shares with Corporación Financiera Alba; its 25% share of CLH worth €1 billion; Deoleo, the olive oil company that is facing serious financial problems; and Lecta, formerly Torraspapel.

Jesús Núñez created UAX in 1993 after reaching an agreement with the Town Hall of Villanueva de la Cañada, which granted him the right to use 1 million m2 of land for 75 years on which to build the campus. The university now educates 15,000 students per year, generates a turnover of €104 million and makes a net profit of €45 million.

Original story: El Confidencial (by Agustín Marco)

Translation/Summary: Carmel Drake

General Càrnia Invests €20M to Build a 11,000m2 Warehouse in Barcelona

21 March 2019 – Eje Prime

The meat retailer General Càrnia is investing €20 million in the construction of a building measuring 11,000 m2 on a plot that occupies the site of the former Makro store. The warehouse will be ready by the summer of 2020.

Mercabarna awarded the 20,500 m2 plot to General Càrnia for €4.7 million in 2017. The company has the right to operate the site for 20 years in exchange for the payment of an annual rental.

Original story: Eje Prime 

Translation: Carmel Drake

Mercadona is Awarded a 30,220 m2 Plot in Sevilla for €10.8M

20 March 2019 – Diario de Sevilla

The Town Hall of Sevilla has awarded a plot of land spanning 30,220 m2, with a buildability of 38,580 m2, in the Higuerón Sur area of the city, to Mercadona for €10.8 million.

The supermarket company is planning to build a warehouse on the site to serve its online shopping service in Sevilla and the surrounding area. Construction work is expected to begin in 2020.

Mercadona already has a similar kind of centre, which it calls a “hive” in the city of Valencia. Moreover, it plans to open two new hives in 2019, in Barcelona and Madrid.

Original story: Diario de Sevilla (by Alberto Grimaldi)

Translation: Carmel Drake

Mazabi to Grow its Socimi to Make Stock Market Debut with €1bn in Assets

18 March 2019 – Expansión

Mazabi, the firm that manages the wealth of 35 family offices and which owns €1.54 billion in assets, is getting its ducks in a row ahead of the planned debut of its Socimi Silicius. The intention is for that entity to take ownership of the majority of the firm’s rental properties and whereby grow its portfolio to at least €1 billion before its IPO.

Currently, Silicius owns 17 assets, spanning 71,244 m2, worth €156 million in the office, retail, hotel and logistics segments. During 2019, new properties will be transferred to it to increase its portfolio to €740 million by the end of the year, with an associated debt of €240 million.

Moreover, 80% of the operations that the manager executes over the coming months will also be transferred to the Socimi. Mazabi typically invests between €100 million and €150 million per year, according to its CEO, Juan Antonio Gutiérrez (pictured above).

New investors

At the same time, Mazabi is looking for investors who want to get involved in its project. To this end, it has engaged KPMG to find an investor to acquire a stake in the Socimi before it is listed. At this stage, the firm has not decided whether Silicius will make its debut on the MAB or the main stock market. The timings have not been confirmed either, but if Silicius is registered as a Socimi in July, then it would make its debut on the MAB no later than July 2021.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Domo Activos Approves a Capital Increase of €20M

18 March 2019 – Idealista

Domo Activos has approved a capital increase amounting to €20 million, according to a statement issued by the company in the Official Gazette of the Mercantile Registry (BORME).

The company will undertake the increase, which must be executed within a maximum period of one year, through the issue of up to 10 million shares at a price of €2.10.

The capital increase follows another approved by the company in September 2018 amounting to €5 million for the purchase of new land. The company owns buildable land in Madrid, Málaga, Sevilla, Valencia, Córdoba and Zaragoza.

The business model of Domo Activos involves the acquisition of land for the development of rental properties. After three years, those properties are then sold.

Original story: Idealista 

Translation/Summary: Carmel Drake

The Hatchwell’s Socimi Excem Plans a €300M Capital Increase

18 March 2019 – El Confidencial 

The Socimi Excem, which is linked to the Hatchwell family, considers that its particular business model is immune to the new Rental Act. The company specialises in the rental of shared flats to university students and young professionals. As such, its clients are not subject to some of the aspects of the new legislation that are causing the most concern, such as the new contract terms (five or six years) or the limits on avals and guarantees.

Each young person pays the Socimi an average of €600 per month by way of rent and typically stays in the property for less than a year. That allows the vehicle to generate a gross return of 7.46%.

Moreover, in Spain, around 400,000 students have to find accommodation every year and 85% of them want a shared flat, rather than a hall of residence. As such, Excem is convinced that it needs to expand its business model across Spain and, to this end, is planning to undertake a €300 million capital increase this summer to finance that expansion.

Currently, Excem has 42 flats comprising 288 rooms, spanning a residential surface area of 8,000 m2. The company wants to expand to Barcelona and Valencia first, although it also has cities such as Málaga, Sevilla, Bilbao and Vigo on its radar. The aim is to grow the portfolio to include 4,000 beds across the whole Peninsula.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake