Sareb Sells €150M NPL Portfolio to Oaktree

30 December 2017 – Expansión

The bad bank has closed the sale of several non-performing loan portfolios during the last few days of the year. A week ago, it announced the sale of a package of loans secured by properties to Deutsche Bank, whose nominal value amounted to €375 million. That was its largest sale of the year.

And yesterday, Sareb reported that it has reached an agreement to sell the so-called Project Tambo to the US fund Oaktree for a nominal value of €150 million. The debt is secured by residential assets and land located in the Balearic Islands, the Canary Islands, Cataluña, the Community of Madrid, País Vasco and the Community of Valencia.

Sareb has been advised by CBRE and Ashurst in this process, whilst Oaktree has awarded its mandate to JLL and Herbert Smith Freehills.

The bad bank, where the toxic assets of the rescued savings banks were parked, closed 2017 with a lower volume of transactions of this kind compared to 2016. Nevertheless, it has launched a trial to test an online sales channel, which may allow it to intensify its activity over the next few months.

Having said that, 80% of the revenues that Sareb obtains do not proceed from the institutional market, but rather from the direct sale of properties in the retail market.

In five years, Sareb has divested 27% of the 200,000 assets that it received initially and has repaid debt amounting to almost €13 billion. It has ten years left to liquidate the rest of its balance sheet. The entity’s cumulative losses amount to €781 million.

Original story: Expansión (by R. L.)

Translation: Carmel Drake

P3 Acquires 11 Logistics Assets From Gore Spain For €243M

10 April 2017 – P3 Press Release

Pan-European logistics property investor-developer P3 has started its latest phase of expansion with the acquisition of a 322,500 mportfolio of 11 logistics and distribution warehouses in Spain from Gore Spain Holdings SOCIMI I, S.A.U. The purchase price was agreed at €243.35 million.

The portfolio includes assets in key strategic logistics locations around Madrid, Zaragoza, Toledo and Guadalajara as well as the coastal cities of Valencia in the east and Biscay (near Bilbao) in the north.

The purchase, which comes shortly after P3 announced a record performance across Europe in 2016, takes P3’s asset base in Spain from just over 70,000 m2 to nearly 400,000 m2 and is one of the largest portfolio transactions in Spain in recent years.

David Marquina, P3’s Managing Director in Spain, said: “This is a good opportunity to reinforce our footprint in Spain’s central logistics corridor, which connects Madrid, Zaragoza and Barcelona. Our next target is to increase our presence in the Mediterranean corridor, around Barcelona & Valencia and expand to Málaga. We will be focusing on acquiring institutional-quality logistics assets and off-market deals, where P3’s long-term investor-developer approach can make a real difference.

“There are several Build-to-Suit projects and single asset acquisitions in the pipeline, which will allow us to grow to 500,000 m2 of high quality, well-located logistics space under management in Spain before year end.”

The properties range in size from just over 7,500 m² in the Getafe area of Madrid to over 80,000 m² in Zaragoza. They are all fully let to blue chip domestic and international companies including DHL, which is also a P3 customer on seven other parks in four countries, Orangina Schweppes Espana and the office products retailer Staples.

In addition to the built assets, two of the warehouses have adjacent land totalling over 26,000 m², with potential for P3 to develop.

Commenting on the purchase, P3 CEO Ian Worboys said: “The Spanish economy is expanding and we identified the country as a key target for P3 in 2017. We’re delighted to have been able to acquire this portfolio which makes us one of the leading players in Spain and is in line with our growth strategy across Europe as a leading property investor-developer.”

P3 was advised on the purchase by CBRE, legal consulting was provided by Herbert Smith Freehills (HSF).

Original story: P3 Press Release

Edited by: Carmel Drake

Madrid Office Space Demanded by Law Firms

25/11/2014 – ExpansionPro

Economical and real estate improvement soaks in the law office market. The latest report by Jones Lang LaSalle (JLL), titled Law Firm Perspective Global 2014 states that the city of Madrid had left the ‘slump stage’ and entered in the ‘growth phase’ – just where it was before the boom.

Thus, as the study explains, rapidly shrinking supply of office space in Madrid makes many lawyers look for another location before the prices rise.

Further on, JLL points out that the most-desired Castellana street (aerial picture) may at most see refurbishment and redecoration, unless any new office project comes up. When it comes to the law firms, the company says they still show a traditionalist approach to picking a representative location, selecting compartmentalized, highest-quality buildings.

Speaking of the global market, the report informs the rental prices are expected to rise in 77% of markets of the Northern America, in 56% of the European ones, and in 43% of markets in Asia. Only 15% of all forecast some advance in tenant conditions or fall in prices.

Madrid Primary Area

The capital-based lawyers offices focus their search on the aforementioned Castellana avenue and areas nearby: the Salamanca neighbourhood in the east, and the Almargo and Zurbano zones in the west.

The smallest firms choose mixed-use and residential buildings. In turn, 96% of the 25 largest are found in one of the areas specified above.

To give a few examples of recent relocations, Hogan Lovells has occupied a 4.608 square meter office at numbers 36-38 Paseo de la Castellana, and White & Case a 1.142 square meter one at number 7 on the same street. Next to change premises was Dentons (number 53), as well as Amat & Vidal-Quadras (21 Ortega y Gasset street) and Martínez-Echevarría (33 Principe de Vergara street). Second Spanish branch of Arochi & Lindner opened at 28 Serrano. Also, Herbert Smith will move its team to a 4.000-square meter old office of Cuatrecasas, Gonçalvez Pereira situated at 43 Velazquez street. Finally, CMS Albiñana & Suárez de Lezo and Bird & Bird are currently eyeing the market in search of new premises.

 

Original article: ExpansiónPro (by Mercedes Serraller)

Translation: AURA REE

Herbert Smith Lawyers Move to Landmarked Palacete de Julio Castanedo, Madrid

14/11/2014 – El Confidencial

Lawyers office Herbert Smith Freehills is going to move to the Palacete de Julio Castanedo building, a more than 100-year old monumental aristocracy house standing at 63 Calle de Velazquez street. It is an old stately property located inside the Salamanca neighborhood in the center of Madrid, in the years 1997-2013 hosting lawyers from another famous office Cuatrecasas Goncalves Pereira.

The British-Australian office has decided to relocate from its current premises at 66 Paseo de la Castellana street (the old Edificio Recoletos building) to a unique property, both in terms of architectural and historical relevance (listed as the heritage of cultural interest).

The building’s owner, mutual insurance company Asemas, will not have to carry out any renovation as the property is already adapted for housing a lawyers office. Presently, the building is listed due its role during the Spanish civil war, serving as the main headquarters of the International Brigades.

At present, Herbert Smith Freehills employs 100 experts in law with experience on such cases as opening of new AVE’s route to Mecca, defense of Spain in front of the International Court of Arbitration or the ‘black cards’ of Bankia controversy.

The move of Herbert Smith takes place after another multi-national lawyers office White & Case arrived in the capital and anchored at 7 Paseo de la Castellana street in an old premises of Banesto. Also, Linklaters (Almagro St.), Perez-Llorca (Castellana St.), Dentons and Hogan Lovells have recently relocated to new offices along irresistibly downtown Paseo de la Castellana. Still there is some space.

 

Original article: El Confidencial (by Carlos Hernanz)

Translation: AURA REE