Tag: high street

Corpfin Injects €83.7M into its Inbest Portfolio During First Year

25 April 2019 – Eje Prime

Corpfin Capital Real Estate has already injected more than €80 million into its various Inbest companies during their first year of operation.

Specifically, Inbest has received capital injections amounting to €83.7 million over the last 12 months. The most recent amounted to €5.3 million for Inbest Prime Assets and was registered in the Mercantile Registry yesterday.

The aim of the increases is to finance the investment operations that the vehicle has planned. The Inbest companies invest in high street buildings to transform them into flagship stores.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

Knight Frank: High Street Investment Soared by 84% to €1.3bn in 2018

31 January 2019 – Eje Prime

The real estate sector has closed another year with a strong performance in the Spanish market. As we approach the end of the real estate cycle in the country, the tertiary sector is continuing to maintain high levels of investment, with growing rents and sustainable yields.

In the retail sector, the investment volume amounted to around €3.7 billion in 2018, according to data from Knight Frank. The main driver of that investment was the high street, where spending soared by 84% to €1.3 billion.

Despite that, the bulk of retail investment in Spain continued to be directed towards shopping centres, which accounted for 54% of the total last year with major operations such as the sale of the Summit portfolio, owned by Sonae Sierra in conjunction with CBRE GI, and of which 87% is now controlled by JT Real Estate.

Moreover, the consultancy firm highlights that interest has increased from investors in shopping centres and isolated retail warehouses in good locations “which allow them to manage last mile delivery points”, said the consultancy firm.

Returns have remained stable across the three segments with yields of 5.25% for retail parks, 4.25% for shopping centres and 3% for high street assets.

Despite the strong performance of the retail sector in 2018, the jewel in the Spanish real estate crown is still the logistics segment. In 2018, investment in logistics assets amounted to €1.255 billion, close to the record set in 2017 of €1.28 billion.

In the last quarter, several large operations were closed, such as Blackstone’s purchase of a portfolio of 55 assets from Neinver for €300 million.

Interest in the segment continues to generate expectations regarding the compression of yields, and so Knight Frank forecasts returns of around 5% this year.

Finally, the office sector has also maintained a robust rate of activity, after the maximums recorded in 2017 thanks to operations undertaken by the Administration. Specifically, Knight Frank estimates that 2018 closed with a gross absorption of 493,000 m2.

Following the trend set in 2017, 52% of the surface area leased was located outside of the M-30, although during the final quarter, it was the secondary centre that accounted for the bulk of the space rented, around 35%.

Prime office rents remained stable at around €30.5/m2/month, and reached maximums of €38.5/m2/month in the most sought-after areas of the business district.

Original story: Eje Prime

Translation: Carmel Drake

Portal de L’Àngel Ratifies is Position as Spain’s Most Expensive Street

14 November 2018 – Eje Prime

Portal de l’Àngel has reaffirmed its position as Spain’s most expensive street in Spain for opening a commercial premise. The busy Barcelona thoroughfare charges an average rent of €3,360/m2 per year, according to the report Main streets across the world 2018, compiled by Cushman&Wakefield. The amount this year has not varied with respect to the previous year.

Meanwhile, Madrid’s Calle Preciados continues in second place in the ranking, with an average rent of €3,240/m2 per year, which represents a 2% increase with respect to prices last year.

Across Europe as a whole, Portal de l’Àngel occupies the 18th position in the ranking of prime high streets in the region, whilst Calle Preciados is positioned at number twenty. In terms of the main commercial thoroughfares around the world, Barcelona’s prime street is placed at number 67 and Madrid’s at number 71.

In the global ranking for 2018, Causeway Bay, in Hong Kong knocked off Fifth Avenue in New York from the top of the podium, with a rental price of €24,606/m2 per year. Retail rents on the New York prime street amount to €20,733/m2 per year. In third place is New Bond Street in London with an average price of €16,071/m2 per year.

Original story: Eje Prime 

Translation: Carmel Drake

Mango Sells its Store on c/Corrida in Gijón & Leases it Back for €30,000/Month

28 October 2018 – El Comercio

Mango has sold the building located at number 28 Calle Corrida, in Gijón, which has housed its megastore in the city since 2015, to a domestic investor for €8 million. The Catalan multi-national textile firm acquired the iconic property, which used to house the former headquarters of Banesto, in 2014. At the time, it paid Banco Santander €6.2 million for the property. The building work for the commercial conversion of the building, which spans a surface area of 1,642 m2, spread over the ground first and attic floor, cost another almost €2 million.

On this occasion, the sale operation has been undertaken as a sale&leaseback deal (…). In other words, Mango has sold the asset on the city’s main high street but will remain there as the tenant, paying a sizeable rent to the new owner: more than €30,000 per month (…).

That is not the only change happening on Calle Corrida over the coming months. The Inditex Group is looking to relocate some of its brands onto the Golden Mile of Gijón despite the shortage of available units (…).

In terms of prices, according to Alejandro López, lawyer and director of the real estate consultancy firm Noxtrum Novotec, “the average rental price is €62/m2/month, with variations ranging from €50/m2/month to €70/m2/month”.

Original story: El Comercio (by M. Moro)

Translation: Carmel Drake

CBRE: Investor Interest in High Street Stores Skyrockets

5 July 2018 – Cinco Días

Stores on the most commercial streets of Spain have become an object of desire for investors in the real estate market. Large funds and insurance companies alike are investing in these types of assets and experts predict that a new record is going to be set in the segment this year.

Investors are expected to spend around €1.1 billion on these types of commercial premises in 2018, according to forecasts from the consultancy CBRE. That figure would exceed the amount invested in high street stores in 2017 by €300 million, equivalent to a growth rate of 36.9%. Of interest are shops on commercial thoroughfares such as c/Preciados and c/Serrano in Madrid and Paseo de Gracia and Portal de l’Àngel in Barcelona. In fact, those two cities accounted for 79% of total investment last year. “Nevertheless, other cities in Spain are on the rise and there is growing demand for investment products in cities such as Bilbao, Valencia, Sevilla and Málaga”, according to the report “The Keys to Retail in Spain”, published by CBRE yesterday.

Investors regard these types of well-located assets as a good option for placing their money, a solid alternative in the context of low-interest rates and because these high street stores perform better (than other commercial assets) in the face of competition from online retailers. Currently, according to CBRE; the returns on these properties amount to 3.5% in Barcelona and to 3.25% in Madrid; in other cities (with more risk), the returns are greater.

The stars of these acquisitions are mainly the large funds. Hines, M&G, AEW, Thor, Union Investment, CBRE GI and Deka. “In 2017, in addition, an insurance company entered the high street sector for the first time: Generali acquired the Pull & Bear store on Calle Preciados in Madrid”, according to the report. Other active players include the Socimis, such as Tander, Ores, and Silicius, which have started to express interest.

In terms of large operations so far this year, in January, the German fund Deka acquired 16 Inditex stores for €400 million. Another significant operation was the acquisition of Mercado de San Miguel by the Dutch fund Redevco, for €70 million.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Massimo Dutti Vacates its Store on Rambla Catalunya 60 (Barcelona)

12 July 2018 – Eje Prime

A new commercial space is available for rent in the centre of Barcelona. Massimo Dutti, one of the chains in the Inditex group, closed the doors to its establishment at number 60 Rambla Catalunya, on the corner with c/Aragón on Tuesday. The Coma-Cros family, which owns the building that is home to the store, has put the property on the market.

According to sources at the chain, the closure of the Massimo Dutti store forms part of the Galician group’s current process to reorganise its network of shops; it is focusing on getting rid of small stores in favour of larger establishments. Massimo Dutti already has another store on the corner of Gran Vía and Rambla Catalunya and another one on Paseo de Gracia, the latter in the former premises of Vinçon.

The building at number 60 Rambla Catalunya is owned by the Coma-Cros family and proceeds from a saga relating to the textile sector, whose company, based in Salt (Girona) shut down in 1999 after 149 years of operation.

According to explanations from sources in the real estate sector speaking to Eje Prime, the premises occupied by Massimo Dutto until now has been put on the market. The asset has a surface area of around 1,065 m2 and its neighbours include Tezenis and Rituals.

The Coma-Cros family channels its investment activity in the real estate sector through the company Fisa 74, which it manages through Fisa Rentals. The company owns residential assets for rent in Barcelona, on Calles Aribau, Bailén, Les Corts, Rambla Catalunya and Gran Vía.

Rambla Catalunya has become one of the most sought-after streets in Barcelona for retail operators. According to data from the consultancy firm CBRE, in 2017, the street accounted for 30% of the prime high street rental operations in Barcelona. Avenida Diagonal, meanwhile, accounted for 25%, followed by Paseo de Gracia with 22%, Portaferrissa with 13%, Pelayo with 7%, and Portal de l’Àngel with 3%.

Since 2014, around fifty operations have been closed on Rambla Catalunya, which has led to the modernisation of the offer on the street. In 2017, operators such as Etam, CKS, Lily and Pangea arrived, amongst others.

According to sources in the sector, the speed at which a new tenant for the asset is found will depend on the price set by the owners, given that price is proving to be the main stumbling block in the negotiations currently underway in Barcelona. According to CBRE, rents for stores measuring between 800 m2 and 1,500 m2 on Rambla Catalunya amount to around €30/m2/month.

Original story: Eje Prime (by P. Riaño)

Translation: Carmel Drake

M&G European Property Fund Expands Portfolio in Spain

29 May 2018 – Real Assets

M&G European Property Fund has expanded its portfolio with the acquisition of industrial and retail assets in Spain.

The €3bn core European property fund, managed by M&G Investments’ real estate arm, said it bought two industrial and two retail assets for €80m.

The two retail acquisitions are H&M Reyes Catolicos in Granada and Gran Via 68 in Madrid.  Both sites, which total 3,668sqm, are leased.

The industrial sites Teka Logistics Platform and a further asset in the Getafe logistics corridor are both in Madrid. The sites have a combined size of 55,092 sqm.

Fund manager David Jackson, said: “Our latest research suggests the Spanish economy will continue to perform well, with its recovery having accelerated in 2017.

“This extends to the commercial real estate market, where we predict average rental growth in both industrial and retail will range between 3% and 4% per year for the next three years in Madrid.”

Jackson said these new acquisitions fit perfectly with our strategy to increase our exposure to Continental Europe by investing in core assets in strong growth markets.

“We see a strong correlation between the level of rental growth and tourist spend in major tourist destinations across Europe; Madrid and Granada are very good examples of this trend.”

Federico Bros, a director of asset management for Spain and Portugal, said: “We have seen strong demand for high street retail in prime locations across Spain. Both of the retail sites we have purchased are in established locations and offer great rental growth prospects.

“The industrial sector in Spain also offers strong rental growth prospects as online activity accelerates and these acquisitions help us diversify our portfolio in key sectors.”

M&G European Property Fund was launched in 2006, with a mandate to invest in a globally diversified portfolio of assets in mature European markets outside the UK.

Original story: IPE Real Assets

Translation: Carmel Drake

IBA Capital Creates a Fund to Invest up to €300M in Spain’s High Street

25 May 2018 – Eje Prime

IBA Capital is gaining strength as one of the investment funds with the most potential in the Spanish market. The company has just launched an investment fund specialising in the retail high street segment, through which it plans to invest up to €300 million in the purchase of commercial assets located on the main streets (high streets) of Spain’s secondary cities, according to Thierry Julienne, founder of the investment vehicle, speaking to Eje Prime.

This new vehicle from IBA Capital will bet on buying commercial premises on streets such as Calle Larios in Málaga and Calle Tetuán in Sevilla, for example. Also on IBA Capital’s radar are assets located in cities such as Valencia, Santander, Coruña, Oviedo and Vigo, amongst others.

“We want to create a portfolio of prime assets – we are not looking for properties to create value, but rather buildings are profitable with operators such as H&M, Mango and chains from the Inditex group as tenants”, explains Julienne, who also added that the stores that may interest the fund should have a surface area of around 1,000 m2.

“It is a safe fund, which has been created with an investment capacity of €100 million, but which may reach €300 million over the next few years”, he says. The type of investor to which this new vehicle from IBA Capital will be directed are “conservative and Spanish”, explains the director. “Family offices, for example, are target investors of this new fund”, he concludes. (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Corpfin Launches a Socimi to Invest €400M in High Street Assets

5 April 2018 – Expansión

The real estate manager Corpfin Capital Real Estate is accelerating its commitment to retail with the launch of a new Socimi through which it plans to invest €400 million in high street assets (retail premises at street level) between now and 2021. €200 million of that amount will proceed from own funds raised and the remaining from gearing.

The President and Founding Partner of Corpfin Capital Real Estate, Javier Basagoiti (pictured above), said that the fundraising process began in February and is expected to conclude in December or whenever the €200 million threshold is reached. In terms of investment timeframes, the manager calculates that the process will finalise in 2021 or whenever the target investment volume of €400 million has been reached.

In terms of the structure, this vehicle will comprise a Socimi from which four other Socimis will depend, in turn, which will be listed on the stock market, a formula known in the jargon as the “inverted comb”. The estimated date for the stock market debut of the four Socimis is September 2019.

Basagoiti explained that the objective is to acquire high street assets with a surface area of between 1,000 m2 and 2,000 m2, which involve, in many cases, the purchase of entire buildings that will require managing and will include mixed uses – residential, offices and hotels -. In any case, the value of the retail element of the asset must always exceed 60% of the total.

Corpfin is holding advanced negotiations to buy assets in País Vasco, Madrid and Valencia at prices ranging between €5 million and €52 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Barcelona’s Prime Office Rents Now Exceed Their 2007 Levels

20 March 2018 – Eje Prime

The rental prices of prime offices in Barcelona are returning to their pre-crisis levels. Specifically, to their 2007 figures. That is the conclusion drawn by Cat Real Estate, the real estate consultancy firm, which confirms that in the most expensive areas of the office market in the Catalan capital, demand has risen again and assets have gotten more expensive.

Specifically, the Catalan company recently closed an operation involving the sale of a 450 m2 office on Paseo de Gracia for €6,500/m2. That transaction shows that in Barcelona, “we have returned to 2007 prices in terms of the value of office purchases in the main commercial areas”, says Nacho Castella, CEO of the consultancy firm.

The buyer of that asset on Paseo de Gracia was an international fund. In this regard, Cat Real Estate explains that “the improvement in consumption has reactivated interest in domestic operations above all from international players keen to take positions on the high street once again”

“Barcelona continues to be an important location for overseas investors”, says Castella. Cat Real Estate forecasts that the real estate market will continue to rise in 2018. During the first quarter of the year, the consultancy has already brokered forty operations involving a volume of real estate assets under management of €480 million.

Original story: Eje Prime

Translation: Carmel Drake