Investment in “Last Mile” Logistics Platforms Takes Off  

14 October 2019 The boom in e-commerce is sparking a revolution in the logistics markets as industry players seek to increase the speed of deliveries. The ability to deliver goods quickly in cities such as Madrid and Barcelona is leading firms to acquire logistics platforms that are located close to city centres. Market watchers refer to the “last mile” – the final delivery of goods to the customer’s home. Thus, the industrial estates that surround Madrid and Barcelona are slowing being repurposed as logistics platforms. The most sought-after are less than 10 kilometres from the most central neighbourhoods.

In an example of the tendency, the Spanish real estate group Allegra recently finalised the sale of a logistics park in the Marconi industrial estate, to the south of Madrid in Villaverde. The logistics platform consists of two warehouses measuring 9,798 and 7,676 square meters, respectively. The US-fund Hines, one of the four most important real estate management companies in the world, acquired the asset for 22 million euros. It was Hines first investment in the logistics sector in Spain.

According to data from the real estate consultancy JLL, though the price of logistics assets in Barcelona are currently higher than in Madrid, €7/m2 on average, compared to €5.5 in the capital, Madrid is seen to have major potential. The allocation of such platforms soared from 185,000 square meters in the third quarter of 2018 to 290,000 m2 this year, an increase of 48%. JLL also estimates that developers are working on another half a million square meters of platforms in Madrid, compared to 182,000 square meters in Catalonia.

Original Story: ABC – Adrián Delgado

Adaptation/Translation: Richard D. K. Turner

Hines Invests in Two Last-Mile Logistics Assets in Villaverde

8 October 2019 Hines, the world’s fourth-largest real estate fund by volume of assets under management, has finalised its first acquisition in the logistics sector in Spain, as the growth of e-commerce continues to roil the market.

The US fund has acquired two last-mile logistics assets in Villaverde, on the outskirts of Madrid, from Allegra. Allegra hired Knight Frank to lead the sale of a portfolio consisting of two warehouses in Villaverde and a plot of land in San Fernando de Henares. Hines paid 20 million euros.

Both warehouses have a 10-year leasing contract with the logistics operator Ontime. The two units have a surface area of ​​9,798 and 7,676 square meters, respectively.

Original Story: El Confidencial – Ruth Ugalde / Elena Sanz

Adaptation/Translation: Richard D. K. Turner

Pryconsa and SVPGlobal in Talks to Acquire Land from Atlético de Madrid

30 July 2019 – Richard D. K. Turner

Pryconsa, the Colomer family’s developer, and SVPGlobal, which owns the Benidorm highrise, are bidding to take the last of the three plots being sold by Atlético de Madrid’s Operación Calderón. The first two plots of land went to a joint venture by Azora and CBRE GI, in a deal worth just over 100 millions of euros.

Stoneweg’s partnership with Hines had been seen as likely to win the bidding for the last plot of land, but an unexpected offer from Vivenio and the Dutch fund APG surpassed their bid at the last moment. Talks with Vivenio subsequently broke down when the firm was unable to secure the necessary financing.

Somewhat late to the party, Strategic Value Partners (SVPGlobal) and Pryconsa have both also now also expressed interest in submitting bids. The firms are analysing the asset, which Atlético de Madrid is selling for €3,150/m2. Bids are expected this week.

If neither of the two manages to reach an agreement with the football club, Atlético de Madrid is expected to go back to Stoneweg-Hines and Vivenio for final proposals, looking to finalise a deal shortly.

Original Story: El Confidencial – Ruth Ugalde / Elena Sanz

Henderson Park and Hines Acquire Land in Barcelona’s 22@ for New Student Residence

19 July 2019 – Richard D. K. Turner

Henderson Park and Hines have acquired several plots of land in the 22@ area of Barcelona, ​​ to build a 350-bed student residence, a 3,610-m2 office building and a 176-m2 store. The project is the partner’s third development together and is expected to be ready in time for the 2020 student year.

Original Story: Expansión – Rocío Ruiz

Hines Negotiates Rental of its Jewel on Paseo de Gracia with Nike & Victoria’s Secret

25 March 2019 – Eje Prime

The US firm Hines is holding negotiations with Nike and Victora’s Secret to lease the retail premise in the former headquarters of Banco Popular.

The investment fund acquired the property at number 17 Paseo de Gracia for €90 million in March 2017, and, after completing a €10 million renovation project last year, is going to lease the building’s office space to the coworking group WeWork.

The two retail brands are competing to occupy the prime store, which has a surface area of more than 2,000 m2 and which is being marketed by CBRE.

Hines’s portfolio in Spain comprises fifteen assets, of which ten are located in Barcelona and the rest in Madrid.

Original story: Eje Prime (by I.P. Gestal & P. Riaño)

Translation/Summary: Carmel Drake

Zurich Buys an Office Building in Plaza Cataluña from Sum Capital Spain

25 October 2018 – Eje Prime

The Zurich Group has assured itself of a space in the heart of Barcelona. The Swiss group has purchased an office building in Plaza Cataluña from Sum Capital Spain, the property developer behind OneCowork, a chain of co-working offices that will remain as the tenant of the property, according to explanations provided to Eje Prime by sources close to the operation, whose consideration has not been revealed.

The asset, located at number 9 Calle Estruc, between Plaza Cataluña and Portal de l’Àngel, has a surface area of 1,648 m2. The property is distributed over five storeys with a terrace (and an average surface area of 250 m2 per floor). It will be completely occupied by the coworking chain created by Uri Nachoom, the sole administrator of Sum Capital Spain.

Nachoom is a familiar face in the Catalan capital’s real estate sector as the former co-owner of the Salamanca Group holding company, the firm that relaunched the Marina Port Vell marina and which guided the growth of OneCowork, a company that is going to invest €150 million in the opening of forty centres all over Europe by 2023.

Now, the Israeli businessman has decided to sell this property under the sale&leaseback method, taking advantage of the interest in the Spanish office market from large funds and insurance firms. The operation has been signed through REX Spain, one of the Zurich Group’s subsidiary companies, and has been advised by the real estate consultancy JLL (…).

It’s not all about the 22@ district in Barcelona 

The office market in Barcelona is not all about the 22@ district. Although the city’s technological hub accounts for most of the current investments, Zurich’s purchase of the OneCowork building highlights the interest that the city centre is continuing to generate. Other large players such as Hines, Emesa and Pontegadea have benefitted in recent months from the interest of some companies and startups to work in the heart of Barcelona.

At the beginning of October, WeWork leased two spaces in the centre of the Catalan capital (…).

Also, since May, the real estate company owned by Amancio Ortega, Pontegadea, has been the landlord of Lidl in its building in Plaza Cataluña, where the Zara flagship store is also located. In total, the German supermarket chain leases 3,155 m2, distributed over four storeys.

Original story: Eje Prime (by J. Izquierdo & B. Seijo)

Translation: Carmel Drake

WeWork Leases 2 New Office Spaces in Barcelona

4 October 2018 – Eje Prime

The US group, WeWork, is continuing its conquest of Spain and is getting ready to make its mark in the centre of Barcelona. The company, which specialises in flexible office spaces, will add a new complex to its portfolio in the Catalan capital after signing the lease on a building. The Corner, located at number 444 Avenida Diagonal, owned by Emesa. In parallel, the group is finalising the lease of the former headquarters of Banco Popular on Paseo de Gracia, in a property controlled Hines.

The building on La Diagonal is owned by Emesa, the investor group owned by Emilio Cuatrecasas, and used to house the headquarters of the law firm Cuatrecasas. The Corner, located at the intersection of La Diagonal and Paseo de Gracia has a surface area of 3,400 m2 distributed over seven floors (plus a basement), with an average surface area of 400 m2 each.

Emesa has owned the property on La Diagonal since 2017, when it paid €35 million to acquire it. The asset had been on the market since the beginning of the year after Cuatrecasas abandoned its traditional location to move to the 22@ district. Emesa had considered the possibility of leasing the building to several tenants, but in the end, it will be occupied in its entirety by WeWork.

In the meantime, the coworking giant is finalising another major operation. The company is close to signing the lease on the former headquarters of Banco Popular on Paseo de Gracia, a building that has been owned by Hines since March 2017, which paid €90 million for it.

Spaces, one of WeWork’s main rivals, expressed interest in that building in July. Nevertheless, sources at the company indicate that its operation never materialised. The building, located at number 17 Paseo de Gracia, has a surface area for offices and a retail premise, and has just been renovated by its owner.

With these moves, the US giant is taking positions in the centre of Barcelona; until now it had focused its presence on the 22@ district. In May, WeWork leased 4,500 m2 of space in the WIP building, owned by the Swiss fund Stoneweg.

That building is located next to the first complex that the group opened in Spain, in the Luxa building on Calle Tánger of the technological district. In Madrid, WeWork operates a space at number 43 Paseo de la Castellana, another at 77 on the same street, and a third at number 27 Calle Eloy Gonzalo.

Companies specialising in the management of these types of work spaces are revolutionising the office market all over the world. WeWork and Spaces are just two of the largest players on the global stage and both arrived in Spain in 2017.

Original story: Eje Prime (by Pilar Riaño & Jabier Izquierdo)

Translation: Carmel Drake

Investors Unleash a Buying Frenzy on Madrid & Barcelona’s High Streets

28 August 2018 – Cinco Días

E-commerce is having an unexpected effect in that it is boosting the main high streets of Madrid and Barcelona. A number of operators are opening flagship stores to compete with online sales, whilst at the same time, there is a great deal of interest from investors wanting to acquire these types of properties since they represent assets with high returns.

During the first six months of the year, the main high streets of Madrid and Barcelona sparked a buying frenzy amongst real estate investors. They spent €700 million on the purchase of stores during H1 – that figure was 44% higher than they spent during the whole of 2017, according to the High Street report published by the consultancy firm Savills Aguirre Newman.

In an environment of low returns on other investment alternatives, given the context of low interest rates and enormous liquidity in the market, significant capital flows are being channelled towards property. Within the sector, the high street segment (stores on the most commercial streets) of Madrid and Barcelona are attracting investors.

The yield or return in the best commercial neighbourhoods of Madrid and Barcelona amounts to 3.25%, and in secondary areas, that figure rises to between 4.5% and 4.75% (the better the area, the higher the cost of operations and so the lower the returns). In large towns, the yield on prime stores reaches 4%.

Institutional investors (large real estate and pension funds) have been the most active players, accounting for 76% of all operations, according to Savills Aguirre Newman, with the remaining 24% involving insurance companies, private firms, family offices and Socimis (…).

“Institutional investors continue to focus on the best commercial thoroughfares of the large cities, where the purchase tickets typically exceed €20 million”, says the study. Meanwhile, private investors are more active in opportunities in the cities in which they reside, where they are local experts.

Madrid has accounted for a large number of the operations seen in recent months, with the acquisition by the fund Hines of Preciados 13 (..) and Redevco’s purchase of the Mercado de San Miguel. Meanwhile, AEW bought the Mercado de Fuencarral; Generali acquired Preciados 9; Thor Equities snapped up Gran Vía 30, and M&G Real Estate purchased 68 on the same street. Nevertheless, a lot of the investment this year has been due to one transaction involving a portfolio of Inditex stores, which were acquired by the German fund Deka for €400 million.

For investors, another attractive feature of the Spanish market is the improvement in the rents that tenants are paying, which have clearly risen in recent years since the crisis. Prices on Calle Preciados, for example, have risen from €270/sqm/month two years ago to €277/sqm/month in 2018. Gran Vía has also seen a €10/sqm/month increase to €240/sqm/month, according to data from the consultancy firm.

In Barcelona, prices on the most expensive street in Spain, Portal de L’Angel, have grown by 5.5% during the same period to €285/sqm/month. Nevertheless, prices on Paseo de Gracia are rising the fastest, by 15%, to reach €260/sqm/month (…).

One of the major changes that is being seen is the concentration and opening of large flagship stores in the centre of the two cities through which the operators are seeking to counter the strength of online shopping, by offering what they call a shopping experience (…).

In this vein, as Cinco Días revealed last week, the Chinese technology firm Huawei is going to open a flagship store on Gran Vía 48 in Madrid, in the former C&A store. On the other hand, the Sfera brand, owned by El Corte Inglés, is leaving Gran Vía 30, given that it has recently reorganised its business in the centre of the city to focus on its larger and recently renovated megastore on Calle Preciados.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Henderson Park and Hines Aquire Barcelona Student Housing Scheme (ES)

Monday, 13 August 2018

Henderson Park, the European real estate investment platform founded by Nick Weber, and Hines have completed the acquisition of a site to develop a 750-bed student housing project in Barcelona, Spain. This is Henderson Park and Hines’ second student accommodation investment together following an earlier project in Lancaster, UK, and forms part of their joint venture to pursue value-added opportunities in the sector across Europe. The purchase price was not disclosed.

Occupying half of a city block in the 22@ Innovation District on the edge of Barcelona’s desirable neighbourhood of Poblenou, the joint venture’s latest project will see the development of a 20,000m², 750-bed student housing scheme, just 15 minutes’ walk from nearby university campuses. The JV is targeting to deliver the scheme for the 2021/2022 academic year.

The finished scheme, ‘Aparto Diagonal Mar’, will incorporate a range of shared amenities including a swimming pool, gym and sports facilities. Hines’ in-house operating platform, Aparto, will manage the asset once operational, to ensure an enhanced experience for its student residents.

Nick Weber, Founding Partner of Henderson Park, said: “The Spanish market, and Barcelona in particular, presents highly attractive supply and demand dynamics for an investment into the student accommodation sector, and we’ve identified a clear appetite for the kind of high-quality purpose-built product we plan to deliver in this transforming neighbourhood of Barcelona. We are pleased to further extend our partnership with Hines as student housing is an asset class with compelling underlying fundamentals across a range of different European cities.”

Lars Huber, CEO of Hines Europe, said: “The fundamentals of Barcelona’s student housing market are very strong, with an undersupply of quality accommodation, despite the popularity of its universities. 22@ Innovation District is set to provide a memorable living experience and is the ideal location for our Aparto management platform, with its strong placemaking and community focus. This investment demonstrates our commitment to the student housing sector as we continue to look for opportunities in core cities across the UK and Europe with growing and dynamic student populations.”

Original Story: http://europe-re.com/henderson-park-and-hines-acquire-barcelona-student-housing-scheme-es/65522

 

Hines Acquires Mediapro’s HQ in 22@ District for €90M

19 July 2018 – Eje Prime

Hines has scored a goal in Barcelona’s 22@ district. The US fund has completed the purchase of the Imagina building (owner and tenant of the asset) for €90 million. The property is located at number 177 Avenida Diagonal in the Catalan capital.

The complex, which spans more than 50,000 m2 spread over two properties, is owned by the company Mediacomplex, in which Imagina, the parent company of Mediapro, holds a stake, and the Town Hall of Barcelona.

Imagina holds a 66.7% stake in this office complex, which is located very close to Torre Glòries, owned by Merlin Properties, and the two Luxa buildings, owned by Catalana Occidente and leased to Amazon and WeWork.

Hines is strengthening its presence in Barcelona with this purchase. Last year, the US fund purchased the Popular’s headquarters on Paseo de Gracia for €90 million, which it is going to convert into a mixed-use building containing 5,000 m2 of office space and 3,000 m2 of premises for commercial use.

Similarly, this operation reinforces the interest from investors in the 22@ district. In recent months, the technological district in Barcelona has welcomed the arrival of tenants of the calibre of King, the creator of Candy Crush, and Glovo, which is going to move its offices to the Catalan capital to a facility measuring 1,200 m2.

Nevertheless, the star building is Torre Glóries. The iconic building is going back on the market this year after a comprehensive renovation and has already welcomed technology giants such as Facebook and Oracle, which has confirmed its entry into the property this very week. Hines is one of the largest funds in the world with more than USD 100 billion in assets.

Original story: Eje Prime

Translation: Carmel Drake