Tag: hotel

Riu Closes the Sale of Edificio España’s Commercial Space to Corpfin

1 February 2019 – Preferente.com

The 15,000 m2 of commercial space in Edificio España now has an owner. The party in question is Inbest Real Estate, the investment vehicle owned by Corpfin Capital Real Estate, which has signed a purchase agreement with the hotel chain Riu Hotels & Resorts, the owner of the property.

In a statement addressed to Preferente.com, the hotel chain explained that this agreement will enable the opening of five flagship stores for retail operators, including restaurant and textile firms, which will complement the opening of the new Hotel Riu Plaza España. “In that way, we will provide an even greater boost to the area through a tourist, leisure and commercial offer”, said the chain (…).

“We believe that having Corpfin Capital Real Estate as an ally to launch the retail space in Edificio España is the best way of getting the most out of the property”, said Luis Rui (pictured above, left), CEO of Riu Hotels & Resorts. Meanwhile, Javier Basagoiti (pictured above, right) Managing Partner of Corpfin Capital Real Estate, highlighted that their idea is “to choose the operators that best reflect the philosophy of the building, in coordination with Riu, respecting the hotel activity and configuring the premises towards the creation of flagship stores for first-rate operators” (…).

Original story: Preferente.com 

Translation: Carmel Drake

The Plans Progress for Málaga’s La Térmica Site

9 January 2018 – Málaga Hoy

The real estate operation that is going to transform the plot of land that used to house the thermal power plant in Málaga capital is advancing through all of the administrative procedures that need to be resolved for the organisation of the 874 homes, office buildings, hotel and retail spaces that are being planned for one of the most strategic blocks of land in the city.

So much so that sources close to the initiative, boosted by the international investment fund Ginkgo, have reported that the final proposal for the Special Plan for the Internal Renovation (Peri), the document that will form the basis of the future development, has already been sent to the Urban Planning Department.

That is a critical step after the previous plans were blocked by the courts. Even before receiving a definitive legal ruling, the property developer, which shares ownership of almost half of the urban development of the sector with Espacio (the other half is in the hands of the Town Hall), opted to activate a comprehensive review of Peri, in an attempt to accelerate the process.

Once in the hands of the municipal technicians, the Town Hall will have to validate the proposed plans initially, before subsequently opening up the analysis to a series of sector bodies, such as the General Directorate of Coasts, Civil Aviation, the Environment, amongst others.

The design of the buildings was awarded by Ginkgo to the French architecture studio Francois Leclercq. Unlike the model for the towers that are going to be constructed on an adjoining plot (…), the vision proposed by the French designers involves low-rise properties and a sustainable model in terms of the environment.

The studio itself highlights the strategic value of the space on which the buildings will be constructed, describing it as “an area that is in full mutation and which is marked by an industrial past”, which is reflected in the maintenance of the chimney (…).

Original story: Málaga Hoy (by Sebastián Sánchez)

Translation: Carmel Drake

BNP Paribas: RE Investment Rose by 8% in 2018 to €11.6bn

9 January 2019 – El Periódico

The volume of annual investment in the Spanish real estate sector amounted to €11.63 billion in 2018, which represented an increase of 8% compared to 2017. If we add the corporate operations with underlying real estate to that volume, then the figure increases to €19 billion, which represents an investment record since the end of the crisis, according to the latest report from BNP Paribas Real Estate in Spain. The report highlights that interest from investors in the Spanish real estate sector in 2018 was at its highest level for a decade.

During the fourth quarter of the year, the volume of direct investment in real estate assets – offices, logistics warehouses, hotels, retail and residential – amounted to €3.7 billion in total, which represented an increase of 58% YoY. The evolution of investor activity, therefore, exceeded the expectations of the sector at the beginning of the year.

“The good times that the fundamentals of the market are enjoying, with occupancy levels at maximums and rents that are stable or expanding in the most consolidated markets, together with the surplus capital and the limited alternatives offered by other financial products, have fostered a frenetic pace of activity in the investment market”, explains the report.

By type of asset, the commercial sector (retail) was the star of the year. The volume invested in commercial assets during 2018 amounted to €4.28 billion, which represents an increase of 23% compared to 2017. During the fourth quarter, investment reached €1.26 billion, and so the sector achieved a quarterly market share of 35%. The largest operation during the final quarter of the year was the purchase of a portfolio of three shopping centres – Max Center, Gran Casa and Valle Real – by Sonae Sierra and Perter Varbacka for €485 million.

Commercial yields

Demand from investors for high street retail assets was high, given that they consider them to be a very stable product. Similarly, there was a high interest in land for the development of retail parks, in light of the scarce supply of this type of asset. The yields continued at 3.00% for prime premises; between 5.00% and 5.25% for prime shopping centres; and at 5.75% for prime retail parks.

In terms of the office market, the investment volume recorded during the fourth quarter was €986 million taking the total figure for the year to €2.228 billion. That represented a slight YoY decrease of 4%. The shortage of products for sale meant that fewer operations materialised in 2018 than in 2017. The prime yield in the office market remained at 3.25% in Madrid and 3.50% in Barcelona.

The logistics market continues to rise. The increase in e-commerce and the strong performance of the consumer sector and the economy, in general, have encouraged investment in this type of asset. The investment volume registered during the fourth quarter of the year amounted to €400 million, whilst the total figure for the year (€1.3 billion) represented a new investment record, and an increase of 30% compared to 2017. The shortage of products, combined with the high investment pressure resulted in a considerable adjustment in yields, which amounted to 5.30% in the prime logistics market in the fourth quarter of 2018.

Investors

Investment funds were the great stars of the market, representing 61% of the total volume transacted in 2018. Socimis have been very present in the investment market, both on the buy and sell sides in the main land transactions to develop new products. Finally, the presence of family offices (private investors) stood out, with acquisitions, in general, for volumes of less than €50 million.

Alternative investments remained in the spotlight of investors, who were mainly attracted by student residences, clinics and nursing homes for the elderly. The cumulative volume invested in those types of assets amounted to €600 million in 2018.

Original story: El Periódico (by Max Jiménez Botías)

Translation: Carmel Drake

Pierre & Vacances to Increase Revenues in Spain by 50% in 3 Years

28 November 2018 – Expansión

Pierre & Vacances, the vacation apartment, hotel and resort chain, wants to strengthen its presence in Spain with a growth plan over three years, which will allow it to achieve 80 establishments in Spain and Portugal and increase is turnover in the region by more than 50% to around €100 million by the end of 2021, compared to its forecast revenues of €65 million for 2018 and €85 million for 2019.

The French company, which has added six new establishments to its portfolio this year, will add another three properties next year, taking the total to 59 complexes and 5,000 apartments by the end of 2019.

Its plans for 2021 include having 80 tourist complexes in Spain and Portugal, containing between 6,000 and 6,500 units, according to Ghislain d’Auvigny, Director General of Pierre & Vacances in Spain, talking to Expansión.

One of the most recent openings includes Madrid, where the company has just incorporated apartments in the Eurobuilding 2, a building with 123 apartments at number 69 Calle Orense. This represents Pierre & Vacances’s debut in the Spanish capital and it joins other urban complexes that the company already has in Sevilla and Barcelona.

Pierre & Vacances, which arrived in Spain in 2005, employs around 1,200 workers in the country during the high season. “We will continue to take advantage of opportunities and to reach agreements with owners for the management, rental and marketing of complexes”, said D’Auvigny.

In parallel, the company is going to take advantage of purchase opportunities if it finds the appropriate assets, although it will subsequently sell them to third parties, be they funds or individuals, to maintain its policy of not owning any assets itself.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Baraka Triggers the Immediate Suspension of the Building Work at Edificio España

23 November 2018 – El Economista

The magistrate of the Court of First Instance nº 67 of Madrid has ruled that the building work on Edificio España in Madrid be suspended immediately due to the risk alleged by Baraka before that legal body.

Baraka, the company owned by the businessman Trinitario Casanova, filed a lawsuit before the courts of Madrid in August requesting the suspension of the building work on the hotel in Edificio España, in Madrid, which is now owned by the hotel chain Riu. The hotel firm purchased the iconic building in Plaza España from Baraka last year.

Baraka is claiming in the courts that the commercial premises inside the building, spanning 15,000 m2, belong to it and that Riu is refusing to sign across the deeds.

The hotel group Riu indicates that it has not yet received any notification to suspend its building work, according to sources speaking to El Economista. The hotel chain clarifies that Baraka does not have any contract with purchase rights or to register on public record the commercial space in Edificio España. Indeed, they note that at the time of Riu’s purchase of the building, Baraka signed “a non-representative mandate contract to search for investors for the commercial area, which it has failed to do”, despite repeated requests from the hotel chain.

The firm points out that a sales agreement has been reached with Corpfin Capital Real Estate for the commercial area, which was signed in September and which is on the verge of being executed. Riu is threatening to sue Baraka for damages and losses if the building work at Edificio España is affected. The hotel chain is going to invest between €380 million and €400 million in the project, including the purchase of the building (around €272 million) and its renovation.

The future hotel will be a four-star property and will have 589 rooms, 15 meeting rooms and almost 3,000 m2 for social and corporate events. The inauguration of the hotel is planned for September 2019 and the property will operate under the brand Riu Plaza.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Marathon Buys an Office Building & a Hotel in Madrid for c. €30M

21 November 2018 – Expansión

The US investment fund Marathon is increasing its commitment to Spain with the acquisition of a mixed-use complex of buildings in Madrid, which houses an office block and a four-star hotel managed by the Mallorca-based chain Barceló.

Specifically, the US investment fund has closed an agreement with Credit Suisse Real Estate, owner of the asset until now, to acquire the complex for around €30 million, according to market sources speaking to Expansión.

The complex has a total surface area of 14,000 m2 and is located at numbers 19 and 21 Calle de Julián Camarillo in Madrid, one of the most established office districts in the east of the capital, a few minutes by car from the Ifema exhibition centre and Adolfo Suárez-Barajas airport.

The operation has been advised by the real estate consultancy firm Knight Frank.

The complex includes an office building, with a surface area of more than 9,100 m2, occupied by several tenants: Adquira, the company specialising in e-commerce; Lebara, the telephony company; Ixion, the robotics and drone firm; and Norgine, the pharmaceutical business, amongst others.

The complex also has retail and leisure areas and indoor and outdoor parking.

In addition, the asset houses a four-star hotel, managed by Barceló Group, now under the Occidental Hoteles brand.

The Hotel Occidental Madrid Este – previously known as Barceló Torre Arias – has 108 rooms, four of which are junior suites, as well as a gym, sauna and restaurant. The establishment also has two meeting rooms with capacity for up to 80 people.

With this operation, Marathon is strengthening its presence in the Spanish real estate market. The US fund is, together with Attestor, Bank of America Merrill Lynch, Barclays, Deutsche Bank and JP Morgan, one of the minority shareholders of the property developer Vía Célere, which is controlled by Värde (75%).

Moreover, the investment fund acquired the Bahía Azul shopping centre in Málaga in 2016.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Azora & Oquendo Capital Join Forces to Finance the Real Estate Sector with €300M

6 November 2018 – El Confidencial

The fund manager Azora, created by Fernando Gumucio and Concha Osácar, and Oquendo Capital, the Spanish private debt fund manager led by Daniel Herrero and Alfonso Erhardt, are joining forces to facilitate access to alternative financing for companies in the real estate sector. The alliance is creating a “direct lending” real estate platform, which is going to launch its first fund with €300 million destined to financing debt and all types of operations related to real estate, as well as to direct management mandates for individual operations based on their characteristics.

That is according to confirmation provided by sources close to the agreement speaking to El Confidencial. They indicate that any project worth more than €4-5 million will be considered, in both Spain and Portugal, ranging from the purchase of land and logistics warehouses, to the repositioning of hotel assets and subordinated debt, an area in which Oquendo Capital has a lot of experience, given that it already has three funds dedicated specifically to financing corporate debt.

The main objective of the platform promoted by Azora and Oquendo Capital is to cover a market segment that is looking for alternatives to debt to complement traditional bank financing, given that in the midst of the real estate recovery, access to financing to launch real estate project is continuing to represent a real handicap for many companies in the sector.

According to the sources consulted, the investment strategy that the platform proposes will focus on offering flexible financing solutions for small and medium-sized real estate operations, with a moderate risk profile, accessing those transactions in a unique way based on the combination of the successful trajectories of Azora and Oquendo in the real estate and alternative financing markets.

Alternative financing is taking off

With this fund, three vehicles have now been created in the last three months to facilitate access to financing in the Spanish real estate sector. The first to leap to the fore was Ibero Capital, a platform launched by two former directors of Sareb, Walter de Luna and Luis Moreno, with €400 million on the table. A few days ago, that firm closed a €35 million financing arrangement with a property developer in Málaga. The money will serve to pay for three plots in Mijas for the construction of 147 homes, as well as to repay part of its bank debt and finance some of the construction. The remuneration of this operation involves a fixed cost component plus a variable element, depending on the final result of the project.

Behind that fund is Oak Hill Advisors, one of the largest investment funds in the world, with more than USD 30 billion in assets under management, and which has invested more than €1 billion in Spain since 2005, primarily in real estate projects. According to the founders of Ibero Capital, that operation in Málaga will be followed by three or four more operations over the next few months.

Also, three months ago, Colliers International received the exclusive mandate from MCAP Global Finance, the London subsidiary of the manager New York Marathon Asset Management, to manage €200 million dedicated to the financing of buildable land purchases. The firm led by Mikel Echavarren is finalising its first financing deal amounting to €3 million. In its case, unlike with Ibero Capital, the financing will be restricted to land purchases only.

The financing of real estate projects by non-banking entities is an established market in countries such as the US, the UK and France, but not in Spain, where it is still in the development phase. Investment in these types of projects is characterised by its attractive profitability/risk profile with a focus on capital preservation and regular distributions in the form of interest (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

B&B to Open the First Hotel in Valdebebas

29 October 2018 – Expansión

The hotel chain B&B Hotels – owned by the fund PAI Partners – is arriving in Valdebebas with the objective of opening the first hotel in that urban development to the northeast of Madrid in 2021.

To this end, the French chain has signed an agreement with Filasa, the owner of the land on which the establishment will be built, for the rental of the plot in Valdebebas for a minimum period of 10 years.

Two buildings are going to be constructed on the plot, which has a buildable surface area of 8,000 m2. The first, which will span a surface area of 4,400 m2 and be shaped in a stepped-structure, will house the 150-room hotel. The second, which will span 3,200 m2 and take the form of a cube, will be used for offices. This property will also have a premise measuring 400 m2.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Generali Buys Calle Arenal, 4 in Madrid

24 October 2018 – Expansión

Yesterday, Generali Real Estate, the real estate arm of the Italian insurance firm, announced the purchase of a property at number 4 Calle Arenal in the centre of Madrid. Dating back to the second half of the 19th century, the building is home to a Petit Palace boutique hotel.

With eight floors and a total surface area of 3,600 m2, the building includes commercial premises at street level and on the first floor, whilst the hotel offers its services on the upper floors. This is the second operation that Generali Real has undertaken in the area following its purchase of the property located at Preciados 9 early this year, which was historically occupied by El Corte Inglés. That building was chosen by Pull&Bear for its largest store in the world after Generali’s manager renovated the entire property.

In the operation, Generali has been advised by DLA and Arup, and the vendor by CBRE. Neither the name of the former owner nor the amount of the consideration paid have been revealed. In Spain, Generali Real manages a local portfolio, primarily in Madrid and Barcelona, whose value exceeds €1 billion.

Original story: Expansión

Translation: Carmel Drake

Greystar to Manage Bilbao’s New 351-Bed Student Hall Atop the Bus Station

31 August 2018 – El Correo

The future Termibus building in Bilbao will mark a before and after in the neighbourhood of Basurto. It will turn the area on its head, in conjunction with the other major urban planning operations being undertaken in the provincial capital. And not only because it will put an end to the problems that the buses have caused the neighbourhood for decades (…). But also because its placement underground will enable the construction of a 9,000 m2 square and a sophisticated 11-storey building, containing a hotel, a hall of residence for students and a shopping centre.

And it is getting increasingly closer because the terminus project, which must be finished within less than a year, is progressing at full speed. (…). After digging the hole, now it is time to build the four below-ground floors, one by one. The two lower floors will house a rotating parking lot with 528 spaces and the upper two floors will contain the aforementioned intermodal station. At the same time, the names of the tenants that are going to manage the property’s services are starting to be announced.

The first to be made public is Greystar. The global leader in the management of student residences and rental properties in Spain has just acquired the educational accommodation complex from the business group Amenabar, chosen by the Town Hall of Bilbao to build the project as a whole. And it has done so after fighting off competition from top-level international firms such as Global Student Accommodation (GSA), Corestate, AMIRA and The Students Hotel (TSH).

The Basque property developer and construction firm will take care of everything. According to sources at the company, “we are going to construct the building, in an L-shape, and we will allocate the right-hand wing to a student residence”. Having completed it in its entirety “down to the last detail in terms of decoration”, it will hand over the facilities with all of the licences so that the manager (through Resa, its subsidiary in Spain) may open its doors in August 2020.

Shopping centre on the lower floors

The agreement reached seeks to make the most of the available space on the eleven floors of the establishment to provide 306 rooms. Most will be individual rooms, although there will also be some doubles, so that the total number of beds will be 351. “All of them will have a bathroom and an equipped kitchen, and 10 will be adapted for users with reduced mobility”, say the sources (…).

The retail space, which will span two floors and will occupy 7,500 m2 in a privileged area of the city, next to the new Garellano skyscraper, has also been put on the market. Amenabar is already receiving offers from a variety of interested parties, from supermarkets to gyms, to shops selling sportswear, textiles, household items, technology, lottery and hospitality “because a large cafeteria is planned to overlook the square”. The business group is interested in enhancing the diversification of the shops “because this area is going to be strategic in nature with more than 10 million people passing through it each year, including Termibus travellers and metro users, who will have a direct connection to the intermodal station”.

The hotel is the other pillar that will complete the comprehensive offering of the Termibus project. The left-hand wing of the building will be dedicated in its entirety to that activity. And, although the deadline for the tender that the Amenabar group has opened to chose the best candidate does not close until the end of October, the avalanche of proposals received is exceeding all forecasts. Sources at the company acknowledge that its privileged location, in the centre of Bilbao, right next to the San Mamés football stadium and with “unbeatable” transport connections, has sparked interest amongst operators from all over Spain and, above all, those that have great international appeal (…).

Original story: El Correo (by José Domínguez)

Translation: Carmel Drake