El Corte Inglés Sells Building In Sol To Thor For €65M

24 December 2015 – Expansión

The operation has been closed for almost €65 million and reflects ECI’s strategy to selectively divest real estate assets to reduce its debt.

El Corte Inglés is continuing with its policy to selectively sell its real estate assets to reduce its debt. The company led by Dimas Gimenos has sold one of its properties in the Puerta del Sol in Madrid to the US fund Thor Equities for almost €65 million, according to market sources.

The building, which houses a bookstore, is located in one of the most important retail areas in the capital (on the corner with Calle Preciados) and has a total surface area of 1,344 m2 spread over three floors. El Corte Inglés has agreed with the fund Thor that it will continue to occupy the building as the tenant for one more year.

The department store group has a large portfolio of properties, worth almost €15,800 million, according to appraisals performed by Tinsa in 2014. Two years ago, it begin its new policy to divest its non-strategic assets with the sale of a building located next to the Plaza de Cataluña to the fund IBA, which also acquired another property from ECI on Calle Preciados in Madrid a few months later.

But not all of its activity involves property sales. Last year, the company acquired a plot of land that Adif had put up for sale on the Paseo de la Castellana. The plan is to expand the shopping centre that the distribution group has in that area, which is the great jewel in its asset portfolio.

The fund Thor made its first investment in Spain in September, with the acquisition of a property, also in Puerta del Sol, worth €9.5 million, which was previously owned by Kutxabank. It has also purchased number 16 Calle Fuencarral. In all three operations, Thor has been advised by the real estate consultancy firm Knight Frank.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

IBA Capital Partners Acquires an Office Property of Tripark Business Park in Las Rozas (Madrid)

9/01/2015 – Mis Oficinas

IBA Capital Partners has bought the A-Building of the Tripark business park in Las Rozas. The property has a 10.480 sq m gross leasable area (GLA) above the ground level and 407 parking spaces. Moreover, it holds a LEED Gold certificate and it is fully let to supermarket chain Dia.

Following the purchase, IBA Capital Partners closes the first investment tranche of €400 million, comprising assets like the headquarters of Enagas, as well as the central premises of Union Editorial and the Ministry of Foreign Affairs. Also, in its portfolio one may find the ABC Serrano shopping mall and a property of 8.000 sq m of GLA leased to El Corte Ingles in Plaza de Cataluña Square, Barcelona.


Original story: Mis Oficinas

Translation: AURA REE

IBA Capital Buys Enagas´s Central Office in Madrid For €35 Mn

1/08/2014 – MisOficinas

The Spanish investment fund has acquired a 17.000 square meter office building for €35 million paid to KanAm. The German fund bought the property in 2005 for €45.5 million.

IBA Capital can now add the new building to its portfolio consisting of six properties located in Madrid and Barcelona:  the ABC Serrano shopping center, the headquarters of Unedisa, El Corte Ingles´s buildings on the Plaza de Cataluña square and the Preciados street and the Torres Agora.


Original article: MisOficinas

Translation: AURA REE

IBA Capital Relaunches ABC Serrano Shopping Center

Target: make ABC Serrano, one of the best situated commercial complexes of Madrid, up. This is what IBA Capital is planning for the following year to include in its to accomplish list. The great patrimonies´manager closed the purchase of one of the few shopping centers existing in the Milla de Oro of Madrid.

The company, founded by Jesús Valderrama, Sergio García and Thierry Julienne, acquired the center after disbursment of 60 million Euros and negotiations with its owner, Reyal Urbis real estate firm (in the arrangement started in February) and with the entity owning the property, Hypothe-kenbank (formerly known as Eurohypo). At the same transaction, IBA also bought an office building located at number 25 of Avenida de San Luis in Madrid (premises of Unidad Editorial, Expansión´s publishing company).

In summer, IBA acquired a building on the Plaza Catalunya Square in Barcelona from El Corte Inglés. “We are looking for property in prime zones so that it would not be difficult to find another tenant in case the previous one moves out. We don´t want logistical warehouses giving profiltability of 20%; we choose security” –  Thierry Julienne points out. (…)

The Tender

Once the shopping center was acquired, IBA Capital called up a tender for architect offices to relaunch it. At the final stage in which such offices as Herzog & de Meuron and International Architecture Development (IAD) participated, the renovation was granted to L35, an office chaired by Tristán López Chicheri and specialised in the shopping center design. “The idea is to add to verticality of the bulding, joining the elevators and stairs and creating the heart in the atrium zone” – says Julienne.

Awaiting the licences and procedures to be brought to an end, IBA pursues at starting the works in the second quarter of 2014.

The project will involve renovation of the shopping center, improving its accesibility, amenities and its general image and raising the number of shops with taller window displays. “There is an unused space of almost 2.000 square meters situated between the entrance from the Serrano Street and the upper floor destined for catering.”

The center covers more than 14.000 square meters of a Gross Lettable Area (SBA) about 93% of which is occupied. (…)

The Tenants

In order to fill the new space in, IBA has signed contracts with fashion brands interested in entering into the Spanish market. “(…) The demand is huge because paying 180 Euros per square meter for a local on the street and paying 80 Euros in a shopping center is uncomparable” – explain the partners from IBA Capital.

(…) Also, new tenants from the catering field are wanted. (…)

(…) The remodelling works will be carried out at night in order not to disturb the other tenants, including Mercadona. (…)

Moreover, the parking zone will be rearranged to improve accesibility to the center by creating more spaces, raising their number from present 287 to more than 300.

Source: Expansión

El Corte Inglés Sells a Building on Preciados Street in Madrid to IBA

El Corte Ingles finalized the sale of one of its buildings at 9 Preciados Street in Madrid. The property, situated on the most expensive commercial street in Madrid and one of the most important in Europe, consists of 1.375  sqare meters´ shopping area. The rest are offices. In total, there are 2.500 square meters of space.

The chain owned by Isidoro Álvarez, possessing more buildings on the same street, used 3 floors of the sold building as a shopping area with sports equipment and 3 more as offices.

The new property owner is a real estate company IBA Capital, a French fund manager which brings together European, American and Asian fortunes. (…) First time the companies did business together when El Corte Ingles sold to IBA a building close to Plaza de Cataluña in Barcelona for 100 million Euros. This time the Gaul fund paid about 50 millions, according to the real estate sector sources. Thus, a square meter has been valued at 20.000 Euros.

The two sold buildings are adjacent with two big shopping centers of the group. Before February 28th, El Corte  Ingles owned 86 department stores, out of which 84 were situated in Spain. According to the valuation conducted by Tinsa consulting company, the firm´s assets on the market exceed 18.000 million Euros.

The decision to shed the property was made after the conclusion of refinance agreement of its 5.000 million Euros debt.  (…) In the last exercise, closed on February 28th, El Corte Ingles earned 171.5 millions, about 18% less, and charged 14.552 millions. (…).

The New Operator

The sale of 9 Preciados was one of the scarce transactions carried out in the so-called ´Golden Triangle´of the capital, which embraces districts of Sol, Gran Vía and Preciados. (…) Rental cost on the last reaches 245 €/m2.

The new owner´s target is to rehabilitate the entire building and convert it into a flagship establishment for an international chain company. That is why, the leaders have already started negotiations on the rental price with various international companies. (…).

There are several Northern American great companies among the potential tenants, who wish to open their branches in Spain. Other important firms interested in the deal are: Japanese Uniqlo, Inditex and H&M.

Source: Expansión