Inovalis Acquires Office Complex in the Largest Deal of the Last Five Years in Málaga

31 October 2019 – The Canadian REIT Inovalis has acquired the Málaga Business Park office complex from Iberdrola, in the largest real estate operation in Málaga of the last five years. The complex is located in the Andalusian technology park and was originally built in 2003. The Málaga Business Park consists of six buildings with 12,000 square meters of gross leasable area. The complex is currently 100% occupied and has nearly 300 parking spaces.

Before this investment in Spain, Inovalis had focused on France and Germany, where it owns 14 office buildings in cities such as Paris, Stuttgart and Frankfurt.

Original Story: Expansión

Adaptation/Translation: Richard D. K. Turner

Ibosa Looks Set to Acquire Prime Land in Central Madrid from Iberdrola

30 October 2019 According to market sources, Iberdrola has chosen to sell one of the last major plots of land available within Madrid’s M-30 ring road to the Spanish developer Ibosa.

The plot of land is located on the corner of Calle Mayor Sáinz de Baranda with Juan Esplandiú, in Retiro, and once housed an electrical substation. The land will reportedly go for around 24 million euros, just under 3,000 euros per square meter of constructed surface area.

The land measures ​​1,337 square meters and has a buildable area of ​​8,500 square meters, enough for roughly 80 flats.

Original Story: El Economista – Alba Brualla

Adaptation/Translation: Richard D. K. Turner

Naturgy to Sell Plot of Land in Central Madrid

9 October 2019 Major players in the Spanish electricity sector are following the lead of many banks and beginning to sell off their real estate holdings. Just a few days ago, Iberdrola announced that it would sell a plot of land within Madrid’s M-30, for which it expects to receive about 30 million euros. Now, another electricity company, Naturgy, has also stated its intention to sell land. The plot of land is located just in front of the Google Campus, in the district of Arganzuela, near the neighbourhood of La Latina.

Specifically, the asset is located at the junction of the Mazarredo, Moreno Nieto and Juan Duque streets. Part of the area has an electrical substation. The plot of land on sale has a surface area of 3,191 square meters, 1,568 meters of which are occupied by the Naturgy electrical substation.

Zoning for the area would allow for a total of ​​3,444 square meters for tertiary/residential, infrastructure services, green areas and roads. Of that, 1,444 square meters could be allocated for offices, stores or residential use and 2,000 meters for public uses – 1,000 meters of green areas and another 1,000 meters for infrastructure.

Original Story: El Confidencial – Elena Sanz

Photo: Reuters

Adaptation/Translation: Richard D. K. Turner

Aberdeen Buys Torre Auditori from Iberdrola for €98M

14 June 2019 – Expansión

The real estate division of Iberdrola has sold the Torre Auditori office building located in the BcnFira District of Barcelona to the fund Aberdeen Balanced European Property Fund for €98 million.

The property has a surface area of 22,899 m2, distributed over 10 floors, and more than 300 parking spaces. It was constructed in 2013 and is currently home to more than twenty tenants.

This operation represents Aberdeen Balanced European Property Fund’s first in Spain. The fund, which is managed by Aberdeen Standard Investments, now has more than €1 billion under management and is seeking to diversify its portfolio by asset type and geography.

Original story: Expansión (by Rocío Ruiz)

Translation/Summary: Carmel Drake

Iberdrola Puts Torre Auditori in Barcelona Up for Sale

19 March 2019 – Idealista

Iberdrola has put Torre Auditori, which forms part of the BCN Fira District business park in Barcelona, up for sale. The property comprises 21 storeys and spans a surface area of 22,899 m2, generating annual rental income of more than €4.3 million. The current occupancy rate of the property is 98% and its tenants include Cepsa, Ferrovial, Marmedesa, Asus and Iberdrola itself.

The building forms part of the business park that the company is constructing on Paseo de la Zona Franca, which currently comprises Torre Auditori and Torre Marina (which is leased to the pharmaceutical firm Esteve). Iberdrola is building two more properties, which will be handed over during the first quarter of 2021.

Original story: Idealista 

Translation: Carmel Drake

Neinor Wants Sabadell’s Land & so is Competing with the Large Funds to Buy SDIN Desarrollo Inmobiliario

17 December 2018 – Voz Pópuli

The bidding for the land owned by Sabadell’s property developer, SDIN Desarrollo Inmobiliario, is going to start in a matter of days and none of the funds wants to miss the party. Everyone has their own interest, but there are some who may bid more strongly than others due to their close relationship with the bank. But this time, they will not be alone.

Neinor Homes wants to take a seat at the negotiating table, according to sources familiar with the operation speaking to Voz Pópuli. The property developer led by Juan Velayos is interested in obtaining the land that Sabadell owns in Madrid and Barcelona. The market classifies the plots as very good. Neinor has not made any comments in this regard.

Oaktree is also going to join the bidding – it has been a familiar face in Sabadell’s recent operations. The fund is very interested in acquiring SDIN Desarrollo Inmobiliario’s land. The plots have been valued at €1.3 billion, according to reports by El Confidencial, which have been confirmed by this newspaper.

Sources familiar with the operation have explained that the fund has a lot of interest after the joint venture that it formed with the group this summer to buy land from Iberdrola.

Cerberus

The third candidate in discord is another old hand: Cerberus. The giant also wants its share of the pie. The acquisition of the property developer Inmoglacier could be related. If it is successful with this operation, the fund could create a new “giant”, which would fulfil all of the requirements to debut on the stock market.

The bidding is expected to begin before the end of the year. It could even start this week but could also be delayed due to technical reasons (…). The intention is for this operation to be closed by the end of the first quarter of 2019 or the beginning of the second.

This operation will begin after Sabadell sold its servicer for €300 million to Intrum on Friday. Solvia has more than €30 billion in assets under management and has sold more than 94,000 properties in recent years.

Original story: Voz Pópuli (by David Cabrera)

Translation: Carmel Drake

Savills Values Solvia’s Property Developer Land at €1.3bn

12 December 2018 – El Confidencial

The banks are starting to benefit from the recovery in the real estate sector. Such is the case of Banco Sabadell, which has seen its portfolio of prime land appreciate by €300 million, or 30%, in recent months, ahead of its firing of the starting gun for the sale of its property developer, Solvia Desarrollos Inmobiliarios.

That is the result of an appraisal of the land that the consultancy firm Savills Aguirre Newman has performed for Sabadell. Initially, the plots were valued at €1 billion. They are the best quality plots of land that Sabadell has left since the outbreak of the crisis, and many of them are in areas with high demand in Madrid and Barcelona. For Savills, the chosen plots are now worth almost €1.3 billion, according to financial sources consulted by this newspaper.

Now that the appraisal has been performed, Sabadell and its chosen advisor for this operation, Rothschild, will launch the sale of the property developer SDI and the plots worth €1.3 billion, imminently.

This operation will result in the creation of one of the largest real estate companies in Spain. It will be even larger than Neinor when it was purchased by Lone Star.

The bank does not expect to close the sale of Solvia Desarrollos Inmobiliarios before the end of the first quarter of 2019. By contrast, Sabadell has also launched the sale of Solvia Servicios Inmobiliarios (the management platform), which is on the market for €300 million and whose sale it hopes to close in 2018. According to Expansión, Haya Real Estate (Cerberus), Intrum and Centricus are participating in that process.

Candidates

There are several funds amongst the candidates to acquire the property developer SDI including: Cerberus, Oaktree, Blackstone, Apollo and Lone Star. The first features in everyone’s list of likely contenders because of its good relationship with Sabadell in recent major operations. Moreover, it owns a property developer, Inmoglacier, with which there could be synergies following the operation.

Meanwhile, Oaktree is one of the candidates that would start with an advantage, given that it is Sabadell’s partner in similar businesses, and so it knows the team at SDI: they have a platform for the joint development of land and they have purchased land from Iberdrola. Nevertheless, according to sources close to the operation, that fund still needs to confirm its presence in the process.

Other candidates that still need to define their strategies include Blackstone, which is studying all of the operations with Aliseda, but which has opted more for rental assets until now; Apollo, which has wanted to enter the development segment for years; and Lone Star, which since its exit from Neinor has purchased Servihabitat and has as much appetite for Spanish property as it did before the crisis. ‘A priori’, the operation seems large for Bain Capital, owner of Habitat.

Original story: El Confidencial (by Jorge Zuloaga)

Translation: Carmel Drake

Tech Firm Keysight Leases 2,000 Square Meters of Office Space in PTA

10 October 2018

Iberdrola Inmobiliaria has leased space in its Malaga Business Park, located within the Technological Park of Andalusia (PTA), to the American multinational Keysight.

Malaga is still on a roll. The capital of Malaga is no longer just on the map of the Spanish real estate market because of its residential sector, as evidenced by Iberdrola Inmobiliaria’s rental of 2,200 square meters of offices to the US multinational Keysight Technologies.

The Californian company will take over space in several buildings in the Malaga Business Park, located within the Technological Park of Andalucía (PTA). The operation is one of the largest this year in the province, by volume, and also completes the occupation of the office complex.

Keysight will now become a neighbour to other large corporations such as PwC, Riplife Gaming Technologies, Unitono and Eurocem, as noted by Iberdrola’s real estate arm. In its entirety, the Malaga Business Park has 18,000 square meters of constructed area.

This most recent transaction is a reflection of the growth of the office market in the city of Malaga, where the occupation of its prime areas exceeds 90%, as EjePrime reported last March. The Malagan office market saw significant demand in the central zone and the financial area of ​​the capital in 2017. In these two areas, the stock of available offices was significantly reduced, which led to an increase in rents to 18 euros per square meter in the central street Larios, according to a report by Savills Aguirre Newman.

Original Story: EjePrime

Translation: Richard Turner

Oaktree Expresses Interest in Buying Sabadell’s Real Estate Arm

6 July 2018 – Cinco Días

The Spanish house building business is continuing to spark interest amongst international private equity firms. This was demonstrated yet again by the recent agreement signed between the fund Oaktree Capital and Solvia – the real estate arm of Banco Sabadell–, which created a joint venture to purchase land from Iberdrola, in a deal that may be extended in the future into an even greater alliance.

In fact, the US fund has just informed Sabadell of its interest in acquiring a majority stake in its property development business, in a company called Solvia Desarrollos Inmobiliarios, according to two sources in the financial sector. In this way, it would take another step forward in its strategy to position itself in the house building business.

For the time being, after closing the agreement in June to create the real estate joint venture, contact has now been made between the parties with a view to a possible purchase. Oaktree is expected to specify the details of its bid over the next few days and whereby the sales process would begin. Sources at the bank deny knowledge of any negotiations or offers at the moment. Meanwhile, Oaktree declined to make any comment.

Solvia is currently the parent company of Sabadell’s real estate business, which is divided into three arms. On the one hand, Solvia operates as a servicer to the bank; it also has a real estate agency division; and, finally, it has a property development arm, in the form of Solvia Desarrollos Inmobiliarios, which is the part that Oaktree is interested in, to develop land for own and third-party projects and to build homes.

Last month, Solvia and Oaktree announced that they have created a joint venture in which the fund owns 80% of the capital and Sabadell, through its subsidiary Bitarte, controls the rest. This company, which will be dedicated to identifying, acquiring, developing and marketing plots of residential land in Spain, received approval from the European Competition Authorities in June. The joint company’s first operation is the purchase of land belonging to Iberdrola, for almost €100 million, on which to build homes in several places across Spain.

But financial sources explain that Oaktree wants to deepen its commitment to house building and, for this reason, wants to purchase Solvia’s property development business from Sabadell. It is not known whether the bank is open to bids from the fund or not.

Oaktree’s intention through this corporate move is, primarily, to acquire a team with experience in the house building sector in Spain, according to the same sources. The US firm, meanwhile, has huge financial capacity and also owns several important real estate assets in Spain, acquired from financial institutions such as Bankia, the German bad bank and Sareb. In Spain, it has a subsidiary Sabal, led by Eduardo Bóveda, to manage those bank portfolios.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Twin Peaks Buys Plot of Prime Residential Land in Pozuelo (Madrid)

4 June 2018 – Eje Prime

Pozuelo de Alarcón has land for sale and nobody wants to miss out on the chance to acquire a slice of it. The Madrilenian town, the richest in Spain in terms of income per capita, has had a large portfolio of land up for sale for a few months now, and the family office Twin Peaks has opened the bidding in the flurry of purchases that are expected to be signed soon. The family office has acquired a plot of buildable land owned until now by Banco Santander.

The plot in question is included in the Arpo Partial Plan, the name given to the whole portfolio. Definitive approval is expected to be given for the reparcelling and urbanisation of the plots soon, which will allow investors to start building the first homes on the site. As such, the operation by Twin Peaks comes as it tries to position itself ahead of the great appetite from international funds, which are already working on buying plots on this site, according to El Confidencial.

In fact, Oaktree is already very close to sealing two operations with Iberdrola for the acquisition of plots located on the perimeter of Arpo. For Twin Peaks, the land attached to its real estate portfolio will allow it to continue growing in the luxury market in Madrid. In Barcelona, the other major Spanish city in which the firm has a presence, it acquired an asset on the central Paseo de Gracia last November for €25 million.

Pozuelo is a prime and very attractive market for property developers and funds in the residential boom that the Spanish capital is experiencing. Its high rents and ability to generate high yields are a showcase for luxury in the sector, which has seen how in just two and a half years, land prices in this municipality have risen by 20%, boosted by demand and, above all, by the shortage of buildable land available for development in Madrid.

Property developers such as Metrovacesa, which owns land spanning 46,000 m2 in Pozuelo alone worth €25 million, Vía Célere and iKasa already have important projects in place in this prime area of the Spanish residential market.

Original story: Eje Prime

Translation: Carmel Drake