INBISA Doubled its Logistics & Industrial Construction Volume in 2017 to 250,000 m2

21 March 2018 – Press Release

INBISA Construcción continues to be a national leader in the execution of industrial-logistics projects, exceeding 250,000 m2 of constructed space in 2017, more than double the figure it recorded in 2016.

The team specialising in the Industrial-Logistics operations area is strengthening its organisational structure in order to continue leading high-quality projects and its commitment to clients.

In 2017, INBISA Construcción doubled the volume of constructed square metres built in the logistics and industrial area, taking the total for the year to more than 250,000 m2. That figure added to the company’s historical cumulative total means that it has built more than 1.5 million m2 of space in this sector.

The significant growth of the INBISA group’s construction company, which has historically played an important role in the industrial-logistics area, is happening in the context of clear consolidation in the sector at the national level, especially in Madrid and Barcelona.

INBISA Construcción plans to continue increasing its business volume in this area during 2018, supported by the positive outlook for the market.

Logistics platforms and complexes are products that are continuing to spark interest amongst investors, mostly international players. Large funds are buying logistics land, including even some spaces that exceed 100,000 m2, some with operators and others not, something that was more unusual in previous years (…).

The company’s most recent high-profile logistics projects include those undertaken for BCM in Getafe, for GreenOak and Rockspring in Corredor del Henares, for the Port Authority in Bilbao, for Axiare in Sevilla and for Goodman in Barcelona.

Original story: Press Release

Translation: Carmel Drake

Banks Sell €11,000M NPLs To Clean Up Their B/Ss

30 June 2016 – El Confidencial

Property is still the main obstacle facing Spain’s banks. Although the majority of the domestic financial entities will comfortably pass the European Central Bank (ECB)’s upcoming stress test, most are still weighed down by non-performing loans linked to the real estate sector, which are blackening their balance sheets. To this end, CaixaBank, Bankia, Sabadell, Popular and even Deutsche Bank have put portfolios of non-performing loans up for sale amounting to almost €11,000 million, according to data compiled by El Confidencial.

The most active bank is Sabadell, which has engaged KPMG, PwC and N+1 to help get rid of €3,100 million in consumer loans, credit cards and loans granted to property developers. Of that amount, €1,000 million was sold to the funds Lindorff and Grove Capital last month in an operation known as Corus. Now, the entity has another €1,700 million on the market (Project Normandy), containing foreclosed loans from real estate developers and almost €500 million (Pirenee) corresponding to a mixture of assets. The entity is looking to close both transactions before the summer holidays.

After Sabadell, the most active bank in cleaning up its balance sheet is CaixaBank, which has two processes underway and one in the bag. These include the so-called “Project Carlit”, launched in April with the help of PwC to sell off €750 million in loans linked to shopping centres, offices and the industrial sector; and “Project Sun”, a portfolio of loans granted to almost 150 hotels that the entity foreclosed from businessmen in the sector. In total, around €1,000 million in non-performing loans.

The latter is backed by 11,000 tourist rooms, and several opportunistic funds may be interested, including Starwood, Davidson Kempner Capital and Bank of America. Those entities previously acquired similar liabilities from Bankia in 2014 and 2015 for €1,200 million. In Septemeber, the Catalan entity is planning to launch “Project More 2” containing €200 million of real estate loans, again with the help of PwC.

Bankia, which last year failed to find a buyer for its huge real estate portfolio containing €4,800 million of assets has engaged KPMG, Deloitte and PwC to advise it in 3 of its operations: “Project Lane” (€288 million), “Project Oceana” (€396 million) and “Project Tizona” (€1,000 million). The latter comprises residential mortgages and is the second part of the transaction known as “Project Wind”, when the entity sold €1,300 million in similar liabilities to the fund Oaktree.

Alongside these three major players, several other entities also have operations on the market, including Popular, Banca Mare Nostrum, Abanca (which just sold €1,300 million in NPLs to EOS) and Ibercaja…But the entity that has drawn the most attention is Deutsche Bank, because it had not chosen to clean up its accounts in this way until now. The German group, the only foreign bank with a presence in Spain, which has an extensive network of offices, is sounding out institutional investors regarding the sale of €800 million in non-performing mortgages.

Although the German entity was not greatly impacted by the real estate crash, thanks to its prudent strategy vis-à-vis granting property-related loans, the truth is that it was weighed down by packages of unpaid loans from high income clients. Antonio Rodríguez-Pina, Chairman of the bank’s Spanish subsidiary, has decided to get rid of these NPLs in order to improve its balance sheet and reduce the default ratio, a measure that coincides with Deutsche Bank’s decision to continue its operations in Spain, for the time being. (…).

Original story: El Confidencial (by Agustín Marco)

Translation: Carmel Drake

Pozuelo Consolidates Its Position As The Richest City In Spain

2 March 2016 – Expansión

Families living in Pozuelo have the highest incomes in Spain (€70,298) and Parla has the highest active population rate, at 70.5%. The cities with the highest average incomes in Spain are the Madrilenian suburbs of Pozuelo and Majadahonda – €56,164 – and Sant Cugat del Vallès, in Barcelona – €52,881 – which quintuple the average income in Torreviaje (Alicante) – €13,977 – the lowest.

The figures relate to 2013 and have been extracted from the Urban Indicators study published yesterday by the National Institute of Statistics (INE) for the European Urban Audit project, which compiles information about the living conditions in European cities and in the case of Spain, includes information about the 109 largest towns, on the basis of population density and the size of the urban centre.

After Torrevieja, the lowest average incomes are found in Sanlúcar de Barrameda and La Línea de la Concepción, both in Cádiz, with averages of just over €17,000.

The four cities with the highest active population rate in Spain are located in Madrid. Behind Parla, the ranking includes Fuenlabrada (69.4%), Torrejón de Ardoz (67.7%) and San Sebastián de los Reyes (67%). By contrast, the towns with the lowest active population rates are located in the North of the country. The lowest rate is in León (50.6%), followed by Ferrol (51.4%), Gijón (51.5%) and Avilés (52.1%).

The study also shows that the richest city in Spain, i.e. Pozuelo, is the one where unemployment is lowest, at 9%, followed by Las Rozas (10.2%), San Cugat de Vallès (10.4%) and Majadahonda (10.7%). These figures come in stark contrast to the rates of 42.3%, 40.1% and 39.4% registered in the towns with the most unemployment, namely Sanlúcar de Barrameda, La Línea de la Concepción and Jerez de la Frontera, all in Cádiz. (…).

If we consider employment by sector, then Elda (Alicante), Rubí (Barcelona) and Torrejón de Ardoz are the towns with the highest proportion of jobs in the industrial sector, whilst Pozuelo de Alarcón, Benidorm (Alicante) and Girona are the employment leaders in the services sector.

Barcelona is the city with the highest number of overnight tourists, with more than 18 million, followed by Madrid, with just over 17.5 million, Benidorm with 13 million and Palma de Mallorca with 8 million. Finally, the cities with the largest average household size were Pozuelo, Melilla and Ceuta, and those with the lowest were Huelva, Salamanca and Torrevieja.

Original story: Expansión (Mercedes Serraller).

Translation: Carmel Drake

Real Estate Investment Reached 10.300 Million In 2015, Lower Than That Of 2007

15 February 2016 – La Vanguardia

The investment in the tertiary real estate sector in Spain reached EUR 10,300 million in 2015, an amount surpassed only in the past decade by the 10,800 million registered in 2007, according to a report by Cushman & Wakefield.

The last quarter of 2015 saw unremembered business volumes with 3,800 million invested, well above the quarterly average for the last years, resulting in a growth of 61% over the previous quarter and 33% over the same period of 2014 .

The major players in the market were the SOCIMIs, which reached 68% of the investment in the fourth quarter.

Nearly 83% of the investment is concentrated in offices and commercial sectors, with the office sector the one capturing the most investment with nearly 69% and EUR 2,600 million.
A percentage that contrasts with the 48% registered in the previous quarter.

The commercial sector was second with 600 million, 33% lower than the previous quarter. Activity in the industrial sector increased again after the downturn of the third quarter and captured 6% of the total investment.

In addition, in 2015 there has been a decline in large transactions. While in 2014 the weight of transactions over 100 million represented more than two thirds of the amount invested, in 2015 it only reached half of that amount.

Last year, the activity of domestic investors increased its relative weight, representing 60% of the total volume and much of the foreign investment came from the traditional Europe, approximately 15%.

In 2015 yields have continued to fall in almost all sectors. However, this yield drop has been slowing in the industrial sector.

By 2016, the consulting firm expects that investment in commercial assets goes back to show high activity, since they are trading large transactions as that of El Corte Ingles and the placing on the market of more shopping centers, which is expected to be closed between the short and medium term.

The office sector is expected to remain strong, but it is foreseeable that the levels seen in the fourth quarter of 2015 are reduced.

Original story: La Vanguardia

Translation: Aura Ree

CBRE: Inv’t In Industrial & Logistics Assets Totals €386M In H1 2015

15 July 2015 – Misnaves.es

Investment in industrial and logistics assets in Spain amounted to €386 million during the 6 months to June 2015. This figure is considerably higher than the one recorded during the same period in 2014, when only €113 million was invested, according to data from CBRE, the leading global consultancy and real estate service company.

Several factors have contributed to this increase, including the greater ease of access to financing and the expectation that rents will rise.

International investors are continuing to see Spain as an attractive market, based on their analysis of location and type of asset. Investment funds and Socimis have been the main purchasers.

Madrid and Guadalajara accounted for the majority of the activity, although one-off transactions were also recorded in other Spanish cities. These include Merlin Properties’ purchase of Testa’s portfolio, spread across several regions, with a total surface area of 209,000 m2. They also include Rockspring’s purchase of two logistical warehouses, still under construction, in Montepino and Torrejón de Ardoz, with a surface area of 49,000 m2, which will be completed during the first quarter of 2016.

Two transactions were also recorded in Barcelona, including Baraka Global Invest’s purchase from Inbusa of Alstom’s facilities in Santa Perpetua de Mogoda, with a surface area of 370,000 m2 and a price of €60 million.

Both the increase in liquidity and purchasing activity, as well as the scarcity of supply in the market, has led to the compression of prime rental yields since 2012, to their current levels of between 6.5% and 7%.

Original story: Misnaves.es

Translation: Carmel Drake

The Number Of People Out Of Work Fell By 13,528 In February

4 March 2015 – El Mundo

The construction and industrial sectors were the main drivers behind job creation, once again.

The labour market offered a breath of fresh air yesterday, after starting the year on a bad note. The number of people out of work decreased by 13,538 in February, the largest drop in this month for 14 years; and the number of people registered with Social Security increased by 96,909, the best figure in this month since 2007, according to the Ministry for Employment. The construction and industrial sectors were the main drivers behind job creation.

Traditionally, February tends to be a strange month for employment, with highs and lows, and since 2008, when we began to feel the first effects of the crisis, unemployment has always increased in this month, except for last year when the figures decreased by 1,949 people. This year, the number of unemployed people decreased by 13,538 in February. Despite this decrease, the number of people out of work in Spain is still worryingly high, with more than 4,512,123 people registered with the Public Employment Services (formerly Inem). This figure is even higher than the one Mariano Rajoy inherited when he arrived at La Moncloa for the first time.

By sector, unemployment increased in the agriculture sector only in February (by 467 people), whilst it decreased in construction (10,091), industry (6,535) and the service sector (233).

In light of this data, the Government is optimistic and confident that it will achieve its objective of creating three million new jobs by 2019. Currently, the total number of people in paid work amounts to 16,672,222.

The increase of almost 100,000 new taxpayers in February partly offset the significant decrease in the number of jobs in January, when the number of taxpayers decreased by 200,000, following the end of the Christmas season.

By sector, construction – one of the hardest hit by the crisis – was where the most jobs were created (26,968), together with industry (15,097). Meanwhile, the service sector registered 61,842 more taxpayers, thanks to boosts from education (16,203) and hospitality (14,012).

However, the resurgence in the construction sector concerns the opposition party and the trade unions. The PSOE’s (Shadow) Secretary of State for Employment, Luz Rodríguez, says “the return to property could mean that we exit the crisis through the same door that we entered it”.

In terms of the number of contracts, 1,226,950 contracts were registered in February, up 12.5% compared with the same month last year. Nevertheless, the majority (more than 90%) were still temporary. Only 120,181 contracts were permanent, equivalent to 9.8% of the total number. Nevertheless, the Ministry for Employment highlighted that these figures are 23% higher than in January last year.

In terms of the number of hours worked, 71,754 of the permanent contracts were for full-time positions (16,804 more than in the previous year, an increase of 30.58%) and 48,527 were part-time (5,673 more than in February 2014, an increase of 13.24%).

However, these figures are not good enough for the trade unions UGT and CCOO, which report that the jobs that are being created are “precarious” and “low quality” and that the wages are “clearly insufficient”. Moreover, they point out that the inequalities between men and women are increasing and that young people are being left behind. Thus, whilst the unemployment rate decreased for men in February (with 19,587 fewer unemployed men than in January), they increased for women (with 6,319 more unemployed women), taking the total number of unemployed men and women to 2,117,980 and 2,394,173, respectively.

Furthermore, the number of unemployed young people under the aged of 25 increased by 2,569, and the number of foreign unemployed people increased by 3,030. In the opinion of the USO trade union, these figures show that “the recovery in terms of unemployment is not on the right track”.

By autonomous region, Madrid was the community where unemployment increased the most in the month of February, by 2,411 people to be exact; followed by Andalucía, with 2,121 more unemployed people and Castilla-La Mancha with 139. Meanwhile, unemployment decreased in 14 autonomous communities.

In terms of the coverage rate, i.e. the percentage of unemployed people that receive benefits or allowances, it continued to decrease in an alarming way.

During the month of January – the latest month for which data is available – it amounted to 56.49%, i.e. five points lower than in the same month in 2013. This means that almost one in every two unemployed people registered with the former Inem, does not receive any kind of financial aid. Moreover, total spending on benefits amounted to €1,962 million in January, which represented a 17.7% decrease compared with the same month last year.

Original story: El Mundo (by Isabel Munera)

Translation: Carmel Drake