Palm Logistics Develops a 115,000m2 Logistics Hub in Getafe (Madrid)

27 March 2019 – Press Release

Palm Logistics, the dedicated affiliate of Palm Capital, the pan-European real estate private equity specialist, is set to deliver a large logistics hub in Madrid, to meet the pent-up demand for modern logistics in the capital and respond to the rapid growth of e-commerce and supply chain rationalisation across Europe.

The site, covering more than 115,000 m2 across 10 grade-A logistics buildings, will provide the best ‘last mile delivery’ option to Madrid while being easily accessible to the rest of Spain and across Europe.

The first phase, due to complete this summer, comprises a 33,000m2 leasable area across two buildings with the ability to offer modules from 7,000m2 to 20,000m2.  The buildings will be certified LEED Silver, having been built to the highest quality standard with key sustainability considerations in mind.

Gavilanes is located close to main roads, the airport and the Abroñigal intermodal station with its large roads and roundabouts adapted to the traffic of heavy vehicles.  The site is already home to several first-class international companies including Amazon, Decathlon, Costco, Mercadona, and ID Logistics.

Original story: Press Release

Edited by: Carmel Drake

Junta de Andalucía Puts 33,000 m2 of Land Up For Sale in Córdoba

4 February 2018 – La Vanguardia

The Junta de Andalucía’s Ministry of Development and Housing has launched its first regional land sale of the year in the province of Córdoba, comprising 15 residential and industrial plots, which span 32,989 m2 in total and with an asking price of €5.8 million.

In this regard and in statements to Europa Press, the delegate for Housing and Development at the Junta in Córdoba, Josefina Vioque, said that “with this initiative, we are continuing our strategy of selling some of the land owned by the Agency for Housing and Rehabilitation in Andalucía (AVRA), which obtained such good results in 2017, with the award of almost 22,000 m2”.

The objective, according to Vioque, is “to generate revenues that allow us to strengthen the promotion of our activities of a social nature in terms of housing, especially the promotion of subsidised housing”.

This new tender for the sale of regional land includes seven plots classified as industrial and tertiary, measuring 10,871 m2, and eight units classified as residential, with capacity for 238 homes.

Of the latter, four are reserved for the construction of 188 social housing properties, on a surface area of 17,374 m2, whilst the other four, spanning 4,743 m2, have capacity for 50 private homes.

According to the delegate, the industrial plots are located in the municipalities of Adamuz, Cabra, El Carpio and Córdoba, whilst the social housing plots are located in the provincial capital and in Rute, and the private housing plots are also located in the capital and in the municipality of Obejo.

The tender, which will be open for the presentation of proposals until 1 March, and which will be resolved after the envelopes are opened, scheduled for 12 March, at AVRA’s central headquarters in Sevilla, also includes nine retail premises and 19 parking spaces in Córdoba, Lucena and Rute.

According to Vioque, “the drive to manage AVRA’s owned properties has become a priority since the start of this legislature, give our aim to put these assets on the market at the service of business initiatives, to promote economic development and the generation of employment in the construction sector, one of the hardest hit during the crisis”.

Josefina Vioque said that “with this initiative, the Junta also seeks to reactivate the construction of VPO homes, to facilitate access to housing for families in most need, since these operations are going to allow us to resume, once again, the promotion of these types of subsidised homes, which are more affordable for people with fewer resources”.

Land sold in 2017

This tender follows others carried out during 2017, which saw the award of a total surface area of 21,946 m2  and the generation of revenues amounting to €6 million (…).

Original story: La Vanguardia

Translation: Carmel Drake

CBRE: Logistics Inv’t Rose By 29% To €664M In H1 2017

20 July 2017 – Eje Prime

Investment in the Spanish logistics market soared once more during the first half of the year. Transactions involving logistics assets amounted to €664 million during the first six months of 2017, representing an increase of 29% with respect to the same period last year, when investment stood at €514 million, according to a study prepared by the real estate consultancy firm CBRE.

In the second quarter alone, industrial and logistics investment reached €364 million, a figure that far surpassed the amount recorded in the second quarter of 2016 (€300 million).

According to the consultancy firm, the difference compared to previous years is that the “appeal” of this sector is not concentrated only in Madrid and Barcelona, but rather it extends to other cities, such as Zaragoza, Valencia, Bilbao, Málaga and Sevilla.

Similarly, interest in investment in high-risk projects has been consolidated, due to the growth in the volume of logistics space leased in every city caused by e-commerce. In fact, investors who have never shown any interest in logistics have started to consider the sector as a necessary component of their portfolios, according to CBRE.

Some of the main logistics transactions closed so far this year include GIC’s acquisition of the Acero portfolio, worth €243 million; CIC’s purchase of Logicor’s assets; and Axiare’s acquisition of the second phase of a project located in San Fernando de Henares (Madrid), worth €38 million.

Original story: Eje Prime

Translation: Carmel Drake

Knight Frank: Residential Inv’t Continues To Rise

14 October 2016 – Expansión

Residential investment is continuing its upwards trend in Spain despite the political uncertainty that continues to plague the country. In 2016, investment in the housing sector is expected to exceed last year’s levels thanks, above all, to the boost from property developers and private capital, and to the increasingly important role being played by investment funds. According to a report prepared by the real estate consultancy Knight Frank, the volume of residential investment in Madrid will reach €1,000 million by the end of 2016, whereby slightly exceeding the €950 million recorded last year and the €800 million recorded in 2014.

Currently, residential assets account for 19% of all real estate investment, compared to tertiary sector assets (offices, retail, industrial and logistics assets), which account for 81%.

By type of investor, the main players are private equity firms, which account for 36% of all operations and property developers (31%), followed by investment funds (20%), cooperatives (8%) and Socimis (5%).

In its report, Knight Frank highlights that alliances between local property developers, who bring knowledge and management expertise to the table, and international funds, who contribute capital, still represent a “formula for success” in the residential real estate market.

Moreover, this segment hardly sees any opportunistic operations. “Operations of a value added nature, which require investors to assume some of the risk involved in repositioning assets, are the most prevalent, on the basis that most investments have involved buildings that need renovating”, explained the consultancy. In this sense, the Socimis are the big stars of core operations – safer transactions that offer investors lower returns -.

Fewer defaults

In terms of financing, the report from the consultancy highlights the change that the sector has experienced compared to the years of economic crisis, when the credit tap was firmly shut.

Knight Frank highlights that one of the most significant differences in the new cycle is that financial institutions are not only giving importance to appraisal values, they are also analysing projects before they grant financing.

For the consultancy firm, the major adjustment in the banks’ weighting criteria, following the transformation of the financial system and the new classification of clients and loan to value policies, have caused the default rate to decrease to around 6.5% over the last two years, bringing it to levels more in line with the European average. Nevertheless, Knight Frank points out that Spain has a fair way to go to reach the levels seen in countries such as Germany (4%) and France (4%).

Financing

In terms of the alternative to the classic property developer loan financing, the consultancy firm highlights the rise of the Socimis as specialist vehicles and fixed income financing, for example, through bonds.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Aura REE Launches Operations In Portugal

3 May 2016 – Aura REE

After 2 successful years providing RE advisory and valuation services in Spain, Aura REE has decided to expand its operations internationally, starting with Portugal with immediate effect (from 1 May 2016).

– Aura REE is the leading advisor to foreign institutions acquiring REO & debt portfolios in Spain.  Our proprietary IT platform, launched in 2009, contains more than 14 million real estate assets, with links to the cadastral databasase and national brokers, as well as access to real transaction prices in Spain’s top markets. Our team covers every local market in Spain and operates across all asset types (hotel, residential, land, industrial, nursing homes, commercial, offices,…). In 2015, we performed over 50 portfolio valuations involving assets worth more than €10 billion (Atalaya, Cadi, Goya, Eurostar, Commander, Tourmalet, Wind, Empire, Pampa, Ponte, Jetty, Mirage, Chloe, Liceo, Mamut, Kite, Stream, Aneto, Babieca, Pegasus, Macarena, Silk, Veleta,…)

– Aura REE Portugal has hired Jose Covas, MRICS (Head of Portugal & Head of Valuations) to lead our new team and he will be supported by local teams located across the country, including in the islands. Jose has extensive knowledge of the Portuguese market and wide-ranging experience from his time with WORX/Knight Frank (Portugal Head of Valuation & Advisory), DTZ (Iberia Head of Valuations), Colliers International (Portugal Head of Valuation). Moreover, Jose currently serves as the Portuguese Chairman of the RICS Valuation Group. Our IT platform already contains almost 1 million comparable assets in Portugal.

–  Aura REE plans to continue to expand its operations to other European countries before the end of 2016.

Original story: Aura REE

Edited by: Carmel Drake

Final Approval For Intermodal Logistics Centre In Aranjuez

11 February 2015 – misnaves.es

The Community of Madrid has granted the final approval for a specific amendment to the Urban Plan for Aranjuez, which will make way for the construction of the so-called Intermodal Logistics Centre, the first one of its kind to be built in the south of the Community of Madrid.

The centre will be constructed on a surface area of 34 hectares and will be completed in two phases, with investment from Adif expected to amount to €13 million and €8.5 million in each phase, respectively.

Previously, the central Government had already created the company Mixta Madrid Sur Logística Aranjuez, in which Adif holds a 47% stake; the remaining 53% is held by three private companies, which contributed initial share capital of €4.5million.

According to the mayor, “this approval will allow us to expand the railway network structure, to create a logistics centre in Aranjuez that will receive trains travelling along the Valencia-Madrid corridor, amongst others”. The mayor also highlighted that “the development of this logistics centre represents a new opportunity for both direct and indirect employment in Aranjuez”.

In addition to the surface area that the platform itself will occupy, the plot offers a further 70,000 square metres of space where other activities may be conducted, not only industrial but also tertiary including as hotels and the like. In total, the plot measures 350,000 square metres.

Original story: misnaves.es

Translation: Carmel Drake

Logistics Agreements Make For €400 Mn Investment in Madrid

18/11/2014 – Expansion

By the end of September, logistics contracting in Madrid rose up by 25%, totalling at 282.436 square meters and resulting in a €400 million investment. Contribution of the Socimis (Spanish REITs) should be emphasized, as Aguirre Newman reports in its latest study.

In fact, transactions registered from January to September in the capital equalled to 96% of the 2013 total.

Logistics absorption in the third quarter of 2014 reached 57.073 square meters, an 86% greater area than during the same period of time a year before, although by 42% smaller than in the second quarter of 2o14, as it happens each year for the summertime.

In regard to the transactions’ volume, 62.5% corresponded to below-7.000 square meter areas. Aguirre Newman takes into account eight deals sealed in the last three months in Madrid with 65% of them registered in the rental market.

When it comes to absorption, the Corredor del Henares area (located Madrid north-east group of highly industrial cities) accounted for 57% of the Q3 operations’ total, while the Zona Sur (South Area) for the remaining 43%.

Contracts on 61.178 square meters were signed in Barcelona, underperforming 40% from a year earlier, whereas year-to-date, the number amounted to 158.954 square meters, 25% less.

The Alt Camp area concentrated 32% of the Q3 score in a single deal, and Baix Llobregat and Valles Occidental made up for the rest of the percentage.

 

Original article: Expansión 

Translation: AURA REE

Merlin Properties Buys an Industrial Warehouse in Almussafes (Valencia) For €12.2 Mn

1/10/2014 – Expansion

Merlin Properties, a freshly listed real estate investment trust known as a Socimi in Spain, has bought a unit in the Sollana industrial area in the municipality of Almussafes (Valencia) for €12.2 million from CBRE.

The building of a 26.613 square meter GLA (gross lettable area) was constructed in 2008. Presently, the property houses companies like Ford, Johnson Controls or Truck & Wheel.

Adding this transaction up to the total of Merlin’s investments, year-to-date the Socimi spent nearly €1.07 billon out of its €1.29 billion funds raised on its flotation day.

 

Original article: Expansión (after EFE)

Translation: AURA REE

Axia Real Estate Purchases Properties in Madrid For €99.5 Mn Total

4/09/2014 – Expansion

Axia Real Estate acquired a real estate portfolio including office buildings, industrial warehouses and the Planetocio shopping mall situated within the Madrid area from Wereldhave for the total of €99.5 million.

The Socimi (Spanish Reit firm) reports the portfolio consists of excellent quality and perfectly maintained assets.

In total, the purchased assets offer a 78.983 square meter GLA and 1.402 parking spaces, distributed over a four-building office complex located at 15 Arroyo de la Vega street, another office property at 15 Fernando el Santo st. (Madrid), an industrial warehouses complex on the Maríano Benlliure street (Rivas-Vaciamadrid) and the Planetocio shopping mall situated in Collado Villalba.

The company has indicated that the transaction amount has been fully disembursed from its own funds.

 

Original article: Expansión

Translation: AURA REE