Insur to Build 136 More Homes on the Outskirts of Madrid

4 April 2019 – El Confidencial

The Sevillan based property developer Inmobiliaria del Sur (Insur) has reported that it is now working on the construction of 250 homes in the Community of Madrid.

In addition to the projects already announced in Boadilla del Monte and Valdemoro, the company chaired by Ricardo Pumar is now going to start work on a new development in Villaviciosa de Odón.

There, it is going to build two groups of 68 single-family homes, which will form part of a larger development known as Monte de la Villa, which will eventually contain 2,500 homes in total.

Original story: El Confidencial (by Carlos Pizá)

Translation/Summary: Carmel Drake

Insur & the Moya Yoldi Family Team Up with the Cosentinos in Córdoba

1 March 2019 – El Confidencial

Inmobiliaria del Sur (Insur), the listed real estate firm, which joined forces with the Moya Yoldi family (the owners of the Persán detergent manufacturers) last year to promote three residential developments in Sevilla, Marbella and Madrid, has now teamed up with another high profile family: the Cosentinos – the manufacturer of Silestone.

The three companies are going to co-invest in a residential development in Córdoba comprising 187 homes. Insur will own 50% of the development, whilst ownership of the remaining 50% will be split between the two families.

Coincidentally, the Moya Yoldi and Cosentino families are already partners in the Socimi Trajano, which is chaired by José Moya.

Original story: El Confidencial (by Carlos Pizá)

Summary/Translation: Carmel Drake

Co-Working Spaces in Madrid & Barcelona Rise by 71% YoY to September

23 October 2018 – Eje Prime

Co-working spaces are on a roll in Spain. This global phenomenon in the office market is also reflected in ratios that keep on growing. In Madrid and Barcelona alone, 55,900 m2 of this type of flexible office space was leased between January and September, which represented an increase of 71% with respect to the same period last year.

According to the Flexible spaces in Spain study, compiled by the consultancy firm Cushman&Wakefield, during the first nine months of the year, 26,800 m2 of co-working office space was leased in Madrid and 29,100 m2 in Barcelona.

This growth is the result of the commitment to co-working spaces by large corporations. According to explanations provided in the report, “at the beginning of the 2000s, small spaces predominated, occupied by self-employed people and freelancers; nowadays, those spaces still exist, but the potential of the co-working phenomenon has led to companies such as Banco Santander (Openbank), Accenture and Everis, amongst others, also using flexible spaces for some of their activities”.

The boom in flexible and shared office space intensified in 2014, the first year of the recovery. Besides large corporate groups, which rely on this office model for optimising their real estate resources and the productivity of their employees, international co-working giants have arrived in Spain in recent years to create supply to meet the growing demand.

WeWork and Spaces (owned by Regus), global specialists in this segment, already have expansion plans for the domestic market. The same is happening with the main Socimis, such as Merlin and Colonial, which, in addition to promoting brands that manage co-working spaces, are also adapting several of their properties to convert them into flexible offices.

Madrid and Barcelona are the focus of this market. WeWork already has 35,000 m2 of office space leased in the two capitals. It is managing one fifth, 7,000 m2, from 22@, the technological hub of Barcelona, one of the epicentres of co-working in Spain. Spaces is planning to grow in the same district, where it already has 6,000 m2 of space across several buildings.

In terms of the large Spanish real estate companies, Merlin and Colonial are, to date, the firms that have backed this new trend most convincingly Both have entered the sector by purchasing or teaming up with specialist companies this market. Colonial acquired the brand Utopicus at the end of 2017, as revealed by Eje Prime, and now has a commitment to open ten new co-working centres from 2019, which will span a total of 15,000 m2 between Madrid and Barcelona.

Meanwhile, Merlin has launched the brand Twisttt, through Loom House, a Spanish shared office manager in which the Socimi owns more than 30%. Other domestic players such as Inmobiliaria del Sur have already made investments in this sector. In October last year, the Andalucian real estate firm launched iSspaces, a co-working centre in Sevilla measuring 1,800 m2 (…).

The identity of the next players to enter the stage is a mystery, but the fact that co-working has a long journey ahead in the office market in Spain and around the world is very much a reality.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Persán’s Owners Acquire 40% of Río 55 Business Park in Madrid for €70M

25 June 2018 – Eje Prime

A new business saga is investing in the Spanish real estate sector. The Moya Yoldi family, owners of the detergent manufacturer Persán, have invested €70 million in the purchase of 40% of the Río 55 Business Park in Madrid. For this operation, the Andalucían family has joined forces with Inmobiliaria del Sur (Insur), the office property developer, with which it has also signed a second agreement involving a prime residential project in Marbella (Málaga).

The owners of Persán, an integrated supplier of the supermarket giant Mercadona, has increased its commitment to the real estate sector through Concha Yoldi, the co-owner of the company together with her husband, José Moya, and the couple’s children: Juan, José and Francisco Javier, according to El Confidencial.

The saga has acquired a significant stake in Río 55, which already signed the sale of one of its two buildings to the fund manager AEW Europe in March. Insur forecasts that it will hand over the keys to the first tenants of the business complex next year. The two properties will span a surface area of 14,000 m2 each.

Likewise, the Andalucían family is also going to invest in its own region in partnership with Insur. Gestafin Global Investment, another of the real estate companies owned by the Moya Yoldi family, has acquired 40% of the luxury development that the real estate firm is constructing in Marbella. In total, 53 luxury apartments will comprise this project in the sought-after Costa del Sol, whose first phase has been underway since 2017. A third plan in the Sevilla residential market, where Insur is building 238 homes, completes the alliances that the family office has with the group.

A Socimi with the owners of Silestone and the founders of Goldcar

The presence of the owners of Persán in the property sector does not end with their individual investments. The Andalucían saga also shares ownership of a Socimi with other entrepreneurial families such as the Cosentinos, owners of Silestone, and the brothers Juan and Pedro Alcaraz, founders of the vehicle renting company Goldcar, now part of the giant Europcar.

Moreover, through Trajano Iberia, of which José Moya is president, the family owners a share of the Madrilenian Alcalá Magna shopping centre, for which the company paid €100 million last year, and a second in Portugal; an office building in the Spanish capital, in the Manoteras area, to be precise; a mixed-used property, for offices and shops in Bilbao; and a logistics asset in Zaragoza (…).

Original story: Eje Prime 

Translation: Carmel Drake

Spain’s RE Companies see their Share Prices Rise by 30% on Average in 2017

12 December 2017 – Expansión

Spain’s real estate companies are on a roll: the recovery in activity has given these companies more visibility on the stock market. On average their share prices have risen by 30% in 2017. Renta Corporación, Hispania and InSur are the best performers and all three are very much in favour with the experts.

The property sector is in fashion on the stock market. On average, the share prices of real estate companies rose by 30% in 2017, well above the 10% rise that the Overall Index has registered since the beginning of the year.

Within this group, three companies shine the brightest: Inmobiliaria del Sur, Hispania and Renta Corporación all saw their share prices rise by between 39% and 53%, and the experts think that the upward trend will continue.

Moreover, Urbas and Axiare also saw their share prices rise by more than 30% in 2017, but for diametrically opposite reasons. The first was suspended from trading in September after the National Court announced that it was investigating the firm’s President for “suspected fraud” following a complaint filed by the Anticorruption Prosecutor.

Meanwhile, Axiare is the target of a takeover by its counterpart Colonial, which launched its bid in the middle of November and saw it approved by the CNMV just a few days ago. The operation, which is expected to result in the creation of a real estate group with assets worth €10 billion, offered a 13% premium over the company’s share price at the time, which led to a sharp rise. Currently, the company’s shares are trading just below the offer price (€18.29 compared to €18.36 per Colonial’s latest offer).

The economic environment, improvement in activity and greater investor appetite for housing are all working in favour of these companies, said Nicolás López, from M&G Valores.

However, the expert points out that the low market capitalisation of some of them and their very low liquidity increase their volatility, which makes them options suitable only for high-risk profiles.

Renta Corporación’s share price has risen by more than 50%

In the case of Renta Corporación, which is limited in size: amounting to just €92 million. The company is the best performing real estate company of 2017, with a share price increase of 53% (…). The company has taken advantage of its knowledge of the real estate market to launch, together with the Dutch pension fund APG, a Socimi. Since its creation, eight months ago, the new listed company has invested €93 million in the purchase of more than 1,000 homes, all located in Madrid and the surrounding area (…).

Strategic diversification favours InSur

Inmobiliaria del Sur completes the podium of the most profitable real estate companies this year. Its share price has risen by 40%. The secret to its success is the new business plan that the company has launched and which has been welcomed warmly by the market.

The family business, which has more than 70 years of experience, splits its activity between the construction of homes and the rental of office buildings, which allows it to have two revenue streams. With a business plan that involves building more than 2,000 homes between now and 2020, InSur has closed alliances with partners such as Anida, the real estate arm of BBVA, to become a key player in residential development (…).

Hispania’s specialisation boosts its share price

Meanwhile, Hispania’s share price has risen by more than 39% since the beginning of the year. This year, the company (…) has initiated a new phase, specialising in hotel assets (in June, it became the largest hotel owner in Spain with 38 establishments) and divesting the rest of its properties (…).

A few weeks ago, the company published its results for the third quarter, which went down well. The Socimi recorded a profit of €179 million during the first nine months of the year, up by 31% compared to the same period in 2016 (…).

Original story: Expansión (by D. Esperanza and R. Ruiz)

Translation: Carmel Drake

The Sun Shines On Spain’s RE Estate Sector Once Again

4 May 2017 – Expansión

The Spanish real estate sector is smiling again. After years of crisis and an on-going cleanup, the main listed companies in the property sector have reported more positive figures: the earnings of these firms tripled in 2016 with respect to the previous year and their operating profit rose by 64%, driven by an increase in the number of sales and an appreciation in asset values.

Two factors are converging to generate the improvement in the real estate sector: an acceleration in the number of sales – both in the residential sector, as well as in the office and retail segments – and an increase in transaction prices and in rental costs. In 2016, 404,421 operations were registered in the housing sector, up by 13.7% compared to the previous year, but nevertheless, just over half as many as in 2007. In the same way, average house prices rose by 11% from the minimums registered in 2014, but they are still 30% cheaper than in the year prior to the burst of the real estate bubble. (…).

The combined profit of all of the companies in the RE sector – Socimis and traditional real estate companies alike – reached €1,395 million last year, compared with €407 million in 2015. In other words, their earnings tripled in just twelve months and came close to the combined profit recorded in 2007 of €1,592 million, albeit generated by very different players.

Only 29.6% (€414 million) of the total amount was generated by traditional property companies, in other words, those that managed to emerge intact from the worst years of the crisis: Colonial, Realia, Inmobiliaria del Sur, Quabit, Renta Corporación, Grupo Urbas and Montebalito. If we take into account Reyal Urbis – which filed for creditor bankruptcy in 2013 – and Neinor Homes, the latest property developer to debut on the stock market, that percentage decreases to 18.98%, in other words, €264.8 million.

Therefore, most of the profits (70.4%) were generated by activity carried out by the Socimis, which multiplied their earnings almost five-fold in one year, from €244.6 million in 2015 to €1,131 million in 2016. (…).

The tax benefits that the Socimis enjoy, their obligation to distribute dividends annually and the attractive returns they generate compared to other investment options, have boosted their number and weight in the market.

In Spain, shares in four Socimis are traded on the main stock market and together they generated a gross operating profit of €388.5 million in 2016, up by 85.4% compared to twelve months earlier (…), with the largest, Merlin, accounting for the lion’s share of that figure (€260 million).

Large family fortunes are increasingly choosing this investment vehicle in recent times. In total, 17 Socimis debuted on the stock market in 2016 and there are currently 32 companies on the Socimi-specific segment of the MAB. (…).

The future strategy for all of these entities involves rotating their non-strategic assets and specialising in non-residential segments, specifically in: offices, retail and logistics. According to a recent report form the real estate management company Laborde Marcet, Spain closed Q1 2017 with investment in non-residential real estate assets amounting to €3,520 million.

The retail sector accounted for 42.5% of that figure and whereby recovered the high profile that it had previously ceded to the office segment; hotels accounted for 22.2% and logistics assets for 10.6%. Given these proportions, the plan that Merlin has just presented (to invest €200 million over five years on the renovation of its office and shopping centre portfolio) makes sense. Hispania is also planning to sell off its offices to concentrate on its hotel business.

Original story: Expansión (by María Hernández and Víctor Martínez)

Translation: Carmel Drake

Investing In RE Companies: Analysts Share Their Top Picks

11 July 2016 – Expansión

The constraints that several British real estate funds are facing following Brexit has placed the focus on the RE sector once again. “With globalised markets, an event in one country has an impact around the world. In the short term, it is likely that property companies will decline in the United Kingdom, as well as in other European markets”, says Mar Barrero, from Profim, but she is certain that the chances of a contagion, affecting companies and real estate funds in Spain, are minimal.

Indeed, the effects of the result of the British referendum on the real estate market may also be positive. At least, that is according to Pablo García, from Carax Alphavalue. “If companies that are currently headquartered in London change their centres of operation, there will be activity in the sector to mobilise offices in Europe. In this context, Paris, Barcelona and Madrid would be well positioned”, he assured and, for this reason, he is positive about the sector.

Barrero justifies her optimism by the “purge that has taken place in the last 10 years, which has led to a significant cut in property prices”. “In Spain, we are in a different phase of the real estate cycle”, says Rubén de la Torre, from Andbank.

Merlin Properties: The industry giant on the stock market and one of the shares with the highest percentage of buy recommendations, according to the consensus of Bloomberg analysts, with support from 85% of them. After overcoming the risk of a possible interventionalist government, De la Torre points to its size as one of Merlin’s positive features. “Its listing on the Ibex gives it visibility and its merger with Metrovacesa will allow it to enter the orbit of many funds” says the expert. In addition, it has managed to diversify its profile through its latest acquisitions.

And as if that weren’t enough, its shares are trading at attractive prices, given that, according to the analyst, they are being traded at a discount of almost 20% with respect to their net book value. The Socimi has potential, according to the consensus, of 21% following a YoY decrease of 18.5%.

Colonial: This is Pablo García’s favourite security due to the quality of its assets and its exposure to the French market, which allows it to diversify. In any case, he believes that the growth of the company will come from its Spanish assets. According to other experts, the company’s decision to start paying dividends again (at the start of July, it paid its first dividend for ten years) is another of Colonial’s attractive features. 66% of the analysts advise buying this security, which they say has potential to increase by 19%. The share price has fallen by 1% so far this year.

Hispania: De la Torre says he also likes this share, “which is very linked to the hotel sector” (…). The company has recently closed a capital increase amounting to €230 million to finance new investments. 57% of the analysts advise buying this share, which has an upside potential of 18%. Its price has fallen by 9% so far this year.

Axiare: The only Socimi that is unlikely to increase its capital this year, given that its net debt is almost non-existent. (…). 63% of the analysts advise buying this security, which has upwards potential of 13%. This year, the share has fallen by 9.8%.

Lar España: A share that is very dependent on the economic cycle due to its significant exposure to the shopping centre segment. (…). 80% of Bloomberg’s analysts advise buying this share, with an upside potential of 38%. This year its price has decreased by 23%.

Other real estate companies: the stock market is also home to other real estate companies, which, due to their small size or limited monitoring by analysts, are at the mercy of speculative movements. Shares in Inmobiliaria del Sur, Quabit, Renta Corporación and Urbas tend to be highly volatile.

Original story: Expansión (by R. Martínez)

Translation: Carmel Drake

Investment Returns To The Residential Market

11 February 2016 – Expansion

Experts say that this trend is heterogeneous, with regions that need to dispose of their stocks and other in need of developable land.


The residential business – until recently the ugly duckling in the housing sector – emerges again as one of the values on the rise, in part thanks to the return of large reals estate companies to this activity, one of the most affected by the economic crisis. Thus, for the first time since in mid-2007 the gradual deterioration of the housing market situation began, the sector turns its attention to this business, since in 2014 it showed the first signs of improvement, although with a concentrated demand in very well located and high segment product.

Ongoing projects  

Some of the most recent examples are the Socimi Lar-Pimco España, which will soon begin “Lagasca 99 project” on the site at Juan Bravo, 3, Madrid, or Metrovacesa, with “Ciudad del Sur” in Tarifa and the study of new projects in Madrid. Likewise, Realia has residential assets in the Madrid suburb of Valdebebas and Quabit has strongly returned to this activity thanks to the capital increase undertaken last year. At the same time, developing companies like Via Célere, Pryconsa, Aelca, Inmobiliaria del Sur or Neinor Homes are making a move in this segment with the aim of becoming the first residential developer of Spain, as well as cooperatives as Momentum, Domogestora and Ibos. 
The director of the National Residential and Land area of CRBE España, Samuel Población Blanco, emphasizes the “great heterogeneity” in this trend, with differing behaviors. 
Thus Población highlights that while in Madrid there is a great need for developable land, with the risk that in one year the housing demand can be much higher than the existing supply, other regions still need to dispose of their stock. 
Likewise, Población notes that SOCIMIs and asset management companies will be increasingly interested in the residential renting area, coinciding with the change of mentality in Spanish society, the higher functional-geographical mobility and the professionalization in this activity. 
For his part, the Chairman of Armabex, Antonio Fernández, explains that there is a gap between renting demand in Spain and Europe, which tends to shorten due to the new working conditions and the lack of funding. 
”In Madrid, for example, they lack efficient product; no large blocks or buildings dedicated to renting” says Fernández.

Original story: Expansion (by Rebeca Arroyo)

Translation: Aura Ree

Inmobiliaria del Sur Buys a Seville Plot From Sareb

12/12/2014 – ExpansionPro, Idealista

Listed developer Inmobiliaria del Sur (Insur, headquarters pictured) has signed an agreement with Sareb, Spain’s bad bank, on a purchase of a plot of nearly 9.500 square meter buildable area situated in Seville. Transaction price has not been disclosed.

The land, formerly a car workshop, will serve as a base for a housing development including 64 homes, several shops and 148 underground parking spaces. The project will cost Insur 16 million euros.

The real estate company, controlled by Pumar family, earned 3 million euros last year. Wednesday, the firm’s shares closed up 3.82% at 6.8 euros a share.

 

Original stories: ExpansiónPro (Jueves 11 de Diciembre, pp 14), Idealista

Translation: AURA REE