Tag: Inmobiliaria Espacio

Inmobiliaria Espacio & Gingko to Build 800 Homes & 1 Hotel in Málaga

1 February 2018 – El Economista

Inmobiliaria Espacio, part of Grupo Villar Mir, is entering the Malagan urban development of La Térmica with a bang, in partnership with Unicaja and together with the investment fund Ginkgo. The three actors are going to carry out a reconversion project in that industrial space, where they are going to build more than 800 homes, as well as shops and a hotel.

The real estate firm has taken the step through the company Espacio Medina, in which it controls a 70% stake, whilst the remaining 30% is owned by Acinipo, part of the Unicaja group. That company has been working in property development in Málaga for 10 years and is now strengthening its commitment to the city by participating in the project to regenerate La Térmica, a site that used to house the old thermal power plant for the city of Málaga.

Specifically, Espacio Medina has acquired 20% of the company Nueva Marina Real Estate (NUMA), owner of the rights over these plots. The remaining 80% is owned by the fund Ginkgo, which acquired the entire project at the end of 2017 through its subsidiary Ginkgo Participations II, after reaching an agreement with Endesa, the main shareholder of NUMA at that time.

Regeneration project

NUMA, which has entrusted the management of the planning and the subsequent development and marketing to Espacio Medina, is going to create more than 800 homes on the La Térmica site, alongside plots for other tertiary uses such as commercial space, offices and a hotel, on a site that has a total surface area of 115,944 m2.

The real estate consultancy Catella, together with Ginkgo’s law firm, Zaforzeta & Romero Rey, and PwC, on the side of Espacio Medina, have advised the operation.

With this new investment, Ginkgo, Inmobiliaria Espacio and Inmobiliaria Acinipo are all consolidating their commitment to Málaga, which they regard “as one of the best European cities on the Mediterranean Coast with the best expectations for development and quality of life for investment over the next few years”, explain sources at the company.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Torre Caleido: Construction Begins of Madrid’s Fifth Tower

1 February 2018 – Expansión

After five months of preparations underground, the construction phase of the 35-storey skyscraper has finally begun. The 180 m tall tower is going to house the IE campus, as well as a horizontal building that will be home to sports facilities, a shopping centre and parking areas.

The starting gun has been fired for the above-ground work on what will become the fifth tower in Madrid. The future skyscraper, measuring 180 m2 tall and comprising 35 storeys, is going to house the new vertical IE campus, which will emerge from a second building, with a base that is going to be 280 m long and 60 m wide, which will form an inverted T-shaped complex, known as Project Caleido.

Inmobiliaria Espacio, the subsidiary of Grupo Villar Mir and Megaworld Corporation, the business conglomerate owned by the Philippine multimillionaire Andrew Tan, are the owners of the company responsible for the construction and operation of the project, with a planned investment of €300 million and which will result in the generation of more than 5,000 jobs during the construction and operation phases (…).

Caleido –designed by the architecture studios Fenwick & Iribarren and Serrano Suñer Arquitectos– will be located in the epicentre of the new financial district in Madrid and will serve to eliminate a blot on the landscape in the north of the capital by connecting Paseo de la Castellana and Avenida de Monforte de Lemos, as well as to revitalise the existing business complex, explains Fernando Serrano-Suñer, one of the architects behind the project (…).

“To date, we have completed the first two phases, involving the demolition work and the construction of the foundations, which are now complete. This week, we will award the construction work, which has been tendered for through a very transparent process, audited by Dypsa”, says José Antonio Fernández Gallar, Director General of Inmobiliaria Espacio.

Third phase

Now, the third phase of construction is going to be launched, involving the building of the tower and the base (…), where the campus sports facilities, a 600-seater auditorium, an indoor swimming pool, libraries, a dining room, a complete shopping floor and a hospital centre specialising in sports medicine run by Quirón will all live alongside 7,000 m2 of green space (…).

Leisure will also play an important role in the complex, with sports areas and events spaces. “We are studying the possibility of including a cinema of some kind, but it would not conform with the traditional style, it would include an e-gaming and e-sport element, something that doesn’t exist in Spain at the moment”.

Moreover, the base will include parking for students and professors, as well as parking for the retail space and another public parking lot, with a total surface area of 42,100 m2 spread over several floors and with capacity for 1,900 parking spaces (…).

In terms of the skyscraper, the 180 m tall building will house 70 classrooms, work and rest areas, as well as double-height spaces to replicate meeting places in traditional campuses (…).

“The project is progressing at a good pace. We have completed the first phase and we are moving forward with the idea that the work will be finished by 2020”, he said.

Original story: Expansión (by R. Arroyo and R. Ruiz)

Translation: Carmel Drake

“Valdebebas Is Ready To Welcome Companies Post-Brexit”

27 June 2017 – Expansión

Valdebebas – one of the largest urban planning projects in the Community of Madrid, with a land surface area of 10.6 million m2 – has fired the starting gun for what is expected to become the city’s “new financial and technological district”.

“We have land spanning more than 1 million m2 (equivalent to the surface area of almost 140 football pitches) available for tertiary use. People talk about Castellana Norte, but there is no development in Spain quite like Valdebebas. It is already ready to welcome companies from London searching for new locations after Brexit and any other multi-national companies”, explains Marcos Sánchez, Managing Director of the Valdebebas Compensation Board, which represents the owners of the land. Market sources indicate that the land owners include Monthisa, Bisbel, Vivienda Económica, Celteo, Coindeco and Inmobiliaria Espacio.

This business park will comprise twenty blocks, with buildabilities ranging between 9,000 m2 and 110,000 m2. It will house buildings that have between five and fourteen storeys.

The director said that, although they have not yet started “to sell” Valdebebas as a destination for companies, international investors, funds and hotel chains have already expressed their interest in the development: “We are still in the preliminary conversation phases. Until now, contact has been made because interested parties have been approaching us”.

For Sánchez, the aim of Valdebebas is to attract fin-tech companies and others relating to that sector. Moreover, it has the capacity to accommodate between three and four hotels and restaurant brands. “We have direct access to the airport and are well connected to the city centre. It is an unbeatable location in Europe and the world”.

In this sense, it is worth remembering that a bridge is being constructed to connect this area with Barajas Airport – T4, with a forecast investment of more than €20 million. “We have already moved earth and started building the foundations on both sides. The work, which was started in February, is going well and will be finished within two years”, he said.

Valdebebas has several advantages over the potential Operación Chamartín: the immediacy – with “windows of opportunity that can be benefitted from now” – its size and location, according to Sánchez. “Castellana Norte is our natural competitor; despite that we want that site to be developed as soon as possible and in the best way possible because we will all end up winning as a result”, he said.

Legal journey

In terms of the legal position, Sánchez acknowledges that, although Valdebebas has always been very judicialised – construction of between 800 and 1,000 homes has been suspended following a ruling by the Supreme Court – almost 100% of the residential property has been sold, the population already stands at 10,000 people and is set to reach 18,000 by the end of the year. In his opinion, it is “perfectly feasible” to reach agreements before the urbanisation is completed. “All of this administrative and judicial chaos will end when the urbanisation is handed over in two years time”, he said.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Who’s Who In The Cinco Torres?

13 January 2017 – Cinco Días

The future Torre Caleido, whose plans were unveiled on Tuesday by Inmobiliaria Espacio (Grupo Villar Mir), will add 70,000 m2 of real estate space in the area known as the Cuatro Torres complex. As such, there will be five skyscrapers at the top of the Paseo de la Castellana from 2019, which means that Madrid’s skyline will change once again. In total, the five towers will supply around 300,000 m2 of space to companies.

Although when the plans were first presented for these skyscrapers in Madrid, many people had their doubts regarding their success, the reality is that the four towers are almost fully occupied now and the two main tenants for the fifth tower have already been confirmed.

Caleido will have 70,000 m2 of space in total and, unlike the neighbouring towers, will be used for social purposes on land granted by the Town Hall of Madrid to Grupo Villar Mir for 75 years. (…).

The new IE University campus will occupy 48,000 m2. And the lower platform will be home to a Quirón Salud clinic, covering 11,000 m2 and dedicated to preventative and sports medicine. The tower will also house a retail and restaurant area, which will come as a real blessing for the employees who work in the area, given that they have barely any services at the moment. The retail space has not been leased yet. In addition, Grupo Villar Mir is looking for possible partners with whom it can undertake the work, which will begin within the next few months.

The history of the four towers, on the plot of land that used to house Real Madrid’s former Ciudad Deportiva at the northern end of the Paseo de la Castellana, began commercially in 2008, when the first skyscrapers were completed.

One of them is the current Torre Cepsa…designed by Norman Foster, which was initially intended to house the headquarters of Repsol, but the oil and gas company sold it to Bankia for €815 million before the real estate bubble burst. The now nationalised bank, in turn, leased the building to Cepsa, with the option to buy it…and that company, in turn, sold it in 2016 to Pontegadea, the family office owned by Amancio Ortega for €490 million. (…).

At the end of 2015, Torrespacio, designed by Henry N. Cobb and promoted by Inmobiliaria Espacio, was also sold to the Philippine wine group Emperador for €558 million. (…). It has an occupancy rate of 86%.

Prior to that, Torre PwC also changed hands. (…). It houses the 5-star Eurostars Madrid Tower Hotel and the offices of the consultancy firm PwC, which moved in to occupy the upper floors in 2011. (…). It is 236 m tall, has a surface area of 50,000 m2 and was designed by the architects Carlos Rubio Carvajal and Enrique Álvarez-Sala.

Torre Cristal, the tallest building in Spain at 250 m2 tall, is the only tower that has not changed hands since it was built – it is owned by Mutua Madrileña (…). Designed by César Pelli, the skyscraper was conceived to house several tenants and currently has an 85% occupancy rate. The consultancy firm KPMG now occupies one third of the property, after moving there last year from Azca. Other tenants include MasterCard, Red Hat, Cerner, Commerzbank, Seat, Agbar and ThyssenKrupp, amongst others.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

The Alcaraz Family Buys Caja España’s Former HQ In Madrid

23 November 2016 – Expansión

Another new luxury housing development is going to be built in Madrid. The family office owned by the Alcaraz family has purchased the building located on Calle Velázquez 23 – which used to house the headquarters of Caja España – from Banco Ceiss, where it plans to construct luxury homes.

The financial entity, which was created as a result of the merger of Caja Duero and Caja España, has taken advantage of the increase in prices driven by the economic recovery in Spain and the lack of high quality products to sell this iconic asset, located in the heart of the Salamanca neighbourhood. The operation has been advised by Aguirre Newman.

The Alcaraz family plans to demolish the property and build a new residential development, but it will respect the façade and arquitectural value of the asset. Velázquez 23 has an above ground surface area of 2,548 m2, as well as 450 m2 of basement space, which may be used for retail purposes and parking.

This building is located on one of the most sought-after axes for the development of high quality residential properties, just a stone’s throw from the Retiro Park and Calle Serrano, which is home to lots of major luxury brands. The price of homes in this area exceeds €10,000/m2 in some cases.

Other developments

This project is the latest in a long line of luxury developments that are already on the market, such as the one on José Abascal 48, comprising 17 homes with a surface area of between 100m2 and 400 m2; as well as others that are underway at Juan Bravo 3 and Canalejas.

The former, now known as Lagasca 99, which is being promoted by the Lar Group, is located in the neighbourhood of Salamanca and is expected to be sold in 2018. Meanwhile, the group of seven properties in Canalejas, a project being undertaken by Inmobiliaria Espacio and OHL, is located between Calles Alcalá, Sevilla, Plaza de Canalejas and Carrera de San Jerónimo. In addition to a hotel and shopping arcade, the Canalejas plan includes 22 luxury residences, which will be operated by the Four Seasons chain, along with the hotel.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Habitat Inmobiliaria Invests €44M In New Homes In Valdebebas

19 April 2016 – Expansión

The land that will house the new homes was acquired from Grupo Villar Mir.

Habitat Inmobiliaria will invest €44 million in a new housing development in Madrid, which will involve the construction of 115 luxury homes and will be built on land in Valdebebas, purchased from Inmobiliaria Espacio, a Grupo Villar Mir company.

The new development forms part of the strategic plan launched by the real estate company, which is currently controlled by a group of funds, after it emerged from recent bankruptcy proceedings.

It will be the fifth development launched by Habitat following the clean up and restructuring process that it has undergone in recent years. Within the last few months, the company returned to the property developer business with the launch of four projects that include almost 400 new homes, two of which are in Madrid, one in Cornellá (Barcelona) and one in Málaga.

In terms of the development that it is beginning now, it will be constructed on two plots of land purchased from Inmobiliaria Espacio, with a combined surface area of 18,091 m2, located in Valdebebas, a new area of development in the capital.

The total investment of €44 million announced by Habitat covers both the purchase of the land and the subsequent construction of the homes.

Specifically, the development will involve the construction of 115 3-bed and 4-bed luxury homes, measuring around 140 m2, as well as eight “loft-offices”, six retail outlets, 115 storerooms and 272 parking spaces. Habitat hopes to complete the construction of the homes by the end of 2018.

The company led by Bruno Figueras (pictured above) explains that these projects form part of the company’s strategy to become “one of the most important property developers in the country”.

Original story: Expansión

Translation: Carmel Drake

‘Quirón Salud’ Considers Opening A Hospital In The Fifth Tower

7 October 2015 – Cinco Días

The Quirón Salud group is currently considering opening a hospital in the so-called fifth tower, the skyscraper that the Villar Mir group is planning to build at the northern end of the Paseo de la Castellana, on land that was previously home to Real Madrid’s former Ciudad Deportiva. This step would enable the company led by Juan Miguel Villar Mir to construct this emblematic building.

The Villar Mir group was awarded the plot of land next to the Cuatro Torres in April. The company is planning to build a new skyscraper on the site and has always hoped that building would house a private health centre. The corporation won this project, through its subsidiary Inmobiliaria Espacio, but does not have any tenants for the property for the time being.

Initially, the sector thought that the US hospital group Mount Sinai was the most likely candidate to occupy the skyscraper, in its first expected foray into Spain, but the numbers did not stack up for the healthcare company – it concluded that the rental charge was too high for a social use building, according to sources close to the operation.

Now, the baton may be passed to Quirón Salud, the main private hospital group in Spain, which was created following the merger of IDC Salud (formerly Capio) and Quirón. According to sources at the company, it is currently evaluating the project. The company has 70 health centres, including the Fundación Jiménez Díaz, and manages several public hospitals in Madrid, as well as a number of prestigious clinics such as La Luz, San José and the Ruber, in the capital and Teknon and Dexeus, amongst others, in Barcelona. However, the company has not yet confirmed what kind of centre or facilities it would consider opening in the tower.

Two weeks ago, it was announced that Villar Mir will receive help from the Swiss fund Corestate Capital to construct the skyscraper. In a statement, the company announced that the project will require investment of €240 million, and although it did not specify how much each partner will invest, it did say that the possible tenants will be “a hospital, university or government body”. In fact, construction of the property is not expected to start until the tenant (client) has been identified so that the building can be tailored accordingly.

Over the last few days, the possibility of opening a business school in the tower has been evaluated. Some market sources insist that it will be hard for Quirón to make the numbers stack up to open a hospital in the skyscraper.

Villar Mir acquired the plot of land in a tender after presenting the highest bid; the company will pay the Town Hall an annual fee of €4 million for 75 years, in other words, €300 million in total. The plot has a surface area of 67,000 m2 and a buildability of 70,000 m2, of which 52,500 m2 must be allocated to social use (for example, a hospital); the remainder will be developed as retail space. That part is precisely what the hundreds of employees who work in the four adjoining towers want the most, given the lack of restaurants and services currently in the area.

Villar Mir also owns one of those skyscrapers, Torre Espacio, which is currently up for sale, with an asking price of around €600 million. The possible bidders include international funds, such as UBS, Aca, Corporación Financiera Alba and Pontegadea.

Original story: Cinco Días (by A. Simón)

Translation: Carmel Drake

Spain’s New Property Developer Kings – Who’s Who?

5 October 2015 – El Economista

The funds, financial institutions and real estate companies that have survived the crisis, forecast that they will construct 150,000 new homes and 50,000 secondary residences per year until 2020.

After the burst of the real estate bubble and the harsh years of the crisis, a new panorama is now emerging in the construction sector with several new players in the wings. Many funds and financial institutions have already emerged as the new stars of the residential development segment and have taken on a significant role in the sector.

Nevertheless, these banks and investment firms will have to share the market with some of the survivors from the past, namely the former property developers. A handful managed to survive the drought, as they diversified their businesses and/or made intelligent developments before the crisis, and they are now ready to become property kings once again.

Neinor Homes, will undoubtedly be one of the most active companies over the next few years, since according to its forecasts, it will construct between 2,000 and 3,000 homes per year. The company, led by Juan Velayos (former CEO of Renta Corporación) is the largest residential real estate company created in Spain following seven years of recession.

Neinor Homes is pushing down hard on the accelerator. This year alone it will invest around €1,000 million on the purchase of land, which it will add to the land worth €350 million that is already holds on its balance sheet. (…).

The banks are also entering the sector

According to the first report prepared by Solvia, to analyse the trends in the real estate market, the banks, through their servicers, have also positioned themselves amongst the main property developers. Solvia itself is playing a significant role in the new panorama. The real estate company owned by Banco Sabadell has already developed more than 3,380 homes over the last few years and has around €4,200 million in land assets under management. (…).

BBVA has also launched itself into property development, as the Commercial Director of BBVA Real Estate – Anida, Lorenzo Castilla explains. The entity is evaluating the development of 25 sites for the construction of 2,000 homes, whilst already developing another 12 for the construction of 630 properties.

The director clearly describes the new model that has now been implemented in the sector, he says that “it is not about filling Spain with cranes, but rather focusing on projects that make sense”, given that “there was a distinct lack of rationale during the boom years”.

According to the estimates published in Solvia’s Market View report, both Altamira, the real estate subsidiary of Banco Santander, and Cerberus will develop between 1,000 and 2,000 homes per year. In the case of the US fund, this development will be centred on the urban complex it purchased together with Orion from NH, in Sotogrande (Cádiz) for €225 million. (…).

The real estate companies make a return

Solvia’s report also highlights that property developers such as Via Célere, Corporación Promotors, Pryconsa and Inmobiliaria Espacio will also be developing between 500 and 1,000 homes per year. (…).

All of these projects come in stark contrast to the still very high figures for unsold housing stock (533,734 units in 2014). Moreover, the experts say that a significant volume of this stock may never be sold, however, the sector justifies the new developments. Solvia says that the business model that it applies now is more conservative than in previous years, since land purchases are generally being financed using own funds. In addition, “the lack of stock in certain areas, and the existence of pent-up demand, makes the conditions very favourable for a return to development”.

On the basis of this data, property developers estimate an annual output of 150,000 new homes and 50,000 secondary residences between 2016 and 2020.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Villar Mir Guarantees Torre Espacio’s Buyer Rent Of €26M

3 July 2015 – Cinco Días

Inmobiliaria Espacio, which forms part of the Grupo Villar Mir, wants to generate the maximum amount from the sale of the iconic Torre Espacio, one of the four skyscrapers constructed on Real Madrid’s former Ciudad Deportiva. To this end, it is willing to guarantee 100% of the building’s rental income, and pay the difference if the new owner does not reach the maximum occupancy rate.

According to sources close to the operation, Villar Mir has put a figure on the table of €26.4 million per year. This means that the purchaser will receive the same monthly rent, regardless of the occupancy rate of the building.

Torre Espacio, which has 57 floors and is 230m high, has a total leasable area of 60,142m2, as well as 1,173 parking spaces. The building currently has an occupancy rate of 85%. Companies in the Grupo Villar Mir occupy 55% of the leasable area and the corporation, which is controlled and chaired by Juan Miguel Villar Mir, will continue to rent offices in the skyscraper. The other tenants include four embassies: Canada, UK, Australia and the Netherlands.

The real estate company has offered to guarantee rental income of €35 per m2 per month, which represents an annual rent of €25.2 million. In addition, the rental cost of the parking spaces amounts to another €1 million, which takes total annual rent to €26.4 million. Inmobiliaria Espacio would retain control of the rental management of the property and of finding tenants. Nevertheless, it is likely that some investors will waive their right to the guarantee, as they will prefer to take care of the management side themselves.

With this commitment, the real estate company thinks that it will come close to the €600 million asking price for the sale of the tower. That would represent an annual yield of 4.40%, but that is rather low, according to market sources; if interest rates rise over the next few months, the viability of the tower’s financing may be put at risk.

Villar Mir has set a minimum asking price of €500 million, which represents a valuation of around €8,500/m2. The market considers that price to be high, since Pontegadea, the family office owned by Amancio Ortega, paid around €5,000/m2 for its acquisition of Torre Picasso, and the March family paid around €7,500/m2 for Ahorro Corporación’s headquarters in Castellana, 89.

On the plus side, Villar Mir’s real estate group may benefit from increased liquidity in the market and the interest shown by international funds in the recovery of the country. Even so, analysts do not expect that many candidates will have the capacity to invest €500 million or €600 million in an asset that is not in Azca, the prime business district in Madrid. (…).

‘Due diligence’

The group chaired by Villar Mir has launched an accelerated process for the sale of the building. Anyone wishing to becoming the new owner must submit non-binding offers by next Tuesday. The real estate company expects to choose the best offer during the course of the week.

Then, the candidate with the best offer will begin the due diligence process, which will last for three weeks, until 29 July – all of the experts in the market consider this timeframe to be tight. The binding offer will be made by 29 July and the transaction will be closed during the first week of August.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

OHL Transfers 5% in Abertis to Villar Mir’s Topline Inmobiliaria Espacio for €701.91 Mn

15/10/2014 – Bolsamania

OHL has sold a total of 44.91 million shares of Abertis, correspondent to 5% of the firm’s stake, to Inmobiliaria Espacio, principal company of Grupo Villar Mir, for €704,91 million.

The amount indicates that each share’s price stood at €15.6944, while currently they are traded at 14.8200 euros each (down 1.17%).

The operation, expected to conclude still this week, increases stake of OHL in Abertis from former 13.925% to 18.925%. The company is going to intend the equity obtained from the sale for paying in advance a part of its debt with recourse secured by the transferred shareholding.

The Syndicate Agreement

OHL and Inmobiliaria Espacio signed a syndicate agreement on the stake of Abertis with view to ‘coordinate and unanimous excercise of corresponding voting rights’. In case of lack of agreement between the parties, majority of votes shall prevail. The contract will be in force for one year with possibility of prolonging it to the next years.

 

Original article: Bolsamanía (by Sara Carbonell)

Translation: AURA REE