Tag: insurance company

MSG Buys Building On Paseo De Recoletos, 5 For €30M+

14 July 2017 – Expansión

The insurance company MGS has strengthened its real estate portfolio with the acquisition of an office building in Madrid.

According to sources close to the operation, the former Mutua General de Seguros has paid more than €30 million for the property, which is located at number 5 on Paseo de Recoletos, close to Plaza de Cibeles.

The building has been sold by a family group, whose identity has not been revealed. It has a surface area of 3,053 m2, spread over five open-plan floors, plus an attic with a terrace.

The property has been renovated recently and, according to MGS, combines classic architecture with the latest technological advances. Key features include its large entrance hall with high ceilings, amongst others.

Yesterday, the insurance company said that it placed value on the asset’s central location, which fits with MSG’s strategy, focused on acquiring high-quality assets in prime locations in Spain’s largest cities. At the same time, with this operation, the company, which is headquartered in Barcelona, is increasing its presence in the Spanish capital.

Portfolio

Also in Madrid, MGS is the owner of the building on Calle Alcalá 65, which houses the headquarters of the insurance company’s foundation organisation. In the Catalan capital, it owns the property at number 543 on La Diagonal, which is home to the company’s corporate headquarters.

Last year, MSG closed real estate investments amounting to €121.2 million. 53.5% of its assets are real estate properties for its own use, whilst 46.5% are buildings that it leases out.

Original story: Expansión (by J.O.)

Translation: Carmel Drake

Mapfre Sold 45 Properties Worth €34.5M In 2015

23 February 2016 – Expansión

Mapfre is taking advantage of the emerging recovery of the Spanish real estate sector to accelerate the disposal of non-strategic assets from its investment portfolio. And, as a result, increase its economic return from the sale of homes, premises and offices, amongst others.

Last year, the insurance company sold 45 properties of different types for €34.5 million in total, according to its annual report submitted to the CNMV. The gross profit from these transactions amounted to €11.3 million, more than twice the amount recorded a year earlier from similar operations. In 2014, Mapfre reported profits of €4.5 million from the sale of properties.

The main asset sold in 2015 was a plot of land in Cotochico, Marbella (Málaga), which was disposed of for €12.2 million. Mapfre also sold the San Javier and San Antonio clinics in Bilbao for €4 million and €3.3 million, respectively. The other 42 properties sold by entity were “minor, non-significant assets”.

On the buy-side, the insurance group did not pass up the opportunity to acquire several iconic buildings. As such, it invested €82 million in the acquisition of a property in Madrid’s Plaza de la Independencia, 6. And, outside of Spain, it bought an office block in One Winthrop Square in Boston (USA) for €55 million. At the end of 2015, Mapfre held a property portfolio worth €2,267.7 million, which represented 4.9% of the entity’s total investment portfolio, which in turn amounted to €46,264.7 million and mainly contained sovereign debt (57.1%) and corporate fixed income (22.5%).

€943.4 million (41.6%) of the Group’s real estate portfolio related to facilities that it makes use of itself, in other words, retail outlets and offices that provide support to the insurance company’s administrative and commercial network. The remaining 58.4% (€1,324.3 million) comprises every kind of asset, available for sale and rent. The occupancy rate of its properties for rent increased slightly with respect to the previous year, to 85.9% at the end of 2015 (compared with 85.5% in 2014).

Unlike other investments in its portfolio, some of Mapfre’s properties are accounted for at book value, i.e. at acquisition cost, and not at market price. Thus, the group calculates that it has unrealised gains of €975 million. Meanwhile, the Group says in its annual report that “the unrealised gains will offset a decrease in property prices equivalent to approximately 30.06% of their own market value”.

Accounts

Mapfre clarified to the CNMV that the Brazilian CEO, María Leticia de Freitas Costas, has not signed the 2015 accounts yet “due to her inability to attend the Board meeting”, and not because of any kind of disagreement.

Original story: Expansión (by M. Ponce de León)

Translation: Carmel Drake

Mapfre Buys Historic Building In Puerta de Alcalá For €80M

11 June 2015 – Cinco Días

Mapfre has acquired a beautiful trophy. It has taken ownership of a historic building next to the Retiro Park, in the Puerta de Alcalá, which has one of the best views in Madrid and of the historic park.

The insurance company has acquired the building located at number 6, Plaza de la Independencia for €80 million. It was auctioned by the Mutualidad de Notarios.

The building contains approximately 12,000 m2 of office space, spread across eight floors, and also houses retail premises.

The Mutualidad Notarial acquired the building more than 20 years ago.

Original story: Cinco Días

Translation: Carmel Drake