Tauro Buys Building In Madrid For €9.2M

21 July 2016 – Expansión

The real estate investment fund Tauro Real Estate, managed by Josep Maria Xercavins, has purchased a building in Madrid for €9.2 million. The property is located on Calle Ciudad de Barcelona, 89 and was built recently.

The building comprises 31 homes and 50 parking spaces, which will be put up for rent. Tauro Real Estate already owns eleven buildings in Barcelona and three in Madrid, according to data from the Commercial Registry. Its portfolio currently contains 300 homes and the fund is expected to close once it has 500 homes. Tauro’s aim is to acquire properties that generate good returns (from rental income) and capital gains upon sale.

Original story: Expansión

Translation: Carmel Drake

TH Real Estate Offers €450M For Diagonal Mar

14 June 2016 – Expansión

The owner of the shopping centre Diagonal Mar, the British fund Northwood, has received a binding offer amounting to €450 million from TH Real Estate. This amount almost triples the €160 million that Northwood paid for the Barcelona-based shopping centre in 2013.

It is not the only offer that has been presented, given that TH Real Estate’s proposal was accompanied by two others from funds whose name has not been revealed. The sale of the asset is being brokered by the consultancy firm CBRE, which has declined to comment on the deal, along with TH Real Estate.

Diagonal Mar is the largest shopping centre in Cataluña, with a surface area of 87,500 sqm. Nevertheless, not all of the property is up for sale, given that 27,000 sqm are owned by Alcampo (which will hold onto its space).

Northwood acquired the centre at the worst time of the crisis, in 2013, from the Irish bad bank, which means that it could end up generating capital gains of €290 million in less than three years.

The investor

TH Real Estate is owned by the financial services provider TIAA. The origin of the company dates back to the London-based real estate manager, Henderson Real Estate, which was absorbed by the US group TIAA in 2014 to create TH Real Estate, which is also headquartered in the USA.

TH Real Estate manages real estate assets all over the world, covering 26,800 sqm, for around 50 investment funds and other operating mandates.

As well as TIAA’s assets in the USA, this platform integrates properties worth €83,900 million in total, which makes it one of the largest property managers in the world.

In Spain, TH Real Estate owns several shopping centres, including Islazul, in Madrid, measuring 90,000 sqm; Nervión in Sevilla, measuring 25,000 sqm; and Bulevar Getafe in Madrid, measuring 27,150 sqm. It also owns an industrial park in Alovera (Guadalajara) measuring 42,000 sqm.

The company has been present in Spain since 2007 and its Madrilenian headquarters is headed up by Manuel Martín. In recent years, as well as investments in operating assets, TH Real Estate has also undertaken co-investment projects, such as in the case of the Viladecans outlet (in Barcelona), where it joined forces with Neinver.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

Ingria Investment Sells Commercial Premises On c/Serrano To AEW

2 February 2016 – Mislocales.es

Cushman & Wakefield has advised the investor group in the sale of the property, located at number 7, Calle Serrano in Madrid.

Ingria Investment, an investment fund mainly constituted by Rockspring, has sold a commercial premises to the German company AEW Europe in the heart of Salamanca district of Madrid, precisely in Calle de Serrano, No. 7. The space is part of a building being fully restored, whose works are planned to be finished by the first quarter of 2017.

The commercial premises has a total of 750 m² distributed over two floors, one at street level and one on the first floor. It features a clear area, plus large shop windows and eight balconies, which allow plenty of natural light.

Marc Langenbach, Fund Manager of AEW Europe commented: “As the first investment fund in Spain, this operation is a welcome addition to our portfolio. Our intention is to rent the place to an international retailer during the construction period and we have already detected a strong interest. During the coming months we will continue expanding our portfolio in the main streets of the major cities in Europe”.

According to Beatriz Lopez Cid, Retail Associate in Cushman & Wakefield Spain, “the premium brands are increasingly moving to the Puerta de Alcalá, due to the limited availability of premises. This requires for buildings to be remodeled and adapted to new needs. The closing of this transaction confirms the confidence of investors in HS assets  in Spain, and  indeed, the premises purchased by AEW Europe go in this direction. “

Calle Serrano is considered the most emblematic of the Spanish capital, located in the famous Golden Mile of Madrid, and hosts luxury brands like Prada, Cartier, Louis Vuitton, Versace, and Adolfo Dominguez, among others.

Original story: Mislocales.es

Translation: Aura Ree

BMB Creates A Socimi In Spain Called ‘Optimum RE Spain’

6 March 2015 – Expansión

The fund manager BMB has created a Socimi called Optimum RE Spain, whose objective is the acquisition of residential properties in Madrid and Barcelona. BMB is well known in the market as it has created several investment funds in Berlin in recent years.

Original story: Expansión

Translation: Carmel Drake

Foreign Investment Fund Offers €16.1m For Guadalpín Hotels

19 February 2015 – Diario Sur

The transaction could amount to almost €60 million in total, since Caixabank would cancel most of the sizeable debt that Aifos has with the entity.

The turbulent history of Guadalpín hotels is beginning a new chapter. Whilst the property developer Aifos, which constructed these luxury facilities, is immersed in a process to approve its liquidation plan to proceed to bankruptcy, a foreign investment fund is looking to take advantage of the opportunity by placing €16.1 million on the table to purchase the majority of the two properties, but without taking on their management. The administrators have already agreed the deal with the fund, in principle, but the transaction must be authorised by Commercial Court number 1 in Malaga, which is conducting the bankruptcy proceedings.

The offer has been presented by Lumitran System, a company controlled by foreign investors, mainly Swiss and Central European, which has set its sights on the hotels. The offer for the property in Marbella, which is located on the Golden Mile (Milla de Oro) has been made for the common areas of the building, which belong to Aifos, as well as other spaces, such as the ground floor, which houses the swimming pool, reception and garage; the apartments (in the property) are owned by another party.

In terms of the facilities in Guadalpín Banús, the investors are looking to purchase the apartments and other spaces, such as the reception, kitchen and the shops in the building. Despite this, the proposal does not provide for the operation of the hotels, which depend on other companies.

In exchange for the specified consideration, Lumitran System, would also take ownership of other items. One of the most symbolic would be the Guadalpín brand. And another, with more financial opportunities, is a plot of land known as the Village, which is situated just behind the hotel in Puerto Banús, which was reserved at the time for a potential future expansion. These are the targets of a transaction that, although require a pay-out of €16.1 million (by the investors), would generate significantly more profit for a company that does not find itself in the same situation as Aifos, which would see its debt of €59.1 million eliminated in a stroke.

The offer explains that the developer holds debt with the entity Caixabank amounting to €51.6 million, in the form of mortgages over the hotels Guadalpín Banús and Marbella. Nevertheless, the entity would forgive this amount entirely in exchange for a cash payment of €9.4 million and its complete dissociation from Aifos, which Lumitran has committed to.

In addition to this payment to the banking entity for the facilities, Aifos would also receive a cash payment itself. Specifically, Lumitran would pay €2.5 million directly to the developer. Another party that would benefit from this transaction is the Town Hall of Marbella. In their offer, the investors commit to taking over the obligations that Aifos holds with the Town Hall regarding the administrative normalisation of the urban situation of the Guadalpín complexes in Banús and Marbella. According to recent estimates, that would amount to €3.6 million in the case of the Village plot alone. Moreover, the municipal’s coffers would also receive funds from the investors in the form of tax revenues, such as property tax (impuestos de bienes inmuebles or IBI) and garbage tax, which have not been paid in recent times. These payments by Lumitran System would exceed €600,000.

Agreement with the bank

This proposal, which has already been agreed between the investors and Caixabank, is now in the hands of the Commercial Court number 1 in Malaga, which is conducting Aifos’ bankruptcy proceedings. The bankruptcy administrators processed the offer a few days ago and now the period has begun for its assessment, as well as for the presentation of new offers in the event that other parties are interested in acquiring the assets from the developer, which filed for liquidation in October last year.

In a letter, the bankruptcy administrators ask the court to authorise the proposal so that the sale of the aforementioned facilities in the Guadalpín hotels may go ahead. They assure that this transaction would result in “enormous benefits” for the parties affected by Aifos’ bankruptcy. And that the deal would amount to almost €60 million in total. There would be some direct revenues,  €16.1 million (€2.5m for Aifos, €9.4m for Caixabank and another €4.2m for the Town Hall of Marbella), although the most significant amount would involve the cancelation of Aifos’ debt by Caixabank.

In their request to the courts, the administrators also highlight the importance of this purchase being agreed “as soon as possible” to avoid any further accumulation of debt by both the Costa del Sol Town Hall and the bank.

Original story: Diario Sur

Translation: Carmel Drake