Vivenio Invests €90M in the Purchase of 2 Buildings in Madrid

10 June 2019 – Eje Prime

Vivenio has purchased two buildings in Madrid from a Madrilenian family office for more than €90 million.

The Socimi owned by the Dutch fund APG and Renta Corporación has acquired one building located on Avenida San Luis, comprising 140 homes and 18 premises and another on Calle Hermosilla, with 80 homes and two premises.

Together, the two properties span a surface area of more than 21,500 m2.

Original story: Eje Prime

Translation/Summary: Eje Prime

Korian Makes its Debut in Spain with the Purchase of 7 Nursing Homes

31 January 2019 – Eje Prime

Korian is going on a shopping spree on the Costa del Sol. The French company has announced the acquisition of Seniors, a Spanish company that operates seven nursing homes for the elderly in Málaga. The Andalucían residential group, which recorded revenues of €15 million in 2018, has a supply of around 1,300 beds.

The operation represents Korian’s debut in Spain, the fifth market in which the company has a presence. In fact, the purchase forms part of its expansion strategy across Europe. Currently, the company also has operations in France, Germany, Belgium and Italy.

Although the economic terms of the sale have not been revealed, the CBRE group (which has acted as the financial advisor) said in a statement that “it is one of the largest corporate operations of 2018 by investment volume in the nursing home sector”. The Seniors group, founded in 1998, is a family company backed by 100% Andalucían capital.

Original story: Eje Prime 

Translation: Carmel Drake

UOC Buys its Home in 22@ from Invesco for €30.6M

7 November 2018 – Eje Prime

The Universidad Oberta de Catalunya (UOC) has acquired Can Jaumandreu. The entity has purchased the iconic office complex, located in the 22@ district of Barcelona from Invesco Real Estate for €30.6 million.

The university institution, which has occupied the property on a rental basis since 2005, together with the public institution of the Town Hall of Barcelona Bagursa, has obtained ownership of the property on a concession basis until 2078. The purchase has been made as a result of the growth of the entity, the consolidation of the district and, above all, the rationalisation of the spaces that it has in Barcelona into a single complex, reported the UOC in a statement.

Can Jaumandreu is one of the most iconic office complexes in the 22@ district. With a surface area measuring 12,284 m2, the property comprises two buildings and has a 7@ certification, which means that only public companies or outreach or training firms may occupy the space.

Alejandro Monge, Director of Invesco Real Estate in Spain, highlighted that “the divestment forms part of the fund’s usual asset rotation policy, given that the complex has been in the portfolio for more than ten years”. Nevertheless, for the company, which has recently acquired three logistics assets in Madrid and Barcelona, Spain is still a priority investment area”, said the executive. “We are still looking for opportunities to invest in high-quality assets and increase our presence in this market”, said the Director.

The 22@ district – all the rage in Barcelona 

The office district of the moment in Barcelona is registering record figures for another year. According to the Marketshot report compiled by Cushman&Wakefield, the consultancy firm that has advised the operation, 86 rental operations were closed in the 22@ district in 2017spanning 101,000 m2, which represents the highest figure in the last ten years and 34% more than in the previous two years (…).

The investment volume, which amounted to €161 million in the 22@ district in 2017, more than tripled the €51 million figure recorded in 2016. In metres squared, the investment volume corresponded to a surface area of 173,000 m2, well above the figure recorded in 2016, of 33,000 m2.

Original story: Eje Prime 

Translation: Carmel Drake

BNP Paribas: RE Inv’t Amounted to €2.45bn in Q1 2018

6 April 2018 – Expansión

The rate of growth of real estate investment in Spain is slowing down, although it retained its strength during the first quarter of 2018. The volume transacted during the 3 months to March amounted to €2.45 billion, having decreased by 27.5% with respect to the same period last year (€3.38 billion), a figure that included record operations such as the purchase of the Xanadú shopping centre for €560 million, which caused investment volumes to soar.

According to a report compiled by the consultancy firm BNP Paribas Real Estate, the retail segment led the investment ranking during the first three months of the year to account for 44% of the total volume transacted, in other words, around €1.08 billion. That was thanks to operations such as the sale of a portfolio of stores by Inditex to the German fund Deka for €370 million; the sale of Parque Corredor, in Torrejón de Ardoz (Madrid), for €200 million; and the sale of the Las Habaneras shopping centre in Orihuela (Alicante), for €160 million.

Retail was followed by the office and hotel segments, with a volume of around €350 million each, and the logistics segment with 10% of the total.

Residential assets also accounted for 10% of the total investment figure thanks to operations such as the purchase of a portfolio of 1,500 homes by Testa from CaixaBank for €228 million, whilst alternative assets gained traction to account for 7% of the total volume invested.

Assets

By type of investor, funds are becoming established as the main buyers of real estate, unseating the Socimis, which remain immersed in the asset management process and which are preparing to dispose of some of their assets.

David Alonso, Director of Research at BNP Paribas Real Estate, explains that the high volume operations currently in the pipeline indicate that the total investment figure for the year as a whole may well reach, or even exceed, the investment volume recorded in 2017.

The aforementioned operations include the portfolio of offices that Hispania has on the market, which has an estimated closing price of between €500 million and €600 million; three shopping centres that Sonae Sierra and CBRE Global Investors have up for sale worth around €500 million; a portfolio of four shopping centres owned by Unibail Rodamco; and several large office complexes in Madrid and Barcelona located in good areas of the market.

More caution

Luis Nuño, Director of Office Investment at BNP Paribas Real Estate, indicates that the market remains optimistic about the evolution of real estate investment in Spain, although with “more caution” than in previous years.

“Investors are going to have to propose more imaginative formulae and be more flexible if they want to access certain operations. Vendors’ expectations have been increasing gradually in recent years, making it more difficult to achieve the returns demanded by investors”, he said.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Savills: Spain Leads RE Inv’t in Southern Europe

12 December 2017 – Expansión

Real estate investment in Spain is on the verge of setting a new record and positioning the country as the leader of the sector’s boom amongst its counterparts in Southern Europe. Specifically, investment in the tertiary market (offices, retail, hotels and logistics assets) in Spain looks set to amount to €8.9 billion in 2017, which represents an increase of 5% compared to the previous year and the highest figure in a decade, according to a report from the consultancy firm Savills.

The report reveals the strong performance detected in the retail and hotel sectors and also highlights that the growth in e-commerce in Spain is expected to result in greater demand for logistics and storage space, a segment that has lagged behind the main markets in Europe until now.

Luis Espadas, Director of Capital Markets at Savills España, also points out that, to the extent that demand in the more traditional sectors grows, so investors are starting to focus on alternative products, such as student halls and nursing homes. “That market may be small still but it has the potential to develop more attractive returns and price differentials”.

Other countries

The recovery of the sector in Spain has been followed by an upturn in other countries such as Italy, Portugal and, more recently, Greece and Cyprus. In this way, after a few years of weak investor activity, the volume of investment in Southern Europe increased by 277% in 2017, compared to the minimum of €5.2 billion recorded in 2012.

Overall, total investment volumes increased by 8% YoY. The markets in Southern Europe now account for 10% of the total investment in the European Union, compared to the 5% that they represented in 2012. “Economic growth, the decrease in unemployment rates and renewed consumer confidence are attracting investors back to Southern Europe”, says Alice Marwick from the Europe Research department at Savills.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Realia Sells ‘Los Cubos’ Office Building To Therus For €52M

23 October 2017 – Expansión

The real estate company Realia, owned by Inmobiliaria Carso and FCC, which are both controlled by the Mexican businessman Carlos Slim, has sold the office building known as Los Cubos, located in Madrid, for €52 million.

The buyer is the French real estate company Therus, which is co-investing with the British investment group Henderson Park, according to several sources.

The property, which owes its name to its unique architecture, has a leasable area of 18,324 m2 and 334 parking spaces.

The real estate company put this building, located in the vicinity of the M-30 ring road, up for sale at the end of last year, as reported by Expansión at the time. The building has been vacant since the end of 2015. Before its sale, the company considered renovating it on several occasions to improve its appeal in the market.

In the end, Realia has sold the building for €52 million, compared to the initial asking price of €57 million. The sale of Los Cubos is the latest in a long line of high profile real estate investment operations closed in Spain in recent months. The investment volume in the real estate sector during the 9 months to September amounted to €10,300 million.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Aguirre Newman: RE Inv’t In Barcelona Amounts To €2,500M In 2016

19 December 2016 – La Vanguardia

The real estate market in Barcelona is on course to break records again this year. It is expected to end 2016 with total investment operations amounting to €2,500 million, compared with €1,978 million last year, according to data presented by the real estate consultant Aguirre Newman on Thursday.

2016 will also be a “historical” year for Spain as a whole, with investment figures once again exceeding the level recorded in 2007, the year before the outbreak of the crisis. Investment operations worth almost €14,000 million are forecast to be closed.

Cataluña accounts for 20% of Spain’s total investment in this sector, although that figure is set to increase to 25% in 2017, given the significant potential of Barcelona.

The Director General of Aguirre Newman in Barcelona, Anna Gener, explained that; demand in Barcelona is still very active; there is still a lack of available land for sale; international demand is very active; and the real estate market is regarded as an attractive sector for investment.

Of the total investment volume expected this year, €860 million correspond to offices, down by 2.8% compared to last year, given that 2015 was a year of “blossoming”, when several major corporate operations were recorded after years of crisis.

The residential market will reach €120 million this year, shopping centre investment will amount to €865 million, retail investment will reach €100 million and investment in the industrial sector will amount to €144.1 million, up by 61%, due to the scarcity of land.

Around 80% of the investment volume has been made by international buyers; and domestic investors “are back again” after years away, according to Hipólito Sánchez, Director of Investments.

57% of the investments were made by funds, 26% by Socimis, 10% by private equity firms, 3% by institutional investors and 2% by insurance companies.

The leasing of office space continues to be a very active market; the availability rate has been decreasing since 2012 and now stands at 9.9%.

Construction activity is continuing to recover, with a 40% increase in the number of new construction permits compared to 2016.

The average price of free (unsubsidised) housing increased by 9% in Barcelona this year and by 4.5% across Cataluña. There was also a great deal of interest in renovation projects and in changes of building use status towards high standing residential properties in the centre of Barcelona, where more than 60% of buyers are foreign. (…).

The retail sector has continued to receive interest from investment funds and private equity firms in the main areas of the centre of Barcelona.

La Diagonal has established itself as an area of expansion following its renovation, with a 30% increase in rental income in just two years and the opening of megastores by certain brands, such as Massimo Dutti, Zara, Uniqlo and H&M.

The most important operation in the shopping centre sector was the sale of Diagonal Mar to Deutsche Bank for €495 million.

Another sector that continued to attract investors was logistics, whose investment volume increased by 60% with respect to last year, due to the shortage of land. (…).

The hotel sector has also continued to perform very well, given that prices per room have increased, thanks in part to the fact that there are no new competitors.

The forecasts for 2017 indicate that the real estate sector will continue to attract international investors, demand will continue to be very active, and products will continue to be scarce, although prices are not predicted to rise by very much.

Original story: La Vanguardia

Translation: Carmel Drake

JLL: Hotel Inv’t Amounted To €1,030M In First 7M 2016

3 August 2016 – Expansión

(…). Hotel investment in Spain amounted to €1,030 million during the 7 months to July 2016, which represents a 41% decrease compared with the same period last year. Nevertheless, it also represents the second highest figure recorded since 2007, according to a report prepared by JLL.

Specifically, as at 31 July this year, 81 (hotel) assets had been sold, for a combined investment volume of €1,030 million through 68 operations, compared with 92 assets sold as at July last year, with a combined investment volume of €1,752 million through 55 operations.

The most noteworthy operations so far this year have featured: Hotel Villa Magna, which was acquired by the Turkish group Dogus for an estimated €180 million; and Hotel Pullman Barcelona Skipper, which was purchased by the Saudí Royal Family for €90 million.

Excluding those two operations, Spanish investors accounted for 80% of the total volume invested in Spain.

In this vein, the most active investors in the hotel market have been the investment fund HI Partners (a subsidiary of Sabadell) and Hispania, which have completed transactions amounting to €110 million and €71 million, respectively.

Meanwhile, on the sell side, hotel groups have accounted for 41% of all hotel assets sold, followed by real estate companies (26%) and private investors (13%).

For Manuel Climent, Vice-President of JLL Hotels & Hospitality Group, the decrease in investment this year reflects, in part, the lower number of hotel portfolio transactions sold this year, after they soared in Spain in 2015.

Specifically, last year, up to eleven portfolios were sold, containing 74 hotels in total, for a combined investment volume of €1,450 million. So far this year, seven portfolios have been sold, containing 21 hotels and a combined investment of €174 million.

Climent forecasts that activity will intensify in terms of hotel portfolio transactions during the second half of the year, with HI Partners and Hispania leading the way.

For Climent, the moratorium in Barcelona has caused lots of investors who had purchased assets with a view to converting them into hotels, to become more cautious again. By contrast, some owners have put their hotel assets up for sale as they think that now is a good time to sell, given the lack of supply, which is raising prices in a space that is still very attractive for tourism.

The Vice-President of JLL Hotels & Hospitality Group considers that, although some important transactions are expected to be closed before year end, total investment volumes will fall below last year’s record of €2,740 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Irea: Hotel Investment Rose By 54% To €1,237M In YTDSept15

13 October 2015 – Expansión

Hotel investment is soaring in 2015. During the 9 months to September 2015, 77 transactions were closed involving 15,800 rooms, with deals ranging from the sale of hotels (already in operation) to the conversion of buildings into hotels. Investment volume amounted to €1,237 million, an increase of 54% compared with 2014, according to data published by the consultancy Irea.

Nevertheless, despite the record figures, the pace of investment slowed down during the third quarter, as a result of the election effect. In total, 14 transactions were closed between July and September, amounting to €196 million, compared with €699 million during Q2 and €342 million during Q1. Activity has been driven up by the sale of portfolios of assets, which accounted for 34% of investment volumes and 54% of rooms. The most noteworthy transaction in this category was the creation of Bay, the first pure hotel Socimi, by Barceló and Hispania; there was also the partnership signed between Meliá and Starwood Capital, with the aim of repositioning the Sol brand.

The sun and beach segment accounted for 68% of investments, with the Canary Islands leading the ranking as the star destination – €369 million was invested there. The Costa del Sol and Madrid also recorded significant increases, in contrast to Barcelona, where investment decreased by 15%, due to the impact of the hotel moratorium imposed by the city’s mayoress, Ada Colau.

By category, most of the transactions so far this year have involved 3-star and 4-star hotels, which has led to a decrease in the average price per room of €22,500, despite the rise in the number of rooms sold, which has increased from 6,192 in 2014 to 15,800 this year.

Socimis

In terms of the profile of investors, Socimis continue to lead the ranking. During the 9 months to September 2015, they invested €302 million, i.e. five times more than in 2014. Also noteworthy is the growing activity of international investors such as the Olayan Group (Saudi Arabia) and the Kangde Group (China), which have acquired the Hotel Ritz in Madrid and the Hotel Santiago de Tenerife, respectively.

Irea expects that 2015 will exceed the previous record registered in 2006 (€1,780 million) and that the level of investment will be maintained in 2016. Foreign Socimis and investors will continue to be the most active investors and hotel property groups are expected to start invested once again.

Original story: Expansión (by Y. Blanco)

Translation: Carmel Drake

Funds Will Invest €2,000M In Shopping Centres In 2015

7 July 2015 – El Economista

Shopping centres are still the star asset in the real estate sector; and experts forecast that this year will see the second largest investment volumes of all time.

According to Pelayo Barroso, Director of Business, Analysis and Market Research at the consultancy Aguirre Newman, transactions amounting to €2,000 million will be closed during 2015. This figure is spurred on by the arrival of institutional funds specialising in this kind of asset.

“We do not expect the investment volumes seen in 2014 to be repeated – €2,500 million was invested in around 30 transactions. That was an exceptional year, but the forecast figures for this year are still very strong”, says Barroso.

It is worth noting that in 2013, total investment amounted to just €700 million, whereas during the year to date, transactions have already been closed amounting to more than €900 million. (…).

Centres up for sale

According to Aguirre Newman’s forecasts for the second half of the year, transactions worth €1,000 million will be closed, as a result of the sale of around 15 shopping centres, which are currently on the market. Moreover, Barroso explains that even though some assets are not officially on the market, “their owners are open to offers”.

The shopping centres that may be sold are “located in regional capitals and large towns”, which is just what investors are looking for. He adds that these assets are not only located in Madrid and Barcelona, they can also be found in cities such as Bilbao, Sevilla and Valencia.

In terms of the type of investor interested in these assets, the Socimis will continue to play an important role. The creation of several Socimis in a relatively short space of time and their need to invest within a relatively short timeframe, meant that they accounted for 24% of total investment volumes in 2014, according to data from Aguirre Newman.

Similarly, the arrival of overseas institutional investors with vast specialist experience in the sector has driven a lot of investment; these players accounted for almost 73% of total investment volumes last year.

Both Socimis and institutional investors have a long-term vision, explains Barroso. In this sense, he stresses that their objective is to optimise centres, reposition them and earn rental income from them. “They are not going to do what the funds that purchased shopping centres in 2012 and 2013 did, when they entered the market, only to exit again two years later.

In terms of the yields that these investors are looking for, the director explains that the returns on prime centres range between 5% and 5.5%. Whilst for secondary centres, yields start at around 6.5%.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake