ASG Homes Acquires Former Student Residence in A Coruña

17 September 2019 – La Opinión A Coruña

The sale has been completed of a former student residence in A Coruña. The congregation of the religious order of María Inmaculada has sold the property, which spans 6,000 m2 and comprises 6 or 7 storeys (depending on where you are in the building), to the real estate firm ASG Homes Propcorp for €7.7 million.

ASG Homes Propcorp is owned by several European investors, namely: East Hampton Partners Limited (40%), headquartered in London; Fido Holding GMBH (10%), headquartered in Berlin (Germany), Caveco Investments (40%), headquartered in Madrid, and Gotrina (10%), also based in Madrid.

The group is in the process of investing the resources that it raised for its sixth fund, which amounted to €500 million in total, and the focus of its investments is now directed towards Valladolid, Zaragoza, Bilbao, Portugal… and A Coruña.

The international group specialises in the construction of residential complexes, and also promotes hotels, shopping centres and gas stations.

The property is currently divided into two halves, with the right-hand side forming the subject of the sale by the religious order; the left-hand side, which comprises commercial premises on the ground floor, offices on the second floor and private apartments on the upper floors, does not form part of the sale.

Original story: La Opinión A Coruña (by Marta Villar)

Translated by: Aura Ree

Land Prices and Production in Ribera del Duero Continue to Increase

5 August 2019

The Ribera del Duero wine region is in the midst of a boom, with production fully sold before harvest. The area produced 133 million tons of grapes, the second largest haul in  history from a total of 23,200 hectares of vineyards and 8,300 wine growers. The grapes supplied 315 wineries classified under the Denomination of Origin (DO).

While some investors think that the price of land in the region has risen too far too fast, the profile of buyers these days is undergoing a sea change as more professional winegrowers and entrepreneurs are looking to buy land. Thus, prices are expect to continue to increase, but at the more sedate, estimated range of between 5 and 6 percent per year.

Original Story: El Confidencial – Graciano Palomo

Adaptation/Translation: Richard D. K. Turner

Student Residences Leads Market with Yield of 5.5%

9 July 2019 – Richard D. K. Turner

According to a study by Jones Lang Lassalle (JLL) in April, a total of 47 student housing developments were currently underway in Spain. Of those, 7,500 will be ready by next year and another 10,000 by 2022. The estimated total investment is expected to reach €1 billion. However, the market needs another 400,000 beds to catch up with existing demand.

The report also highlighted the sector’s comparatively attractive yields.  Student residences have a yield of about 5% in Madrid and Barcelona and of 5% in smaller cities in the country. That yield equals the yields for logistics assets and geriatric residences. The yield for hotels (4%), retail premises (3.15%), offices (3.50%) and residences (3.50%) all lag behind.

The market for student residences in Spain is currently dominated by Resa and Nexo Residencias. U.S.-based Valeo, Temprano Capital Partners and Syllabus have also began operations in recent months.

Original Story: El Confidencial – Álvaro G. Zarzalejos

72 Socimis Have Made €50 Billion in Investments Since 2012

5 July 2019 – Richard D. K. Turner

A new study by the Bolsas y Mercados Españoles (BME) and JLL, called ‘Socimis. Stability and investment in the real estate sector. Market Report 2019,’ emphasised the growing importance of socimis in the Spanish economy and capital markets. Socimis have provided an alternate source of financing for the real estate market, coming at an opportune time after the financial crisis at the beginning of this decade.

Since the regulatory framework governing the investment vehicles, similar to REITs in the United States, was established in 2012, investors have created 72 socimis. Those firms have a total current real estate investment volume of 50 billion euros and a capitalization of more than 22.3 billion euros. Those same socimis have generated more than €2.1 billion in rents (+ 25% y-o-y) and net profits of 2.37 billion euros, with a dividend yield of 3.8% last year.

Original Story: Valenciaplaza

 

Operations by Socimis on MAB Rise by 21%

3 July 2019 – Richard D. K. Turner

Operations conducted by firms listed on the MAB rose by 21% to €150 million in the first half of 2019. Tomás Olivo’s General Galerías Comerciales posted the largest amount, investing a total of 67.7 million euros in a series of assets, including €42 million in the Centro Comercial Las Terrazas. Next came Atom’s acquisition of the Hotel Meliá de Valencia for 42.3 million euros, the largest transaction in the second quarter of the year.

Castellana Properties, in turn, acquired El Corte Inglés stores in Bahía Sur, Cádiz, and Los Arcos, Sevilla, for 36.8 million euros. Veracruz Properties Socimi has invested 18 million euros in the purchase of two office buildings on Calle Botiguers, in Paterna, Valencia. The buildings have a total area of ​​26,150 square meters and have 86 offices, 17 shops and 312 parking spaces.

Original Story: EjePrime – Marta Casado Pla

 

Ores Acquires Store Leased to Inditex for €11 Million

23 June 2019Idealista

The Ores socimi, which is owned by Bankinter, has just acquired a new commercial space. The store, located in the town of San Sebastián, is currently leased to the Spanish retail giant Inditex and has a total area of ​​729m2.

The store is located at 26 Calle San Marcial and is occupied by a Zara Kids store.

Ores paid €10.9 million for the asset as part of its continuing strategy to seek growth in its home market of Spain. Last year, the socimi paid out almost 180 million euros in acquisitions. Ores Socimi currently has 34 assets in its portfolio, with a market value of over 357 million euros and a gross annual income of 21 million euros.

Original Story: Idealista – Custodio Pareja

Translation/Summary – Richard D. Turner

 

Grupo Comatel Buys a Building in Valencia to Open a New Hotel

19 June 2019 – Valencia Plaza

Grupo Comatel has purchased a new 7-storey building on Avenida Germanías, 3, in the centre of Valencia, where it plans to open an MyR hotel.

In this way, the group led by Fidel Molina is continuing to grow its portfolio in the Mediterranean city, where it has set itself the objective of becoming the main luxury hotel chain.

Comatel’s began its quest in 2017, with the opening of its first establishment, Hotel Plaza Mercado, with 24 rooms and an investment of €12.6 million.

Last year, it opened 5 more hotels with an investment of €56 million, including a luxury aparthotel on Calle Calabazas, with 13 rooms and Marqués House, located in the former Café Madrid building, with 30 rooms and a 5-star rating.

Original story: Valencia Plaza (by Begoña Torres)

Translation/Summary: Carmel Drake

Merlin Enters the Top 10 Ranking of the Largest Logistics Owners in Europe

19 June 2019 – Cinco Días

Merlin Properties has been a major player in the European office and shopping centre markets for several years. But now, the Socimi led by Ismael Clemente has entered the Top 10 ranking of the largest logistics owners on the Continent, with its portfolio of 1.6 million m2 under management, according to a report about the logistics market compiled by Deloitte.

The Top 10 ranking is led by the listed US firm Prologis (17 million m2); Logicor, the firm controlled by China Investment Corporation and Blackstone, (13.5 million m2); and the fund manager CBRE GI (7.7 million m2). They are followed by the logistics specialists Segro, P3 Logistics Parks and Goodman.

Merlin owns 1.1 million m2 of logistics space outright and holds a 48% stake in a company that owns another 469,000 m2 of logistics space in the port of Barcelona. It also has 1.254 million m2 of surface area under development.

Investment in logistics assets is currently breaking records across Europe and in Spain, in particular, boosted by attractive returns and the boom in e-commerce. With the rising demand, the availability of high-quality warehouses is decreasing, hence the need to build more. According to Deloitte, investment in warehouse purchases amounted to €1.5 billion last year, the second best year ever after 2017, when the figure reached €1.6 billion.

Merlin is planning to invest €484 million in its Best II and Best III logistics funds between now and 2022. Most will be targeted in Madrid and its surrounding areas (Guadalajara and Toledo) and Cataluña, but investment will also be made in Lisbon, Zaragoza, Sevilla and Vitoria.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation/Summary: Carmel Drake

Temprano Capital Partners Acquires a New Site for a Student Residence in Madrid

17 June 2019 – Press Release

The new project, which forms part of the Temprano Student Living (TSL) initiative, will provide 10,000 m2 of premium accommodation for more than 400 students. This project represents Temprano Capital Partners first scheme in Madrid and its eleventh Student Residence development in the Iberian Peninsula.

Temprano Capital Partners has just acquired a new site in Getafe, Madrid. It is the firm’s first student residence project to be developed in Spain’s capital and the eleventh in Temprano Student Living (TSL) Iberian’s  pipeline.

The first TSL project to complete was TSL Marques de Pombal in Lisbon, which opened its doors to students in January 2018 and won the award for “Best in Class for Property Innovation and Sustainability at the Class” given by The Class of 2020 annual awards for its good work in innovation and sustainability.

By adding this new student residence in Madrid, TSL will increase the number of beds in its portfolio to more than 4,000. The city of Madrid has the largest number of students in Spain followed by Barcelona, Valencia and Bilbao, respectively. More than 300,000 students are enrolled in the region in the 2018-2019 academic year, of which 196,400 attend public universities with the remainder at various private educational institutions around Madrid.

The large student population in Madrid includes a large contingency from other regions of Spain (approximately 80,000 according to internal research) and approximately 24,000 international students principally Europeans and from the Americas.

The recently acquired site is located at Calle Ramón Rubial 37, Getafe, which is an 8-minute walk from the main campus of the Carlos III University and a 10-minute walk from the railway station Las Margaritas Universidad.

It is envisaged that the student residence will provide some 400 beds in a combination of cluster, studio and twin room configurations, within a building spanning just over 10,000 m2. The residence will provide other services and amenities, such as a gymnasium, lounge club area, audio visual / cinema rooms, library, study rooms and areas created for group work, dinner party rooms and onsite catering and restaurant facilities. The residence will offer rentals to be fully inclusive with 24/7 concierge service. Rooms will provide kitchens, individual bathrooms, Smart TVs, in addition to desks for in room study needs. High speed Wi-Fi will be provided throughout the project.

Original story: Press Release

Edited by: Carmel Drake

JLL: Foreign Investment in Catalan Real Estate Rose by 137% in 2018

15 June 2019 – La Vanguardia

According to data published by the real estate consultancy JLL, overseas investment in the Catalan real estate sector rose by 137% during 2018, despite the fact that total investment fell from €1.13 billion in 2017 to €995 million in 2018.

In fact, domestic investment plummeted by 85% to €363 million from €859 million, but almost all of that decrease was offset by the arrival of funds from overseas. Of those, investment funds deposited 57% YoY more in 2018 (€574 million) and Socimis invested 47% YoY more (€326 million).

Having overcome the political uncertainty seen in 2017, international investors showed their commitment to Cataluña in general and Barcelona in particular, not least because the city has been declared as one of the world’s influencer cities by JLL.

In the business context, the city is particularly attractive for investment in the office, logistics and commercial sectors, ranking in first place in all 3 markets when compared with its European counterparts.

Specifically, the Catalan capital’s offices generate yields of 3.75%, whereby outperforming Milan (3.6%), London, Madrid and Stockholm (all 3.5%). Its logistics assets generate returns of 5.10%, compared with 5% in Madrid, and its shops in central locations generated yields of 3.25% in Q1 2019, compared with Madrid (3.15%) and Paris (2.75%).

All of this is welcome news for the region that has been hit hard by the political uncertainty of recent years.

Original story: La Vanguardia (by Pilar Blázquez)

Translation/Summary: Carmel Drake