Tag: investor

BBVA Completes Sale Of Torre Puig To Grupo Puig

7 June 2017 – La Vanguardia

BBVA has completed the sale of Torre Puig, in Plaza Europa, L’Hospitalet de Llobregat (Barcelona) to Grupo Puig, which has occupied the building in its entirety, as a tenant, since 2014. Aguirre Newman has managed the operation, which has now been signed, after it was announced on 24 April.

The building, constructed in 2014 and designed by the prestigious architect Rafael Moneo, measures 14,288 m2 and has 199 parking spaces.

A group of international investors with varying profiles participated in the sales process, including family offices – firms that manage the investments of wealthy individuals -, insurance companies and institutional funds, although in the end the best offer was made by Inmo, the real estate company owned by the Puig family, which participated in the process like any other interested investor.

“It has been a long and complex process given the characteristics involved, but in the end, we have closed the deal to everyone’s satisfaction”, said Hipólito Sánchez, Director of Investment at Aguirre Newman, in a statement. He is convinced that this will be “one of the most important operations of the year in the investment market in Barcelona”.

Original story: La Vanguardia

Translation: Carmel Drake

Charme & Miura Finalise Purchase Of Valtecnic & Ibertasa

25 May 2017 – El Confidencial

A major new operation is brewing in the property appraisal sector in Spain. The private equity firms Charme Capital Partners and Miura Private Equity are about to close the purchase (to acquire a majority stake) of the appraisal companies Valtecnic and Ibertasa, according to sources close to the operation. Some finishing touches still need to be completed, such as obtaining approval from the Bank of Spain.

Charme and Miura are joining forces to acquire these two real estate services firms, which will continue to operate independently in the domestic market. In other words, the investment funds will co-invest in and take control of both companies, but will not merge them. In addition, the management teams of the two appraisal companies will continue at the helm as well as in their roles as minority shareholders.

Last year, Charme came very close to acquiring Tinsa, the largest company in the property appraisal sector in Spain, but that firm ended up being purchased by another private equity firm, Cinven, which paid Advent €300 million. Meanwhile, Miura invested in Group BC through its first fund until the end of 2015 – that company is dedicated to the outsourcing of services from financial institutions (mortgage advisory, recoveries…).

These operations represent the indirect entry of private equity firms into the real estate sector and their clear commitment to an upwards cycle. According to data from the Spanish Association of Value Analysis (AEV), the number of property appraisals grew by 13% during the first quarter of 2017, to 228,879 in total, worth €75,620 million, up by 3.1% with respect to the same period a year earlier. (…).

The number of appraisal companies has been cut in half

The appraisal sector was hit hard by the burst of the real estate bubble although, like in the property development sector, to the extent that the mortgage activity is resuming, so the volume of appraisals is also showing signs of recovery. Nevertheless, the crisis took a serious toll and led to the disappearance of lots of companies. Whilst in 2011, there were 58 appraisal companies, by the end of 2016, that figure had fallen to 37.

Nevertheless, in recent years, several companies, above all in the real estate consultancy sector, have broken into this market with their own appraisal businesses. Such was the case of CBRE Valuation Advisory, Aguirre Newman Valoraciones and UVE Valoraciones in 2011. More recently, another consultancy firm, JLL, obtained approval from the Bank of Spain for its appraisal business, which operates under the JLL brand.

Valuations

On the other hand, like in the property development sector, the activity of the appraisal companies has not been without controversy, especially for the role that they played in the real estate bubble. The appraisal companies have been repeatedly accused of producing inflated appraisal values at the height of the boom and of continuing to do so even in the face of a depressed market.

In addition, concerns regarding the transparency and independence of these entities caused the Bank of Spain to force the banks and savings banks to disassociate themselves from the appraisal companies in terms of ownership. That decision resulted in the disappearance of several players, such as Tabimed (Banco Sabadell) and TVG (Abanca). Others changed activity, such as Sivasa (Banco Santander), whilst others still, such as Tasamadrid (Bankia), were sold.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Renta Corporación Secures Investor For Socimi Launch

21 April 2017 – Ok Diario

Renta Corporación, the real estate company chaired by Luis Hernández de Cabanyes, created a Socimi back in October 2016, which has remained completely inactive until now. The vehicle was constituted with the aim of sounding out the market – which is why its launch was barely publicised – and in the event of finding opportunities, taking advantage of them. Nevertheless, according to market sources, a Dutch pension fund is now going to invest €125 million in the Socimi’s real estate portfolio.

The aforementioned Dutch pension fund has already signed a 10-year contract with Renta Corporación, through which it will pay the real estate company around €3 million per annum to manage the fund. (…).

With this move, Renta Corporación, which will hold its General Shareholders’ Meeting next Wednesday (26 April), hopes to benefit from the progressive recovery of the real estate sector, following the major crisis that property, in general, has suffered since 2008. In fact, the company has seen its share price rise by 8% (cumulative) so far this year.

And that increase has come despite the fact that the company’s results for 2016 were not as good as had been expected. Renta Corporación generated profits of €4 million last year, less than half the figure recorded a year earlier. Moreover, its revenues decreased by 46% and its margins fell by 8%. Furthermore, its debt balance rose to exceed €21 million.

In this regard, it is worth remembering that Renta Corporación emerged from bankruptcy just three years ago, a status that prevented it from trading its shares from almost a year and a half. (…).

Original story: Ok Diario (by Borja Jiménez)

Translation: Carmel Drake

Imperio Fórum Buys The Vinçon Building In Barcelona

1 December 2016 – Inmodiario

Imperio Fórum, a Spanish holding company owned by the Canadian investor Marco Fabiani, has purchased the former Vinçon building, located at number 175 on Calle Pau Claris in Barcelona, through one of his companies in which other shareholders also hold stakes. Imperio Fórum has acquired the residential part of the property, which is spread over 6 floors and covers 2,000 m2 in total, comprising 10 apartments and one penthouse.

The operation, which has been completed for €6.5 million, has been advised by Jordi Coma from the consultancy firm Think Big Capital and has received financing from CaixaBank. The renovation work will begin during the first quarter of 2017.

Six months ago, Marco Fabiani also bought another corner building with similar characteristics on El Eixample in Barcelona for €5 million. That property was located on Calle Sant Antoni Maria Claret, close to the modernist complex of Hospital de Sant Pau, where the renovation and marketing of 19 apartments, 2 penthouses and 3 retail premises is already underway. That operation was financed by Banc Sabadell.

Original story: Inmodiario

Translation: Carmel Drake

Hotel Miguel Ángel’s Socimi Will Debut On The MAB In 2017

5 October 2016 – Expansión

This iconic asset will form part of the Socimi created as a result of the alliance between the hotel group BlueBay and Le Royal Hotels & Resorts, which is due to debut on the Alternative Investment Market (MAB) during the first quarter of 2017.

In addition to Hotel Miguel Ángel, the Socimi will initially comprise other hotels located in Mallorca and a commercial development project on the Costa del Sol. In the absence of the opinion of an independent expert, first estimates indicate that the Socimi will be worth around €500 million.

The company has already engaged Armabex to prepare the informative document for joining the market. That firm will act as the global coordinator, alongside PwC, throughout the process.

The contribution of the hotel, which is owned by the Iraqi born British investor Nadhmi Auchi, who owns Le Royal Hotels & Resorts, has been carried out through a company restructuring process performed, primarily, using local companies and entities in Luxembourg.

New assets

“Although during the first phase, assets such as Hotel Miguel Ángel by BlueBay, some hotels in Mallorca and a commercial development on the Costa del Sol, including a hotel, will be included, the group will subsequently incorporate more properties, as a result of the asset restructuring process in commercial, fiscal and corporate terms, as well as due to the purchase of new assets”, explained the Chairman of BlueBay Hotels, Jamal Satli Iglesias in an interview. “The Socimi will be managed from Dubai, where I live, which will enable us to service different investors from the Middle East and London, for the other international investors”, said the Syrian-born Spanish businessman.

For the executive, the constitution of this Socimi forms part of a corporate strategy through which, in line with the actions of other international hotel chains, he wants to separate out the asset ownership and the operational sides of the business. “With this, we are looking for growth and consolidation”.

Amongst the benefits of this Socimi, Satli Iglesias highlights its significant diversification, both in terms of properties as well as lease contracts, which allows it to expect “very attractive returns, which will continue to increase over the next few years, driven by growth in the real estate sector and by the forecast growth in the tourism sector”.

Satli Iglesias said that this operation seeks to obtain “transparency and returns”. “During this first phase, we are more open to the entry of institutional investors and other hotel chains or hotel property owners who may want to join our project”.

BlueBay – the fifteenth largest hotel company in Spain – currently has 42 hotels in its portfolio, of which it owns 50%. “We are committed to a hotel management regime, backed by property ownership, and our future strategy is to increase the number of hotels that we manage under this structure”, he explained.

“Our strategic plan for 2017-2020, which we have just presented, involves increasing our current hotel supply by almost 50% to exceed 60 hotels by the end of the period. In terms of the number of beds, we expect the figure to double from its current level (23,000 beds) to more than 50,000 beds by 2020”, said the executive.

Satli Iglesias explained that in order to undertake these expansion plans, the group plans to allocate around 80% of the company’s profits to growth.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Ayco Buys Hotel Byblos In Mijas For €60M

26 September 2016 – Real Estate Press

As a result of this operation, Hotel Byblos hopes to restore its reputation as a luxury establishment in the health and family tourism sector, focused on the world of golf.

Ayco’s representatives have communicated that the real estate group plans to completely rebuild the property, which houses one of the largest five-star luxury hotels on the Costa del Sol. They plan to retain the hotel’s characteristic features, as well as incorporate new elements, such as a health and beauty area.

The five-star Hotel Byblos Hotel is an icon of the tourism industry on the Costa del Sol, since many internationally famous personalities have passed through its facilities, including the mythical Rolling Stones and Lady Di, amongst many others.

The establishment, opened in 1986, achieved enormous international fame as an icon of high quality tourism until it was acquired by the real estate group Aifos, which then led it to ruin, until its closure on 31 May 2010. In 2009, the British magnate Lord Sugar, founder of the mythical information technology company Amstrad, acquired the hotel and considered the possibility of reopening it in 2013, but that did not end up happening.

Original story: Real Estate Press

Translation: Carmel Drake

Ivanhoé Puts Madrid’s Xanadú Shopping Centre Up For Sale

14 September 2016 – Cinco Días

It is going to be one of the largest operations in the real estate market. The Canadian giant Ivanhoé Cambridge has begun the process to prepare the sale of the Xanadú de Arroyomolinos shopping centre (in Madrid), one of the largest five shopping centres in Spain. The aim is to close the transaction during the first half of 2017.

Several real estate brokers have already registered their interest and, in turn, have started to sound out potential investors with high purchasing power, given that it is expected that the operation price will exceed €500 million; that would represent a record figure for a transaction involving a shopping centre in Spain.

Madrid Xanadú was inaugurated in 2003. The property was developed by a joint venture between the US multi-national The Mills and the Spanish company PGC (Parcelatoria Gonzalo Chacón), which sold its stake to its American partner a year later. The real estate company Ivanhoé Cambridge acquired the centre in 2007 for €770 million, in an operation that included two other retail complexes in the UK and Canada.

Located 29 km away from the centre of Madrid, Xanadú was an innovation more than a decade ago as it included an artificial ski slope, open all year round. The centre has a gross leasable and leisure area measuring 152,000 sqm, exceeded only by Puerto Venecia (Zaragoza), Marineda City (A Coruña) and Parquesur (in Leganés, Madrid), according to data from the Spanish Association of Shopping Centres and Retail Parks (AECC). The centre is home to range of stores including the Inditex group, H&M, Apple and Primark. Hipercor and El Corte Inglés also have shops there, although those assets would fall outside of this transaction.

The search for investors

Various source in the sector have confirmed that Ivanhoé Cambridge has commissioned the US real estate broker Eastdil Secured to start designing the sales process. It is likely that the firm will look for a partner with a presence in Spain (one of the large specialist consultancy firms) with more knowledge of the local market. The aim is that the process to look for possible buyers will begin between October and November so that an agreement can be reached from the beginning of next year onwards.

Eastdil Secured was in fact responsible for selling the Diagonal Mar shopping centre in Barcelona this summer to Deutsche Bank for €493 million, in a record deal that demonstrated investors’ confidence in the economic recovery in Spain and in the local real estate sector after the harsh years of the crisis, which began in 2008.

Expected to fetch at least €450 million

The various sources disagree with respect to the possible price of this asset, saying that it could range from €450 million to more than €500 million. In its favour, this shopping centre is one of the largest in the country, it houses many of the major retailers, and it also offers a vast leisure space. But, unlike Diagonal Mar, it is a long way from the city centre. Meanwhile, a spokesman for Ivanhoé Cambridge explained that the firm does not comment on “market speculation” about the investment strategy.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Drago Capital Acquires Plaza Norte 2 Cinemas

18 May 2016 – Expansión

The real estate investment and management company Drago Capital has acquired the Plaza Norte 2 cinemas, located in the shopping centre of the same name in San Sebastián de los Reyes (Madrid), together with a private Spanish investor. The asset, with a total surface area of 6,034 m2 distributed over two floors measuring 3,017 m2 each, has 14 screens in total and 2,600 seats. The cinema is operated by Yelmo Films, which was recently acquired by the Cinépolis Group cinema chain.

Original story: Expansión

Translation: Carmel Drake

Blackstone Buys 4,500 Rental Homes From Sabadell

13 January 2016 – Expansión

Blackstone has won one of the largest ever real estate auctions and it did so during the final days of 2015. A few weeks ago, the US fund completed the acquisition of 4,500 rental homes from Banco Sabadell, according to financial sources consulted by Expansión.

This represents the largest block sale of homes by a Spanish bank in recent years, given that the sale is still pending of two larger portfolios that Bankia and Ibercaja have put on the market.

The latest operation, which forms part of Project Empire, has now been signed by both parties; a few conditions precedent are still outstanding, but they are expected to be resolved within the next few weeks. Given that the agreement was actually reached in 2015, it will be accounted for within last year’s results, which Banco Sabadell will announce on 29 January.

The portfolio was initially valued at around €600 million, however, after it was first put on the market, the number of flats included in the portfolio decreased from 5,000 to 4,500 (bringing the valuation down to €540 million). The interested funds had been demanding discounts of between 40% and 70% for banks’ portfolios of homes, on the basis of the quality of the assets. In the case of Project Empire, since the homes in the portfolio are all rented out, the price obtained by Sabadell could have been higher, given that Blackstone will obtain regular rental income, as well as taking ownership of the assets.

Firm commitment

This purchase strengthens the US fund’s position in Spain, whose senior advisor is Claudio Boada. The homes will be managed by Blackstone’s real estate subsidiary, Anticipa, the entity formerly known as CatalunyaCaixa Inmobiliaria, led by Eduard Mendiluce. In addition, the fund has three other subsidiaries in Spain, which also manage property investments, namely: Fidere, which focuses on homes for rent (many of which are social housing properties); Logicor, which concentrates on the logistics asset segment; and Multi Development, which specialises in shopping centres.

Blackstone completed its largest ever investment in Spain last year, with the purchase of 40,000 mortgages from Catalunya Banc, worth €6,400 million for €3,600 million. Anticipa manages that portfolio, together with a few others acquired from entities such as CaixaBank, taking the entity’s total assets under management to €10,000 million.

Another one of the most active investors in Spain in recent months has been Oaktree, which competed against Blackstone to take over Sabadell’s portfolio.

For the Catalan entity, this operation allows it to continue improving the quality of its balance sheet through the sale of non-performing assets. Sabadell has reduced the volume of problem assets on its balance sheet by €3,500 million since the start of 2014 ,to €22,350 million at the end of September 2015.

In addition to Project Empire, Sabadell sold other portfolios last year to investors such as Pimco, Aiqon and Sankaty. Altogether, it transferred assets worth €2,400 million to those funds in 2015.

Original story: Expansión (by J. Zuloaga/S. Saborit)

Translation: Carmel Drake

Franklin Templeton Increases Its Stake In Lar España

20 March 2015 – Expansión

The fund Franklin Templeton has increased its stake in the Socimi Lar España to more than 15%, according to the CNMV’s records. Specifically, the investor, which with its 14.9% stake was already the largest shareholder of the Socimi chaired by José Luis del Valle, has increased his participation to 15.07%, after purchasing a package of 126,537 shares.

Other shareholders of Lar España include the fund manager Pimco, which owns 12.5% of the capital; the fund manager Bestinver, with 4.8% and Ameriprise Financial with 3.7%. These investors spent €400 million on the IPO.

In 2014, Lar España recorded turnover of €7.2 million from rental income. Its market capitalisation amounts to €399.3 million, after its share price fell by 0.26% yesterday to €9.974.

Original story: Expansión (by R.R.)

Translation: Carmel Drake