Tauro Real Estate Buys Torre Ámbar in Madrid

3 July 2018 – Eje Prime

The new Tauro Real Estate is rearing its head in the Spanish residential market. The fund, which is now under the mandate of Globe Invest, the Israeli company that acquired the firm in April by paying €180 million to its former shareholders, has recently purchased Torre Ámbar in the centre of Madrid.

In the middle of May, Globe Invest, owned by the multi-millionaire Teddy Sagi, acquired the rights to purchase the residential block from the Inveriplus group. The tower comprises 64 prime homes very close to Paseo de la Castellana, according to confirmation from sources involved in the operation. The amount of the transaction has not been revealed. The vendor in this operation, Inveriplus, is a group dedicated to investment in real estate assets for their subsequent management and value generation. The company, which is headquartered in Madrid, is led by Óscar Bellette.

The asset has been acquired after the clean-up that Inveriplus conducted of the tower. It, in turn, had purchased the homes during the crisis from several merchants of the Proinlasa real estate group. For the last few years, the manager has succeeded in leasing the block in its entirety.

Torre Ámbar is one of the skyscrapers that comprises the residential area of Isla Chamartín, located to the north of Madrid. The building, whose first homes were handed over in 2009, was designed for sale, but the change in economic cycle forced a change in the objectives and it was put up for rent in 2014.

The sale was signed “at market price”, according to sources close to the operation speaking to Eje Prime. “The returns that the property could generate are of much greater interest than the purchase opportunity”, say the same sources.

Torre Ámbar comprises luxury one and two bedroom homes, as well as several studios. The urbanisation is private and has security gates, a swimming pool, garages and storerooms, a padel court and private green spaces, according to Proinlasa’s corporate website.

The owner of the property has real estate assets for sale and rent in Madrid, Valladolid, Palma and Córdoba. In its property development plan, the group says that, in addition to residential land, it is also backing the tertiary and industrial market.

The owner of Camden Market’s commitment to Spain

Teddy Sagi is an Israeli multimillionaire and owner of the renowned Camden Market in London. The businessman, through Tauro Real Estate, has acquired 600 homes spread between Madrid and Barcelona.

Tauro has fattened up its portfolio in less than four years with the purchase of assets, primarily from banks, involving the investment of up to €160 million. In Madrid, it owns 350 homes and in Barcelona, it has another 250 properties. In the Catalan capital, it owns tourist apartments, which comprise 30% of the assets that Tauro owns in the city (…).

Original story: Eje Prime (by J. Izquierdo & P. Riaño)

Translation: Carmel Drake

GreenOak & Ibosa Create A JV Property Developer

5 September 2017 – El Confidencial

House building is continuing to spark a great deal of interest amongst international investment funds. With a positive outlook for future increases in sales – according to BBVA, this year, we can expect to break the threshold of half a million units sold – and prices over the next few years, the sector is under the spotlight. The latest player to try its luck with residential property development is the US firm GreenOak, which has just created a joint venture with the cooperative manager Grupo Ibosa, one of the most active in the sector in Madrid in recent years.

According to sources close to the negotiations, both companies have decided to join forces – their capital and their construction know-how, respectively – to launch a vehicle that will invest primarily in the Spanish residential market, in the main cities in Spain.

Its first project is a residential skyscraper in Isla Chamartín, (…) a small real estate triangle bounded by the M-11, the A-1 and Avenida de Manoteras, in Madrid, where in September last year, Grupo Ibosa purchased a plot of land from Oncisa for just over €30 million. The project will require a total investment of more than €80 million (…) and will involve the construction of a 75m tall tower with 20 floors and two blocks of flats, which will house more than 200 homes. Prices will range between €200,000 and €1 million.

GreenOak is the latest in a long line of large international funds to enter the house building sector. The first to officially make the leap was Lone Star, which purchased Kutxabank’s real estate arm Neinor at the end of 2014 with the aim of turning it into the largest house builder in Spain. The company now has 4,300 homes under construction and owns more than 1 million m2 of land. (…). Another player that stands out is Aedas Homes, the heir of Vallehermoso, which is backed by the Socimi Merlin Properties and the fund Castlelake, and which owns one of the largest land portfolios in Spain (…).

Valdemarín, in the spotlight

According to the sources consulted, Ibosa and GreenOak are on the verge of closing their next joint operation. They are looking at purchasing several plots of land that Blackstone is about to sell in Valdemarín, one of the most exclusive neighbourhoods on the outskirts of Madrid, where detached family homes go for no less than €1 million and prices are experiencing double digit rises.

The plots of land in question, which have been put up for action (…) are divided into 19 lots measuring 450 m2 each (just over 8,500 m2 in total) with auction values ranging between €730,000 and just over €1.1 million. The plots used to belong to Jardines del Hipódromo, a company owned by Inmobiliaria Monteverde, which filed for creditor bankruptcy at the end of 2011.

Grupo Ibosa knows the Valdemarín area like the back of its hand, since it has already managed two projects there. Alhena Valdemarín, comprising 36 detached family homes, which were sold in their entirety in a matter of months last year; and Mirach Valdemarín, a development of 14 detached homes measuring 200 m2 each and costing upwards of €893,000, also constructed under the cooperative regime.

GreenOak, a very active fund in Spain

In addition, before this agreement with Ibosa, GreenOak had already made a small foray into the Spanish residential market, given that in September 2015, it teamed up with the German fund Activum ASG Iberia to purchase c/ Fuencarral, 77, located next to Tribunal metro, from the General Treasury Social Security. That building will house high standing homes and a large retail space. (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

JLL: RE Inv’t Amounts To c.€6,000M In H1 2017

27 June 2017 – Expansión

Investment in the real estate sector is registering record-breaking figures in the Spanish market once again. With three days left until the end of the first half of the year, the sale of buildings and land during the first six months of 2017 amounted to €5,991 million, according to the real estate consultancy firm JLL. “There is a lot of money ready to invest in Spain and when products come onto the market, the interest is unleashed. Investors still think that Spain has a lot of potential and that rents are going to rise, accompanied by the forecast economic growth in the country”, explained Borja Ortega, Director of Capital Markets at JLL.

The real estate investment of almost €6,000 million represents an increase of 70% compared to the figure recorded during the first six months of 2016 (€3,548 million), of which €3,000 million corresponded to non-residential asset purchases.

By type of property, offices and commercial assets account for most of the operations. “There is complete faith in Spain, with a clear commitment to both Madrid and Barcelona, and investors continue to seek out good spaces, which they will be able to lease easily”, said Ortega.

In the case of offices, the volume invested during the first six months of 2017 amounted to more than €1,200 million, up by 55% compared to the first half of last year. However, the forecast for 2017 as a whole is that office investment will reach €2,400 million, in line with 2016. During the first few months of 2017, several major operations were completed, such as the sale of Torre Agbar in Barcelona – which was acquired by the Socimi Merlin for €142 million – and the purchase of the Isla Chamartín complex in Madrid, which the fund Lone Star sold for €103 million. “In the case of Barcelona, the cumulative investment volume recorded since the start of the year amounts to €510.65 million, which means that it is almost equal to the total amount invested during the whole of 2016, when €521.50 million was spent in the city – this demonstrates the strong investor appetite that has characterised this first half of 2017”, said sources at the consultancy firm.

Towards a record year

Like in 2016, commercial assets (in particular, shopping centres) have knocked offices off of the top of the ranking as the asset that accounts for most investment. In this way, so far in 2017, investors have spent more than €2,400 million on commercial assets. Their purchases include the shopping centre that has starred in two operations in the last six months: Xanadú. This establishment, which is located in the Madrilenian town of Arroyomolinos, was acquired at the beginning of the year by the British group Intu Properties, which paid the fund Ivanhoe Cambridge €530 million. Three months later, Intu sold 50% of the centre to the manager TH Real Estate for €264 million.

The strong performance of the Spanish real estate sector during the first half of the year means that it is lining itself up for a record year. “Whilst last year, investment amounted to around €9,500 million, this year, I am sure that it will rise by 15%, to reach figures close to the records of 2007″, said Ortega.

In this sense, it is expected that several new operations will close before the end of the year, such as the sale of the Socimi Hispania’s office portfolio, worth €550 million; and of logistics land to be developed and the batch of Rea residences, by the manager Azora. “Now, the core funds are going to play a greater role, taking advantage of the exit of other more opportunistic and value-added investors, which are going to start selling off products that they purchased in recent years”, said the director at JLL.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Which Players Will Shape The RE Sector In 2017?

5 December 2016 – Expansión

The end of 2016 will mark not only a new record in terms of real estate investment in Spain, but also the start of a new phase in the sector, after three years of recovery.

“In mid-2013, funds like Blackstone started to close operations, at a time when the market was completely paralysed. That prompted a magnet effect, which, together with the creation of Socimis and the reorganisation of the banking sector, launched the recovery of the sector”, said Adolfo Ramírez-Escudero, President of CBRE.

Thus, after closing last year with an investment volume of €12,884 million, the expectation is that the figure will reach €13,900 million by year end 2016. “We may reach record investment figures by year end, as new property owners, with a more institutional profile, enter the market, such as German investment funds, insurance companies, etc.”, he said.

The investment figure may be maintained next year if corporate operations continue, say sources at the consultancy firm. “We are living in a different Spain, with GDP growth of 3.2% this year and forecast GDP growth of 2.5% next year. That has a direct correlation with employment and, therefore, with real estate”, said Ramírez-Escudero.

For this new phase, one of the most important players will be the large Socimis, which have continued to close operations this year, but in a more measured way as they have been more focused on managing their properties; as well as German funds, such as Invesco Real Estate and the real estate division of Deutsche Bank.

Nevertheless, these more risk-averse investors will share the stage with another kind of player in the Spanish real estate sector in 2017. “We are pretty convinced that there is going to be a new property developer cycle, given that the real estate companies have now been established, with new capital. Next year, the property developers will be building new products”, said the Head of CBRE.

Residential segment

These new players will include Neinor Homes. The real estate company, created by the fund LoneStar with the former subsidiary of Kutxabank, has become a key player in the property development sector, with projects underway across Spain. In 2017, the company led by Juan Velayos will debut on the stock market, whereby restoring the profile of property developers, such as Martinsa Fadesa and Reyal Urbis, which fell from grace following the burst of the bubble.

Another player in the residential sector will be Avantespacia. The new real estate company, in which Inveravante (Manuel Jove’s company) owns a 70% stake and Anida (BBVA’s real estate arm) owns a 30% stake, will promote almost one thousand homes during its first phase of development. Its first project in Málaga, with 135 properties, is already being sold, whilst in Madrid, the new company is preparing a development in the Francisco Silvela area.

But development will not only be happening in the residential segment, major projects are also planned for the office and shopping centre segments. In the former, Merlin Properties is expected to play an important role. Spain’s largest Socimi is currently working on the development of an office building in the Isla Chamartín area, in the north east of Madrid.

In addition, it has just completed the purchase of the Adequa business park, a complex that comprises four office buildings and a shopping area, with space for the construction of a 24-storey skyscraper, with a total surface area of 29,000 m2.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Owner Of Torre Ámbar Will Debut On MAB In 2017

25 October 2016 – El Economista

Inveriplus, the owner of Torre Ámbar, one of the skyscrapers that makes up the residential area of Isla Chamartín, will debut on the MAB next year. The firm, which specialises in the transformation of toxic assets into liquid assets, has already created a company under the Socimi framework and wants to complete its first operations before the end of the year.

“We have not chosen a trading name yet”, explained Oscar Bellette, the Executive Director of the firm, but he assured that advanced negotiations are already underway regarding the Socimi’s purchase of two residential properties in Madrid.

One of them is the iconic Torre Ámbar, located in the north of Madrid, which was constructed during the years of the property boom in Spain. Inveriplus already owns 50% of the homes in the building – it managed to sell the rest – but is currently holding conversations with the creditor banks to cancel the debt.

Bellette explained that his firm is also working with lenders of a property on Calle Apolonia Morales and that it has already reached an agreement with BBVA to cancel the debt relating to a group of chalets in a town in Valencia.

All of these assets already form part of its portfolio, but the investment that has been earmarked for their financial clean up operations amounts to between €22 million and €24 million.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Oncisa Sells A Plot Of Land In Madrid To Ibosa For €30M

19 September 2016 – Real Estate Press

The land, which is located in the triangle between the M-11, the A-1 and Avenida de Manoteras, has a surface area of 7,000 sqm and a buildable area of 17,000 sqm. Ibosa is willing to pay €30 million for the plot.

Ibosa plans to construct a 75m tall 20-storey tower on this land, as well as two blocks of flats that will contain more than 130 homes.

In this way, Oncisa has liquidated all of its land on Isla Chamartín, where, in 2011, it sold another plot to Levitt for €27.5 million. That was subsequently acquired by Merlin Properties, which has recently started to construct an office block on the site, due to be completed during the first half of 2018.

The land is attractive due to its proximity to the city’s financial district as well as to the services in some very established neighbourhoods, such as Pinar del Rey and the PAUs of Sanchinarro and Las Tablas, where the supply of new homes and land is practically non-existent.

The operation, which according to market sources has been brokered by CBRE, is proof once more of the renewed investor and property developer appetite for well-appointed plots of land in areas where demand for housing is strong. In fact, it is one of the most important land transactions in the market in recent months and the most significant so far this year.

This project will represent a boost for the area, which is in the middle of a recovery in terms of both sales and prices. It is an area where there is a shortage of product and which is free from the urban planning and legal problems that are burdening its neighbour Valdebebas.

Original story: Real Estate Press

Translation: Carmel Drake