Lar to Invest €200M Buying Retail Assets After Divesting Other Assets Worth €425M

25 April 2019 – El Economista

Lar is entering a new phase in which it will specialise in retail after divesting all of its offices and logistics assets. The Socimi has received total proceeds of €425 million from its recent sales, of which it intends to dedicate around €200 million to new purchases over the next three years.

According to José Luis del Valle, President of Lar España Real Estate, the Socimi is now going to focus on operations in the commercial segment only, including both asset purchases and new developments, to continue to expand its €1.5 billion portfolio.

Lar is coming to the end of the development of Vilanova Park in Sagunto (Valencia), Lagasca 99 in Madrid and Lagoh in Sevilla and so it has the capacity to take on more promotion projects in the future, according to Miguel Pereda, CEO of the Socimi.

Following its recent asset sales, Lar has approved the distribution of an extraordinary dividend amounting to €25 million, charged against the accounts for 2018, equivalent to €0.80 per share. This represents the largest dividend in the Socimi’s history and is 67% higher than last year’s payout.

On Wednesday, the Socimi completed the sale of the last office building left in its portfolios – the property located at Calle Eloy Gonzalo in Madrid, which is now in the hands of Swiss Life.

In addition to its forecast new operations, Lar is also working on the repositioning of its assets, with plans to invest €40 million in total.

Original story: El Economista (by Alba Brualla)

Translation/Summary: Carmel Drake

Lar España Sells 47% of its Portfolio of Non-Strategic Assets in Just One Year

9 October 2018

The socimi will use the 522 million euros it obtained from the sale of its portfolio of logistics assets and offices to focus on the ownership and management of its shopping centres.

Lar España is implementing its divestment plan successfully. The socimi sold 47% of its total portfolio of non-strategic assets in just one year and will use the influx of cash to focus on the ownership and management its shopping centres, a sector in which it is one of the principal players in the country.

Lar España’s assets that do not correspond to the retail segment are valued at 522 million euros. The company plans to sell the entire amount between 2018 and 2021. For the moment, it has already sold off all of its logistics properties and two of its five office buildings for a total of 276 million euros.

The socimi will take a significant additional step in its process of divestment when it delivers the luxury homes it has built in the Madrid’s city centre, at 99 Lagasca, before the end of the year. Lar España expects to raise 115 million euros through the operation. The company is also in the process of selling its other three office buildings.

The company, which is chaired by José Luis del Valle, will allocate these resources to strengthen its presence in the Spanish retail market. Lar España’s business plan envisages allocating 265 million to build and improve shopping centres, and another 250 million for acquisitions without the need to resort to new capital increases or tighten its financial structure.

Lar’s latest acquisitions include the Rivas Futura retail park, in Madrid, for 62 million euros, and the Abadía shopping mall, in Toledo, for fourteen million euros.

Original Story: EjePrime

Translation: Richard Turner

Blackstone Buys Lar’s Logistics Portfolio for €120M

18 July 2018 – Expansión

Blackstone has purchased the Socimi Lar España’s logistics portfolio, comprising five warehouses and a plot of land for development, for €119.7 million. That sum represents an appreciation of 83% with respect to the purchase price of €65.6 million.

Specifically, four of the warehouses acquired are located in Alovera (Guadalajara), one is located on the Juan Carlos I Industrial Park in Almussafes (Valencia), whilst the land to be developed for logistics use is located in Cheste (Valencia).

The five logistics warehouses span a combined surface area of 162,000 m2 and have an occupancy rate of 100% – all of them have stable rental contracts. Meanwhile, the surface area in Cheste spans 182,000 m2.

The warehouses in Alovera were acquired between August 2014 and May 2015 and the property in Almussafes was purchased in May 2015. The advisors to Lar España on the operation have been CBRE, Pérez Llorca and Hill International.

Asset rotation

This operation forms part of the asset rotation process that the company launched last year. Specifically, the Socimi’s first divestment came in September 2017, with the sale of an office building in Arturo Soria, and since then, it has carried out two other sales.

Together, the divestments carried out by Lar España to date amount to €265 million, more than half the €470 million in divestments forecast in the business plan to 2021.

The President of Lar España, José Luis del Valle, said that the company’s plan involves selling those assets that are not strategic to focus on the retail portfolio.

In addition to the asset sales, the company’s business plan involves investing €220 million in shopping centres and retail parks. Within the context of that plan, Lar purchased the Rivas Futura shopping centre for €62 million and the Abadía shopping arcade for €14 million.

In parallel, the Socimi plans to invest €247 million in commercial developments and €49 million to improve its retail assets.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Lar España Puts Assets Worth €380M up for Sale

2 December 2017 – Expansión

After more than three years of actively making purchases, Lar España, the Socimi in which Pimco holds a stake, is entering a new phase. The firm, which presented the pillars of its 3-year business plan to analysts on Friday, announced that it is going to put assets worth €380 million up for sale. It expects to use the resources to distribute dividends, gain financial muscle to continue with the retail developments already underway and take advantage of potential purchase opportunities.

As part of this process, Lar will sell off its entire office portfolio, comprising four buildings, three in Madrid and one in Barcelona, worth €170 million in total. In September, the company sold one property located at number 336 Calle Arturo Soria (pictured above) to Colonial for €32.5 million.

To this figure, Lar España will have to add the €110 million that it expects to raise from the sale of its stake in the luxury housing development Lagasca 99, which it owns jointly with Pimco. The companies, which have already sold more than 70% of the development, plan to hand over the homes during the second or third quarter of next year. Moreover, the group plans to sell non-strategic assets, as well as those that have completed their cycle of maturity in the portfolio, for another €100 million.

In parallel, the group explained its investment plans for the assets in its portfolio. The firm is going to spend €247 million on capex. Of the total, 80% will be allocated to some of the retail developments underway, such as Vidanova Parc (Sagunto), which will open its doors in 2018 and Palmas Altas (Sevilla), which will be launched in 2019. The remaining 20% will be used to renew its existing asset portfolio.

In terms of new investments, the company has identified purchase opportunities amounting to €220 million in total and is already analysing almost 115,000 m2 for a number of operations, all retail spaces. Lar plans to close the year with assets worth €1.5 billion, of which 73% correspond to shopping centres.

In terms of the relationship with its manager, the President of Lar España, José Luis del Valle, expects to renew the contractual relationship with Grupo Lar, which is due to end in 2019. “They have been willing to adapt the contract to the development of the company and the markets”, said the group’s President. Last year, Lar’s managers agreed to lower their variable salaries and assume the difference between the share price on the stock market and the NAV, in an attempt to calm criticism from several investors.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Lar España’s Profits Doubled In 2016 To €91.4M

2 March 2017 – El Economista

Lar España generated a net profit of €91.4 million in 2016, more than double (+110%) the amount it recorded a year earlier, thanks to the purchase of new assets and an increase in the occupancy rate of its real estate portfolio, according to a statement made by the Socimi, which specialises in shopping centres.

The company chaired by José Luis del Valle (pictured above) saw its revenues soar by 69% last year, when it recorded rental income amounting to €60.2 million.

At the end of 2016, the company’s portfolio of assets was worth €1,275 million, which represents an appreciation of 16%, and of 13.5% in the case of its shopping centres.

At its next general shareholders’ meeting, Lar España will propose the distribution of a dividend amounting to €0.33 per share, which will represent a 65% increase in shareholder remuneration.

Original story: El Economista 

Translation: Carmel Drake

Lar Buys Gran Vía de Vigo Shopping Centre For €141M

8 July 2016 – Expansión

The Socimi Lar España is strengthening its position in the shopping centre market. The company has reached an agreement with the investment firm Oaktree to acquire the Gran Vía de Vigo shopping centre for €141 million. The deal is expected to be signed in Q4 2016.

Gran Vía de Vigo was acquired by Oaktree in 2014 for €115 million. This is the second purchase that Lar has made from the US fund in less than a year, after the Socimi bought the Megapark Barakaldo shopping centre in Vizcaya last October for €170 million.

The shopping centre – one of the largest in Galicia, along with Marineda City, in A Coruña – has a retail area of 41,246 sqm. The centre, opened in June 2006, spans three floors dedicated to retail space and another three for parking, with capacity for more than 1,700 cars.

Capital increase

In order to raise finance, the company has launched a capital increase amounting to €47 million through the issue of 30 million new shares with a subscription value of €4.92.

The company will use these funds to expand its current portfolio of assets. Specifically, Lar has identified investment opportunities in the market amounting to €838.5 million in total, including this shopping centre. 81% of those assets under analysis are shopping centres, 14% are offices and the remaining 5% are other types of properties.

The capital increase will be performed with subscription rights. The company indicates that, just like happened a year ago in its previous capital increase, a “solid base” of the existing shareholders have expressed their intention to execute those rights. The company’s main shareholders include the Spanish (fund) manager Bestinver, controlled by the Entrecanales family, as well as international funds, such as Pimco, BlackRock and Franklin Templeton.

JP Morgan and Morgan Stanley are acting as coordinating entities and they have underwritten the capital increase, together with Fidentiis.

The Chairman of Lar España, José Luis del Valle, indicated that this increase reflects “the strength and attractiveness” of the Socimi and adds value to its capacity to go to the capital markets with guarantees of success.

Lar España owns assets worth €1,003 million in total. Of those, €728 million corresponds to the acquisition of 13 retail spaces (shopping centres) in Madrid, Valencia, Sevilla, Alicante, Cantabria, Lugo, León, Vizcaya, Navarra, Guipúzcoa, Palencia, Albacete and Barcelona; €150 million relates to four office buildings in Madrid and one in Barcelona; €70 million corresponds to four logistics assets in Guadalajara and one in Valencia; and €55 million relates to a residential property on Calle Lagasca, 99 (Madrid).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Lar España’s Dividend Soars After Profits Of €44M In 2015

1 March 2016 – Expansión

Lar España generated a net profit of €43.6 million in 2015, which represents a thirteen-fold increase in the figure from the previous year, thanks to growth in revenues from rental assets, which quadrupled to €35.7 million.

At its next shareholders’ meeting, the Socimi will propose the distribution of a €12 million dividend, which represents a payment of €0.201 per share, in other words, six times more than the dividend paid in the previous year. “In 2014, we were one of the few companies in the sector to distribute dividends, having operated for only nine months, and this year we are going to distribute more than a quarter of last year’s profits to our shareholders”, said the President of Lar España, José Luis del Valle (pictured above).

Original story: Expansión (by R.A.)

Translation: Carmel Drake

Lar’s Assets Appreciated By 5.4% In 9 Months To Dec 15

22 January 2016 – Expansión

LAR España’s real estate assets appreciated by 5.4% between March 2015, when the Socimi debuted on the stock exchange, and year end. In this way, the value of its properties increased by €46.2 million in just nine months to reach €898.9 million.

Company sources attribute the rise in the asset values to the recovery in the real estate sector, as well as to the improvements in the management of the properties. The valuation has been performed by the consultancy firms Cushman & Wakefield and JLL.

By type of asset, it was Lar’s logistics assets that increased in value by the most (by 11%), followed by the Socimi’s residential portfolio (7.1%), then its office buildings (6.6%) and shopping centres (4.4%).

LAR’s portfolio comprises: 12 retail premises in Guipúzcoa, Palencia, Albacete, Barcelona, Alicante, Madrid, Cantabria, Lugo, León, Vizcaya, Navarra and Valencia; four office buildings in Madrid and one in Barcelona; four logistics assets in Guadalajara and one in Valencia; as well as one residential asset in Madrid.

The President of LAR España, José Luis del Valle, highlighted that “this increase carries even more weight if we consider that a third of assets (€282 million) were acquired during the second half of the year, which barely gave us any time to undertake the necessary measures to allow us to create value”. The President of the Socimi expects that the value of the assets in LAR’s portfolio will continue to increase in 2016.

Original story: Expansión (by M. A.)

Translation: Carmel Drake