Aedas Hands Over its First Homes Since its Creation in 2016

16 March 2018 – Eje Prime

Aedas Homes is following its business plan to the letter and is handing over the first development in its history. The company has obtained its first certification of completion for the Brisas del Arenal development in Jávea (Alicante), a residential project conceived for the second-home market.

The Brisas del Arenal development comprises 64 homes in total with two-, three- and four-bedrooms as well as common areas. After obtaining the official certificate of completion for Brisas del Arenal, Aedas Homes has begun the process to apply for the First Occupancy Licence (LPO), a necessary step before the homes can be handed over.

These 64 homes are going to be the first to be handed over by the property developer in its history and represent an important proportion of the more than 200 units whose keys will be handed over in 2018. 75% of the buyers in Brisas del Arenal are Spanish, with a high presence of people from Valencia and Madrid acquiring holiday homes, and 25% are international, looking for homes for long stays.

In the strategic plan that Aedas presented as part of its stock market debut, the property developer estimated that it would hand over the keys to 1,286 homes over the next two years: 221 homes this year and 1,065 in 2019. Nevertheless, 132 more units have been added to the real estate company’s plans before the end of the first quarter of this year.

Currently, Aedas has 26 projects underway in the five regions of the country in which it has a presence (namely Madrid, Cataluña, Sevilla, the Costa del Sol and Levante&Baleares). By area, the property developer will finish this quarter having laid the first stone of five developments in four of the regions, with the exception of Levante&Baleares, where it will have started six new projects.

Original story: Eje Prime 

Translation: Carmel Drake

Sareb Is Awarded The Kronos Building In Benidorm

26 April 2017 – Valencia Plaza

Sareb, also known as the “bad bank”, has taken ownership of one of the tallest skyscrapers in Benidorm (the fifth tallest to be precise), as well as in all of Spain. As such, Sareb currently has 136 homes up for sale of varying types and sizes in the Kronos building: from the 1st floor to the 38th. It is a 41-storey tower, which was conceived as a luxury residential property, where the building does not even occupy 20% of the plot. The remainder comprises common and recreation areas, including two swimming pools, one for adults and one for children, a gym, football pitch, padel and tennis court, as well as extensive green areas.

The building was constructed by the Valencian property developer Grupo García Ojeda, which dodged several bankruptcy proceedings as well as it could during the first few years of the crisis. Sareb rescued nine savings banks, including properties and loans to property developers. The second was the operation through which the “bad bank” was awarded the asset, according to Alicante Plaza, whose debt belonged to one of the companies in the Grupo García Ojeda. (…).

Construction of the property began in 2005 and although the keys were handed over three years later, most of the homes remained unsold a decade later. The asking prices are not the cheapest, according to real estate sources consulted. The apartments have 1, 2 and 3-bedrooms and the smallest properties are going for at least €97,176, according to Grupo Ferrer Albors Real State and Activium. The latter has also put up a sign on the side of the building to advertise the price of the 1-bedroom homes. Even so, the figures are well below those achieved before the crisis, despite the fact that these homes are new and have never actually been lived in.

Sareb’s interest in tall buildings in Benidorm is not unique to Kronos. It is also looking to take over In Tempo, the unfinished skyscraper, which, unless the judges make a ruling to the contrary, will be awarded to the bad bank, presumably, for its subsequent sale.

Original story: Valencia Plaza

Translation: Carmel Drake

Sareb Completes The Migration Of Its Assets

4 April 2016 – Expansión

This weekend, Sareb has concluded the migration of its assets to the new servicers (Altamira Asset Management, Haya Real Estate, Servihabitat and Solvia), a year long process, which has involved the transfer of 4 million documents and 350,000 keys.

Original story: Expansión

Translation: Carmel Drake

CBRE: Spain’s Student Halls Begin To Pique Investor Interest

24 September 2015 – El Confidencial

The real estate product that has received the most interest from investors over the last year has not been offices, or shopping centres or houses, but rather halls of residence. And although they have passed virtually unnoticed as an asset in their own right, they starred in some of the most important investment transactions during the first half of 2015. To give you an idea, three of the ten largest operations closed in Europe during this period involved portfolios containing student halls. (…).

Moreover, in 2015, around €1,500 million was spent on a single student hall portfolio in the UK – that amount is equivalent to the market capitalisation of Spain’s largest Socimi, Merlin Properties, when it first listed last year. And it is just €300 million less than the amount that same Socimi will pay to acquire the real estate company Testa from Sacyr.

In Spain, where there are almost 1.4 million university students, the launch of this sector looks set to be just around the corner. At least that is the conclusion of analysis prepared by CBRE, which notes that this investor appetite will end up arriving in our country sooner rather than later because, although Spain is not yet such a mature market as the UK or Germany, real estate transactions involving halls of residence are becoming increasingly attractive. According to CBRE’s calculations, Spain has a stock of around 94,000 keys, of which approximately 52,000 are located in the 5 main university cities: Madrid, Barcelona, Salamanca, Valencia and Sevilla. (…)

What is the product like in Spain? Only 20% of the halls of residence in Spain are owned privately, and operated by their owners, whilst the remaining 80% are properties that are publicly owned or belong to the universities, or religious institutions, which are managed under concession agreements. Although the transactions that have closed in Spain have not been talked about as much as those in the rest of Europe, several operations have been signed. The largest one to take place during the first 6 months of the year was The Student Hotel’s (TSH) acquisition of a portfolio containing two halls of residences in the Melon District of Barcelona (Poble-Sec and Marina). The TSH platform was acquired by the US fund manager Perella at the end of 2014.

These two halls of residence, which previously belonged to BBVA, comprise 597 keys and 152 parking spaces, as well as around 3,465 m2 of restaurant and retail space across the two buildings.

In addition, in Madrid, two important concessions agreements, both in the Ciudad Universitaria neighbourhood, have changed hands. Also in the capital, construction has begun of the future Residencia El Faro, a 370-key project that will be operated by The Student Hotel and is located at number 2, Calle Isaac Peral, opposite the Hospital Universitario Fundación Jiménez Díaz. The same operator will also manager an even larger project, comprising 570 keys, currently under development in Barcelona. Both developments will require a total investment of €52 million.

CBRE predicts that several transactions could be closed over the next few months, given the high level of interest from international investors and managers looking to expand their businesses in Spain, a country that is home to 4 of the 10 cities that are most sought after by European students wishing to participate in the Erasmus program.

The UK market is the most active in Europe

Purchasers of these products have undoubtedly been most active beyond our borders. In England for example, transactions worth €2,950 million were recorded in 2014, and that figure almost doubled during the first half of 2015, with transactions amounting to €5,650 million. (…).

The German and Dutch markets, which have stocks of 234,000 keys and 400,000 keys, respectively, are also developing fast. (…).

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake

Hispania & Barceló Sign Binding JV Agreement

14 April 2015 – Press Release

After the successful completion of the due diligence process and in accordance with the agreed plan, Hispania Activos Inmobiliarios, S.A. has communicated to the Spanish Stock Market Regulator, CNMV, that its 100% subsidiary company, Hispania Real SOCIMI, S.A.U., and the Barceló Group have signed an agreement to define the terms of their joint venture, which has been established to allow the two companies to continue investing in hotel resorts in Spain. The terms of the agreement respond to those set in the framework agreement dated 24 February 2015.

According to Concha Osácar, Board Member of Hispania, “signing this agreement implies the formalisation of an investment that will be key for Hispania, considering the significant cash flow generation expected from the vehicle in the short term.”

According to Raúl González, CEO for EMEA at Hoteles Barceló, “this agreement will be key to enabling growth in the most important tourist areas in Spain”.

The main aspects of the agreement signed between Hispania and Barceló

On 24 February 2015, Hispania and Barceló announced a framework agreement for the creation of a JV, through which Hispania will acquire 11 hotels (3,946 keys) and 1 small shopping centre during the initial phase, with the option to acquire 5 additional hotels (2,151 keys) along with a second small shopping centre at a later date.

Once this transaction has been completed and the option for the 5 additional hotels has been exercised, Hispania will have invested circa €340 million, to obtain an 80.5% stake in the new joint venture. Grupo Barceló will maintain a 19.5% stake, with the option of acquiring up to 49% through future capital increases.

Barceló will continue to operate the hotels, which have been acquired by means of lease contracts for an initial period of 15 years.

The agreement signed by Hispania and Barceló will allow the JV to launch its ambitious plan to increase the portfolio of the new REIT, by means of acquisitions or further asset contributions. The goal is to, at least, double the size of the portfolio, creating a Spanish resort hotel portfolio with assets managed by diverse leading operators in this market.

Original story: Press release

Edited by: Carmel Drake