Tag: Knight Frank

Investment and Leasing in the Logistics Sector are Growing at Double Digit Rates in Spain

Investment in logistics assets amounted to more than €210 million during the first quarter of 2020, whereby exceeding the average recorded during the same period over the last ten years, according to Knight Frank.

The logistics sector has continued to remain active since the start of the State of Emergency due to the pandemic. During the first three months of the year in Madrid, almost 120,000 square metres of space was leased, up by 18% compared to the same period in 2019. Meanwhile, in Barcelona, 105,000 square metres of logistics space was leased, according to the consultancy firm Knight Frank.

At the beginning of the year, operators were already leasing more space. During the first three months of 2020, prime rents remained stable in Madrid and Barcelona, as did the availability rate, which revealed a scarce supply in the main logistics nuclei, of 6% and 3.5%, respectively.

Luxury House Prices to Fall by 4% in Madrid and by 2.5% in the Rest of the World

The experts at Knight Frank predict that the relaxation of travel and airline restrictions will be essential for the recovery of the prime property market, but they are not expected to return to their previous levels until 2021.

Mobility restrictions are affecting the price of luxury homes, which are expected to drop by 4% in Madrid and by 3% around the world, on average.

In an online presentation on Tuesday, several experts from the consulting firm Knight Frank shared their first forecasts about the impact of Covid-19 on the prime residential market in 20 globally important cities.

José Covas, the New President of RICS in Portgual

“It is an honour for me to be named President of RICS in Portugal, especially at a time when the real estate and construction sectors have so much responsibility,” said Covas.

RICS (the Royal Institution of Chartered Surveyors), a leading international real estate accreditation organisation, has appointed José Covas as its new President in Portugal and has elected new members of its board.

José Covas, who succeeds Francisco Rocha Antunes, is MRICS qualified and is the Managing Partner of AuraREE in Portugal, an independent Spanish consulting company, based on real estate data, with headquarters in Madrid, Lisbon, Milan, Athens and Lima. Covas has extensive experience in the valuations sector, having spent part of his professional career working for companies such as Colliers, DTZ, Worx and Knight Frank. Covas is also a Managing Partner of AuraREE in Spain, Italy and Greece and he teaches Masters courses at various educational institutions.

Amenabar Wins Bidding for Ferrovial’s Land in Valdebebas

8 November 2019 – Amenabar won the bidding for a plot of land put on sale by Ferrovial in Valdebebas, just in front of the Cercanías RENFE stop in Madrid. The firm won out over Vivenio and Acciona, offering 56 million euros for the developable land. Amenabar has thus consolidated its position as the largest developer in the region, where it will build a total of nine developments, with approximately 1,000 new homes.

The sale fell in line within Ferrovial’s expectations, which had been around €2000/m2. The land measures a total of 27,200 m2, 22,700 m2 for residential development and 4,500 m2 for commerce, enough for roughly 230 new homes. Knight Frank provided Ferrovial with advice on the transaction.

The region of Valdebebas has seen several major transactions in recent months. A few months ago, Acciona also paid about €2,000/m2 (63 million euros) for a 31,700-m2 plot of land from Celteo. The land, which is located nearby Amenabar’s new asset, has enough land for about 260 homes.

Original Story: El Confidencial – Elena Sanz

Adaptation/Translation: Richard D. K. Turner

HNA Acquires Logistics Platform in Guadalajara for €10.5 Million

28 October 2019 – HNA has acquired a logistics platform in Alovera, Guadalajara, from an undisclosed family office in Madrid for 10.5 million euros. The consultancy Knight Frank and InmoKing Real Estate advised on the deal.

The acquisition of the 16,674 square-meter asset is part of HNA’s current strategy of increasing its investments in the real estate sector.

In February, the company also acquired the office building located at Calle Emilio Vargas  2, in Madrid. The 7,574-m2 building has seven floors and is currently 100% leased.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Ferrovial Looks to Sell 27,200-M2 Plot of Land in Valdebebas for €54.5 Million

21 October 2019 – Ferrovial is looking to sell off its land in Valdebebas, a newly fashionable neighbourhood bordering La Moraleja, Operation Chamartín and the future Campus of Justice in northern Madrid. The Spanish multinational owns 27,200 square meters of land, 22,700-m2 of which are slated for residential construction.  The other 4,500 m2 is for commercial use.

Knight Frank Spain is mediating the sale, and there are currently three potential bidders, all offering at least 2,000 euros per square meter. Developers would have enough space to build 240 new homes on the site and are expected to use the build to rent format, which tends to mitigate risk. The sale of the land, which is considered highly attractive, should be finalised before the end of the year.

Original Story: La Información – Ana Sánchez Juárez

Adaptation/Translation: Richard D. K. Turner

Investments in the Logistics Real Estate Market Skyrocket

31 July 2019

Total investment in the Spanish logistics market rose above 530 million euros in the first semester of 2019, a more than five-fold increase compared to the investment made in the same quarter of last year, according to Knight Frank ‘s latest report ‘Logistics Snapshot.’

Knight Frank’s logistics chief, Alegandro Vega-Penichet, believes that that the logistics investment market will “once again” exceed the €1-billion mark,  largely because yields in Madrid and Barcelona currently stand at 5%, compared to other markets such as London and Frankfurt, with a return of 4%, or Berlin and Paris, with 4.25%.

Original Story: La Vanguardia

Adaptation/Translation: Richard D. K. Turner

Allegra Looks to Sell Logistics Platform Nearby Amazon and Madrid

29 June 2019

The real estate group, Allegra Holding, is looking to take advantage of the substantially increased interest in e-commerce and its effect on the logistics industry to sell the Postremo project. Postremo comprises two warehouses in Villaverde, on the outskirts of Madrid, and a plot of land located in front of a facility owned by Amazon in San Fernando de Henares, just 30 kilometres from central Madrid.

Allegra mandated Knight Frank to lead the sale, which could raise 30 million euros, providing a return of approximately 5% to any potential buyer. The assets include two warehouses, with a total surface area of roughly 17,000 m2, which the logistics firm On Time is currently leasing. The 16,430-m2 plot of land has an approved project to build a 10,265-square-meter warehouse

Original Story: El Confidencial – Ruth Ugalde

Knight Frank: Investment in Offices Amounted to €1.3bn in Q1 2019

7 May 2019 – Eje Prime

According to data compiled by Knight Frank, investment in the office sector amounted to €1.3 billion during the first quarter of 2019.

By type of investor, in Madrid, 45% of buyers were funds, 25% were institutions, 18% were real estate companies, 9% were corporates and 3% were Socimis. Meanwhile, in Barcelona, 64% of purchasers were investment funds, 19% were corporates, 13% were private investors and 4% were real estate companies.

Yields in the prime areas remained stable at around 3.75% in Madrid and 4% in Barcelona, which are in line with previous years and similar to those observed in other major European cities.

The average prime rent in Madrid also remained stable at around €30.50/m2/month, with prices rising to €38/m2/month in some of the most sought-after spaces in the CBD. In total, 124,000 m2 of office space was leased in the capital during Q1 2019, up by 4% YoY.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Socimi Lar Sells its Last Office Building in Madrid to Swiss Life for €40M

24 April 2019 – Idealista

Lar España has sold the last office building left in its portfolio as it continues its strategy to specialise in the retail sector.

The Socimi has sold the property located at number 27 Calle Eloy Gonzalo, in the centre of Madrid, to the manager of the Swiss insurance company Swiss Life for €40 million. The building spans a surface area of 6,300 m2, distributed over 9 floors with various retail premises on the ground floor. The upper floors are leased in their entirety to the US coworking specialist WeWork.

Lar España acquired the property, which was constructed in the 1960s, for €12.7 million at the end of 2014.

Following this sale, the Socimi can now focus on the 14 assets in its retail portfolio (shopping centres and retail parks), which will become 15 after the summer, once the Lagoh shopping centre has been opened in Sevilla.

This represents the Swiss manager’s second purchase in Spain, following its acquisition of 13 retail premises from Corpfin Capital Prime Retail Assets in July 2018 for more than €83 million.

Various high-profile consultancy firms participated in the operation, with Cushman & Wakefield advising on the buy side and JLL and Knight Frank on the sell side.

Original story: Idealista (by Ana P. Alarcos)

Translation/Summary: Carmel Drake