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

Madrid’s Office Market in 2019: Stable Yields & Investment of €3bn

20 February 2019 – Eje Prime

Investment in offices in Madrid is on the rise. Total investment of €3 billion is forecast in the office market in the Spanish capital this year, which will see it maintain the yield for prime offices at 3.75%. In terms of office rents, a boom of 9.8% is forecast, along with a decrease in the availability rate, which is set fall from 11.6% in 2018 to 9% in 2021. Modest growth forecasts for the sector, with a lower supply of prime spaces, are going to contribute to an increase in rents.

With this data, Madrid is positioning itself amongst the capitals with the lowest yields on its luxury offices, with a figure comparable to those of Singapore (3.34%), Amsterdam (3.35%) and Paris (3%), but well below those of Moscow (8.5%) and Washington DC (6.2%), according to the Global Outlook 2019 report, compiled by Knight Frank.

In terms of the growth forecast for office rents, the Spanish capital is expected to maintain stable growth (…).

In terms of the availability rate, Madrid is forecast to decrease from 11.6% in 2018 to 9% in 2021, placing it amongst the cities with most available offices, well below Berlin, with a forecast rate of 2.2% (…). Available prime offices will also decrease, which will lead to a rise in rents. According to the study, this is the result of the recovery of the residential market, which is also sparking interest amongst investors.

One of the greatest opportunities in the sector are the coworking offices, which are transforming conventional offices into new spaces for working and incentivising employees. “Whilst some markets are reaching maturity, at the global level, we expect to see a boost to this business in 2019”, say the authors of the report.

In summary, the office market in Spain is expected to be relatively stable during the year ahead, despite global challenges (…).

Original story: Eje Prime (by Marta Casado Pla)

Translation: Carmel Drake

Knight Frank: High Street Investment Soared by 84% to €1.3bn in 2018

31 January 2019 – Eje Prime

The real estate sector has closed another year with a strong performance in the Spanish market. As we approach the end of the real estate cycle in the country, the tertiary sector is continuing to maintain high levels of investment, with growing rents and sustainable yields.

In the retail sector, the investment volume amounted to around €3.7 billion in 2018, according to data from Knight Frank. The main driver of that investment was the high street, where spending soared by 84% to €1.3 billion.

Despite that, the bulk of retail investment in Spain continued to be directed towards shopping centres, which accounted for 54% of the total last year with major operations such as the sale of the Summit portfolio, owned by Sonae Sierra in conjunction with CBRE GI, and of which 87% is now controlled by JT Real Estate.

Moreover, the consultancy firm highlights that interest has increased from investors in shopping centres and isolated retail warehouses in good locations “which allow them to manage last mile delivery points”, said the consultancy firm.

Returns have remained stable across the three segments with yields of 5.25% for retail parks, 4.25% for shopping centres and 3% for high street assets.

Despite the strong performance of the retail sector in 2018, the jewel in the Spanish real estate crown is still the logistics segment. In 2018, investment in logistics assets amounted to €1.255 billion, close to the record set in 2017 of €1.28 billion.

In the last quarter, several large operations were closed, such as Blackstone’s purchase of a portfolio of 55 assets from Neinver for €300 million.

Interest in the segment continues to generate expectations regarding the compression of yields, and so Knight Frank forecasts returns of around 5% this year.

Finally, the office sector has also maintained a robust rate of activity, after the maximums recorded in 2017 thanks to operations undertaken by the Administration. Specifically, Knight Frank estimates that 2018 closed with a gross absorption of 493,000 m2.

Following the trend set in 2017, 52% of the surface area leased was located outside of the M-30, although during the final quarter, it was the secondary centre that accounted for the bulk of the space rented, around 35%.

Prime office rents remained stable at around €30.5/m2/month, and reached maximums of €38.5/m2/month in the most sought-after areas of the business district.

Original story: Eje Prime

Translation: Carmel Drake

Testa’s Former CEO Buys a Plot of Land in Madrid to Build 25 Homes

23 January 2019 – Eje Prime

Testa’s former CEO is continuing to shape his new real estate project. Nidom, the property developer led by Daniel Loureda, has purchased a plot of land at number 312 Calle Embajadores in Madrid, according to Expansión. The objective is to construct a 6-story building containing 25 homes, whereby resuming the plans set out by the previous owner.

Until now, the plot was in the hands of the company Caoba Directorship, and it has been sold for above the asking price, which was set at €7.5 million. The operation has been brokered by Knight Frank.

The plot has a surface area of 1,051 m2 and is located in the Legazpi neighbourhood of the capital, in a very sought-after area, where prices are on the rise due to the shortage of land and the location. In fact, it is one of the last buildable plots inside the M-30.

Nidom is thereby continuing to increase its portfolio, after launching several developments, including at number 76 Príncipe de Vergara, 7 Duque de Pastrana and 98 Calle Ferraz.

The property developer is led by Daniel Loureda, former CEO of Vallehermoso and Testa Inmuebles.

Original story: Eje Prime 

Translation: Carmel Drake