Tag: landlord

Vbare Has Accumulated Investments of €34.2M Since its Stock Market Debut

5 February 2019 – Eje Prime

Vbare is continuing its commitment to Spain. In 2018, the company invested €15 million in the purchase of residential properties. In January 2019 alone, the Socimi spent another €5.5 million on the purchase of number 94 Calle Vallehermoso, taking the firm’s total investment since 2016, the year it made its stock market debut, to €34.2 million.

The company’s most talked about acquisitions include the purchase of a building comprising 27 homes and 2 commercial premises in Madrid for €5.2 million. That was its second largest investment to date, after its purchase in October of another property on Calle Luchana for €10.5 million.

The trend demonstrates Vbare’s commitment to prime assets. The Socimi has purchased 29 properties in 2019 compared with the 52 that it bought in 2015. Nevertheless, the price of those investments is 41.03% higher. In other words, the cost per property has risen from €75,000 per unit to almost €190,000.

Nevertheless, and despite the investments undertaken in 2018, the group reduced its net result during the first nine months of last year. Its profit amounted to €1.84 million, down by 15.6% compared with the same period in 2017, according to a statement issued by the company to the Alternative Investment Market (MAB).

For this reason, the company now intends to increase its influence in Madrid, in terms of both square metres, as well as the number of units that it owns. In general terms, the group also plans to increase the occupancy rate of its buildings from 83% to 90%.

Original story: Eje Prime (by Marta Casado Pla)

Translation: Carmel Drake

Blackstone Sells an Office Portfolio to Zurich for €163.5M

31 January 2019 – Eje Prime

Blackstone is starting to divest the office portfolio that it acquired as a result of its purchase of Hispania. The US fund has sold the so-called Ilunion portfolio to the insurance company Zurich, according to explanations provided by the latter in a statement. The operation has amounted to €163.5 million.

The insurance company has completed the operation through its real estate subsidiary Rex Spain Zdhl. The portfolio includes five office buildings in Madrid leased to ONCE.

Before Blackstone’s takeover, Hispania was planning to divest its entire office portfolio for more than €500 million. The Socimi had made an agreement for the sale with Tristan Capital Partners, but the entry of the US fund into its share capital suspended that sale.

Original story: Eje Prime 

Translation: Carmel Drake

Rental Contracts Will Be Governed by the Urban Rental Act Again From 23 January 2019

22 January 2019 – El Confidencial

Rental contracts that are signed from tomorrow will again have a duration of three years, regardless of whether the landlord is a physical person or a legal entity. Also, landlords may require future tenants to provide more than one month’s deposit, as well as any additional guarantees that they consider appropriate, either in cash or as a bank guarantee.

Royal Decree-Law 21/2018, dated 14 December, governing Urgent Measures in terms of Housing and Rents, published in the BOE on 18 December, has had a very short life, given that it has not been ratified by Congress today, in such a way that all of the rental contracts that are signed from tomorrow onwards will be governed once again by the Urban Rental Act (LAU) approved in 2013. The result of the vote was 103 votes in favour versus 243 votes against, plus one abstention.

In the way, the Government has today suffered its first major defeat in Congress, after the majority of representatives voted no to the law on rental, which was only supported by the PNV and PDeCAT in the end. The decree was completely rejected by Unidos Podemos, which was not happy that the Executive had ignored its main demand to move forward with the budgets: to limit rental prices in those markets with greatest tensions and highest prices. PP, Ciudadanos and ERC joined the Purple Party in their rejection of the decree (…).

All of this means that for practical purposes, the rental market will once again be governed in accordance with the legislation set out in the LAU of 2013, whilst all of those contracts that were signed following the approval of the royal decree in the BOE to date will continue in force in accordance with the provisions thereof.

Three-year contracts and larger deposits

The parties may negotiate freely regarding the duration of contracts, nevertheless, the obligatory extension of those contracts shall be three years. In other words, although a landlord and tenant sign a one-year contract, the tenant will have the right to extend that contract for a total of three years. The tacit extension, in other words, after those three years, and provided the parties are in agreement, shall be one year.

“The landlord can demand whatever deposit he wants for the rental of a home; the decree law limited that figure to two months. In this way, the owners of flats will be able to continue to ask for bank guarantees or bank deposits, as well as a normal deposit”, explained Francisco Javier Fajardo Fernández, Professor of Civil Law at the University of Navarra (…).

Regarding those parties who have signed a rental contract in the last 35 days, he indicates that “it would be normal for citizens to sign rental contracts for a year, but those that have signed contracts in the last 35 days could be subject to a mandatory extension of up to five years. The law would cover them, although it is possible that some landlords will want to modify their contracts to apply the current law (…).

“Contracts signed between 18 December and 22 January shall be subject to a special regime with respect to the contracts signed from tomorrow onwards (…)”, said the Professor from the University of Navarra.

The return of the law from 2013 also means that landlords will be able to recover their property to use it as a permanent home in certain cases after the first year of the contract term (…).

Rental updates

On the other hand, regarding updates to rental prices, another controversial topic, according to the royal decree, if the contract does not explicitly specify that the rent will increase each year, then there shall be no rent increase. By contrast, under the law from 2013, even though the contract does not specify it, rental prices are updated each year in line with CPI – the typical rate used – or the index specified – and, if there is no mention of any index, the consumer guarantee index (IGC), approved by the Disindexation Law of 2015 (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Caser Buys an Office Building in Central Madrid

14 December 2018 – Eje Prime

Caser has acquired a prime asset in Madrid. The Spanish insurance company has purchased a building on Calle Velázquez measuring 5,460 m2. The property, which is occupied in its entirety, is home to commercial premises and offices, according to a statement issued by the company.

The property is located at number 94 of the central street in the Spanish capital and its surface area is distributed over the semi-basement floor, the mezzanine floor and six upper floors. The amount of the operation has not been disclosed and the deal has been advised by the consultancy firm Savills Aguirre Newman.

The building, which dates back to 1920, is being incorporated into Caser’s real estate portfolio, which comprises assets located in Madrid as well as in other cities around the country. Of the properties in the Spanish capital, the firm’s headquarters in Las Tablas stand out, as do the assets distributed in strategic locations such as Calle Alcalá, Plaza de la Lealtad and Julián Camarillo, where Eurovision has just leased offices, as revealed today in Eje Prime.

Original story: Eje Prime 

Translation: Carmel Drake

Savills: Cataluña will Add 340,000 m2 of Logistics Land to its Stock by 2020

7 December 2018 – Eje Prime

Cataluña is going to increase its stock in the logistics market. Over the next two years, the region is going to add 340,000 m2 of industrial land to its portfolio, of which 275,546 m2 will be incorporated in 2019, according to data from the consultancy firm Savills Aguirre Newman.

Next year alone, nine assets will be debuted, which will be available as leased spaces spanning a combined surface area of 164,746 m2. For 2020, several projects have already been signed with logistics operators, to incorporate 68,500 m2 into the logistics sector. In this sense, the consultancy firm expects to increase the signing of at-risk projects with a leading role for overseas funds, which are taking positions in land and investment operations.

This year, the Catalan logistics market has increased its stock of new surface area by 459,112 m2, a rise of 8.5% with respect to the previous year. It is an increase that responds to the strong performance of the sector, which closed the third quarter with 493,615 m2 of space leased, up by 56% compared to the same period in 2017. Those figures invite Savills Aguirre Newman to predict that 600,000 m2 of space will have been absorbed in total by the end of the year.

During 2018, some major logistics projects have been launched in the region, such as the 81,000 m2 complex built in La Bisbal del Penedès. That space is 68% occupied by ID Logistic, which has Kiabi as a tenant. Moreover, Sesé Logística and the e-commerce group Vente Privee have absorbed 50,000 m2 of space each.

The first ring and the centre are the preferred areas

By volume of operations, the first ring and the prime-centre are the two areas that have recorded the most activity during 2018. Those two areas registered joint growth of 50% during the third quarter, with 375,000 m2 of surface area leased.

The third ring was the only area that reduced its activity during the third quarter, with a decrease of 11.69%. Nevertheless, it will be the area that accounts for the greatest availability of consolidated warehouses in 2019, with three assets that will account for 52% of the total.

In terms of rents, rental prices have grown by 6.5% on average this year, whilst the availability rate in Cataluña currently amounts to less than 3%. In this regard, professionals from the sector who participated in a conference organised by the consultancy firm emphasised the need for public institutions to collaborate with the private sector for the development of new industrial and logistics areas.

Warehouse measuring between 2,500 m2 and 5,000 m2.

Currently, the most sought-after warehouses by the logistics market in Barcelona are assets measuring between 2,500 m2 and 5,000 m2. 31% of the spaces leased this year have involved warehouses of that size, compared with 27% of operations that have been signed for assets with surface areas of between 5,000 m2 and 10,000 m2.

The strong performance of the Catalan logistics segment is also being replicated in Madrid. In the vicinity of the Spanish capital, 637,000 m2 of space had been leased by the end of the third quarter, up by 4% compared to the same period last year.

Original story: Eje Prime

Translation: Carmel Draje

Finestrelles Shopping Centre Opens with a 98% Occupancy Rate

27 November 2018 – Eje Prime

The Finestrelles shopping centre has fired the starting gun. The complex, located in the Catalan town of Esplugues de Llobregat, on the outskirts of Barcelona, has opened its doors today after two years under construction.

Finestrelles, which has a commercial surface area of 40,000 m2, spread over five floors, has opened with an occupancy rate of 98%. The complex contains 110 stores, with tenants of the calibre of JD Sports, Mango, H&M, Zara and other Inditex chains.

For the construction of the shopping centre, which is owned by the Belgian real estate firm Equilis, an investment of €120 million has been made and 1,500 direct and indirect jobs are expected to be generated. Moreover, the complex is expected to attract 8 million visitors during its first year given that it is located along one of the main entrances into Barcelona.

Initially, Finestrelles was scheduled to open at the beginning of October, but according to the construction firm, due to the poor meteorological conditions, a decision was taken to delay the opening until the end of November.

Original story: Eje Prime 

Translation: Carmel Drake

Mountpark to Build its 4th XXL Warehouse in Madrid

21 November 2018 – Eje Prime

Mountpark is getting a taste for the Iberian Peninsula. The logistics vehicle, specialising in the development of XXL assets, is going to start work on its fourth warehouse in Madrid in the middle of 2020, on a site spanning 100,000 m2, located in the south of the Spanish capital.

Including that plot, the company currently has a portfolio of land in the country that exceeds 330,000 m2, which it expects to expand very soon with new purchases in Barcelona and Valencia, according to explanations provided by John Derweduwe, the Director General of Mountpark for Spain and Portugal, to Eje Prime.

The group does not want to delay its entry into Portugal any longer. “We are on the verge of closing the purchase of a new plot in Lisbon”, said the Director, who added that his firm has been preparing its debut in the Portuguese market for some time. The delay has been due to the difficulty in finding the right plot to develop warehouses measuring between 80,000 m2 and 100,000 m2, which has been Mountpark’s main objective since its creation in 2017.

Whilst it continues to identify new plots on the Peninsula, the company is focusing its efforts on the development of three of the assets that it already owns in Madrid: two spaces in the Iberum Central Platform in Illescas (Toledo), which span almost 135,000 m2 and a third site in Alcalá de Henares, measuring 100,000 m2.

In fact, yesterday, the first brick was laid in Mountpark II, the e-commerce logistics platform measuring 44,000 m2 that the group is building for the logistics operator XPO, with an investment of €30 million.

The space will be leased to the Swedish fashion retail giant H&M from June 2019 and represents a “great opportunity for economic growth in the region”, according to the President of Castilla-La Mancha, Emiliano García-Page, on the first day of construction at the complex (…).

In search of the giants of the future

Mountpark is on the hunt for buyers for its projects in Spain. After signing its first contract with XPO Logistics, the company now has several firms interested in Mountpark I, the second logistics platform that it owns in Illescas, measuring 90,000 m2, as well as the complex that it is planning to construct in Alcalá de Henares.

“Our potential clients fit one of three profiles: logistics operators, large companies in the world of technology and the automotive industry, and retail giants who want to commit heavily to e-commerce”, explained John Derweduwe (…).

The parent company of the Iberian subsidiary led by Derweduwe is Mountpark Logistics, a joint venture between Usaa Realco-Europe Holdco, the Dutch subsidiary of Usaa Real Estate and Mountpark Finco Sarl (Mountpark). The joint venture promotes large logistics buildings across Europe, but with the focus placed primarily on the United Kingdom, Western Europe and Central Europe. Mountpark owns a portfolio comprising 16 assets with the potential to offer more than 1.85 million m2 of logistics facilities in the continental market.

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

Invesco Buys 2 Warehouses in Madrid’s Prime Logistics Area from GreenOak

21 November 2018 – Eje Prime

Invesco is raising its commitment to the Spanish logistics sector. The British real estate group has purchased two warehouses located in the Puerta de Madrid Logistics Park from the US fund GreenOak. The two warehouses have a surface area of more than 38,000 m2, according to a statement from the company.

The assets are located on Calle de los Tapiceros in San Fernando de Henares, an area very close to the Spanish capital and the A-2 motorway, the busiest road in the last mile market. Invesco expects that the warehouses, which have a high degree of occupancy, will be finished by the end of the year. The operation has been advised by the real estate consultancy Cushman & Wakefield.

This new investment in Madrid, whose amount has not been revealed, follows the group’s search for a tenant for the 30,000 m2 logistics platform that it owns in Los Gavilanes, in Getafe.

Moreover, across the whole of Spain, Invesco has undertaken several operations in the logistics market over the last year. One of the most important took place last December when the real estate group acquired the facilities that house the headquarters of Mango in Palau-solità i Plegamans (Barcelona) for more than €100 million.

Original story: Eje Prime 

Translation: Carmel Drake

Barcelona’s El Triangle Shopping Centre: 20 Years On

13 November 2018 – Eje Prime

El Triangle is growing up. One of the most iconic shopping centres in Barcelona, owned by the Immobilien Investment fund, which forms part of the Deka group, is celebrating its twentieth birthday in a context marked by the rise of e-commerce and the arrival of technology start-ups in search of offices on the most prime thoroughfares.

“Due to our location and facilities, many retailers choose to open their flagship stores in our shopping centre”, explains Joan Mas, manager of El Triangle, speaking to Eje Prime. In fact, in recent years, brands such as Urban Outfitters and Sephora have decided to back the Barcelona shopping centre with their flagship stores, a shop format that enhances the consumer experience.

In this sense, the director believes that e-commerce, far from representing a challenge, has become an opportunity for this shopping centre, which is located at number 1 Plaza Cataluña, in the heart of the Catalan capital. “Although shopping from home is more convenient for retail clients, the centre of the city is always going to be a busy area that attracts a lot of visitors”, adds Mas.

Currently, El Triangle has an occupancy rate of 100%, both in terms of its 14,000 m2 of gross leasable area (GLA) used for retail, as well as its 11,000 m2 dedicated to office space. According to explanations provided by the executive, the gradual increase in rental prices has not caused any problems when it comes to attracting tenants. “Demand has not ceased at any point, we are the ones who choose which brands and companies we want to carry out their activity in the building”, he said.

Proof of that is the arrival of two new operators to El Triangle between the end of 2018 and 2019. On the one hand, Lacoste is soon going to occupy 150 m2 in the shopping centre with the opening of one of its flagship stores. On the other hand, the restaurant chain Five Guys will arrive next year to lease the space that was operated by Masvisión until October.

Technology arrives at the offices in El Triangle

Although large brands are continuing to conquer the leisure and retail space in El Triangle, there has been a change in the trend in the space dedicated to offices in recent years. “Whilst at the beginning, most of the companies that entered as tenants were companies specialising in financial services and banks, recently, our building has been welcoming a significant number of technology firms”.

For example, Skyscanner and My Taxi are some of the companies that have their offices at number 1 Plaza Cataluña. Alongside them operate the coworking giant Regus and the company specialising in video games MSI. With an occupancy rate of 100%, multinationals from the FMCG sector also operate in the property, such as Bacardi, which recently leased a whole floor in the building, spanning 2,700 m2 in total (…).

With more than 150 million visitors from more than 120 countries, El Triangle opened its doors on 12 November 1998. Three years ago, its owner started to modernise the property, with an investment of €1.4 million. The most iconic boulevard of the Catalan capital currently houses 22 retail and restaurant premises, with brands such as Havaianas, Fnac, Sephora and Starbucks, amongst others.

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

Mapfre Accelerates its Divestments: 250 Properties Up For Sale

9 November 2018 – Economía Digital

Mapfre acknowledged in its annual report for 2017 that its real estate strategy “was focused on the divestment of non-strategic assets”. That strategy has intensified in 2018: the Spanish insurance company has started a major sales operation, involving more than 250 assets, which now have a “for sale” sign hanging over them. The divestment will materialise next year.

According to sources speaking to Economía Digital, Mapfre has engaged Solvia, the real estate firm still owned by Banco Sabadell – which is up for sale itself and which is expected to change hands before the end of the year – to exclusively market 256 real estate assets located across Spain, although they are particularly concentrated in Barcelona, Valencia and Madrid.

The most important assets in this portfolio are six plots in Madrid, Las Palmas and Mallorca, whose sale is expected before the end of this year. The other assets are essentially commercial premises that Mapfre owns as investment assets and leases to third parties. The divestment period will run until 31 December 2019.

The plots and offices that the insurance company wants to sell are located in around a dozen Spanish provinces. Approximately, half of them are situated in three autonomous regions: the Community of Valencia, Cataluña and Madrid, although the firm also has assets in Galicia, Andalucía, Aragón and Navarra.

When consulted by this newspaper, Mapfre and Solvia did not deny the operation but they did decline to comment. Sources at the insurance company have explained that the company is constantly rotating its real estate assets and searching for others of more value, although they have not explained whether the company is currently investing or not.

Mapfre’s real estate sales

The truth is that in 2016 and 2017, Mapfre completed some major real estate divestments, but it did not get rid of anything close to 250 assets in either year. Last year, it sold properties for €130 million, mainly corresponding to four large assets: a plot in Madrid for €5.5 million; a building also in Madrid for €72 million; and two plots in Palma de Mallorca for €22.5 million. With these sales, the company chaired by Antonio Huertas (pictured above) obtained capital gains of €65 million.

In 2016, the entity’s property sales were clearly impacted by the sale of a majority stake in Torre Mapfre in Barcelona. First, it tried to sell that property to an investor who wanted to convert it into a Four Seasons hotel, but after failing to obtain the necessary permits due to Ada Colau’s moratorium, it sold 66% to the Fundación Mapfre for €175.4 million and renovated it.

Mapfre’s real estate risk amounts to around €3 billion. Specifically, it closed 2017 with properties that had a market value of €2.945 billion, around €170 million lower than in 2016. More than €1.2 billion correspond to own-use properties, such as headquarters and offices, whilst almost €1.7 billion are investment assets, including the portfolio that the entity has put up for sale through Solvia (…).

Original story: Economia Digital (by Xavier Alegret)

Translation: Carmel Drake