Tag: Lar España

The Listed Real Estate Investment Companies Shake Up The Property Market With €1.500 Million of Purchases

06/08/2014 – El Economista

The influx of the real estate investment companies onto the Spanish stock markets so far this year has caused a flurry of transactions in the real estate sector, particularly intense in recent weeks, with purchases amounting to 1,533.2 million and which inject life into a market which is beginning to show signs of a change.

The listed real estate investment companies (known as “socimis”) have become a very tax-appealing vehicle for taking advantage of the opportunities which the Spanish real estate sector offers, in which prices have experienced a significant decline since the “boom” years, considerably more so than that experienced in neighbouring countries.

This situation is benefitting from a context marked by the market’s high liquidity, fundamentally thanks to foreign investment funds.

The first to debut on the stock market was Lar España Real Estate Socimi, which did so on 5 March with an initial share capital of 400 million.

The real estate investment entity of the Lar Group has announced acquisitions of 171.7 million, mostly shopping centres.

It has purchased the Las Huertas shopping centres in Palencia and Txingudi shopping centre in Irún from Corio for 39.4 million; Albacenter’s shopping centre from Unibail Rodamco for 28.4 million; the Anec Blau shopping centre in Castelldefells (Barcelona) for 80 million and another commercial building in Villaverde occupied by Media Markt for 9 million.

Furthermore, it has acquired an office building in Madrid’s Arturo Soria street for 24.2 million and another 14 floors situated inside the M-30 building for 19 million.

The next company in the sector to make the leap onto the stock market was Hispania, the listed company controlled by fund management group Azora and which is also part-owned by the multi-millionaire George Soros, who subsequently created his own Socimi with which he has made several purchases.

Hispania has taken 90% of the share capital of Oncisa, the real estate company of Once, for 80.2 million; it has purchased 213 homes in Barcelona’s Diagonal Mar park and 237 parking spaces from Banif for 63.8 million; 18,500 m2 of offices in Barcelona’s Glòries shopping centre for 40 million; 4 office blocks and 2 NH hotels in Madrid for 42 million and 199 homes in Majadahonda and the district of San Sebastián de los Reyes for 30 million.

IT has also acquired an office building in the district of Chamartín for 15 million and Marbella’s Guadalmina Hotel for 21.5 million. In total, Hispania has accumulated 292.5 million in purchases.

The socimi Merlin Properties, for its part, on 30 June made the largest listing on the stock market since 2011 with a valuation of 1,250 million.

Since its debut, it has accounted for purchases of almost 1,000 million: the purchase of Bosque y Tree Inversiones (which comprised 880 bank branches and 5 buildings leased to BBVA) for 739.5 million and the Marineda City shopping centre in La Coruña, partly owned by Manuel Jove, for 260 million.

Also making a listing on the stock exchange was Axia, with a valuation of 360 million and which has already purchased 6 properties for 70 million, and Mercal.

The Portuguese management company Norfin, Urbas y Quabit have also shown their intention to go public by launching a socimi.

Original article: El Economista (by Cora Serrano)
Translation: Aura REE

Since March, Lar & Hispania Have Done Property Shopping For €492 Mn

1/08/2014 – Cinco Dias

The two Spanish REITs turned out to be the top real estate buyers among Socimis in the period between March and July. Since their flotations in March, Lar España and Hispania Activos Inmobiliarios have jointly invested €491.8 million in the total of 12 transactions.

Yesterday, Lar España Real Estate Socimi, managed by Grupo Lar and being held by such giants as U.S. Pimco (a 12.4% stake), bought the Albacenter shopping mall (Albacete) for €28.4 million from Unibail Rodamco, as well as the purchase of a shopping center in Castelldefels (Barcelona) with a 28.863 square meter GLA for €80 million.

These were the 4th and the 5th acquisitions conducted of the REIT, amounting to a €181.1 million total fully disbursed from its €400 million IPO funds. Out of this quote, €67.8 million was spent on three shopping parks located in Irun, Palencia and Albacete, €9.1 on some commercial asset in Villaverde (Madrid) and €24.2 million on an office building in the capital.

In turn, Hispania Activos Inmobiliarios, trusted in by prominent Soros Fund Management (16.7%), also yesterday purchased an office building in Barcelona for €18.1 million.

Hispania declares sealing eight deals since its stock exchange debut. Altogether, the Socimi disbursed €310.7 million representing around 58.3% of the funds raised at its IPO. The investment brought Hispania a 91.218 square meter gross lettable area of office space in Madrid and Barcelona, 412 dwellings –213 in Barcelona and 199 in Madrid, as well as three hotel assets: one located in Marbella and two in Madrid.

 

Original article: Cinco Días (by Alberto Ortín Ramón)

Translation: AURA REE

“Lar España Disposes of €800 Mn to Invest Within Two Years”

7/07/2014 – Expansion

In March, Lar España debuted on the Spanish continuous stock exchange market. It was the first real estate firm listed since 2007 and the first Socimi (a REIT firm) in Spain. This kind of vehicles has become amazingly popular among investors lately. The president of Lar España, José Luis del Valle says “we have been weighting up creation of a Socimi since December, encouraged by talks with institutional investors”.

Unlike other Spanish REITs, Lar was launched on the continuous market instead of being listed on the MAB (Alternative Stock Exchange). “The Socimis are investor-friendly with their tax perks, liquidity and transparency”, he adds.

Before its flotation, such prominent investors as Pimco, Cohen & Steers and Franklin Templeton Institutional commited to Lar España´s shares, taking 12.5%, 7.45% and 4.44% of the stake respectively. In total, the Socimi has managed to raise €400 at its IPO.

“Now, we are going to invest in shopping malls and offices, residential not excluded, over the next 18-24 months. We aim at reaching a 50% deleveraging, plus financing rom banks that may hit another €400 million. Jointly, we dispose of €800 million to spend on real estate assets”, the company´s directors assure.

Lar España began with 150 investors and now their number has multiplied to 1.000 shareholders.

In three months only, the Socimi which started creating its portfolio from the scratch, presently owns two shopping parks. “We believe in 2014 and 2015 we will realize all the investments, while in 2016 going skyrocket”, tells the president.

Essencially, the management of Lar rests in hands of an independent administration board, not having any historical relationship with the Lar Group.

 

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

Alicia Koplowitz Joins Soros & Pimco And Invests €10 Mn in Lar & Hispania

12/06/2014 – El Confidencial

Not only great international names like George Soros or Pimco reverberate among stakeolders of Lar Real Estate and Hispania Activos Inmobiliarios, two real estate investment vehicles listed earlier this year. Also, businesswoman Alicia Koplowitz decided to commit part of her fortune to Socimis fever. Altogether, she invested nearly €10 million through her vehicle Morinvest in the two Spanish REITs.

The prestigious investors, George Soros and Bill Gross´s Pimco own stakes equal to 16% (in Hispania) and 12.5% (in Lar) respectively.

Koplowitz confessed that in the first quarter of 2014 her company held shares of Lar estimated at €5.37 million and of Hispania at €3.6 million. In relative terms, the first Socimi represents 1.6%, while the other 0.74% of the entire portfolio of Morinvest.

The businesswoman has also swapped bonds in FCC, company currently run by her sister Esther, for €2.9 million in direct shares (0.59% of the vehicle´s portolio). Apart from that, Koplowitz invested €1.5 million in Ferrovial and another half a million in Popular.

 

Original article: El Confidencial (by Ruth Ugalde)

Translation: AURA REE

ING & Lar Compete For One of the Biggest Shopping Malls in Spain

9/05/2014 – Cinco Dias

 Real estate market is prepping for a new shopping mall transaction. The El Boulevard of 80.000 square meters, situated in Vitoria-Gasteiz in the Basque Country is at the verge of changing the owner.

New bidder, Grupo Lar through its Socimi (Spain´s REIT firm), submitted an offer of €130 million for the property currently belonging to CB Richard Ellis Global Investor. The mega shopping center was inside a larger property portfolio acquired by the U.S. company in 2011 from ING.

The purchase agreement stated that in case of acquisition of any asset, the former shareholders will maintain the pre-emptive right. This particularly means that they could file for re-purchase by offering the same price as the third-party buyer. Thus, one of ING´s branches copied the price submitted by Lar and now will bid together with the Socimi.

The El Boulevard transaction volume is comparable to other prominent shopping center sales closed in previous months. For instance, in November, British fund Northwood Investors bought the Diagonal Mar in Barcelona for around €160 million, exactly a month after another British firm Intu acquired the Parque Principado in Oviedo for €162 million.

ING, together with the Eroski group, developed the property in 2003. The mall received a note just below the highest or prime quality. This four-storey complex houses most popular textile brands, restaurants, technology stores and additionally disposes of an entertainment area and 3.500 parking spaces.

Lar España has already acquired two shopping centers for €39.4 million from Corio Real Estate España. Altogether, their GLA is equal to 16.200 square meters. Grupo Lar that runs the Socimi has got its own €1 billion asset portfolio with property scattered around Spain, Portugal, Mexico, Poland, Romania, Hungary, Brazil, Colombia and Peru.

The retail sector (commercial real estate) saw €1.9 billion out of the entire €5 billion amount invested in Spain in 2013. In the first quarter of the ongoing year the share has hit even higher, marking 50% with €764 million of the total €1.6 billion investment.

Noteworthy operation carried out in the first three months of the year was the sale of 8 shopping malls by Vastned for €160 million to Baupost, GreenOak Real Estate and again, Grupo Lar.

 

 

Original article: Cinco Días (by David M. Pérez)

Translation: AURA REE