GreenOak Sells Las Mercedes Office Park for €200 Million

28 July 2019 – Richard D. K. Turner

GreenOak sold the Las Mercedes business park for between 201 million euros and 205 million euros through its subsidiary socimi Go Madrid Benz. The sales price entails a capital gain of roughly eighty million euros for Go Madrid Benz, which acquired the asset in 2016 for 131.36 million euros. The identity of the buyer was not revealed.

Las Mercedes is made up of nine office buildings, an underground car park and a restaurant and leisure area, and currently has about thirty tenants, including the Spanish Medicines Agency, Enaire, Altran Innovation, Appus Norcontrol, Ibermática and Xerox Spain.

Original Story: Eje Prime

 

GreenOak Puts Las Mercedes Business Park on the Market 3 Years After Buying it

16 April 2019 – El Confidencial

GreenOak has engaged the real estate consultancy firm CBRE to coordinate the sale of Las Mercedes Business Park, one of the main office complexes in Madrid.

The aim of the fund, led in Spain by Javier Zarrabeitia, is to receive offers for the asset between May and June, with a view to closing the sale before the summer. The US fund has set an asking price of more than €200 million, which would represent a capital gain of 40% in just 3 years after it purchased the property for €140 million in 2016 from Standard Life.

Since acquiring the asset, GreenOak has worked on repositioning it, increasing its occupancy rate from 65% to 90% and negotiating rent increases.

The complex comprises nine office buildings, spanning a surface area of 80,000 m2 and is located in the northeast of Madrid, alongside the A-2 motorway. It is home to the offices of companies such as Altran, Applus, the Spanish Medicines Agency, Enaire and Carrefour.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

GreenOak Fattens Up its Second Socimi with a €1.2M Capital Injection

17 January 2019 – Eje Prime

GreenOak is providing gas to its second Socimi. The US fund has carried out two capital increases in GreenOak Spain Holdings Socimi, one amounting to €864,255 and another amounting to €315,000, which together total €1.2 million, as published in the Official Gazette of the Mercantile Registry (Borme).

The company, founded in 2010 by three former directors of Morgan Stanley, currently has three Socimis in Spain. The first of them was Gore Spain Holdings, constituted in 2014 and listed on the Alternative Investment Market (MAB) since January 2017.

Currently, that company is the owner of around twenty assets, including an industrial warehouse in Valdemoro (Madrid), an office building in Alcobendas (Madrid) and a complex of four buildings in the Avalon business park (Madrid).

GreenOak Spain Holdings Socimi II is the second company that the US fund constituted in Spain, specifically in June 2016. That company specialises in the acquisition and development of real estate for subsequent rental, and was created with the objective of investing €900 million by 2020 in various types of assets located in Madrid, Barcelona, Valencia and Zaragoza, as revealed by Eje Prime.

Until now, GreenOak’s second Socimi in Spain has only undertaken operations in the residential market, although it does not rule out making acquisitions in the office and logistics segments, in particular in Valencia and Zaragoza.

One of the most recent transactions carried out by GreenOak Spain Holdings Socimi II was its purchase of the former Social Security building on the central Madrilenian street Calle Fuencarral for €21 million. For that, the company closed seven capital increases in just over two years, amounting to €6.7 million in total.

In addition to GreenOak Spain Holdings Socimi II and Gore Spain Holdings, the fund led by John Carrafiell, Sonny Kalsi and Fred Schmidt has a third Socimi in Spain. It is Go Madrid Benz, a company that has been listed on the stock market since last September.

That company has a single asset in its portfolio: the Las Mercedes business park (pictured above) (…).

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

GreenOak Acquires 720,000 m2 of Logistics Space in Spain and France

25 September 2018 – Eje Prime

GreenOak is on the hunt for logistics assets in Europe. The fund manager has purchased 720,000 m2 of industrial space in France and Spain. These latest acquisitions increase the company’s logistics assets and projects under development to 1.8 million m2.

GreenOak’s Spanish investments comprise two cold storage facilities in Barcelona and Valencia, leased in their entirety to Spanish companies in the food logistics sector.

In France, the manager has acquired twenty warehouses and cold storage facilities, located mainly around the principal nuclei along the logistics corridor between Paris, Lyon and Marseille. Its tenants include Carrefour, Easydis, CDiscount and Dachser.

GreenOak owns a portfolio of logistics assets in France, the Netherlands, Italy and Spain. Most of its assets are facilities with an average size of 37,000 m2.

The fund is present in almost all of the markets of the Spanish real estate sector. One of its main assets is Las Mercedes Business Park, one of the largest business parks in Madrid.

Original story: Eje Prime

Translation: Carmel Drake

Socimi Go Madrid Benz Debuts on the MAB with a €60M Valuation

19 September 2018 – Eje Prime

The Socimi Go Madrid Benz, whose only asset is the Las Mercedes business park, is going to make its debut on the Alternative Investment Market (MAB) on Friday with a valuation of €60 million.

The company is going to become the 18th Socimi to start trading on that market. The Las Mercedes business park comprises nine buildings, an underground parking lot and a restaurant and leisure area.

Go Madrid Benz is not planning to access financing to expand its portfolio but is instead focusing its strategy on the management of its only asset to “maximise returns for investors”.

The Socimi expects to close the year with revenues from rental income of €8.59 million and profits of €1.03 million. Go Madrid Benz acquired the complex in 2016 for €131.36 million. The main tenants of the park include the Spanish Medicines Agency, Enaire, Altran Innovación, Applus Norcontrol, Ibermática, and Xerox España.

Original story: Eje Prime

Translation: Carmel Drake

GreenOak Acquires Office Complex in Madrid

30 August 2018

Axa placed the asset, located at 34 Calle Albarracín, on sale for 25 million euros last March. The transaction’s final price was not disclosed.

GreenOak is expanding its real estate portfolio in Spain. The US fund just completed its acquisition of an office complex in Madrid. The asset, located at 34 Calle Albarracín, has an area of ​​9,800 square meters. The price paid by GreenOak was not disclosed.

Axa initially announced its intention to sell the property for 25 million euros, last March, hoping to take advantage of the growth of the office market in Madrid. The building, which houses the headquarters of the Euromaster tire group and the CTO Group, was completely rehabilitated in 2016. Clifford Chance and Arcadis acted as advisers to GreenOak, and Savills Aguirre Newman advised the seller.

The complex has a 92% occupancy rate and both Euromaster and CTO have long-term leases. In addition to the three offices, the asset also has 194 parking spaces.

GreenOak is present in almost every sector of the Spanish real estate market. One of its principal assets is the Las Mercedes Business Park, one of the largest business parks in Madrid.

Original Story: EjePrime

Translation: Richard Turner

 

GreenOak to Debut Second Socimi, Go Madrid Benz, on the MAB

15 May 2018 – Eje Prime

GreenOak is going to ring the bell again on the Alternative Investment Market (MAB). And this time it will do so with Go Madrid Benz, its second Spanish Socimi after Gore Spain, which made its stock market debut in January 2017. The US fund has already filed a request with Spain’s National Securities and Exchange Commission (CNMV) to incorporate the company on to the stock market; its main asset is the Las Mercedes Business Park. GreenOak’s intention is for the shares in this company to be listed before the summer.

With a surface area for offices and other administrative buildings spanning 80,000 m2, Las Mercedes is the jewel in the crown of Go Madrid Benz. The fund, which is led in Spain by Javier Zarragoitia, wants to assert its control over the 46% share capital that it owns in the Socimi to debut it on the stock market. The objective of the company is to achieve gross annual rental income of €7.65 million, with a yield of 6.5%, according to El Confidencial.

The sole shareholder of what will be the newest listed Socimi on the insatiable MAB, which is also home to more than fifty companies, is Go Benz Sarl, one of GreenOak’s investment vehicles. The fund has owned Las Mercedes since 2016 when it paid Standard Life €130 million for the business complex located in the northeast of Madrid.

The Las Mercedes Business Park comprises nine office buildings, situated around the A-2 motorway, an attractive area for companies, which has undergone significant development in recent years. Indeed, just a few weeks ago, GreenOak raised €95 million to refinance this asset through a long-term loan signed with PBB Deutsche Pfandbriefbank.

Original story: Eje Prime

Translation: Carmel Drake

GreenOak Puts All Of Its Logistics Assets Up For Sale

29 November 2016 – El Confidencial

Early in the summer of 2015, the opportunistic fund GreenOak surprised the market by announcing its unbridled appetite for the Spanish logistics market. In June of that year, the vehicle funded and managed by John Carrafiell announced that it had just purchased five logistics assets in the Community of Madrid, with a combined surface area of 200,000 m2, and that it had agreed to acquire another 100,000 m2.

Over the next few months, the fund completed a barrage of operations, involving the acquisition of, amongst others: a 14,000 m2 platform, which became the largest logistics operation in the País Vasco in 2015; a 30,000 m2 asset in Toledo, leased to Schwepees; the Michelin logistics platform in Seseña, which has a surface area of 47,000 m2; and a portfolio covering 144,320 m2 spread across several properties in Zaragoza and Massalvés (Valencia), which it purchased from Prologis.

Thus, in just 12 months, GreenOak fulfilled its objective of acquiring a portfolio covering 500,000 m2, but rather than develop it, the US fund has now decided to put it up for sale, and whereby take advantage of the strong appetite from institutional investors and specialists in the sector. According to several sources familiar with the sale, the fund has opened a formal sales process, whose first key milestone was recorded last week, with the presentation of preliminary offers from interested parties.

The US firm Eastdil Secured, a subsidiary of Wells Fargo, is coordinating the process, according to the same sources, who point out that this advisor was also chosen by the Canadian fund Ivanhoe to coordinate the sales process of Xanadú, one of the largest shopping centres in Spain, which was sold for around €500 million.

GreenOak’s decision to divest its entire logistics portfolio is seen in the market as an operation by an opportunistic fund, which knew how to buy cheaply and which has decided to take advantage of the interest from more stable investors to generate rapid capital gains. The consideration for the operation is expected to exceed €200 million, compared with the figure of around €125 million that GreenOak has invested to build the portfolio.

Opportunistic buyer

GreenOak signed its first major property purchase in Spain in 2014, when it acquired seven shopping centres from the Dutch group Vastned Retail for €160 million. (…).

It then went onto buy the building located at number 77 on Calle Fuencarral, which it acquired from the General Social Security Treasrury for €21 million; followed by the Sevilla Factory shopping centre, which it bought for €12 million; an office building in Port Cornellá (Barcelona), which it purchased for €10.1 million; and four buildings in the Avalon Business Park (Madrid) and another one in Arroyo de la Vega (Alcobendas), on which it spent more than €55 million in total, according to the figures disclosed in the annual accounts of Gore Spain, the Socimi through which the fund channels its investments in our country.

The icing on the cake for GreenOak came in June this year, when it acquired the Las Mercedes Business Park from Standard Life. The property is located on the outskirts of Madrid, next to the A-2 motorway and comprises an 80,000 m2 complex with 10 buildings, of which nine are used for offices, with the tenth used for the provision of general services.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

CBRE: Real Estate Investment Down By 24% In H1 2016

5 July 2016 – Expansión

The real estate sector is still a preferred investment destination, after a record and unusually active 2015, but investors are now putting the brakes on, which has caused investment volumes to decrease during the first half of 2016.

Between January and June 2016, real estate investment amounted to €3,921 million, 24% less than during the same period in 2015 when, excluding the purchase of Testa, investment stood at €5,200 million. This difference is even more marked if we include Merlin’s purchase of Testa, in which case, investment during the first six months of last year soar to €8,400 million, according to data from the real estate consultancy CBRE.

The decrease in investment reflects a reduction in the supply of real estate properties, the uncertainty at the political and economic level and a normalisation of the quality-price relationship of assets. Despite everything, the level of investment to June was 40% higher than the average recorded over the last ten years.

By sector, the most affected has been the office segment, with a reduction in terms of investment of 48%, to €871 million. Meanwhile, investment in retail and hotel assets fell by 30% and 48%, to €1,341 million and €543 million, respectively. Meanwhile, investment in logistics assets doubled to reach €462 million; that segment now accounts for 12% of total investment.

In terms of type of investor, the Socimis, which accounted for 42% of all real estate investments made last year, have lowered their profiles to participate in just 10% of real estate transactions during H1 2016. By contrast, international funds now account for 68% of total investment. In terms of the geographical origin of the overseas capital, the USA leads the way, with 39% of total investment, followed by Australia (8%) and the UK (6%).

The most important operations during the first six months of the year included: Blackstone’s purchase of 4,500 rental homes for €540 million; Invesco’s acquisition of a portfolio of Gonuri hypermarkets for €358 million; and the purchase of the car park manager Parkia by the Australian fund First State for €300 million. In the office sector, the largest deal was GreenOak’s purchase of the Las Mercedes business park in Madrid for €128.5 million.

Optimistic outlook

Looking ahead towards H2 2016, the President of CBRE España, Adolfo Ramírez-Escuero, acknowledges that the forecasts made at the beginning of the year, that investment would amount to between €8,500 million and €9,000 million in 2016, seem “somewhat optimistic” six months on.

Ramírez-Escudero explained that the result of the UK’s referendum has taken the European real estate sector by surprise. “It is likely that investors will wait until the rules that are going to frame the relationship between the UK and the EU have been defined more clearly, as well as to find out how they will influence the economy on both sides”, said the President of CBRE España regarding Brexit.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake