Tag: las tablas

GMP Puts Huawei’s Offices in Castellana Norte Up For Sale

28 May 2019 – Eje Prime

The real estate group GMP has put the headquarters of the Chinese company Huawei in Madrid up for sale. The technology giant has occupied the offices, which span 21,000 m2, since Q1 2017. The premises are located in the Castellana Norte Business Park in Las Tablas, close to the headquarters of other groups such as Mediaset and Nokia.

The Castellana Norte Business Park has become one of the most important urban renovations projects in the Spanish capital. It offers office space measuring more than 1 million m2, with capacity for over 200,000 people.

GMP, which is owned by the Montoro family and the Singapore sovereign fund, specialises in the management of offices and retail parks. It owns 18 work centres in Madrid and generated revenues of €106.7 million in 2018, up by 8% YoY.

The office market in the Spanish capital is one of the most attractive for international operators thanks to the combination of low prices (€33/m2/month) and availability (10.5%).

GMP’s decision to sell the property was taken before the US named the Chinese company as a threat to national security and vetoed it from all business with US companies.

Original story: Eje Prime (by Marta Casado Pla & Marc Vidal Ordeig)

Translation/Summary: Carmel Drake

Corestate Launches its Business Apartment Venture in Spain

28 March 2019 – Eje Prime

The Luxembourg-based fund manager Corestate has launched a business apartment venture, Joyn, aimed exclusively at executives travelling to other cities for a relatively long period of time.

The company plans to open three business apartment blocks in 2019, two in Madrid and one in Barcelona, with approximately 200 beds each. It is already searching for assets in key locations of each city, such as La Diagonal and 22@ in Barcelona and Las Tablas in Madrid.

The apartments will each have a small kitchen, study and living room. There will also be common areas in each building to encourage networking. The model has already proved successful in Munich, where Corestate has been operating two such properties since 2018.

In addition, the company’s agreement with Medici Living is starting to take shape – the intention is to close this year with 450 co-living beds in Spain.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

Foreign Capital Causes Investment in Madrid’s Offices to Soar

29 November 2018 – Expansión

Foreign capital is raising its game in the office market in Madrid and has caused investment during the third quarter to soar to a record level: almost €800 million. That figure, which is the largest since 2007, is explained by three mega-operations, which had a combined total of €511 million and accounted for almost 65% of the total transaction volume, according to a report compiled by the real estate consultancy Savills Aguirre Newman.

By volume, the largest transaction closed in the period was the purchase by the British firm Tristan Capital of a portfolio of offices spanning 78,000 m2 in Madrid from Colonial for around €280 million; it was followed by the purchase by the French firm Amundi Immobilier of the Pórtico building in Campo de las Naciones; and the acquisition of FCC’s headquarters in Las Tablas by Safra Sarasin.

In Spain, during the first three quarters of the year, the cumulative investment in offices amounted to €2.1 billion, which almost equals the total amount transacted in the whole of 2017. Specifically, Madrid accounted for 70% of the total invested during the first nine months of the year, with €1.4 billion worth of transactions signed.

Forecasts

In terms of forecasts, the consultancy firm has identified that almost €1 billion of operations are under negotiation and could be closed within the coming months. “The dynamism in terms of demand and the increase in products for sale in open processes could mean that the annual volume closes at 2016 levels, exceeding the figure recorded in 2017 by more than 50%.

In terms of absorption, the total volume during the third quarter increased the cumulative figure to 440,000 m2, which represents a YoY increase of 4%. “The good behaviour of the market during the third quarter allows us to forecast an annual volume of more than 600,000 m2”, explain sources at the consultancy firm.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

GMP’s Profits Rose by 81% YoY in H1 to €111.8M

26 October 2018 – Eje Prime

GMP has seen its profits soar and its revenues remain stable. The group recorded a profit of €111.8 million during the first half of 2018, up by 80.9% compared to the same period in 2017, according to a statement filed by the company with the Alternative Investment Market (MAB).

On the other hand, the company recorded revenues during the first six months of €49.5 million, in other words, 0.8% below the figure registered during the period from January to June 2017. Similarly, the EBITDA of GMP was €33.7 million in H1 2018, up by 4.3% compared to the previous year.

Founded in 1979, GMP specialises in the development, investment and management of prime offices and business parks in Madrid. The company, which made its debut on the MAB in July 2016, bases its business on the rental of the properties that it owns.

Currently, the Socimi has a portfolio of sixteen assets, which comprise a total of twenty-seven buildings and have a combined gross leasable area (GLA) of 360,000 m2. All of them are located in Madrid, as is the buildable surface area spanning 65,105 m2 that the group owns and which is concentrated in the urban developments of Valdebebas and Las Tablas.

GMP’s project portfolio also includes a residential tourism development in Alicante, which goes by the name of Las Colinas Golf&Country Club. Nevertheless, one of the company’s most recent operations involved the disbursement of €24 million for the construction of a prime office block in Madrid (see photo).

GMP was a family-owned company until September 2014 when GIC Private Limited, which has a presence in other companies in the Spanish real estate sector, such as in the P3 Logistic Parks group, entered the shareholding by acquiring 32.9% of the share capital. That operation included an investment amounting to €200 million, capital that has allowed the company to go for gold in the Madrilenian office market.

Original story: Eje Prime

Translation: Carmel Drake

Capgemini Moves its Spanish HQ to the Oxxeo Building in Madrid

9 July 2018 – Efe Empresas

The building where Capgemini is going to move more than 800 of its employees has been constructed by the real estate group GMP and designed by the architect Rafael de la Hoz, according to explanations provided by the company in a statement.

The company, which provides consultancy, technology and digital transformation services, is going to be the first tenant to occupy the building which spans a surface area of 9,365 m2.

Through these new offices, the firm is seeking to encourage collaboration between its employees in an “open, multi-disciplinary and occupational well-being work environment”. This idea will be developed both through the furniture, as well as through the common area services, digital resources and the design itself.

At the same time, the new headquarters will have a co-innovation centre in such a way that clients and partners will be able to connect with universities, emerging companies and business schools to evaluate new business models and assist with digitalisation processes.

The CEO of Capgemini in Spain, Francisco Bermúdez, explained that the change of headquarters seeks to “respond to the company’s innovation strategy at the global level”, which is why “we are backing new organisational structures that prioritise models of collaboration and experimentation.

The CEO confirmed that the Oxxeo building “will provide us with the facilities and resources that we need, and will embody the company’s identity in terms of vanguard and innovation”. Most importantly, it will offer “a renovated and well-equipped workspace with more resources for the well-being of our professionals”.

Sustainable headquarters

The building chosen by the corporation stands out due to its sustainability, given that it is the first office building in Las Tablas to be awarded the Leed Platinum pre-certificate, the highest possible distinction granted by the US Green Building Council (USGBC).

It is also one of the most pioneering buildings in Europe, the first of its kind in Madrid and the second in Spain, to be included in the WELL Building Standard certification process, the leading global certification for buildings that focuses solely on human health and well-being.

Original story: Efe Empresas

Translation: Carmel Drake

Valdebebas, Castellana Norte & Mahou-Calderón Try to Inject New Life into Madrid

2 December 2017 – Expansión

After years of paralysis in the real estate sector, the reactivation of house sales has come at a time when there are hardly any new build homes available in Madrid.

According to calculations by the real estate consultancy CBRE, the municipality of Madrid and its surrounding areas have an absorption rate of around 20,000 homes per year and yet, the output for the region barely reaches 10,000 units.

In this context, yesterday, the Valdebebas Compensation Board, the last major development area in the north of Madrid, approved the economic “reparcelation” of the whole area, which will be the largest process in the history of Spain, with the aim of reactivating the granting of licences in an area where there is still land available for the development of 3,794 homes.

The aim of the economic “reparcelation” is to put an end to the urban planning problems associated with this development, which relate to the commercial area that was initially planned. “The problems date back to 2013, when modifications were made to the general plan, which included the construction of the largest shopping centre in Europe. The plan was modified to make the shopping centre smaller and to add more homes, most of which were social housing properties”, explain sources at the Valdebebas Compensation Board.

The new plan was legally appealed and in May, a ruling overturned the changes. “The legal ruling caused the Town Hall of Madrid to stop granting licences for the whole area. In light of that paralysis, the only option has been this economic “reparcelation” process (…), which will cost more than €5 million, which the Compensation Board will bear in its entirety”(…). “The “reparcelation” will allow the development of the last major PAU in the north of Madrid, given that in the others, such as in Las Tablas, Sanchinarro and Montecarmelo, there are barely any plots left (…).

The lack of supply has already had an impact on prices. “In two years, land prices in Valdebebas have doubled and, that is inevitably reflected in prices. Whilst before you could find a home for €2,400/m2, now you can’t find anything for less than €3,000/m2”.

Operación Mahou-Calderón

Operación Mahou-Calderón represents the last large plot of land in the central district (…). In total, it comprises 147,050 m2 of buildable land, where around 1,200 homes may be built (…) with prices of around €2,950/m2 (…).

Madrid Nuevo Norte

Operación Chamartín is reinventing itself (…). It has been paralysed for more than 20 years, but the new project includes a reduction in the buildable surface area, which will amount to 2.68 million m2, where 11,000 homes will be built, of which 20% will be social housing properties. With an investment of around €6 billion, construction work is expected to begin in 2019.

Berrocales, Valdecarros and Cerros

Meanwhile, the development of the southeast of Madrid has been put on the back burner. The Compensation Boards responsible for the three urban developments there (Los Berrocales, Valdecarros and Los Cerros), have joined forces in a common platform to promote the construction of more than 100,000 affordable homes over the next 25 years in the southeast of Madrid. Meanwhile, the Town Hall of Madrid is proposing a change to its urban development plans, with a maximum of 27,700 homes between now and 2030, to which another 26,000 may be added by 2039, depending on demand (…).

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Asprima: Buildable Land is Running Out in Madrid

25 November 2017 – ABC

Land is running out and the market is becoming distorted in the Spanish capital. For two years, the price of buildable land for the construction of new homes in the Community of Madrid has been rising, especially in the centre. There is not much buildable land left and the space that is available has seen its value rise due to the increase in demand. This equation means that, unless new variables are introduced, we will end up seeing an acceleration in house prices. “Real estate activity has returned with a vengeance and new housing is needed”, according to Daniel Cuervo, the Director General of the Association of Property Developers in Madrid (Asprima) (…). By way of example, “in Valdebebas, two years ago, people were paying €800 per square metre for buildable land “and now that price is above €1,500/m2 (…)”.

He also thinks that the property developers feel very certain about the sale of their homes “and that there is competition between them”, which translates into high house prices. Certain political decisions have paralysed several developments (…).

The Councillor for the Environment and Town Planning at the Community of Madrid, Pedro Rollán, was quite explicit this week when he said that “talking about housing requires us to talk about land” (…). “Many people have been obliged to go outside of Madrid due to the (high) price of land (in the centre),” he said, at a conference organised by the Association of Housing Managers (AGV). At the same time, he called for “a policy that allows for the development of sufficient land to deal with the true demand in the city of Madrid”. Rollán made reference to the importance of the “large batch of land in the south-east of Madrid”, where “at least 50% of the homes will be subsidised properties”.

Value of land

Daniel Cuervo also said that the project underway in Los Berrocales, Los Ahijones, Los Cerros and Valdecarros (the Strategy for the Southeast, within the municipality of Madrid) will allow “the relaxation of new house prices, given that more than 100,000 homes are planned”. To this end, the Town Hall needs to “continue complying with urban planning legislation to convert plots into buildable land”.

The Director General of Asprima also (…) made reference to a study conducted by IESE, which indicates the need for 13,000 new homes per year in the municipality of Madrid “and the impossibility of achieving that”.

According to the experts, the price of land, with respect to the price of a home, should not exceed 20-25% of the total value; and the traditional unwritten rules indicate that it should represent one third. “In the neighbourhood of Salamanca, in certain cases, the price paid for land may reach 70%-75% of the final value of the home”, explains Óscar Ochoa, Director of the New Build department at the real estate firm Gilmar (…).

Areas on the rise

If we talk about other parts of Madrid, things change. In San Sebastián de los Reyes, for example, the value of land “represents around 30%-35%”. Ochoa warns that it is not only in the centre that it is impossible to find new land, the supply is also scarce along some of the main access roads. “Such is the case in Las Tablas, San Sebastián de los Reyes, Montecarmelo and Valdebebas along the A-1 and in Pozuelo and Las Rosas along the A-6”.

For Ochoa, the solution involves establishing urban development plans designed to meet the true demand for the areas (…). Ochoa acknowledges that in terms of buildable land “we are in the hands of the politicians”. That is why he asks “for the plots to be organised and for the concession and licence processes to be streamlined”.

According to the Community of Madrid, there is a need for between 15,000 and 20,000 homes per year, including the repositioning of homes for those who want to change the kind of property they live in and new homes that are built. (…).

The situation is also affecting the rental market, according to José María García Gómez, Director General of Housing and Rehabilitation for the Community of Madrid (…). “The rental market is under pressure and prices are rising there once again”.

García Gómez believes that the role of the Administration “is not to put obstacles in the way, but rather to grant licences. He believes that the new Land Act, which is being drafted, will bring stability, pointing out that of the 178 municipalities in the region, only 20 have a general housing plan in place. The conclusion is clear: much remains to be done” (…).

Original story: ABC (by Belén Rodrigo)

Translation: Carmel Drake

Rents In Azca’s Towers Exceed Those In The Cuatro Torres

12 September 2017 – El Economista

The Cuatro Torres skyscrapers, to the north of Madrid, are no longer casting a shadow over Azca, which is establishing itself as the iconic business district in the city. With views overlooking the Paseo de la Castellana and just a stone’s throw from the Santiago Bernabéu Stadium and the Nuevos Ministerios transport hub, this business centre has managed to renew itself, to avoid being left behind compared with other areas of Madrid. So much so, that the rents for its recently renovated skyscrapers are 16.6% higher per square metre than the most expensive space in the Cuatro Torres, to the north of the city.

Castellana 81, the historical headquarters of BBVA, leads the ranking in terms of rental prices in Madrid, given that its empty space is being marketed for between €27 and €35 per square metre per month. This tower, designed by the prestigious architect Sáenz de Oiza, has been subjected to a comprehensive renovation by its owner, the Socimi GMP, which spent €30 million renovating one of its most iconic properties in Azca and on Madrid’s skyline.

The asset, which became a multi-tenant property when it first came onto the market, has already managed to conquer new companies following the departure of the banking entity, which moved to its own financial city, in Las Tablas, to the north of Madrid. Thus, in the last few months, rental contracts have been signed with Teka and Hays.

At the forefront of design

Castellana 77, which is also owned by the Montoro family’s real estate company and the Singapore sovereign fund, GIC, has been the subject of another of the major renovation projects that has been carried out in Azca and which has positioned the business district at the forefront of design. Its façade is covered with slats that protect it from direct sunlight and which are lit up at night in a diverse range of colours.

The tenant that decides to lease the office space in this building, which spans 16,200 m2 over 18 floors, will be able to choose the colour of the tower, which has more than 200 parking spaces as well as charging points for electric cars. With these features, this property has the second highest rents in Azca, which range between €28 and €33 per square metre per month.

And it is followed closely by Torre Europa, which housed the headquarters of the professional services firm KPMG for many years. Following the move of that consultancy firm to the Cuatro Torres, the tower has been renovated to turn it into the first intelligent and connected office building in Spain. Infinorsa, the majority owner of this skyscraper, which overlooks the Santiago Bernabéu, has invested €20 million on a facelift of the façade, which had not been changed for 30 years, and above all, on the renovation of the interior, which has given a radical about-turn to the essence of this 121m-tall tower (…).

Rents in this tower now range between €27 and €32 per square metre per month. Its renovation has already captivated one of the large international law firms, Freshfields (…). The US firm AOL has also decided to move its Spanish corporate headquarters to Torre Europa, as well as a pharmaceutical company (…).

Torre Picasso, the tallest skyscraper in Azca, at 156m, has not undergone such a comprehensive renovation as its neighbours, but following the departure of the consultancy firm EY to Torre Titania, 15,000 m2 of space there was left vacant. Some of that space in the tower owned by Pontegadea – the investment arm of Amancio Ortega – will be leased to Deloitte, which will thereby become its largest tenant. After several improvements to the property, the highest floors are now being marketed for €31/m2/month (…).

Rents in the Cuatro Torres barely reach €30/m2/month

Nevertheless, in the new financial district located in the north of Madrid and known as Las Cuatro Torres, only one of the towers manages to charge a rent of €30/m2/month, even though the buildings are much younger, given that they were inaugurated between the years 2008 and 2009.

Office space in Torre Espacio ranges between €29 and €30 per square metre per month. The Philippine group Emperador, which owns this skyscraper (…) renewed the image of the tower at the end of last year and launched a new marketing plan with the aim of finding tenants for the 8,800 m2 that were vacant in the building at that time.

Next in the ranking is Torre Cepsa, for which Amancio Ortega (…) paid €490 million last year. It is occupied almost in its entirety by the oil and gas company whose name it bears; the cost of the 15,000 m2 of space that is available ranges between €23 and €28 per square metre per month.

Meanwhile, Torre de Cristal, the tallest skyscraper in Spain, at 210m, is the most affordable of its neighbours, since its available space is being marketed for between €25 and €27 per square metre per month. Last year, KPMG left the Azca area and moved to this property, where it leases around 23,000 m2 (…).

Next door is Torre PwC, leased to the consultancy firm whose name it bears and the five-star hotel Eurostars. Its owner is the Socimi Merlin Properties (…) and PwC reportedly pays €19/m2/month.

The Cuatro Torres complex is now getting ready to receive a fifth tower, Torre Caleido. That property, which is currently being constructed (…), will be leased to IE Business School and Grupo Quirón-Salud (…), who will reportedly pay between €15 and €18 per square metre per month (…).

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Prosegur’s Owners Buy BBVA Seguros’ Former HQ For €23M

12 July 2017 – Eje Prime

Family offices are continuing to gain prominence in the real estate business with the help of their chequebooks. In the latest deal, the Revoredo family, which owns the security company Prosegur, has purchased an office building located at number 17 on Madrid’s Calle Alcalá from the family office Casticapital. Until about a year ago, the property housed the headquarters of BBVA Seguros.

The sale, executed through Gubel, the Revoredo family’s real estate company, was closed for a price of approximately €23 million, according to Expansión. Casticapital has sold off the asset just seven years after purchasing it. One of the projects that the group was considering before selling the property was the conversion of the building into a hotel.

The asset in question has eight floors plus a ground floor, with a total above ground surface area of around 3,000 m2. The Casticapital family office acquired the building from BBVA in a sale and leaseback operation (sales contract and subsequent lease) for around €18 million.

The property, which is located a stone’s throw from La Puerta del Sol and close to the Canalejas Complex, was home to the headquarters of the insurance company Hércules Hispano for many years.

Nevertheless, the building has been empty for approximately one year, after BBVA moved its insurance subsidiary to the bank’s central headquarters in Las Tablas (Madrid). That move came shortly after the end of the term that the bank was obliged to occupy the property for, according to the terms of the sale and leaseback contract signed in 2010.

Original story: Eje Prime

Translation: Carmel Drake

Ferrovial, FCC, Acciona & ACS Are Building Houses Again

25 May 2017 – El Confidencial

A decade after they sold or wrote off their real estate arms, the country’s largest construction companies are now returning to the residential property development sector. Ferrovial, ACS, Acciona and FCC have regained their appetite for property and although they have different paces and strategies in mind, they have all definitively decided to revive their real estate divisions.

In the case of the group chaired by Rafael del Pino, which sold Ferrovial Inmobiliaria to Habitat for €2,200 million at the end of 2006, it will lay the first stone of this new strategic phase in Valdebebas. It owns plot 128A there, in what is one of the most important urban planning developments in the north of Madrid, and it plans to build between 200 and 300 homes on the site.

And that is just the tip of the iceberg, given that as the group’s CEO, Íñigo Meirás, acknowledged to this newspaper, the firm “is willing to become a property developer once again”. (…).

This strategy, combined with the gradual recovery in the real estate sector, has allowed residential construction work to account for 5% of the group’s total building portfolio, having closed last year at €442 million, up by 31.7% YoY. The group aspires to increase those numbers, by resuming its property development activity, which has caused it to analyse land operations in different areas to the north of Madrid.

FCC Real Estate also wants to make a similar move. The division, led for the last year and a half by Xavier Fainé Garriga, has decided to start developing half a million m2 of land that it owns in the Madrilenian town of Tres Cantos. The company has owned the plots for years, and its construction division will also participate in their development, along with the real estate subsidiary Realia, which will collaborate on the marketing side. (…).

Meanwhile, Acciona has a more ambitious plan, after it tried, two years ago, to divest its real estate arm, by listing it on the stock market or selling a stake in it to a fund – it has now ended up deciding to return to development. That was recognised by the firm’s Corporate Development Director, Juan Muro Lara, in March, when he announced the launch of 16 housing developments: 13 in Spain and the rest in Mexico and Poland.

In parallel, the group is finalising the transfer of its rental properties to Merlin, in a deal disclosed by El Confidencial in October, which will see the former’s exit from the real estate business. It also wants to push ahead with the sale of its hotels and office buildings through individual operations.

In the case of ACS, the firm is carrying out its strategy in the development segment through Cogesa, the historical subsidiary of the group, which stands out because it is the owner of the group’s two main corporate headquarters, the office buildings located in Las Tablas and on Avenida Pío XII in Madrid, and for owning sizeable land portfolios in areas such as Montecarmelo, Arroyo Fresno, Las Tablas, Carabanchel and Ensanche de Vallecas.

The turning point for this subsidiary, which is led by the brother of Florentino Pérez, Enrique, came two years ago, when it carried out a capital increase amounting to €44 million and then acquired one of the last plots of residential land in Montecarmelo for €2,200/m2. That figure turned the operation into one of the most onerous since the burst of the bubble, but is now seen in a very different light. (…).

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake