Tag: lease contract

Amazon to Open its Largest Logistics Warehouse in Dos Hermanas

1 March 2019 – ABC Sevilla

Amazon is going to open its largest distribution centre in Spain in the Megapark business park in Dos Hermanas (Sevilla) to become the park’s first tenant. The new mega-warehouse will have a constructed surface area of around 190,000 m2 on a plot spanning 165,000 m2 and is expected to be operational from 2021.

The e-commerce giant has been searching for a suitable facility for months and has opted for Megapark in the end due to its excellent road network and proximity to the Port of Sevilla, where it will open a new logistics station.

The plot of land and the future warehouse will both be owned by the investment fund Goodman Real Estate Spain, with which Amazon is expected to sign a lease contract within the coming days.

One of the benefits of the location in Sevilla is the availability of the port, which means that Amazon will be able to offer a more comprehensive delivery service to the Canary Islands by boat.

The business park is located opposite the La Isla industrial estate, between the A-4 motorway towards Cádiz and the future SE-40 ring-road.

Original story: ABC Sevilla (by Elena Martos)

Summary/Translation: Carmel Drake

PSN Buys a Floor of Offices on c/Claudio Coello in Madrid for €3.45M

31 January 2019 – Eje Prime

PSN is continuing to grow its asset portfolio in Madrid. The Socimi has just closed the purchase of an office on Calle Claudio Coello, in the heart of the capital’s Salamanca neighbourhood for €3.45 million.

Specifically, the company has purchased a floor of offices (the right and left sides) spanning 570 m2 in total with three parking spaces in the same property. The operation has been carried out with a contribution of €1.25 million from own funds and a mortgage of €2.2 million.

The mortgage loan has a duration of twelve years and carries a fixed annual interest rate of 1.7%, according to explanations provided by the company in a statement submitted today to the Alternative Investment Market (MAB).

Moreover, the group has subrogated the lease contract signed for the right-hand office, which is due to expire in October 2024. The left-hand office, by contrast, is vacant.

PSN is whereby adding a new asset in the Madrilenian market, where it acquired a commercial premise in Collado Villalba for €1.3 million last year. During the last year, the company has also purchased two premises in Santiago and Tenerife, for €1 million each, as well as an office building in Sevilla and a hotel in Salamanca for €3 million.

The company, which debuted on the MAB in December 2017, owns a portfolio comprising more than thirty assets including offices, commercial premises and parking spaces in 21 cities across Spain and Portugal. The company expected to close 2018, its first full year on the stock market, with profits.

Original story: Eje Prime

Translation: Carmel Drake

Eroski Sells & Leases Back a Hypermarket & Gas Station in Velez-Málaga

18 December 2018 – Alimarket

Eroski has sold the hypermarket and gas station that it owned in the El Ingenio Shopping Centre in the Malagan town of Velez-Málaga to the property developer Sociedad Azucarera Larios Patrimonio S.L. (Salsa Patrimonio), which forms part of the Azucarera Larios group. The assets will continue to be managed by the Basque cooperative under a 25-year lease contract. The centre has belonged to Eroski, through its company Cecosa Hipermercados, since its inauguration in November 2000.

According to a statement issued by Salsa Patrimonio, the firm is going to invest €25 million in the purchase and subsequent renovation of the hypermarket, which will reduce its surface area by 35%, from 13,782 m2 to 8,816 m2. Moreover, the statement highlighted that the objective of the operation is “to strengthen El Ingenio’s position as a reference shopping centre in the western Costa del Sol”, and the renovation will contribute to improving the shopping experience of its customers.

Indeed, Eroski is one of the retailers that is backing the sale and leaseback arrangement the most. This year, it has sold six other hypermarkets in this way in the Pais Vasco and Cantabria for €105 million, and just a few days ago, it did the same with its establishment in the El Mirador Shopping Centre, in the town of Jinámar (Las Palmas de Gran Canaria).

Original story: Alimarket (by Rosa de Lera)

Translation: Carmel Drake

BBVA Sells Iconic Pintor Sorolla Building in Valencia to Fiatc Seguros

31 October 2018 – BBVA

BBVA has sold the building on Calle Pintor Sorolla 1 in Valencia, located in the heart of the city’s financial district, to Fiatc Seguros.

The historical building has a surface area of 10,250 m2, distributed over 12 floors and enjoys an unbeatable location and visibility, surrounded by three important streets in the capital.

BBVA will continue to occupy the first seven floors of this building under a lease arrangement, through a long-term lease contract.

On the first three floors, it is going to open its flagship office in the provincial capital, the new Customer Banking Centre, which will span more than 2,000 m2. This office model will have a more open and technological space, with more specialist managers.

On the next four floors, BBVA is going to house its Eastern Territorial and Regional Headquarters, as well as some shared services.

For the sale, BBVA has been advised by CBRE’s office in Valencia.

Original story: BBVA 

Translation: Carmel Drake

WeWork Leases 2 New Office Spaces in Barcelona

4 October 2018 – Eje Prime

The US group, WeWork, is continuing its conquest of Spain and is getting ready to make its mark in the centre of Barcelona. The company, which specialises in flexible office spaces, will add a new complex to its portfolio in the Catalan capital after signing the lease on a building. The Corner, located at number 444 Avenida Diagonal, owned by Emesa. In parallel, the group is finalising the lease of the former headquarters of Banco Popular on Paseo de Gracia, in a property controlled Hines.

The building on La Diagonal is owned by Emesa, the investor group owned by Emilio Cuatrecasas, and used to house the headquarters of the law firm Cuatrecasas. The Corner, located at the intersection of La Diagonal and Paseo de Gracia has a surface area of 3,400 m2 distributed over seven floors (plus a basement), with an average surface area of 400 m2 each.

Emesa has owned the property on La Diagonal since 2017, when it paid €35 million to acquire it. The asset had been on the market since the beginning of the year after Cuatrecasas abandoned its traditional location to move to the 22@ district. Emesa had considered the possibility of leasing the building to several tenants, but in the end, it will be occupied in its entirety by WeWork.

In the meantime, the coworking giant is finalising another major operation. The company is close to signing the lease on the former headquarters of Banco Popular on Paseo de Gracia, a building that has been owned by Hines since March 2017, which paid €90 million for it.

Spaces, one of WeWork’s main rivals, expressed interest in that building in July. Nevertheless, sources at the company indicate that its operation never materialised. The building, located at number 17 Paseo de Gracia, has a surface area for offices and a retail premise, and has just been renovated by its owner.

With these moves, the US giant is taking positions in the centre of Barcelona; until now it had focused its presence on the 22@ district. In May, WeWork leased 4,500 m2 of space in the WIP building, owned by the Swiss fund Stoneweg.

That building is located next to the first complex that the group opened in Spain, in the Luxa building on Calle Tánger of the technological district. In Madrid, WeWork operates a space at number 43 Paseo de la Castellana, another at 77 on the same street, and a third at number 27 Calle Eloy Gonzalo.

Companies specialising in the management of these types of work spaces are revolutionising the office market all over the world. WeWork and Spaces are just two of the largest players on the global stage and both arrived in Spain in 2017.

Original story: Eje Prime (by Pilar Riaño & Jabier Izquierdo)

Translation: Carmel Drake

Tritax Purchases Mango’s Logistics Centre from VGP for €150M

26 September 2018 – Expansión

Less than two years is the time that Mango’s logistics platform has been in the hands of the Belgian group VGP. In December 2016, the Brussels-based firm paid €150 million for the logistics complex that Mango had built in Lliçà d’Amunt (Barcelona) and which has a surface area of 250,000 m2 together with some adjoining land on which an additional 100,000 m2 may be built.

According to sources speaking to Expansión, VGP has just sold the asset to the British group Tritax Big Box, a firm listed on the London Stock Exchange.

The buyer of the complex, which Mango inaugurated in the middle of 2016, is a real estate investor specialising in the logistics market. Some of its largest properties include logistics platforms leased to large companies such as Amazon, Unilever, Kuehne+Nagel, L’Oréal, Hachette, Whirlpool, Kellogg’s, Tesco and DHL.

At the end of 2017, Tritax’s portfolio was worth GBP 2.61 billion (€2.92 billion at current exchange rates), 38.1% more than the previous year. Tritax has been advised by the law firm Ashurst in what has been its first operation in the Spanish market. VGP has been advised by the real estate consultancy firm JLL.

Last summer, Tritax raised €300 million through a public offer for sale on the London Stock Exchange. The objective of its managers is to use that money, together with external financing, to acquire logistics properties in Continental Europe.

“Barcelona is the second largest city in Spain and its logistics market is one of the strongest in Europe, with high demand and a limited supply of buildings and land, especially for logistics assets of this kind”, said Nick Preston, manager of Tritax Eurobox, in a statement.

The lease contract for the logistics centre, which has a surface area of 186,138 m2, has a 30-year term, until 2046, although Mango has the option to cancel it in 2036, 2039 and 2042. According to Tritax, the annual rent that Mango pays will allow it to obtain an annual yield of 5%.

Isak Andic decided to build this logistics platform in response to the increase in sales that the fashion chain was experiencing, although that growth has slowed in recent years.

Last year, Mango recorded losses of €33 million, down by 46% compared to 2016, the year in which the company recorded negative results for the first time in its history, with losses of €61 million. In 2017, sales decreased by 2.9%, the same drop as the previous year, and amounted to €2.194 billion.

Divestment

The sale of the logistics centre was the first divestment that Andic made after investing a large proportion of his profits in the real estate sector in previous years. But it was not the last, given that a year later, in December 2017, he sold the chain’s headquarters, located in Palau-solità i Plegamans (Barcelona) to the British group Invesco for €100 million.

Original story: Expansión (by M. Anglés, S. Saiz & R. Casado)

Translation: Carmel Drake

Government of Madrid Moves Ministry of Economy to Prado Urban Business Park

21 June 2018 – Eje Prime

The Government of Madrid is going to be Amazon’s neighbour. Specifically, the Community of Madrid’s Ministry of the Economy, Employment and Finance has decided to move some of its teams to the Prado Urban Business Park, the office complex that is home to the Spanish headquarters of the e-commerce giant.

After the lease contract for its current headquarters, located at number 13 Carrera de San Jerónimo, came to an end, the Community of Madrid decided that the best option for some of its departments would be to move them to the Delicias neighbourhood.

The departments of Trade and Consumption; Industry, Energy and Mining; the Economy, Statistics and Competitiveness; as well as the Invest Office, will occupy the ground, first, second, third and fourth floors of the West Building in the complex, which has a surface area of 14,500 m2.

Ahead of the arrival of the civil servants, there are just 400 Amazon employees working at the Prado Urban Business Park; the complex has capacity for 1,000 people. The lease contract that the Madrilenian Government has signed runs until 31 August 2029.

Original story: Eje Prime

Translation: Carmel Drake

Venezuelans Lead Ranking of Most Active Foreign Residential Investors in Madrid

5 June 2018 – La Vanguardia

Venezuelan immigrants lead the ranking of home acquisitions by foreigners in the Spanish capital, according to data from Redpiso’s Research Service.

This data represents an increase of 10% with respect to the previous year and places investments by Venezuelan immigrants above those made by the Russians and Chinese, who were, until now, the nationalities that purchased the most homes.

The typical investor profile are people with a medium-high purchasing power, educated and employed, who have lived in the country for no more than three years.

Above all, they are buying homes in the areas of Chamartín, Hortaleza, Salamanca and Retiro.

The average cost per home amounts to around €565,000 and purchases are mainly happening in the second-hand housing market, “given that the supply of new build properties is very low and even more so in these areas”, said Redpiso.

In terms of the rental market, the average number of contracts increased by 35%, with the average spend on rent by Venezuelans amounting to €1,700 per month with three-year renewable contracts.

To explain the factors driving this growth, sources at Redpiso allude “to the mass arrival of Venezuelan immigrants who are coming to Spain due to the controversial socio-political situation in their country, as well as the limited and increasingly more expensive supply of rental homes in Madrid”.

Original story: La Vanguardia 

Translation: Carmel Drake

BNP Paribas Real Estate: 85,500 m2 of Office Space was Leased in Barcelona in Q1 2018

24 May 2018 – Eje Prime

During the first quarter of 2018, 85,500 m2 of office space was leased in Barcelona and its area of influence, which represents 33% more than the quarterly average for the last 10 years (64,445 m2) and 5% more than the quarterly average for the last three years, according to research compiled by BNP Paribas Real Estate.

“The strong performance in terms of demand between January and March 2018 reflects the fact that the occupational market remains dynamic”, states the report.

During the first three months of the year, 84 new contracts were signed in total, below the quarterly average for the number of operations signed in the last three years (93), however, these contracts involved larger surface areas, thanks to expansions and the creation of new companies.

The three largest operations closed during the quarter were located in the decentralised and peripheral areas, specifically in the BCN Fira District multi-functional complex (6,467 m2), El Prat de Llobregat (5,000 m2) and Cornellá (4,863 m2).

The 22@ district retained its appeal, in fact, the fourth most significant operation, the rental of 3,500 m2 by the Town Hall of Barcelona, was signed in that district. In total, 28% of the surface area leased during the first quarter was located in 22@ and the district is expected to attract more demand, as new office spaces come onto the market. The availability rate of the market in Barcelona amounts to 10%.

The average rental price in the Barcelona market also continued its upward trend. Prime rents, which closed 2017 at €23.5/m2/month, had risen to €24/m2/month by March 2018. Behind that behaviour is the shortage of surface area available in the CBD as well as the scarcity of high-quality buildings.

Original story: Eje Prime 

Translation: Carmel Drake

Prologis Leases 48,400 m2 Warehouse in Tarragona to Vente Privee

24 May 2018 – Eje Prime

Vente Privee is strengthening its logistics structure in Spain. The French e-commerce titan, which also owns Privalia, has signed an agreement to lease a warehouse spanning 48,400 m2 in the Prologis Park Penedès complex in Tarragona.

The online retailer will whereby occupy the largest warehouse in the Prologis Park Penedès, which comprises three properties in total with a combined surface area of 128,000 m2. The complex, located between the Tarragonan towns of Santa Oliva and La Bisbal del Penedès, will allow it to handle the logistics requirements for the rest of the Iberian Peninsula and Southern Europe. The rental operation has been advised by the real estate consultancy JLL.

The reinforcement of Vente Privee’s logistics structure in the Spanish market comes a year after the group announced an €80 million investment to strengthen its R&D division. That project involves the launch of a start-up accelerator specialising in fashion, retail and technology on the campus of Paris-based Station F.

Original story: Eje Prime

Translation: Carmel Drake