Madrid’s Gran Vía Retains its Appeal During the State of Emergency

Number 52 of the Madrilenian street is going to house the first establishment of an international Asian operator, in a space spanning 620 square metres. This operation has been signed during the State of Emergency.

Madrid’s Gran Vía is retaining its appeal to international operators during the State of Emergency. The property at number 52 of the famous thoroughfare is going to house the first establishment of an international Asian operator, in a space spanning 620 square metres.

The property, which previously housed the first McDonald’s in Spain, has now been leased, in the midst of the Covid-19 crisis, by the Chinese restaurant operator Haidilao.

Alantra Leases 5,000 m2 of Office Space in Rivas Futura (Madrid)

27 February 2019 – Eje Prime

Alantra Reim has leased 5,000 m2 of offices in 521HUB, the business park that the company manages in Rivas Futura (Madrid). The complex comprises two twin, independent buildings located on Calle Marie Curie in the Madrilenian municipality, which span a total surface area of 43,500 m2.

With this operation, Alantra Reim, the Alantra Group’s real estate investment and asset management platform, is starting to occupy Building I in this business park, which the company purchased in July 2018 from the Spanish family office Autocampo. The other twin building is leased almost in its entirety, according to a statement issued by the company. This operation has been advised by the consultancy firm CBRE.

The 521HUB business park is located between the towns of Rivas Futura and Rivas Vaciamadrid, just twenty kilometres from Madrid, and has office spaces available from 1,500 m2 up to 17,000 m2.

In addition to its office assets, Alantra Reim, led by Luis Iglesias, also operates a line of business in the hotel segment. Last year, in Spain, it acquired the Islantilla resort in Huelva and Hotel Denia La Sella in Alicante.

Original story: Eje Prime

Translation: Carmel Drake

Busining Leases 4,900 m2 in one of the Kio Towers to Open a Coworking

20 February 2019 – Eje Prime

Busining is going to create a new business centre in Torre Realia The Icon, one of the former Kio Towers in Madrid. The company, which specialises in coworking spaces, has leased 4,900 m2 of space from Realia, the owner of the property. The space is distributed over five floors in the iconic building located at number 216 Paseo de la Castellana where it is going to open offices and meeting rooms. The operation has been advised by Cushman&Wakefield.

The tower, known as The Icon, is one of the most iconic buildings in the Spanish capital and is considered to be the first skyscraper in the world to be built at a sloping angle. Its architect, Philip Johnson, was the first recipient of the Pritzker award.

With this operation, Busininng, which has five business spaces in Madrid, is expanding its offer in the business district of the Spanish capital. “This new operation is another example of the consolidation and growth of the coworking phenomenon in the Spanish market”, said Ignacio Oyarzun, Associate in the Business Space area at Cushman & Wakefield.

Original story: Eje Prime

Translation: Carmel Drake

Forcadell: 370,000 m2 of Office Space was Leased in Barcelona in 2018

13 February 2019 – Eje Prime

The office market in Barcelona is breaking records. In 2018, 370,000 m2 of space was leased in the city, up by 8.8% compared to 2017. According to the consultancy firm Forcadell, that trend was due to three main factors: interest from international companies, demand from tech companies and the boom in coworking.

Up to 60% of the surface area leased in 2018 corresponded to companies from overseas. According to the report from the consultancy firm, the interest from those companies in Barcelona is attributed to the city’s “entrepreneurial and innovation eco-system”, which is complemented by a commitment to technology, which has attracted companies such as Everis, Oracle and Indra.

In just one year, coworking operators have doubled the amount of space leased in Barcelona, renting out a surface area of 46,700 m2 in 2018. According to this report, the Catalan capital is the European city that has seen its office space increase by the most in percentage terms.

Original story: Eje Prime 

Translation: Carmel Drake

Losantos Invests €50M to Become the King of the Last Mile

12 November 2018 – Expansión

The real estate group, Allegra, chaired by Mario Losantos, has acquired several plots in recent months on the outskirts of Madrid to develop projects relating to the logistics sector and to increase its commitment to e-commerce in Spain. These operations will allow it to have a very active role in the business known as “the last mile”, the critical part of the distribution of products purchased online, which involves transporting them from the final warehouse to customers’ homes.

Before the summer, the group acquired a logistics park in the town of Villaverde, to the south of Madrid, which was leased to the group On Time Logistics last week. The plot, measuring 30,000 m2, contains a warehouse measuring 17,000 m2 and a cross-docking platform measuring 8,000 m2.

Moreover, the group has closed the purchase of two plots of land in the north of Madrid, very close to the facilities of Amazon, the largest online operator in the world. Both plots have a buildability of 40,000 m2 and have involved an investment of €30 million.

The three operations undertaken in Madrid will take the total investment figure to more than €50 million, once all of the platforms have been constructed. The Spanish group started to invest in logistics centres a while ago in the USA and the UK. In recent weeks, the group has purchased a new platform measuring 89,000 m2 in Hampton (Virginia) to continue with its international expansion. That park is leased to the urgent parcel operator Fedex. Sources close to the group indicate that over the coming weeks, the firm may acquire another platform in Chicago, which is also operated by Fedex.

In the United Kingdom, Allegra has recently purchased two platforms in the cities of Telford and Durham, bringing its investment in the British logistics sector in recent years to €30 million.

The Spanish company, whose portfolio of real estate assets amounts to around €1 billion, has invested €250 million in the logistics sector. The group also owns commercial premises and residential buildings in the United States, Australia, New Zealand and Portugal, amongst other countries.

Original story: Expansión (by Amparo Polo)

Translation: Carmel Drake

CBRE: Logistics Leasing in Spain Grew by 17% during First 9 Months of 2018

8 October 2018 – Eje Prime

The logistics sector is continuing its rate of growth. In total, 1.38 million m2 of logistics space was leased in Spain during the nine months to September, up by 17% compared to the same period in 2017.

Investment in the industrial sector also increased between January and September 2018, exceeding €1.1 billion, up by 43% compared to the previous year, according to CBRE. Prime yields, on the other hand, amounted to 5.55%, driven by high buyer activity and a shortage of available products on the market.

In terms of geographical areas, during the first nine months of the year, 632,000 m2 of logistics space was leased in Madrid, almost equalling the figure recorded during the same period in 2017. Of that amount, more than 50% corresponded to warehouses with surface areas spanning more than 20,000 m2.

Similarly, in Barcelona, the other city that accounts for some of the most logistics activity in the country, 483,000 m2 of logistics space was leased during the nine months to September, whereby exceeding the figure registered during the same period a year earlier by 53%. The lack of available space in the first and second rings means that the volume of space leased depends, to a large extent, on turnkey projects and pre-leases.

For another quarter, prime rents in both Madrid and Barcelona remained stable at €5.25/m2/month and €6.75/m2/month, respectively.

Other areas recorded a good level of activity during the nine months to September with Valencia, Zaragoza and Sevilla leading the charge, with logistics leasing of 138,800 m2, 58,800 m2 and 42,000 m2, respectively.

According to Alberto Larrazábal, National Director of Industrial and Logistics at CBRE, “cities such as Valencia, Zaragoza and Málaga blame the lack of available land dedicated to the execution of new projects, which is making the search for new mega-plots imperative”.

Original story: Eje Prime

Translation: Carmel Drake

VBare Acquires Residential Building in Central Madrid for €10.5M

4 October 2018 – Eje Prime

VBare is on a roll. The Socimi has purchased a residential property in Madrid for €10.5 million. It is the largest investment made by the company in a single asset to date, according to a statement filed with the Alternative Investment Market (MAB).

The building, located at number 20 Calle Luchana, has a surface area of 3,285 m2. VBare forecasts that the net yield will amount to 4% once the renovation work has been completed and the property has been leased.

The company has subscribed a mortgage loan amounting to €5.25 million, granted by Banca Pueyo. The rest of the purchase price was financed using own funds.

VBare is a real estate investment vehicle specialising in the acquisition and management of residential assets for their rental. The company, which has been listed on the MAB since 23 December 2016, was created in March 2015 and currently owns a portfolio containing 272 assets.

In July, the Socimi made its debut in Málaga with the acquisition of a block of residential assets for €1.35 million. That operation formed part of the company’s growth plan after it carried out a capital increase amounting to €3.2 million in June.

Original story: Eje Prime 

Translation: Carmel Drake

JCDecaux Leases 2,500 m2 Warehouse in Badalona (Barcelona)

7 September 2018 – Eje Prime

JCDecaux España has arrived in Barcelona. The outdoor advertising company has just signed the lease on a 2,500 m2 warehouse on the Besós industrial estate, in the urban area of the Catalan capital. The operation has been brokered by NCI Asesores Inmobiliarios.

The French company will allocate this space to offices, its fleet of vehicles and the storage of tools and other materials. JCDecaux España is going to invest between €300,000 and €400,000 in the remodelling of the warehouse, according to explanations provided to EjePrime by NCI Asesores Inmobiliarios.

The company that owns the warehouse is a leading player in the food sector and is in turn owned by an investment group.

JCDecaux recorded revenues of €3.472 billion in 2017. The group, founded in 1964 by Jean-Claude Decaux, owns more than a million advertising boards in more than 75 countries. Moreover, the multinational employs 13,040 people all over the world.

The headquarters of JCDecaux is located in Neuilly-sur-Seine, close to Paris. In Spain, the company currently carries out its activities in another warehouse in the municipality of Badalona, with more than 500 workers. At this stage, it is unknown whether the new centre leased on the Besós industrial estate in Barcelona will replace or be added to the portfolio of centres that the multinational owns in Cataluña.

Cataluña: a logistics epicentre 

JCDecaux’s operation follows another deal closed on Wednesday by CN Logística. That company, specialising in logistics for the health, food, consumer goods, industrial and promotional sectors, has leased a warehouse spanning 7,400 m2 in the town of Parets del Vallès in the province of Barcelona, which has been advised by Forcadell.

In Cataluña, logistics demand grew by 50% during the first quarter of the year with respect to the same period in 2017. Until March, 187,000 m2 of land was leased in the Mediterranean region, according to data from the consultancy firm Cushman&Wakefield.

The volume leased during the first quarter was also 73% higher than the quarterly average for the last five years. In Barcelona alone, eighteen transactions were closed during that period, 38% more than the thirteen operations that were signed during the same period a year earlier, according to a report prepared by Savills Aguirre Newman.

By area, 44% of the operations were closed in the Barcelona and Baix Llobregat areas. Similarly, the volume of space leased in counties such as Vallès also rose, to account for 38% of total demand in Cataluña during that period, and in other areas with logistics activity such as Camp de Tarragona, Penedès and Girona.

In addition, the average size of the space leased during the first quarter grew by 8% and amounted to between 10,000 m2 and 12,000 m2. Prime rents in Barcelona currently amount to €6.50/m2, which represents a YoY increase of 8%.

Original story: Eje Prime (by Berta Seijo)

Translation: Carmel Drake

VGP Invests €25M in a New Logistics Park (80,000 m2) in Madrid

25 July 2018 – Eje Prime

VGP is going to build a new logistics park in the south of Madrid. The investment group is going to spend €25 million on the development of a macro-project on a plot of land measuring 80,000 m2 in Fuenlabrada. The buildability of the plot is 50,000 m2, according to reports by the company.

The logistics company has acquired a plot on the Callfersa Industrial Estate to expand the supply in the second ring of Madrid. In Fuenlabrada, there is currently 81,000 m2 of industrial surface area, which is fully occupied. Therefore, VGP’s operation, which has been advised by JLL, will double the stock of logistics land in the town.

VGP’s investment “will provide a solution to the lack of supply in the second ring of Madrid”, explains Pere Morcillo, Director of the Industrial and Logistics Area at JLL, who warns that companies “were finding hardly any available space in the area, especially if you take into account that VGP’s project is the only development that is planned in the area”.

During 2017, 800,253 m2 of logistics space was leased in Madrid; and this year, 850,000 m2 of logistics space is expected to be leased, according to data from CBRE. That firm highlights the areas around the A-2, A-1, A-4 and A-42 motorways as those with the most space to let.

Original story: Eje Prime

Translation: Carmel Drake

Merlin Leases 3 Floors in Torre Glòries to Oracle

16 July 2018 – Eje Prime

Torre Glòries is welcoming a new technological giant to its facilities. Merlin Properties is going to be Oracle’s landlord after it leased three floors in its building, located in the 22@ district, to the US firm. The multinational will join Facebook in the property after it signed up to lease ten floors from the Socimi back in May.

Oracle has leased 3,500 m2 of office space in the property, known in the city as Torre Agbar (after the former owner of the building) to locate some of its Netsuite team there, the cloud services company that it acquired in 2016, according to Expansión.

Merlin’s flagship property in Barcelona, standing 142 metres tall and with a gross leasable area of 37,614 m2, has been reformed in its entirety in recent years with an investment of €15 million. After being ruled out by the EMA (European Medicines Agency), the Socimi decided to convert its building into a multi-tenant space for the office sector.

The property contains 34 floors of offices, of which Merlin has now let thirteen at a variable price of around €25/m2/month. A new major operator is entering the 22@ district, Barcelona’s techie centre and currently the most sought-after neighbourhood in the Catalan capital. During the first quarter of the year, the office market grew by 4% in Barcelona with the leasing of 76,000 m2 of space.

Original story: Eje Prime

Translation: Carmel Drake