Tag: lease

Socimi VBare Enters Málaga, Expands in Madrid & Increases its Share Capital by €3.2M

13 June 2018 – Eje Prime

VBare is embarking on a new phase and is branching out beyond Madrid. The Socimi is finalising the purchase of its first assets outside of the Spanish capital, in Málaga, and is continuing to expand its portfolio in Madrid, according to explanations provided by Fabrizio Agrimi, Director General of VBare, speaking to Eje Prime. Moreover, last week, the group closed a capital increase through which it raised €3.2 million to finance new purchases.

The Socimi, which ended the first quarter of the year with 210 assets under management, has set itself the objective of expanding its portfolio to include 261 residential units under management. To this end, the company is on the verge of signing the purchase of two assets, one in Málaga, which will be VBare’s first venture outside of Madrid, and the other in the Spanish capital.

“We hope that the asset in Málaga will be incorporated into our portfolio before the end of June”, says Agrimi. The asset is situated “in a central location” and comprises fourteen residential units. VBare is going to pay around €1.5 million for the asset, including the cost of the renovation that it will undertake before putting it on the market.

The second property is located in the centre of Madrid, and although sources at the Socimi are not able to provide many details about that acquisition, they say that it will comprise around 35 units located “in the city centre”. Currently, 91% of VBare’s portfolio is occupied and “if it weren’t for the renovation projects underway, the occupancy rate would be 95%”, according to the director.

In order to undertake all of these purchases, VBare recently completed a capital increase that could have amounted to €14 million, as disclosed by Eje Prime, but which ended up raising €3.2 million, with the sale of 240,457 new shares.

“It will not be long before we carry out another capital increase given that, due to the timings, several shareholders, possible investors close to the Socimi and other new players missed out on the opportunity to contribute capital this time around”, explains Agrimi (…).

With that capital increase now completed, VBare is going to study the acquisition of “whole buildings, portfolios of dispersed assets and portfolios of assets in single complexes, with the aim of maintaining a balanced portfolio to avoid concentration risks, and obtaining a competitive advantage over the other players in the market consistent with the identification of opportunities with little competition and at below market prices”.

Moreover, the company’s route map includes acquiring assets with a net direct yield of “no less than 4%, as well as properties for which we can obtain an acquisition price with an average discount on the market value of no less than 10%”.

In March, the company acquired a package of assets comprising twelve homes and a commercial premise at number 5 Calle Concordia in the Madrilenian town of Móstoles, according to a statement filed by with group with the Alternative Investment Market (MAB).

Of the twelve homes that it acquired from the Eureka business group, five have tenants and the others are “in optimal conditions for their immediate rental”. The net yield of these assets is estimated to amount to 5.9% once they reach fully occupancy.

VBare is a real estate investment vehicle specialising in the acquisition and management of residential assets for rent. The company was constituted in March 2015 with the aim of generating high returns for its shareholders through the implementation of a value-added strategy and to take advantage of opportunities in the Spanish residential market, which is showing clear signs of recovery.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Socimi Tander Signs a €55M Loan to Finance New Purchases

11 June 2018 – Eje Prime

Tander Inversiones wants to continue nurturing its asset portfolio and for that it requires capital. The company, owned by a fund in which the Canadian manager Première Alliance holds a stake, has just signed a €55 million loan to carry out new purchases, according to explanations provided by Clara Casales, Property Manager of the Socimi, speaking to Eje Prime.

Last week, the company agreed, under the framework of its Ordinary General Shareholders’ Meeting “to repay and cancel the debt that it has subscribed to date, also cancelling all of the guarantee instruments relating to it, with the aim of refinancing, expanding and unifying the company’s debtor position under a new financing arrangement amounting to €55 million”, explain sources at the Socimi.

Tander will allocate these new funds to the purchase of new assets in the Spanish market. The Socimi has established an investment plan of up to €25 million for 2018 with the aim of expanding to more cities in Spain, with Madrid as a priority, according to comments made to Eje Prime. Tander’s objective is to purchase between three and four assets this year.

The Socimi concentrates its current investments in Barcelona, where it has five assets in prime areas of the Catalan capital. The sixth asset in the portfolio with which it leapt onto the Alternative Investment Market at the beginning of 2018 is located in Santander. When it rang the bell, the value of Tander’s portfolio amounted to €80.3 million.

Now, Tander’s aim is to expand its investments to the main cities in Spain. Some of the areas that the Socimi is analysing include Bilbao, Valencia, Sevilla and San Sebastián, although it is also interested in Málaga and A Coruña. Tander is analysing different operations, but it does not have anything identified yet.

From Vía Laietana to Paseo de Gracia

Tander’s current portfolio in Barcelona is distributed around the main shopping area of the Catalan capital. The Socimi’s largest asset is an office space at number 6-20 Calle Casp, which has a surface area of 3,457 m2. It houses the offices of Cadena SER, owned by Grupo Prisa, just above the Teatro Tívoli.

Very close by, at number 15 Paseo de Gracia, the manager owns a retail premise measuring 527 m2, which is currently leased to FC Barcelona, which has opened a flagship store there. On the same street, at number 27, the Socimi leases a 792 m2 store to the Cos brand, part of the H&M group.

Tander completes its portfolio in the central area of Barcelona with part of number 47 Vía Laietana, an office building in which the Socimi leases 1,100 m2 to Banco Sabadell. This financial institution also leases a 155 m2 branch at number 171 Travessera de Gracia, which is also owned by Tander Inversiones.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Merlin Expects Torre Glòries to be Fully Occupied by 2019

7 June 2019 – Expansión

Following the stoppage during the final quarter of last year, which was attributed to political instability, the first few months of 2018 have reactivated the real estate sector and the footfall in the shopping centres of Barcelona; and one of the clearest examples of this change in trend is Torre Glòries, one of Merlin’s main assets in the Catalan capital. The firm’s CEO, Ismael Clemente, explained during an information session at the International Logistics Fair (‘Salón Internacional de la Logística’ or SIL) in Barcelona that the office complex will be fully occupied by 2019.

The first tenant is going to be the Austrian firm CCC, which will work for Facebook and which has leased eight floors, with the option of leasing five more. That firm will start to move into Torre Glòries on 1 July. “After finding out that the EMA would not move to Barcelona, we thought that it might be hard to fully let the building three years after the refurbishment work finished (in June), but now we see that in six months we are going to have 80% of the property occupied and that by 2019, it will be full”, said the Director. Merlin is negotiating with two other companies from the technology sector, which will allow the listed Socimi to hang up the “No vacancy” sign if the most optimistic forecasts are fulfilled.

Investment

At SIL, Merlin unveiled its plans to expand its logistics offering over the next two or three years (…).

Original story: Expansión (by A. Zanón)

Translation: Carmel Drake

Hermes Properties Buys 2 Plots in Madrid from Sareb for €4M

5 June 2018 – Eje Prime

Hermes Properties is making its debut in Madrid. The company has purchased two plots of tertiary land with a surface area of 4,000 m2 in Madrid from Sareb for €4 million. The operation has been carried out through its second real estate investment vehicle, called Hermes II.

Specifically, the plots are located next to the Islazul Shopping Centre in Madrid, located in the Ensanche de Carabanchel, between the districts of Carabanchel, Latina, the Toledo motorway and the M40 motorway, on the border of Madrid and Leganés.

The plots have been previously leased to two operators, namely, Burger King and Carl’s Jr, who will undertake construction work imminently to open two restaurants in free-standing and unique buildings with drive-thru services.

Original story: Eje Prime

Translation: Carmel Drake

Ores Acquires 2 Commercial Premises in Madrid & León for €4.9M & €3.8M, Respectively

4 June 2018 – Eje Prime

Ores is ratifying its position as one of the most active Socimis in Spain in terms of acquisitions. The Socimi owned by Bankinter and Sonae has just purchased one commercial premise located on Calle Alcalá in Madrid for €4.9 million. That purchase was carried out after the Socimi signed a €140 million loan with ING, as revealed by Eje Prime.

The commercial establishment is located at number 157 Calle Alcalá and has a surface area of 374 m2. The premise is currently leased to the Tim Hortons restaurant group. The operation, according to sources in the sector, has been brokered by the real estate consultancy Aretail.

In addition, Ores has bought a commercial premise at number 13 Calle Ordoño II in León. That store, which has a surface area of 745 m2, is occupied by the Catalan fashion chain Mango as the tenant. The Socimi paid €3.8 million for the space.

“With these acquisitions, financed using available cash from Ores, the company is continuing to fulfil the investment objectives established in its business plan, in accordance with the financial parameters committed to with the shareholders”, add sources at the group.

These purchases form part of a new growth phase that Ores is embarking on, which is being financed by a €140 million loan. With this financial strength, the group is going to carry out new real estate acquisitions in Spain and Portugal. The group’s most recent purchases include two plots in Mejorada del Campo in Madrid for €6.6 million. With a surface area of 8,000 m2, they are both leased in their entirety to the Valencia-based supermarket group Mercadona.

The year 2018 is proving to be one of the most active for Ores in terms of property purchase operations. At the beginning of the year, the company invested €86 million in the acquisition of six commercial premises in Portugal (…).

Ores is aimed at private banking clients. Although its portfolio of assets is reduced, for the time being, the Socimi made its debut on the stock market with the aim of investing €400 million in high street retail premises, supermarkets, out-of-town retail parks (measuring up to 20,000 m2), bank branches and single assets with long-term leases and solvent tenants.

Bankinter and Sonae Sierra launched this new venture in the real estate sector in record time. The two groups constituted the company on 15 December last year and in just two months, carried out the process to create the vehicle, raised sufficient capital to bring it to life and completed its stock market debut.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

CBRE: New Builds Will Account for 60% of the Office Supply in Madrid Until 2019

15 May 2018 – Eje Prime

Change of tack in the office sector in Madrid. In 2016, 100% of the supply that was put on the market corresponded to renovated properties; just three years on, 60% of the office space handed over during the last 24 months has been newly built. The segment is, therefore, going to experience a metamorphosis over the next two years (…). Moreover, with the volume of leased surface area rising year after year, a significant increase is expected over the medium term in the number of square metres in total in the office stock in the Spanish capital, according to a report from the consultancy firm CBRE.

Thus, whilst in 2016, the new surface area created saw the introduction of 170,000 m2 into the stock that year, last year, 238,000 m2 of new space was created. In 2018 and 2019, office developers will dispense 255,000 m2, of which 153,000 m2 is going to correspond to new build properties.

These figures reflect the definitive return of the Socimis and funds to the construction of new office space in the office market, according to CBRE. In the case of Madrid, after 606,000 m2 of office space was leased during 2017 – the best year in the last decade – the report forecasts similar figures for this year.

In addition, traditional players, such as the Socimi Colonial and GMP, in which the Singapore sovereign fund has held a stake for several years, have been joined by other managers and companies that want to take advantage of the strong performance of the office market in the new real estate cycle, resuming projects that were parked due to the crisis. Such is the case of Iberdrola Inmobiliaria, the French firm Bouygues and Torre Rioja, amongst other companies.

In this sense, Colonial, which has now also reinforced this line of business with Axiare’s assets, has a project underway, Alpha III, in which it is going to invest €480 million between Madrid and Barcelona, highlighting the investment that it is going to make in the Méndez Álvaro area of the Spanish capital. In that southern stretch of the central business district (CBD), the Socimi is going to build more than 110,000 m2 of office space (…).

Barcelona: record year for the hand over of new offices

Whilst Madrid is getting ready to build offices, in Barcelona, developers are on the verge of handing over the newest spaces. The Catalan capital has been immersed in a construction phase that, in addition, has been sold at the speed of light. The majority of the new developments that are being carried out already have tenants, who have signed pre-lease contracts with the developers of the different projects.

Nevertheless, the greatest supply is being built in the 22@ district, the most-sought-after area at the moment by technology companies and large operators. As a result, in 2017, the Catalan capital recorded a 4% increase in the volume of space leased, to 344,000 m2, according to CBRE.

Boosted by this dynamic of constructing buildings in the city’s new hub, Barcelona will handover 170,000 m2 of new office space during 2018, which will represent the best surface area record since 2010 (…).

In recent months, several land transactions have been closed in the 22@ district for the development of new (office) projects. Perhaps the most noteworthy of all is Parc Central, a plot spanning 52,000 m2 for which Värde paid €50 million to Oaktree and Alza Real Estate. The fund will allocate just over 40,000 m2 of those plots, known as Can Ricard, to office buildings.

Madrid, the city in Europe where prime office rents will rise by the fastest

(…). Prime rents grew by 10% in Madrid in 2017 and by 8% in Barcelona, with average prices per square metre of €31/m2/month in the Spanish capital and €23.5/m2/month in the Mediterranean city.

In 2018, CBRE forecasts that Madrid is going to be the European city where prime rents are going to rise the most markedly with a growth forecast that could reach €34/m2/month on average, boosted by the CBD. Meanwhile, Barcelona is going to close this year as the fourth-ranked capital in Europe in terms of the increase in office rents, a rising trend that is going to continue in both cities until 2022.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Pontegadea Lets 3,000 m2 of Office Space in Barcelona to Lidl

2 May 2018 – Eje Prime

Pontegadea, the real estate company owned by Amancio Ortega, is continuing to make its investments in Barcelona profitable. The group has just closed the rental of some of its office space, spanning more than 3,000 m2, to the German supermarket giant Lidl, according to market sources speaking to Eje Prime. Pontegadea has rented part of a building that it owns in Plaza Catalunya, in the centre of Barcelona, which it purchased from BBVA in 2013 for more than €100 million.

Lidl is going to occupy four floors in the building, which together span a total surface area of 3,155 m2. Currently, the building, which was originally intended to house the corporate headquarters of a large group, is being marketed on a floor by floor basis. On the lower storeys, the property is home to one of the flagship stores that Zara has in the centre of the Catalan capital.

Following this rental operation, which has been brokered by the real estate consultancy firms JLL and Forcadell, Lidl is going to sublet the space from BBVA (given that, for the time being, the rental contract is in the name of the banking entity) in order to locate its offices in the centre of the city. The property is going to house the e-commerce and CRM teams, which will serve the group’s business throughout Europe. Although the most iconic part of the building is located in Plaza Catalunya, the building’s entrance is located at number 13 Calle Bergara.

In this way, Lidl is continuing to generate work for the real estate sector in Spain. As Eje Prime revealed, the German supermarket chain has recently put up for sale its portfolio of real estate assets in the country. More than 109,000 m2 of retail space, industrial assets and land, which the German giant has acquired since it first arrived in Spain in 1994 form part of the package put up for sale by the company.

To carry out this operation in Spain, where the company is also purchasing new land, Lidl attended the Barcelona Meeting Point real estate fair in October, where it had one of the largest stands in the room, which it used to explore real estate agreements, including the sale of part of its property portfolio (…).

Lidl has been operating in Spain for more than 22 years, during which time it has invested almost €2.6 billion in the purchase of land, retail premises and store openings. Now, the company has initiated a new phase of expansion and so it is looking for properties, including both industrial and commercial land (…).

The office business is growing in Barcelona 

Leasing of office space grew by 20% in Barcelona during the first quarter of 2018 with respect to the same period in 2017, and forecasts indicate that this business is going to continue to grow over the coming months. The city recorded a leasing volume that was 17% higher than the quarterly average for the last five years, whereby confirming the strong demand.

Of the 125 operations signed during the first few months of the year, 7% corresponded to contracts for spaces spanning more than 2,000 m2. Most of the space leased (47%) was signed in New Business Areas, with the leasing of new space by companies such as PepsiCo and Securitas, which moved into a stock that today has an occupancy rate of 93%, as revealed by Eje Prime.

Meanwhile, the Paseo de Gracia-Diagonal area and city centre closed the quarter with a joint market share of 37% of the total space leased. The remaining 16% opted for projects located on the outskirts of the city (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

RGA Rural Vida Acquires Office Building on c/Velázquez, 108 from Spanish Family Office

26 April 2018 – Press Release

The real estate consultancy firm Lassen Global has advised both the sale and rental of an office building in Madrid, on c/Velázquez, 108.

The property in question is very emblematic, located in the heart of the Salamanca neighbourhood. It comprises a surface area of 3,700 m2 and has 50 parking spaces in total. The consultancy firm has advised the vendor, a Spanish family office, throughout the sales process. The buyer is the insurance company RGA Rural Vida.

Following the acquisition of this asset by RGA Rural Vida, Lassen Global has also advised that firm regarding the rental of the building’s total available surface area, comprising approximately 3,000 m2 plus 39 parking spaces, which has been leased to the law firm Andersen&Tax Legal.

Lassen Global

Lassen Global is a boutique consultancy founded by Luis Cocero and Pablo de Luque Moreno-Luque. “It was created with the aim of providing a more transparent, personal and professional service to the real estate market”, explain its founding partners, both of whom have extensive experience in the provision of real estate services in the domestic market and who have carried out operations and provided consultancy services in various segments of the market, such as offices, retail and residential (…).

The company’s core business centres on the office and retail markets in Madrid and Barcelona (…).

Original story: Press Release

Translation: Carmel Drake

C&W: 50% More Logistics Space Was Leased in Cataluña in Q1

5 April 2018 – Eje Prime

The logistics sector is continuing to let out more and more space. This is shown by the data for the leasing of this type of asset in Cataluña, where demand for logistics space grew by 50% during the first quarter of the year with respect to the same period in 2017. During the 3 months to March, 187,000 m2 of logistics space was leased in the Mediterranean region, according to data from the consultancy firm Cushman & Wakefield.

The amount of space leased during the first quarter was also 73% higher than the average quarterly volume for the last five years. In total, 18 transactions were closed in Barcelona alone during the 3-month period, 38% more than the thirteen operations that were signed during the same period a year before, explains Savills Aguirre Newman in a report.

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

Of the operations signed since the start of the year, the rental by the food group Mercadona of 29,000 m2 of logistics space in Sant Esteve Sesrovires (Barcelona) stands out. That plot, located on the Can Margarit industrial estate, is owned by the British fund Rockspring.

In addition, the average size of the space leased during the first quarter grew by 8% to reach between 10,000 m2 and 12,000 m2. According to Gloria Valverde, Director of the Industrial Logistics Area at Savills Aguirre Newman Barcelona, “the number of large operations exceeding 25,000 m2 seems to be in line with the available supply since there are few projects that offer such volume at risk for a single operator”.

Prime rents in Barcelona currently amount to €6.50/m2, which represents a YoY increase of 8%. This increase in rentals is conditioned by the lack of Triple A products, the best quality, and the increase in demand from the main operators, which could cause rents to continue rising over the coming months.

Original story: Eje Prime

Translation: Carmel Drake

Rockspring Leases 29,000 m2 Warehouse in Barcelona to Mercadona

5 February 2018 – Eje Prime

Mercadona is increasing its commitment to the logistics sector. The Valencian food group, which was very active last year, especially in its own autonomous region, has signed a rental agreement with Rockspring to lease a logistics warehouse measuring 29,000 m2 on the outskirts of Barcelona.

Mercadona is going to move into a logistics park in Sant Esteve de Sesrovires that was promoted by the investment fund manager Rockspring and the Goodman group, and which was inaugurated last March.

The asset has granted a Breeam certificate, which guarantees the sustainability of the warehouse and that its construction was undertaken in accordance with respect for the environment. According to Business Inmo, the property will be occupied in its entirety by the Spanish food distribution company.

This operation strengthens the commitment of the company led by Juan Roig to extend and renew its logistics portfolio. A few days ago, the group announced that it is going to invest €80 million on the expansion of its technological centre in Valencia. Also in its home region, last October, Mercadona signed the purchase of the largest plot in Parc Sagunt, after acquiring a logistics space measuring 358,270 m2.

Original story: Eje Prime 

Translation: Carmel Drake