Blackstone Looks to Sell Espacio León for €100 Million

16 September 2019 – Blackstone is looking to sell the Espacio León shopping centre, in the provincial capital of León, for 100 million euros. The US-based investment giant initially acquired the asset in 2015, together with another two shopping centres in Portugal.

Espacio León has an area of 37,000 square meters, with 1,500 parking spaces. In mall boasts 141 stores and receives approximately five million visitors per year.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

INE: One Third of House Purchases in León in 2018 were Financed by Cash

2 March 2019 – Diario de León 

According to Spain’s National Institute of Statistics (INE), 3,128 homes were sold in the province of León in 2018, of which one in three were paid for in cash. This is a growing trend in the real estate market, as savers look for investment alternatives in the face of instability in the financial markets and the high returns being offered by property, due to house price rises and rental price increases.

In the province of León, 2,024 mortgages were signed in 2018, up by 4% YoY, whereas 11% more house sales were recorded compared to 2017.

Original story: Diario de León (by María J. Muñiz)

Translation: Carmel Drake

Goodman to Develop 285,000 m2 of Logistics Land in Spain

16 January 2019 – Eje Prime

Goodman is boosting its business in Spain. The inmo-logistics giant is entering 2019 with a portfolio for development that spans a surface area of more than 285,000 m2. The company is going to finalise two projects spanning more than 100,000 m2 this year, after increasing its portfolio by 30% in 2018, according to reports from the company.

In the last year, the occupancy rate of Goodman’s assets in Spain was 100%, reaching a total surface area of 106,000 m2. Its most recent completed projects include a turnkey in the Zona Franca of Barcelona and a last mile logistics platform in Madrid.

Both developments had e-commerce companies as the client. Not in vain. E-commerce “consolidated its position as the great ally of the industry by demanding large, high-quality logistics spaces in strategic locations, and with easy access to the major cities”, explained Ignacio García Cuenca, Director General of Goodman in Spain.

Currently, the company is developing four logistics platforms in Cataluña, one of the regions in which it is most active. Specifically, the company is going to build 111,000 m2 in Barcelona.

Moreover, Goodman is going to finalise several projects in 2019 including a 75,000 m2 logistics platform in Alcalá de Henares and a 33,000 m2 asset in León.

In Illescas (Toledo), the new logistics hub of central Spain for the development of large logistics warehouses, the Australian giant is going to start building a facility spanning more than 66,000 m2 this year.

Goodman Group is present in Continental Europe, the United Kingdom, the Asia-Pacific region, North America and Brazil, and has a portfolio of assets under management worth €24.3 billion.

Original story: Eje Prime 

Translation: Carmel Drake

A Third of the León’s Business Land is Already Under Development

6 October 2018

Almost half of the land available in business parks and industrial states has already been sold, and less than 18% is still available.

A third of the land in León that is zoned for business uses is already currently under development, while almost half has already been sold and a little less than 18% is still waiting for economic initiatives. However, the occupancy of industrial land presents significant differences in saturation and demand between some industrial estate and others. The reduction in the price of some of these lands seems designed to encourage the installation of certain initiatives, though the preferences of employers are also clear when selecting a location, and they are not always related to the price.

In general, it has not been easy to absorb the “significant expansion of industrial land generated between 2004 and 2007 by all operators, which doubled their supply,” the Economic and Social Council of Castilla y León noted. This affects the excess land available in the industrial estates promoted by the municipality, whereby, on the whole, the Community tripled the supply of business land, “becoming the largest operator at the regional level, with more than a third of the total supply” in the market.

In the case of the province of León, that supply was added to the investment of mining funds in this type of infrastructure in the basins, which increased the available supply of land at a time when the financial crisis began to take hold. The result was that more than half of the industrial parks in the province have less than ten companies operating in them, and many of them have not managed to bring in a single tenant, according to an analysis carried out by the Association of Owners and Entrepreneurs of the Leon Industrial Estate. (Apepil).

According to CES, there has been a “strong push” in the sale of industrial land since 2016, which means that on average the occupancy rate in the Community has reached 60%.

This percentage has not been reached in the province, according to the data of the council the occupancy rate in the business land in the province is 49.5% (something more than seven million square meters); while almost 4.7 million are in the project phase, 33% of the total. The rest, just over 2.5 million, which accounts for less than 18% of the land, is still available.

In total, the province’s business land adds up to almost 19.6 million square meters and is the third largest supplier of infrastructure of this type of the Community, behind Valladolid and Burgos, which head the regional ranking. More than five million square meters are non-exploitable surfaces (green areas, roads, sidewalks, roundabouts, …).

In the case of León, the town councils that have developed most of the land for “industrial” use (though industries are not always installed); with more than 7 million square meters spread over 27 industrial estates. Initiatives by municipal and private capital add another seven industrial estates and almost another two million square meters.

The Institute of Business Competitiveness (ICE, former ADE) of Castilla y León, a subsidiary of the Junta, totals more than 4.7 million square meters, and more than one million of them are still available despite the price reduction of available land approved by the Junta more than two years ago, in April 2016.

The infrastructure developed by the private sector also have an important weight, almost three million square meters, of which only one million are occupied. The best performance was obtained by the state industrial land agency Sepes, which has almost 2.9 million square meters in its industrial estates in León, and an almost non-existent available area compared with the rest of the developers.

The CES noted that a year ago, the plenary session of the Cortes unanimously approved the promotion of the León Technology Park.

Original Story: Diário de León – María J. Muñiz

Photo: Ces. Ramiro

Translation: Richard Turner

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