Villar Mir Group Puts Inmobiliaria Espacio Up For Sale

18 September 2019 – El Confidencial

According to financial sources, the Villar Mir Group has put its land and property developer subsidiary Inmobiliaria Espacio up for sale. The objective is to raise funds to repay the group’s creditor, the Monaco-based fund Tyrus Capital, and it follows the divestment of two other non-real estate entities, Fertiberia and Ferratlántica, in August.

Savills Aguirre Newman has been engaged to coordinate the sale after valuing the entity’s land and plots at €256.88 million as at 31 December 2017. The assets may be sold as a set or piecemeal. Moreover, the company has tax credits worth between €100 million and €200 million, which is where the real value of Inmobiliaria Espacio lies.

According to the latest available data, the company reported an EBITDA of €1.61 million in 2017 and sales of €46.77 million, up by 23.2% YoY. Moreover, it has an excellent and sizeable portfolio of land for development in good locations, for which planning permission has been granted, and therefore an improvement in sales is forecast over the next few years.

Last year, Tyrus Capital lent the Villar Mir Group €360 million to refinance the debt that the traditional banks did not want to extend. The conditions of that loan are onerous – it has a two-year term (of which one year has already passed) and it carries an interest rate of between 10% and 12%. As such, the group wants to sell off its assets in an orderly fashion to repay and reduce its financing, and so time is of the essence.

Original story: El Confidencial (by Agustín Marco)

Translated by: Aura Ree

Segro Buys a 28,500 m2 Warehouse in Granollers

29 January 2019 – Eje Prime

Segro is continuing to grow its logistics portfolio in the Spanish market. The British Socimi has acquired a distribution centre measuring 28,500 m2 in Granollers (Barcelona), leased to the logistics operator ID Logistics, with which Segro has a long-term agreement.

The asset was constructed in 2019 and is located thirty kilometres from Barcelona, with easy access to the A7 and C17 motorways. The group has highlighted “the location and access of the asset for distribution across the south of Europe”.

The company, founded in 1920, entered Spain in 2015 with the development of a logistics centre in Martorelles (Barcelona). Since then, Segro has purchased a 16,000 m2 logistics park in Coslada (Madrid), another 49,000 m2 site in Castellar del Vallès (Barcelona), a second plot in Martorelles, where it is constructing an asset spanning 20,000 m2, and a plot in San Fernando de Henares.

Segro has also added other plots in Getafe (Madrid), Sant Esteve Sesrovires (Barcelona), Mollet del Vallès (Barcelona) to its portfolio, as well as a second building in Coslada (Madrid), and Villaverde (Madrid). In total, the firm has a portfolio spanning 400,000 m2 of constructed space in Spain and another 70,000 m2 under construction.

Original story: Eje Prime 

Translation: Carmel Drake

Baraka Invests €60M in the Construction of 2 Skyscrapers in Torrevieja

21 January 2019 – Idealista

Trinitario Casanova is on a roll with Baraka. Baraka Properties, the group’s arm specialising property development, has invested €60 million in the construction of two skyscrapers in Torrevieja, which will house more than 130 homes and 250 tourist apartments, according to explanations provided by the company to Idealista News.

The project is going to materialise into two 26-storey towers. Whilst the first will be dedicated to housing in its entirety, the second will be dedicated to hotel use. “Right now, the approval of the project is in the evaluation phase, although our plans are to finalise this first phase during the first quarter of the year”, explain sources at the group, “and once the project has been approved, we will request the licence”.

The land on which the two towers are going to be built is located on Avenida Doctor Gregorio Marañon, on the seafront next to the Doña Sinforosa park. “It is 200 metre from the marina, and all of the homes from the first floor up will have views of the sea. The homes from the fifth floor up will have 360º views”, say sources at Baraka Properties.

According to the company, these will be the first towers in the city, and the tallest to date. The other enclave with towers of this calibre is Benidorm. “The trend for tourists in the area is to look for more unique properties, with higher quality finishes, where they can be offered services like in an American condominium, and this plot fulfils all of those characteristics, both due to its location, and its scale/volume”, they conclude.

In total, 32,000 m2 of space is going to be built in the two towers, and by way of reference, the price per m2 of the penthouse will amount to around €7,000/m2, making it one of the most expensive developments in the area (…).

Original story: Idealista (by Custodio Pareja & P. Martínez-Almeida)

Translation: Carmel Drake

Is Málaga the Silicon Valley of the South? Its Offices Generate Yields of 7.25%

7 January 2019 – Eje Prime

Málaga is positioning itself as the possible Silicon Valley of the south of Spain. The second most populated city in Andalucía and the only Spanish city in the Top 10 for the best quality of life in Europe, according to Eurobarómetro, has attracted several technology giants in recent years. The interest from these companies in moving to the area and the lack of available space have driven up prime yields in the office market in Málaga to 7.25%, making it the most profitable place to own an office in Spain, according to data from CBRE.

The international consultancy highlights that Málaga is “consolidating its position as a city of reference in Spain in the development of the technology sector”. Oracle, Accenture, Microsoft, Huawei, Ericsson, Indra, Atos and Cisco, amongst others, have all opened offices in the city. The meeting point for these companies is the Andalucía Technology Park (PTA), recently included in the catalogue of European Digital Innovation Hubs, compiled by the European Commission, and which recorded a turnover of €1.9 billion in 2019, up by 8%.

In addition, the province is home to other smaller clusters, such as Málaga SmartCity and the ‘Polo de Contenidos Digitales de Málaga’, the first hub with those characteristics in Spain and which aims to accelerate projects and companies related to the digital sector.

The increase in demand for offices in the city also comes in response to the future forecasts for growth in the region. In fact, Oxford Economists names Málaga as the city where the economy is going to grow by the most in Spain over the next decade. The good connectivity of the province abroad and tourism are some of the factors driving those predictions.

In recent years, Málaga has enjoyed a facelift in recent years with improvements in its infrastructures, and the airport and port as anchors for tourism and business. In addition, the population has increased to 570,000 inhabitants in recent years and there are now more than 40,000 companies, of which 87.1% specialise in services.

These drivers have reactivated the office market, which has taken advantage of the boost in demand, on the rise since 2015. Rentals cost €17/m2/month in the city’s best buildings and the occupancy rate in the prime area exceeds 90%.

The shortage of competitive products in terms of location, finishes and facilities, has driven the increase in yields. In comparison with Madrid and Barcelona, the variation in prime yields is great, improving the yields of 3.25% and 4% that were being registered in the two major Spanish capitals at the end of the third quarter 2018.

Moreover, the office market in Málaga also generates higher yields than the market in Bilbao, although it is not far behind with average yields of 7%, as well as those in Sevilla and Palma, which do not exceed 6.75%. The yields in Valencia and Zaragoza amounted to 5.25% and 6%, respectively, in September last year (…).

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Lidl Invested €110M Opening 29 Stores in Spain in 2017

11 January 2018 – Expansión

Lidl opened 29 new supermarkets in Spain in 2017, an expansion of the commercial network that involved investment of €110 million for the construction and fitting out of its new stores. Note, that figure excludes the disbursements made to lease or buy the land on which the premises were built.

The store openings were primarily carried out in areas where the German chain did not yet have a presence, although “some establishments were opened to replace others that already existed and that were either too small or that had been replaced by another store in a better location”. The new Lidl stores are the largest that the company has ever opened; they have an average retail space of around 1,400 m2.

The company has placed its focus on this expansion plan to enhance the space it dedicates to fresh produce, which now accounts for a third of its offer and which has become the main tool that the traditional distribution groups are using to deal with the threat from the purely online distribution groups.

Andalucía leads the ranking

By geographical region, the 29 inaugurations that Lidl undertook in 2017 were concentrated in Andalucía (6), the Community of Valencia and Cataluña (5 in both) and the Balearic Islands, Canary Islands and Madrid (3 in each). Above all, the chain bet on growing in coastal towns with significant tourist traffic. Nevertheless, Lidl also explored new locations, opening its first store in a shopping centre (in Islazul, Madrid).

The German firm has 540 stores and ten logistics platforms in Spain. Lidl closed its 2017 tax year in February. In 2016, it recorded turnover of €3.335 billion in the national market, up by 9.4%.

Original story: Expansión (by Victor M. Osorio)

Translation: Carmel Drake

French Fund Corum AM Acquires Hotel Cartagonova in Cartagena

6 December 2017 – La Verdad

One of the flagship hotels in the Murcian city of Cartagena is changing hands. The French investment fund Corum AM has acquired the 4-star Hotel Cartagonova, located on Calle Marcos Redondo. The property is going to be operated by B&B Hotels on a lease basis for at least fifteen years, according to a statement issued yesterday by the international chain.

The amount paid for the economic operation has not been disclosed. The establishment is going to be renamed B&B Hotel Cartagena and will see 100 rooms of varying sizes go on the market, ranging from individual rooms to suites and family rooms – all of them have been redesigned and modernised in recent years. Moreover, the hotel has a lobby, a meeting room, 31 underground parking spaces and several free services for its guests. According to the buyers, the condition of the facilities is very good, and so they only plan to carry out minimal changes to bring the property in line with the standards of B&B Hotels. The company defines itself as a specialist in “comfortably designed accommodation, offering select high-quality services, at an attractive price”.

The interest from the hotel company in establishing a presence in the tourist city, which is “growing fast” and benefits from a strategic location, has been key to the success of the operation. Its executives have not failed to notice that the port of Cartagena is the country’s fourth busiest in terms of goods traffic. Moreover, the hotel is positioned in a very central location, both for those travelling for pleasure and for business.

“The new B&B Hotel Cartagena has excellent facilities and an unbeatable premium location. It has been designed carefully and will allow us to continue offering our guests high-quality accommodation at an unbeatable price across Europe”, said the chain’s Director of Expansion in Spain, Teresa Pérez.

The company that operates the property formerly known as Hotel Cartagonova owns twenty establishments all over Spain. It closed the first half of this year with a turnover of €13 million. In recent months, it has opened hotels in Madrid’s Puerta del Sol and in the city of Vigo.

Original story: La Verdad (by Gregorio Mármol)

Translation: Carmel Drake

La Liga Puts Its HQ Up For Sale For €3.5M

9 October 2017 – Eje Prime

La Liga is hoping to receive a bonus before Christmas. The football league association will complete its move to a new corporate headquarters before December and so plans to complete the sale of its current offices during the final stretch of 2017 or beginning of 2018, according to Palco23. The football clubs’ delegated commission approved the sale of the building at the beginning of the year and has now commissioned the valuation of the building before it puts it on the market: €3.52 million.

The valuation has been performed by an independent third party and has forced the entity chaired by Javier Tebas to recognise a loss amounting to €1.04 million. That is because the price that has been assigned to the property, located at number 10 Calle Hernández de Tejada, is lower than its net book value in the accounts.

The building has a surface area of just over 1,100 m2 and La Liga tried to squeeze into the various floors as it continued to grow. Nevertheless, two years ago, the association decided to rent some additional offices around the corner, and in the end, has decided to concentrate all of its activity in a single building, located just 800m away from the historical headquarters.

As such, the association that represents first and second division clubs will occupy four of the seven floors in Edificio Murano, located at number 60 Calle Torrelaguna. That building is owned by the real estate group Hispania, which has secured the occupation of more than 50% of the property’s surface area (7,574.6 m2) thanks to Spanish football.

The move will not only result in an improvement in the conditions of the 158 workers that La Liga employs, it will also allow the body to offer a more modern image. Compared to the antiquated facilities at Hernández de Tejada, the new headquarters will be located in a glass building with views of Avenida de América and Calle Arturo Soria.

The office market in Madrid

The office market is one of the most active in the Spanish real estate sector. During the first six months of the year, 275,037m2 of office space was leased in the capital, a very similar figure to that recorded during the first half of 2016. According to the real estate consultancy Aguirre Newman, activity has been improving throughout the 6 months.

Another significant feature in the market has been the recovery of large volume operations: 25 deals were signed for spaces spanning more than 3,000 m2, which accounted for 42% of the total volume of operations closed. Those figures include La Liga’s new building on Calle Torrelaguna.

The overall office availability rate in the market in Madrid has decreased significantly over the last six months, from 11.4% in January 2017 to 10.8% in July 2017, as the volume of available space decreased by more than 74,000 m2.

In terms of prices, during the first half of the year, average rents grew in all areas, to reach an average half-year a rise of 3.9%. The average rental cost in the capital’s business district rose to €28.94/m2/month, whilst average rents in the peripheral areas amounted to €12.61/m2/month.

The most significant increases in rental prices by area were recorded in the central business district, with an average rise of 7.7% in six months. That mainly occurred as a result of a change in companies’ requirements, since they are now prioritising location and building quality over rental cost.

Original story: Eje Prime (by M. Menchén and C. Pareja)

Translation: Carmel Drake

UNIQ Residential Hits The Ground Running

13 May 2017 – Press Release

Two and a half years after the creation of UNIQ Residential, its first project is in the process of being handed over in the heart of Barcelona.

RS257 (www.rs257barcelona.com), a project in the “Mayfair” equivalent of Barcelona located between the prime streets Paseo de Gracia, Diagonal and Rambla Catalunya was always going to be in high demand due to its location, but in addition, the thought that the UNIQ team has put into efficient layouts, flexibility of design and sustainability make this one of the most emblematic residential projects of 2017 in Spain.

The building had a protected facade originally designed by Robert Terradas, a Catalan rationalist architect who developed the original building in 1958, which OAB, the award-winning architectural office of Carlos Ferrater, managed to further enhance by keeping the original spirit, but creating bespoke windows which allow the apartments to have 14m of uninhibited light entering the living spaces.

RS257 is a project with 15 units, including 3 penthouses with unparalleled views of Barcelona overlooking the Tibidabo mountain, and the main streets of the Eixample district. The ground floor unit of RS257 is currently under negotiations to be let to an exciting global retailer and the project has received the first LEED silver certificate for a multi-residential building in Barcelona.

While UNIQ Residential is young as a company, the team has a vast experience in development projects. Its creation was the result of merging an executive team that over 40 years had developed over 100 projects in their prior life, with Urban Input, a boutique real estate asset management firm focused on commercial real estate for institutional investors and Mario Chisholm, a real estate investor who had spent his time in London previously, often focusing on the Spanish market.

“We are extremely excited by the completion of this unique project” says Mario Chisholm, one of the co-founders and board members of UNIQ, “We knew we were buying in a great location, but the success has exceeded expectations as we bought the building before the perception of Spain had changed, in early 2014. Since then, the economy has strengthened, banks are lending again and demand is strong for well-designed and well-delivered products in good locations. We are also thrilled about the progress UNIQ has made since its inception; the integration of the different teams has been incredible and the positivity, energy and drive UNIQ has to deliver future projects sets out an exciting future.”

Other than RS257, UNIQ is developing another 4 prime residential developments in Madrid and Barcelona. Keep an eye out, more to come soon!

About UNIQ Residential

UNIQ Residential is an urban developer founded in 2014 with a strategy and purpose to respond to a more informed flat buyer by focussing on the quality of projects through design. UNIQ’s management team has a breadth of experience in all areas of real estate development, from conception to completion and have been working together for 20 years, building over 100 developments. Currently, UNIQ has 6 live developments in Barcelona and Madrid and is looking to expand further across Spain.

Original story: Press Release

Edited by: Carmel Drake

 

Project Tour: Bankia Puts €166M Property Portfolio Up For Sale

3 February 2017 – Idealista

The banking sector is starting 2017 with a bang as it accelerates the sale of properties. Bankia has put a new real estate portfolio on the market – it does not contain debt, but rather comprises 1,800 properties, including finished homes, plots of land, retail premises, industrial assets and hotels. Known as Project Tour, the package is valued at €166 million.

Bankia is one of the most active banks at divesting real estate assets once again, as it seeks to focus on its pure banking business. It is a technique that has worked well for the banks in recent years and not just in Spain, but in other countries around the world as well.

In this case, so-called Project Tour is in the hands of the firm Alantra (formerly N+1) which intends to place this property portfolio (known by its initials in English as an REO) with international investors. Its value amounts to €165.9 million, according to financial sources consulted by Idealista.

The portfolio comprises 1,292 finished homes (it does not include any subsidised housing), 324 plots of land, 159 retail premises, 20 industrial assets and 9 hotels. None of the assets in the portfolio are rented or co-owned.

The properties are primarily located in the Community of Valencia, mainly in Valencia; Cataluña, mainly in Barcelona; the Canary Islands, mainly in Las Palmas; Madrid and Castilla y León (Segovia is home to most of these assets).

According to sources consulted by Idealista, Bankia expects to receive non-binding offers from a small number of investors by the beginning of February and binding offers by the middle or end of March. In this way, it plans to close the sale of the package during the month of March.

The entity chaired by José Ignacio Goirigolzarri (pictured above) is known as one of the most dynamic in the market: in 2016, it put several portfolios up for sale, including Project Ocean, a real estate loan portfolio worth almost €400 million, which was sold to Deutsche Bank; Project Tizona, a mortgage debt portfolio worth €1,000 million; and Project Lane, containing properties worth €288 million.

Original story: Idealista (by P. Martínez-Almedia)

Translation: Carmel Drake

Neinor To Build 20-Storey Residential Tower Next To Manzanares River

23 January 2017 – El Mundo

A new and unique tower is about to appear on the Madrid skyline. The property developer Neinor Homes is going to build it and it will be located on the banks of the Manzanares River, in an area that, following the transformation resulting from the Madrid Río initiative, has become one of the most attractive and dynamic in the capital.

Since June 2015, when we found out that the property developer, whose main shareholder is the US investment fund Lone Star, had closed an operation to purchase three plots of land, including this one, located at number 33, Calle Maestro Arbós, and that it had planning permission to construct a 20-storey residential tower, everyone has been very interested in finding out more about the plans. (…).

Now, two weeks before the properties in the development go up for sale (on 8 February), El Mundo has had access to the Riverside Homes dossier, the development that Neinor plans to build in Madrid Rio and for which it requested a construction permit at the end of November (…).

It is a unique residential complex, designed by the architect Julio Touza Rodríguez, and will be distributed over two buildings. The undisputed protagonist will be the 20-storey 72m tall tower, which will be accompanied by another 3-storey block measuring 12m tall. In total, the properties will have a combined above ground surface area of 6,400 m2 and another 3,870 m2 of space underground. They will house 51 two-, three- and four-bedroom homes (with surface areas of between 107 m2 and 160 m2), many storage rooms and 102 parking spaces. (…).

The homes

The price of the homes, which will be equipped with the highest quality materials and the latest innovations, will start at €370,000 for the two bedroom homes, increasing to €445,000 for the three-bedroom properties and up to €600,000 for the four-bedrooms apartments. Those amounts, which exclude VAT (10%), include two parking spaces per property and a storeroom.

In addition to these standard flats, the plans includes three penthouses, with 50 m2 terraces, located on the 16th, 18th and 19th floors, whose prices will range between €900,000 and just over €1,000,000. Given the characteristics of the development, its location and the views that these homes are going to enjoy thanks to their dual north-south orientation, the properties look set to become some of the most unique and exclusive in the capital. (…).

The tower will have a large communal garden terrace on the 11th floor, known as the Mirador del Río. (…). At street level, it will have a large garden with a swimming pool and space for urban allotments, whilst the top three floors will house a gym and other communal spaces. (…).

A lot of demand

Even though the features of the development have not been revealed yet (….), Neinor has a list of more than 750 people who are interested in acquiring the homes at Riverside Homes. “Most of the interested parties (70%) are people from the area, but we have also received a lot of interest from other people in the capital (…)”, said Ignacio Llona, Director of the Central Territory at Neinor Homes.

Original story: El Mundo (by Luis M. De Ciria)

Translation: Carmel Drake