Mercadona Pays €10.6 Mn for a Warehouse in Vitoria

14/10/2014 – Expansion

Mercadona, one of the leading supermarket company of Spain, has just purchased a plot of 150.000 square meters located in the Jundiz industrial area for €10.6 million paid to Gilsa, a firm held by the Basque authorities and the City Council of Vitoria. The chain is going to raise in there a logistics hub in the north of the country.

This way, Mercadona confirms its bet on Euskadi, specifically on Vitoria, where it has opened its first supermarket in the region and presently is preparing for inauguration of two more before the end of the month. The Jundiz center will be the 13th distribution hub of the group and it will supply the stores in the north of the Peninsula. In fact, the Valencian company embarked few months ago in Navarre and inside its plan of expansion in the Basque Country it expects to open 25 shops within the next six years.

 

Original article: Expansión (by M. Vargas)

Translation: AURA REE

The Government Pension Fund of Norway Purchases Properties in Spain & US

19/09/2014 – Expansion

The Government Pension Fund of Norway, the largest sovereign fund in the world carrying along a €680 billion worth of assets, strenghtens its bet on the real estate sector.

Few days ago, it sealed a deal with Boston Properties and obtained 45% in an asset lot valued at €3.135 billion in the United States. The portfolio inludes the property located at 601 Lexinghton Avenue and a 155.000-square meter office building (99% occupied) in Manhattan (New York), as well as two office skyscrapers in the downtown and the port of Boston.

The Fund fixed its focus on the real estate market in 2010 with an intention to diversify its investment portfolio. Planning long-term ventures, the sovereign fund strives at offices, retail parks and logistics hubs, expecting high returns from these assets.

With satisfactory number of properties in the U.S., the Norwegian fund scans the market of Spain in search of opportunities. It has just bought logistics assets in Madrid and Barcelona for €242 million in total. The property portfolio, acquired from Saba Parques Logisticos, includes a logistics hub in Coslada (62.000 square meters of warehouses and offices), a 14.7-hectare area in San Fernando de Henares and Camarma de Esteruelas, all nearby Madrid. In the region of Catalonia, it bought a 89.000 square meter logistics hub situated in the city of Penedes.

The transaction has been carried out through a joint venture company, held by the Fund fifty-fifty with Prologis.

Lately, other acquisitions by the Norwegian fund took place in Paris and London, on which it spent nearly €900 million.

Real estate investment brought the Fund a 3% return in the second quarter of 2014.

 

Original article: Expansión (by Ana Medina)

Translation: AURA REE

Demand For Logistics Real Estate Up 50% in Madrid

28/08/2014 – El Pais

According to the Logistics Market Monitor report by Aguirre Newman, contracting of logistics space in Madrid registered in the first half of the ongoing year represented 77% of the total number of agreements signed in 2014.

The entire space demanded in the second quarter of 2014 spreads over 97.993 square meters. It means a 48% improvement in comparison to the same period in 2013. Better performance was boosted by the demand for medium-size and large surface as 75% of the Q2 contracting corresponded to areas greater than 7.000 square meters.

Around 87% of all transactions carried out from April to June concerned rentals, whereas the remaining 13% – sales.

The Community of Madrids most demanded area is Corredor del Henares with a 73% total absorption rate. Next rank the Zona Sur (the Southern Area) with 20% and the Zona Norte (the Northern Area) with 7%. The Corredor del Henares – residential, industrial and business area in the north of the capital – also wins in terms of absorption in the second quarter of the year. An 80.000 square meter area in total was contracted during this period of time, representing 82% of the overall score. Noteworthy is the operation carried out in Azuqueca de Henares industrial area called Polígono de Miralcampo, involving 22.000 square meters.

Moroever, the second quarter of 2014 saw many investment projects pursued by both national and international investors. As of the report by Aguirre Newman, the activity on-high will be even enlarged by several huge volume operations currently being in the due diligence phase. For instance, a transport company is negotiationg a turnkey agreement on 11.500 square meters in San Fernando de Henares, while in Leganes a logistics hub of 5.546 square meter is changing hands.

When it comes to the market in Barcelona, during the second quarter of the year, the total area involved post 54.582 square meters meaning a 32% increase in comparison to Q2 2013. The upsurge is due to 10 operations carried out during this period of time, by 4 more than a year earlier. Rental contracts accounted for 90% of the total.

 

Original article: El País (by Paula Cossío)

Translation: AURA REE

Saba Sells Logistics Assets to Prologis For €100 Mn

28/08/2014 – Expansion

Logistics arm of Saba, a parking-specialized company at which Criteria holds a 50% stake, has sold two logistics parks in Coslada (Madrid) and Subirats (Barcelona) to U.S. group Prologis, one of the worlds leaders in development and management of logistics complexes.

The transaction also includes lands pending development in San Fernando de Henares and Camarma de Esteruelas (Madrid) and it has been closed at the price of €100 million.

The logistics park of 62.900 square meters located in Coslada fully belonged to Saba, while the other lot of 89.000 square meters situated in the county of Alt Penedes was possessed by CPL. The lands in San Fernando de Henares and Camarma de Esteruelas jointly represent an area of 14.7 hectares.

Without the transferred lots, Saba still owns seven logistics parks in Spain: in the provinces of Barcelona, Seville and Alava, as well as in Portugal and France.

Next, Saba aims at purchase of a 60% stake at Bamsa, a joint venture which will manage 26 downtown parking lots owned by the city of Barcelona for the upcoming 25 years. The firm chaired by Salvador Alemany presently administers 180.000 spaces and with the acquisition of Bamsa he seeks gaining ground in the main business area.

The Tender of Bamsa

At the beginning of July, Saba outbid Belgian Interparking during the auction of Bamsa. The firm is obliged to pay €232 million for the 60% stake, whereas the remaining 40% will stay in hands of the City Hall of Barcelona.

Last year, Saba earned €190 million and obtained a net profit of €66.648 [million]. The company was born as a result of separation of the logisitics and parking division from Abertis. Apart from Criteria that holds 50% of it, other important shareholders are KKR, ProA and Torreal. Saba plans to go public in two or three years.

 

Original article: Expansión (by J. O.)

Translation: AURA REE

Blackstone Buys Four Logistics Hubs in Spain

7/07/2014 – Expansion

Blackstone has just sealed a new real estate deal on the European market. The U.S. fund acquired 18 logistics platforms scattered around Germany, France, Austria, the United Kingdom and Spain, among other European countries. The transaction has been carried out through its subsidary LogiCor at the price of €275 million. 

Until now, the assets belonged to Frankfurt-based SEB Asset Management. The portfolio includes four logistics hubs in Spain (two in the area of Guadalajara – in Alovera and Cabanillas del Campo – and the other two in Ciempozuelos. 

The 18 properties formed parts of four portfolios. One of them was in hands of  SEB ImmoInvest and consisted of three platforms in Germany and France for which Blackstone paid €37 million.

Spain 

Three out of four Spanish hubs, together with a property in Hungary, were sold by SEB Global Property for €62 million. The fourth was transferred with nine other units by SEB ImmoPortfolio Target Return for €168 million.

The Ciempozuelos platforms compounded the industrial area developed by Coperfiel with view to locating principal logistics firms of the country in there.

In total, the European platforms offer a 434.300 square meter GLA, 85% occupancy rate and contracts signed for 3.8 years on average.

The new acquisition of Blackstone in Spain shall be added to the purchase of the 1.860 subsidized houses in Madrid for €128.5 million and of the three platforms in Madrid and Barcelona for €47 million. At the moment, the U.S. fund is finalizing the acquistion of four office buildings, two in Madrid and two in Barcelona, where Cagmenini and HP have their headquarters, among others.

According to Aguirre Newman, in 2013 investment in logisitics in the main Spanish markets (Madrid and Barcelona) reached €98.5 million, double than in 2012, and the figure is expected to hit higher.

 

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

RE Investment in Barcelona to Cross €700 Mn & Double 2013 Volume

13/06/2014 – Finanzas

It is expected that this year´s property investment in Barcelona will exceed €700 million, over a double than the €303 volume registered in 2013, as Jones Lang LaSalle (JLL) said. In the first quarter of 2014 solely, the amount post €119 million.

At yesterday´s property forum by the advisory firm, director of equity markets at JLL Xavier Cotet pointed out that “those who are not present in the Spanish property market are not investing in real estate”.

“Barcelona witnesses record low levels in terms of product sales: cranes are halted, there is no construction, there is nothing”, Elena Torres responsible for office market sadly stated. Moreover, she told the majority of “supposedly sufficient” office spaces is unfortunately “obsolete”.

She also vowed for acceleration in financing, construction, developement and renovation for Barcelona offices, as she put it “to give impetus and rock the market”.

The advisory firm forecasts that the office segment, especially the logistics part, will struggle until recovery of the sector, in case of the logistics additionally fuelled by increase in electronics trading.

Besides, CEO of Magic Real Estate Ismael Clemente portends great success for Socimis (Spanish versions of REIT firms) in the nearest future as “a wave of assets” will be absorbed by them.

In turn, Miguel Pereda, CEO of Grupo Lar assured that “not all properties in Spain are low-cost, for example shopping malls are not at all”.

 

Original article: Finanzas (after EFE)

Translation: AURA REE

Sabadell & DHL Prepare a Logistic Hub For L´Oréal

11/03/2014 – Expansion

 Sources point out that this is one of the greatest operations conducted in Spain within last years. Solvia, Sabadell´s real estate company, together with DHL are at the verge of finalizing creation of a large logistic center for L´Oréal. The signed agreement states that the bank shall lease 81.000 square meter parcel in Quer (Guadalajara) and an industrial building of 24.000 square meters that will be expanded by 40.000 m2 in forthcoming months. Main purpose for the center will be storage of the multinational French cosmetics company´s stock, however serving to other firms is not ruled out.

Moreover, L´Oréal pledged to lease the object for 10 following years and to name DHL as organizator and distributor for its products.

For Sabadell, renting the 81.000 m2 allows it to give way out to two huge pieces of land, an asset that is rather unwanted among banks. (…). They, together with the industrial building, were awarded to Solvia by Thecam, Arco 2000 Terrenos and Edificaciones.  (…).

Banco Sabadell´s a spokesperson highlights that the operation not only will be beneficial for DHL but also for the municipality of Quer and surroundings. (…).

 

 

Original article: Expansión (J. Zuloaga)

Translation: AURA REE

Jones Lang LaSalle: First Signs of Reversal on Industrial & Logistics Market in Spain

3/03/2014 – Jones Lang LaSalle

The Report on Industry and Logistics (El Informe de Industrial y Logística) by Jones Lang LaSalle analyzes movements within the sector underlining the lack of significant purchase transactions due to the fact that the cut-off in financing undermined the sector. Nonetheless, according to the report, the year 2014 casts positive outlook inasmuch as on the one side the country risk faded away, we think that the yield hit the bottom, therefrom recovery shall be imminent and finally, the returning international investors who start to demand new industrial plants that implies creation of new spaces.

Madrid´s industrial area and land

The demand from the part of small and medium-size businesses is scarce due to serious insolvency and financing problems. However, the ones that are powerful enough to buy the industrial plants come across considerable opportunities.

When it comes to supply, the price of finished product shows the impact of continuous decrease, let alone the interesting assets proceeding from arrangements with creditors.

Land purchase presents poor numbers, basically due to lack of demand. At present, we find a wide offer of outstanding land at an attractive price in all rings.

On the other hand, some developer companies are willing to buy and develop land for tender finalists, however the terms and conditions offered by the lattest in agreements make accomplishment of the projects impossible.

Logistics in Madrid

The demand in Madrid has not got back on its feet as companies still cannot afford vacant spaces. In the primary areas availability is scarce (7.5%) and that pushes investors to surrounding areas. The demand aims at the second and the third ring, where availability rate demonstrates 9% and 42% respectively.

Jones Lang LaSalle´s report also analyzes supply and assures that the availability rate remains stable in the second quarter of the year, however shrinking number of large industrial buildings is noteworthy. In the second and third ring there are lots of obsolete property in need of low-cost trading.

In the primary zones, we observe an improvement in rental fees (4,80€/m2), whereas in the second and the third ring the prices reach 3,10€/m2 and 2,15€/m2 respectively. (…)

Talking about transactions, high-quality and well-situated demand turns towards 2.000-3.000 m2 in all facilities areas. The logistic space absorbtion in Madrid during 2013 showed 355.190 m2. (…)

Industrial product and land in Barcelona

Demand analysis in 2013 presents prectically no significant operations within this area, although the demand in Barcelona´s surroundings is high and supply low. (…). Still, financing is scarce, so most of the transactions are paid from own resources. The land prices ranged between  150€/m² and 400€/m².

Demand for industrial buildings is also poor, not in primary zones, though, where prices vary from 3,50€/m²/month and 5,25€/m²/month.

Logistics Barcelona

In the last quarter of the year, the absorbtion of logistic space was equal to 106.200 m² that added to the 205.000 m² from the previous quarters give 311.200 m² throughtout 2013.

The supply of industrial buildings in Barcelona is currently set at 672.300 m², about 6% less than a quarter before and the availability rate is 10.7%. Within primary zones, the rate shows 10%, whereas in the second and the thrid ring represent 7.2% and 15% respectively.

Maximum rental rates in the last months of 2013 showed 6,25 €/m²/month in the primary zones and 5 €/m²/month and 3 €/m²/month in the 2nd and 3rd ring, respectively.

The greatest transactions of the year are the following: Docout´s renting an industrial building of 22.848 m² from Prolongis and the rent of old buildings of Ochoa in L’Hospitalet del Llobregat, Cornellà del Llobregat, El Prat del Llobregat and La Bisbal del Penedès, at a tender sale.

 Investment market: Industrial and Logistic

The year 2013 was a turning point for the sector. The most active, opportunistic investors are continously looking for great volume and bargains.

Primary yields in Madrid showed 8.25% (expected to fall sharply during 2014 due to strong investment and long-term contract signing), while in Barcelona they settled at 8%.

The report by Jones Lang LaSalle highlights that the year 2013 ended up with €100 million investment and throughout 2014 the number might even triple. (…). Since the beginning of 2014, we observe improvement in activity within the sector and we expect better contract signing rates this year.

Original article: Jones Lang LaSalle

Translation: AURA REE