Tag: luxury housing

Venezuelan Investors Buy a Building in Málaga to Convert it into Tourist Apartments

30 January 2019 – Diario Sur

Operations involving the sale and purchase of buildings in the Historic Centre of Málaga, driven by the tourist boom in the capital, are continuing to rise. At the beginning of this month, this newspaper revealed the sale of the former Casa del Niño Jesús building to the company White Málaga, a group of investors of Jewish origin, who have set their signs on the city for the development of real estate projects, encouraged by the recovery of the market and advised by the consultancy firm Salvago Advisors. All indications are that that property, which used to be owned by the Church, is going to become a project for tourist apartments, like the many others that are already operating or being constructed in the Centre.

And the same thing looks set to happen to the building located at number 22 Plaza de la Merced, on the northern corner with Calle Victoria. According to reliable sources, that property has been acquired by the company Orinoquia Real Estate, which is backed by investors from the Capriles group, a family saga of Venezuelan businessmen living in Spain with million-euro investments in the country’s major capitals such as Madrid, Barcelona and Valencia. This sale and purchase operation, whose amount has not been disclosed, has been managed by the real estate consultancy Savills Aguirre Newman (…). .

According to sources consulted by this newspaper, the plan is to convert the property into tourist apartments, which could be operational within just four months. The same sources reveal that the project to refurbish the building, which is in a good condition, is very advanced and the new owners are just waiting for the building permit to be granted by the Town Hall.

The building has a grade 1 listing protection and forms part of the northern façade of the Plaza de la Merced, which makes up the so-called Casas de Campos. The property dates back to the 19th century and bears the name of its builder, the promoter of the era, Antonio Campos (…).

Economic injection

This apartment project is going to be carried out by the Socimi (…) Orinoquia Real Estate, in which the Capriles injected an initial investment of €40 million to develop businesses in the first-rate tourist apartment sector.

The real estate business of the Capriles family in Spain comprises luxury housing development and renovation projects, although it is also worth highlighting their €5 million investment in the Bluemoon tourist apartments in the centre of Valencia. Their corporate network in the country is made up of more than twenty companies dedicated to real estate development, the sale and purchase of buildings and rental. Together, they have assets amounting to €125 million in total, according to information published in recent months (…).

Original story: Diario Sur (by Jesús Hinojosa)

Translation: Carmel Drake

Excem to Promote 5,000 Luxury Homes in the Costa del Sol & Murcia

21 November 2018 – Eje Prime

Excem is increasing its commitment to the luxury residential sector. The company owned by the Hatchwell family has set itself the objective of promoting 5,000 luxury homes on the Costa del Sol and Murcia, within the context of the development of its LOV Real Estate division. To launch these homes, which will follow in the footsteps of a development on Calle Fuencarral in Madrid, Excem has created the brand Solomon Homes.

Excem’s plans with LOV Real Estate involve starting to promote its entire land bank in 2019. The first projects to be commercialised in the south include four promotions in Condado de Alhama, one of the best resorts on the Costa Cálida. In that complex, LOV has already started work on the construction of Villa Primavera, Villa Amapola and Villa Atardecer, as well as Edificio Poniente. The company plans to hand over those homes next summer.

Further south, on the Costa del Sol, the property developer is finalising the signing of several projects with “the same model of avant-garde and unique architecture” in the area, on the fashionable coastline of the Spanish residential market. The company expects to achieve a return of more than 20% in each of its projects.

The starting point for luxury

Nevertheless, Excem’s starting point with LOV Real Estate will be a 25-home development on Calle Fuencarral in Madrid. The group’s first development will involve an investment of €14 million and will be located at number 142 of the Madrilenian street, right in the heart of the Spanish capital.

The company has already started work and its pre-sales amount to 80% with just four homes left to market. The buyers include investors and architects, explain sources at Excem (…).

The property developer plans to handover those homes, which will have between one and three bedrooms, before the end of 2019. The homes will have surface areas ranging from 55 m2 to 175 m2, and prices starting at €400,000, and going up to €1.5 million (…).

Excem: true to its roadmap 

The last investment vehicle launched by Excem Real Estate, the real estate division of the Excem Group, was Siwork, specialising in co-working and for which the group has partnered with WeWork, as Eje Prime revealed. With Excem Capital Partners Siwork, the group stays true to its roadmap: to be present in the Spanish real estate sector with three Socimis, diversified by type of asset and focused on millennial clients.

The first of the three companies launched by the Israeli family in Spain was Excem Capital Partners Sociedad de Inversión Residencial. Specialising in rental housing aimed at millennials, the company debuted on the Alternative Investment Market (MAB) in July worth €17 million. Currently, the company owns 28 assets in Spain and has several shareholders ranging from private investors to business people and family offices.

Besides Excem Capital Partners Sociedad de Inversión Residencial, the Hatchwell family also operates in the Spanish real estate sector with Situr, a firm specialising in tourist properties such as apartments and hostels. The investment target for this second Socimi is approximately €250 million between now and the rest of 2018. The company has set itself the objective of having 3,500 beds in a dozen buildings, located primarily in Madrid and Barcelona, as well as in other tourist cities around the country.

With the activation of Siwork, the plans for this new company involve carrying out an investment of €200 million to acquire a dozen buildings in Spain’s main cities.

The Hatchwell family’s links with the real estate world date back to the beginning of the 1970s, when Mauricio Hatchwell Toledano founded the group, specialising first in cement and later in technology and real estate. Nowadays, the company is led by his children David, Philip and Kareen Hatchwell Altaras.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Lucas Fox Triples Presence in Valencia to meet Demand from International Clients

31 January 2018 – Eje Prime

Lucas Fox has multiplied its network in Valencia by three. The real estate agency has opened the doors of its third office in the regional capital. Located in the Ciutat Vella neighbourhood, the company’s newest branch is located at number 42 Calle del Mar.

The objective of the multinational firm with this opening is to be closer to vendor clients to increase its portfolio in Ciutat Vella, in order to respond to demand from international clients in pursuit of the Spanish sun.

Currently, Lucas Fox’s delegation in Valencia employs a team of twenty professionals, including five architects. In 2017, the real estate firm launched a portal for prime transactions as one of the new drivers of its growth. It is also considering expanding into other regions of Spain, including Madrid.

Original story: Eje Prime

Translation: Carmel Drake

Bonavista to Invest €100M in Luxury Homes in Barcelona

5 December 2017 – La Vanguardia

The property developer Bonavista Developments will invest €100 million over the next three years in luxury housing in Barcelona. It will focus on both new-building developments and renovation projects, primarily in the upper area of the Catalan capital, as well as in El Eixample.

Specifically, the company has recently started work on the renovation of a building at number 34 Calle Girona in Barcelona. It has also launched two new build developments on the beachfront in Gavà Mar (Barcelona) and Calle Saüc in the Barcelona neighbourhood of Sarrià, according to a statement issued by the company on Tuesday.

Until now, the most iconic project carried out by Bonavista Developments has been the renovation of the modernist Casa Burés building, which involved an investment of €40 million and which is expected to be completed in 2018.

Bonavista Developments, associated with the British fund Europa Capital, focuses on both domestic and international clients and has identified the figure of a new buyer who spends periods of between two and three months in Barcelona.

The partners of Bonavista Developments, founded in 2014, are Jacinto Roqueta, Àlex Miquel and Marcus Donaldson, and the company manages the investments of Europa Capital, a British manager controlled by the Japanese group Mitsubishi Estate, which channels investments from institutions, such as insurance companies and pension funds, from Europe and the USA.

Original story: La Vanguardia 

Translation: Carmel Drake

Luxury Home Developer Caledonian Plans To Enter Hotel Segment

5 June 2017 – La Vanguardia

The luxury housing company Caledonian is planning to expand its activity into the hotel sector, with the construction of a vacation complex on the Costa del Sol, according to comments made to EFE by the President of the company, Enrique López Granados.

The complex will be located “between Algeciras and Marbella”, although López Granados chose not to specify the exact location because the project is still in the negotiation phase.

López Granados, who recently unveiled a luxury housing development in Pozuelo (Madrid), also confirmed that Caledonian has purchased the Javier Ferrero building in Madrid for €9 million.

The building will be refurbished and then the real estate company is expected to generate between €25 million and €30 million from the sale of the homes.

Caledonian is also interested in constructing social housing properties in Madrid, although the property developer has not found an appropriate location for that yet.

“The aim is to construct around 2,000 homes to be sold for around €2,000/m2”, explained López Granados.

The President of Caledonian said that the yield that the real estate company obtains from its activities is “small”, close to 15%, given that the homes that it sells “are expensive because it costs a lot to build them”.

The 21 homes that Caledonian has constructed in Pozuelo and that López Granados unveiled last week cost between €500,000, for the cheapest, and €1.5 million, for the most expensive.

“I also think that this is a great time for the luxury sector, given that people are starting to buy again”, said López Granados.

The Director also said that Caledonian would like to expand into other geographical areas, such as Barcelona. Nevertheless, he clarified that the real estate company has not yet found “any appropriate plots of land to be able to build on”.

“If we could find appropriate plots of land, we would not have any problem starting projects in other places”, he said.

Nevertheless, López Granados said that constructing in other areas “requires additional effort”, and for that reason, he prefers “places that he already knows such as the Costa del Sol and Madrid”.

Caledonian is a property developer and construction company that specialises in the luxury property sector. It has constructed projects in locations such as Somosaguas (Madrid), Aravaca (Madrid) and Ibiza.

Original story: La Vanguardia

Translation: Carmel Drake

Telefónica Sells A Building In Madrid To Princeton For €25M

16 January 2016 – El Economista

Telefónica has sold a building with a surface area of 9,700 m2 located in the Argüelles neighbourhood of Madrid to the British real estate group Princeton Investments for around €25 million.

According to the British group, the operation, which was announced by Princeton Investments, represents a decisive step in its expansion strategy in Spain.

The real estate company highlighted that the building is in an “excellent location” for the development of luxury housing.

According to sources in the real estate sector, the price paid for the property amounts to around €25 million.

The building, a unique asset located on Calle Irún, next to Parque del Oeste, has a garden and a roof top pool with views over the Royal Palace and the Templo de Debod.

In addition, it has 350 parking spaces, a gym and common recreation rooms.

According to Princeton, the operation consolidates its investment position in Spain, a market in which it has already made several purchases.

In 2015, the British group acquired a building with a surface area of 10,600 m2 on La Cuesta de Santo Domingo, close to Gran Vía, also from Telefónica, for its subsequent rental.

In March 2016, Princeton bought a building with a surface area of 4,000 m2 next to the Google Campus in Madrid from Gas Natural to open a co-working centre.

That property, which is being renovated, has been leased to Regus and will be inaugurated in Q2 2017.

In parallel, the British group plans to launch a student hall of residence project in Valencia in a building that has a surface area of 10,160 m2.

Princeton is keen to replicate this model in other major university cities across Spain, including in Madrid and Barcelona.

Original story: El Economista

Translation: Carmel Drake

The Alcaraz Family Buys Caja España’s Former HQ In Madrid

23 November 2016 – Expansión

Another new luxury housing development is going to be built in Madrid. The family office owned by the Alcaraz family has purchased the building located on Calle Velázquez 23 – which used to house the headquarters of Caja España – from Banco Ceiss, where it plans to construct luxury homes.

The financial entity, which was created as a result of the merger of Caja Duero and Caja España, has taken advantage of the increase in prices driven by the economic recovery in Spain and the lack of high quality products to sell this iconic asset, located in the heart of the Salamanca neighbourhood. The operation has been advised by Aguirre Newman.

The Alcaraz family plans to demolish the property and build a new residential development, but it will respect the façade and arquitectural value of the asset. Velázquez 23 has an above ground surface area of 2,548 m2, as well as 450 m2 of basement space, which may be used for retail purposes and parking.

This building is located on one of the most sought-after axes for the development of high quality residential properties, just a stone’s throw from the Retiro Park and Calle Serrano, which is home to lots of major luxury brands. The price of homes in this area exceeds €10,000/m2 in some cases.

Other developments

This project is the latest in a long line of luxury developments that are already on the market, such as the one on José Abascal 48, comprising 17 homes with a surface area of between 100m2 and 400 m2; as well as others that are underway at Juan Bravo 3 and Canalejas.

The former, now known as Lagasca 99, which is being promoted by the Lar Group, is located in the neighbourhood of Salamanca and is expected to be sold in 2018. Meanwhile, the group of seven properties in Canalejas, a project being undertaken by Inmobiliaria Espacio and OHL, is located between Calles Alcalá, Sevilla, Plaza de Canalejas and Carrera de San Jerónimo. In addition to a hotel and shopping arcade, the Canalejas plan includes 22 luxury residences, which will be operated by the Four Seasons chain, along with the hotel.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Villar Mir Receives Approval To Resume Work At Canalejas

24 May 2016 – Cinco Días

The Canalejas Complex has returned to cruising speed after overcoming one of the obstacles that stood in its path. In April 2015, the Local Heritage Committee (comprising the Town Hall of Madrid and the regional Government) opened an investigation into the construction work that the Villar Mir Group was carrying out, after it detected that damage had been caused in the first bay (the space between load-bearing walls). After months of work, it completed its investigation in January 2016 – confirm sources at the company – and so Villar Mir was allowed to continue with the building work at the site, which will house a Four Seasons Hotel, luxury homes and a shopping arcade right in the centre of the capital.

“The investigation into the first bay was resolved and the suspension (of the building work) was lifted”, explain sources at OHL, the listed company that forms part of the Grupo Villar Mir and which is responsible for developing this complex. The Committee’s investigation was opened by municipal technicians when Ana Botella (PP) was still the mayoress. Sources at Estudio Lamela Aquitectos, which was appointed to design Canalejas, confirm that the construction work has continued as normal since then.

The problem arose when part of the bay, located in a small area, threatened to break off, say sources at the company chaired by Juan Miguel Villar Mir. For the time being, although the investigation has been closed, they do not know whether the listed company will face any financial penalties in the future.

The team led by the Government of Manuela Carmena (Ahora Madrid) has also granted OHL a structural licence to raise the frame of the building, and so construction work has continued apace during the first few months of the year. “We received the structural licence in January”, say sources at Estudio Lamela. “That licence has allowed us to carry out the work that is visible from the outside”, say sources at OHL. Now the only licence pending is the one relating to the completion of the refurbishment.

The project was unblocked at the end of last year by political and legal means. On the one hand, a trial judge dismissed the application to suspend the building works, which had been filed by a company that alleged that it had signed a previous sale and purchase contract with Santander. Villar Mir ended up acquiring this central block for €215 million and whereby took ownership of the properties in the Canalejas area, next to Puerta del Sol.

On the political side, after Carmena took over the reins of the city, the Town Hall decided to review the project and it opened a negotiation table with the company and the regional Government. In October, the parties agreed to reduce the volume of the block at its highest point so as to reduce the visual impact. The agreement meant that the listed company had to relinquish its plans for the height of the building in order to unblock the construction work and accept a lower return on the project.

The last remaining stumbling block now is the public prosecutor, which is continuing its investigation, following a claim by the Madrid, Ciudadanía y Patrimonio Association that an alleged crime has been committed against the historical heritage of the city during this refurbishment.

The renovation involves seven adjoining properties located between Calles de Alcalá, Sevilla, Plaza de Canalejas and Carrera de San Jerónimo. For the last few decades, those historical buildings have housed the headquarters of financial institutions such as Banesto, Central Hispano and Zaragozano.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Juan Bravo 3 Plot Worth 7% More Than 12 Months Ago

6 March 2016 – El Confidencial

The recovery of the real estate market is starting to be reflected in the income statements of real estate companies and Socimis, especially in the value of their assets. According to information submitted to Spain’s National Securities Market Commission (CNMV) by Lar España, the famous plot of land located on Calle Juan Bravo, 3, which is going to be home to the most exclusive luxury housing development in the capital, has risen in value by 7% in the last year.

The Socimi has owned 50% of the land, alongside the US manager Pimco since the beginning of 2015, when both companies joined forces to buy Eurosazor (the development company created by Rafael Ortiz and the businessman Fernando Fernández Tapias) which owned the 26,203 m2 plot on Juan Bravo, 3 and another 5,318 m2 plot on Claudio Coello, 108.

Lar and Pimco acquired both residential assets for €120 million, in such a away that the purchase amounted to €60 million for each plot. Six months later, in June 2015, the consultancy firms JLL and C&W valued the plots at €61.3 million, and by the end of last year, that figure had increased to €64.35 million, up by 7.1%. This increase in value is explained not only by the recovery of the residential market, but also the scarcity of plots of land and new homes on the market in the neighbourhood of Salamanca, the most sought-after by wealthy individuals, both domestic and international – especially Venezuelans.

This increase in value has been generalised for the whole of the Socimi’s portfolio. The value of the assets acquired between its debut on the stock exchange and 31 December 2015 amounted to €898.9 million, in other words, €46.2 million more than their combined acquisition prices, which represents an increase of 5.4%. By type of asset, besides residential, Lar’s shopping centres have increased in value by 4.4%, its office are up by 6.6% and its logistics centres are up by 11.1%.

Juan Bravo, 3 is, nevertheless, one of the most important assets in the portfolio, at least from the media’s point of view, given that the market has been waiting for work to begin there for more than a decade. (…).

The demolition work is about to begin

Now… the project is increasingly closer to becoming a reality, after it recently received the licence from the Town Hall of Madrid that will allow it to demolish the basements and consolidate the land. This is the first step to obtaining the construction permit and, therefore, the definitive launch of the project, which will be designed by the Madrilenian architecture firm Rafael de La-Hoz (see photo above).

Although the details of the project have not been revealed yet, all indications are that around one hundred homes measuring between 250 m2 and 450 m2 will be constructed on the 2,250 m2 plot of land, which has a buildable capacity of 26,000 m2. Prices could reach, on average, €10,000/m2, with the most affordable homes averaging around €8,000/m2 and the most elite averaging around €14,000/m2. (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Patrizia Acquires Claudio Coello 108 For €22M

3 February 2016 – El Confidencial

Yesterday (Tuesday), the German fund Patrizia Inmobilien completed the purchase of a residential building on Claudio Coello, 108 for €22 million, from Grupo Lar and Pimco, according to sources close to the deal.

Specifically, the property, which is currently vacant, has a surface area of 5,318 m2 and previously formed part of the operation to purchase Juan Bravo, 3. In fact, the building is located just a few metres from that plot, which houses one of the most highly anticipated luxury developments in the capital. The building acquired yesterday will be converted into 14 luxury homes, measuring 300 m2 each, with two or three parking spaces per flat.

According to the latest report prepared by TecniTasa, these homes could have a market value of around €10,900/m2. Patrizia Inmobilien will undertake a complete renovation of the property, which will require an additional investment of €7.5 million – equivalent to around €1,500 per m2 – and the company expects the building work to take 18 months.

Patrizia is one of the largest investment funds in Europe, with a presence in 14 countries and total funds under management of €18,000 million. 40% of its portfolio is invested in residential assets, equivalent to approximately €8,000 million.

The fund arrived in Spain last year, led by Borja Goday, the head of Patrizia in Spain, and the former CEO of Sotogrande, with the intention of investing €1,000 million in the Spanish market. It closed its first operation in July last year with the purchase of the H&M store in Málaga from the Nergosa group and it raised its profile further by participating in the bid for Torre Espacio.

With this operation, the fund becomes one of the new players in the luxury residential market in the capital and demonstrates its strong commitment to the real estate recovery in Spain, given its conservative profile, in comparison with the speculative capital that has entered the market in recent years.

BDO has advised the vendor, whilst the firms CMS Albiñana and MMM have advised the purchaser.

Original story: El Confidencial (by R. Ugalde and E. Sanz)

Translation: Carmel Drake