Tag: M-30 ring road

KCRE Acquires 5,600 m2 Office Building in Madrid

18 December 2017 – KCRE Press Release

Kefren Capital Real Estate (KCRE) has closed the acquisition of an office building located on Calle Juan de Mariana, 15 (Madrid). The property was Grupo Segur Iberica’s headquarters until the company filed for insolvency during the summer. PwC, the receiver administering the liquidation proceedings, awarded the asset to Kefren Capital, as the winner of a competitive bid process.

The building was completed in 1994 and comprises c. 3,600 m2 above ground, spread over 5 floors, and more than 2,000 m2 below ground, including 39 parking spaces. “The building is very flexible – it would be ideal as the headquarters for: a company wanting a central location at a competitive rent; a co-working office in the south of Madrid, very close to the high-speed train; or as a mixed-use building offering the possibility of servicing last-mile logistics thanks to a loading dock at street level” states Pelayo Primo de Rivera, CEO of KCRE.

It is located in the Méndez Álvaro-Delicias district, a consolidated business area home to large companies such as Repsol, Amazon, Gas Natural, Ericsson, CLH and Mahou, with excellent public transport and road connections. The building is just a 15-minute walk from Atocha train station and Parque del Retiro (to the north), and a 5-minute drive to the M-30 ring road (to the south).

Over the last 10-15 years, Méndez Álvaro has benefited greatly from the general gentrification of Madrid’s southern neighbourhoods and the comprehensive supply of services that new office and residential developments have brought with them.

KCRE has been advised by Araoz y Rueda on legal matters and Mace on the technical side. The c/Juan de Mariana 15 office building is the 4th successful value-added transaction that Kefren Capital Real Estate has completed in 2017.

Kefren Capital Real Estate

KCRE is a real estate asset management company created in 2012 by the investment firm Kefren Capital. KCRE offers investors the full range of services required for real estate transactions: sourcing, analysis, financing structuring, deal negotiation and asset management. What differentiates KCRE from other platforms is its ability to co-invest and its investment philosophy – assets are managed from the perspective of the owner and not simply as a third-party manager.

Original story: KCRE Press Release (by Pelayo Primo de Rivera)

Translation: Carmel Drake

Axiare Seeks Tenant For Its Newly Renovated Office In Madrid

21 December 2016 – Expansión

The Socimi in which Colonial owns a stake has put the office building that it owns on c/Ramírez de Arellano up for rent. The property, which has a surface area of 10,515 m2, has been undergoing renovations for the last year.

The Socimi Axiare Patrimonio has accelerated its investments as 2016 draws to a close. The company, which has a significant cash balance after doubling in size last year, has closed acquisitions amounting to around €180 million in the last month and a half, including the purchase of the corporate headquarters of both Cuatrecasas and McKinsey. It is also negotiating the purchase of the Vocento group’s offices for another €35 million, say sources in the sector.

Besides expanding its real estate portfolio, which is worth more than €1,200 million, the Socimi is working to improve its assets and to that end, has invested tens of millions of euros over the last few months. These projects include the building on Ramírez de Arellano, 15. Axiare acquired the building last year for €16.5 million and in May 2016, the Socimi whose largest shareholder is the real estate company Colonial, engaged the consultancy firm Colliers to undertake the complete renovation of the property, which was completed just two weeks ago. “The complete renovation, which was designed and executed by Colliers International, has transformed Ramírez de Arellano, 15, into a modern and functional building, with high quality specifications that fulfil the most demanding requirements in terms of sustainability, energy efficiency and technology”, say sources at the consultancy.

After 8 months of construction work and an investment of around €3 million, the new office building has a surface area of 10,515 m2, spread over seven floors and 108 parking spaces, distributed over two underground parking floors”. There is a lot of interest for the office given its location, in the Arturo Soria neighbourhood, where the A-2 highway meets the M-30 ring-road”. The objective is to lease it in its entirety to a single company looking to locate its corporate headquarters there, according to the heads of the project.

During 2016, Axiare has signed 24 lease contracts covering a gross leasable area (GLA) of more than 100,000 m2. That figure that will soon increase by another 11,000 m2 (…).

The arrival onto the market of the office on c/Ramírez de Arellano comes at a time of shortage of office products in certain areas of Madrid, which has driven by rents in the prime area of the capital. In this way, prices in the CBD (central business district) increased by 6% YoY during the third quarter to amount to €27.5/m2/month, whilst theoretical prices in the prime areas outside of the M-30 ring-road and in secondary areas rose by 4% on average.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Supply Of New Homes In Madrid Increases By 68%

6 May 2016 – Knight Frank

We are talking about a changing trend in the new build residential market in Madrid. The projected supply is increasing significantly – up to 68% more construction permits were granted in 2015, the third consecutive year of increases – but that volume is still insufficient to satisfy demand. This is the main finding from the latest report about new-builds from the real estate consultancy firm Knight Frank.

Currently, the municipality of Madrid has a stock of around 3,000 new homes. 30% are located inside the M-30 (ring road), where supply is limited due to the shortage of land. The area between the M-30 and M-40 ring roads is home to 20% of the supply, whilst the remaining 50% is located, for the most part, in the PAUs.

The average absorption rate of the product supplied over the last year has been 37%. Most of this absorption has happened in the PAUs (12%), which indicates very reasonable levels in areas that are continuing to establish themselves.

According to Ernesto Tarazona, Managing Partner for Residential and Land at Knight Frank, “the lack of stock, together with the increase in demand has resulted in the sale of new build homes that have been on the market for years”.

In 2015, we saw how auto-promotion and cooperative activity decreased by 8%, in favour of traditional property developers. “Although it is a small percentage, the future trend points to a continuation of the positive recovery, to the extent that access for financing for property developers is more flexible”, said Tarazona.

The number of new build transactions increased by 15% with respect to the previous year. 73% of transactions were bought off plan and the remaining 27% were turn-key projects.

By area, the PAUs lead in terms of demand, with 48% and there, Valdebebas (20%) and the Ensanche de Vallecas (10%) stand out, in part due to the concentration of more affordable supply. The area inside the M-30 ring road comes next in the ranking, accounting for 23% of demand. There, the neighbourhoods of Tetuán (6%), Centro (4%) and Chamberí (4%) are the most popular. Finally, the area between the M-30 and the M-40 receives 18% of demand and the area beyond the M-40 accounts for 11%.

Original story: Knight Frank

Translation: Carmel Drake