Amenabar Joins Forces with Ares to Invest €110M in Construction of 400 Build-to-Rent Homes

17 January 2020 – El Confidencial

Amenabar Promociones has signed the largest build-to-rent operation to date in Spain with the fund Ares. Together, they are going to invest more than €110 million in the construction of more than 400 rental homes in Valdebebas, Madrid.

The homes are going to be built on a plot that Amenabar acquired at the end of 2019 from Ferrovial for €56 million. The Basque, family-owned, property developer made its debut in Madrid’s residential market five years ago and handed over more than 1,000 new homes last year. In 2020, it plans to increase that figure to almost 1,600, a volume that it hopes to maintain for the next couple of years, which will see it outperform many of its listed competitors.

With this operation, Amenabar is following in the footsteps of companies such as Aedas, Metrovacesa, Quabit, Momentum and Urbas, which have all committed to projects in the build to rent sector in recent months.

Meanwhile, Ares has become one of the most active funds in this segment of the market. For example, Aedas is going to build 500 rental homes for Ares (€70 million); and Metrovacesa is going to construct another 121 homes for the fund (€29 million).

The appeal of the segment lies in the attractive returns that rental homes are currently generating. In Q2 2019, the average gross yield on rental homes across Spain amounted to 3.9%, according to official data from the Bank of Spain, which is much higher than the return on bonds and other prime real estate assets, such as offices and high street premises. Moreover, various cities and neighbourhoods offer even higher returns e.g. Madrid Capital (5.06%) and the Villaverde neighbourhood (8.43%).

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Partners Group Negotiates the Purchase of 5 More Office Buildings from Meridia Capital

10 January 2020 – El Confidencial

The Swiss manager Partners Group is in talks with Meridia Capital, led by the Catalan businessman Javier Faus, with a view to purchasing half of the office portfolio that Meridia put up for sale at the end of last year.

The two players enjoy a close relationship following a deal closed last April, which saw Partners acquire a portfolio of 18 offices from Meridia for €215 million, and the Socimi continuing to manage the portfolio.

A similar arrangement could be sought this time around. The portfolio on the table in 2020 comprises a dozen offices in Madrid and Barcelona worth around €200 million, although Partners is only interested in half of the properties.

Both parties declined to comment on the reports of a potential sale, however, sources in the know confirmed that a due diligence process has begun on five of the assets.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Addmeet: Investment in RE in Madrid Exceeded that in Barcelona by 2.5x in 2019

7 January 2020 – El Confidencial

According to the real estate portal, Addmeet, real estate investment in Spain amounted to €35.0 billion in 2019, of which 70% was concentrated in Madrid and Barcelona (€18.0 billion and €6.8 billion, respectively). The data compiled reflects all real estate operations amounting to more than €3 million in all sectors of the professional real estate market.

In the Community of Madrid, investment broke all records (€18 billion), exceeding the figures recorded in 2018 (€15 billion) and in 2008 (€10 billion). There, the office sector was the main driver, accounting for 61% of the total figure (€11 billion). The star transaction was the sale of Santander’s Ciudad Financiera, which the financial entity repurchased from Marme Inversiones for €3.2 billion 11 years after selling it to that same firm.

Other office-related deals included the sale of the La Finca business park to the Socimi owned by the Cereceda family for €423 million; and the purchase by Allianz Real Estate of Castellana 200 (comprising 20,000 m2 in office space and 6,500 m2 in retail area) for €250 million.

The next main drivers were the residential sector, which accounted for 11% of investment (€2 billion), boosted by the build to rent segment, and the retail sector, which accounted for 11.5% of the total investment.

Meanwhile, record figures were also recorded in the province of Barcelona (€6.8 billion) despite the “procés”. In fact,  the investment volume almost doubled that recorded in 2008 and far exceeded the total recorded two years ago (€5.6 billion).

Like in Madrid, the office sector in Barcelona accounted for most of the real estate investment (46% or €3.1 billion). The retail sector represented 11.5% (€0.8 billion), whilst the hotel segment attracted almost €1 billion (14%) and the residential segment just €0.5 billion.

Major deals in the Catalan capital in 2019 included the sale by Telefónica of Diagonal 00 to the Philippine magnate Andrew L. Tan for €150 million, amongst others.

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Almagro Capital Acquires 11 Flats in Madrid

January 2020

The socimi Almagro Capital has acquired eleven flats in Madrid for a total of 2.4 million euros. The properties are located in the neighbourhoods of Castellana, Arapiles, Palos de Moguer Trafalgar and Lavapiés. The rental flats, whose leases will remain in vigour, have a combined surface area of 1,022 square meters.

La socimi Almagro Capital ha adquirido once pisos en Madrid por un total de 2,4 millones de euros. Las propiedades están ubicadas en los barrios de Castellana, Arapiles, Palos de Moguer Trafalgar y Lavapiés. Los pisos de alquiler, cuyos contratos de arrendamiento permanecerán en vigor, tienen una superficie combinada de 1.022 metros cuadrados.

Original Story: Eje Prime

Translation/Summary: Richard D. Turner

CBRE Global Investors Acquires Office Building in Madrid from LaSalle

6 January 2020 CBRE Global Investors has finalised the acquisition of the office building at Calle General Lacy 23 from LaSalle Investment Management for 47 million euros. The property houses the headquarters of Repsol’s electricity and gas business. Furthermore, LaSalle had only acquired the asset in December 2018 for 32.5 million euros.

The asset is located in the Méndez Alvaro area of Madrid, near the Atocha Station. The fund invested approximately 4 million euros in refurbishing the asset, gaining the Leed Platinum Core & Shell certification.

CBRE Global Investors ha finalizado la adquisición del edificio de oficinas en la Calle General Lacy 23 a LaSalle Investment Management por 47 millones de euros. La propiedad alberga la sede del negocio de electricidad y gas de Repsol. Además, LaSalle solo había adquirido el activo en diciembre de 2018 por 32,5 millones de euros.

El activo está ubicado en el área de Méndez Álvaro de Madrid, cerca de la estación de Atocha. El fondo invirtió aproximadamente 4 millones de euros en la restauración del activo, obteniendo la certificación Leed Platinum Core & Shell.

Original Story: El Economista – Alba Brualla

Translation/Summary: Richard D. Turner

Deutsche Hospitality to Open the Zleep Hotel Madrid Airport

5 January 2020 Deutsche Hospitality has signed an agreement to open the first Zleep Hotel in Spain, also its first outside of Scandinavia. The 280-room Zleep Hotel Madrid Airport will in the area around the Madrid-Barajas international airport.d

Deutsche Hospitality acquired Zleep Hotels at the start of 2019 and currently runs twelve hotels in Denmark and Sweden.

Deutsche Hospitality ha firmado un acuerdo para abrir el primer hotel Zleep en España, también el primero fuera de Escandinavia. El Zleep Hotel Madrid Airport de 280 habitaciones se ubicará en los alrededores del aeropuerto internacional de Madrid-Barajas.

Deutsche Hospitality adquirió Zleep Hotels a principios de 2019 y actualmente administra doce hoteles en Dinamarca y Suecia.

Original Story:

Translation/Summary: Richard D. Turner

South Korea’s Kiwoom AM to Acquire Helios Office Complex from Blackstone

5 January 2020 Kiwoom Asset Management, a South Korean investment firm, is close to making its first acquisition in Spain. The firm is seeking to buy the Helios business complex in northern Madrid. The property is slated to be the future headquarters of Dutch multinational banking group ING.

Blackstone announced its intention to sell the complex in the middle of last year. However, political uncertainty in the country caused a slight delay in negotiations. The asset is in Campos de las Naciones, a consolidated area near the Barajas international airport. The 60,250-m2 Helios office complex, which has excellent links to the city centre, consists of two largely independent office towers.

Kiwoom Asset Management, una firma de inversión surcoreana, está cerca de realizar su primera adquisición en España. La firma busca comprar el complejo empresarial Helios en el norte de Madrid. La propiedad está prevista para ser la futura sede del banco holandés ING.

Blackstone anunció su intención de vender el complejo a mediados del año pasado. Sin embargo, la incertidumbre política en el país causó un ligero retraso en las negociaciones. El activo se encuentra en Campos de las Naciones, una zona consolidada cerca del aeropuerto internacional de Barajas. El complejo de oficinas Helios, de 60.250 m2 y que cuenta con excelentes conexiones al centro de la ciudad, consta de dos torres de oficinas independientes.

Original Story: El Confidencial – Ruth Ugalde

Translation/Summary: Richard D. Turner

BP Acquires Portfolio of Petrol Stations in Madrid

4 January 2020 The British giant BP has acquired the petrol stations belonging to the Comillas 2 Group, which is controlled by José Luis Fernández Martínez, a major shareholder in the chemical group Sniace. The portfolio includes fifteen petrol stations in the region of Madrid.

The petrol stations are considered attractive due to their elevated sales and added services. BP also acquired a portfolio of 65 gas stations in 2018 from Kingbook Capital and Petrocorner Retail.

El gigante británico BP ha adquirido las estaciones de servicio que pertenecen al Grupo Comillas 2, controlado por José Luis Fernández Martínez, uno de los principales accionistas del grupo químico Sniace. La cartera incluye quince estaciones de servicio en la región de Madrid.

Las estaciones de servicio se consideran atractivas debido a sus elevadas ventas y servicios adicionales. BP también adquirió una cartera de 65 estaciones de servicio en 2018 de Kingbook Capital y Petrocorner Retail.

Original Story: El Confidencial – Juan Cruz Peña

Translation/Summary: Richard D. Turner

Goodman Real Estate Rings Out 2019 With Acquisition in Madrid

4 January 2020 Goodman Real Estate has finalised its acquisition of a plot of land in Getafe, Madrid, from Lonestar, CaixaBank and the Masaveu family for thirty million euros. The land, where Goodman will invest 90 million euros to build a new logistics facility, is located in the southern zone of Madrid.

The deal is an example of the type of logistics operations that are driving the Spanish sector, as the rise of e-commerce and a focus on last-mile facilities are ramping up demand. According to estimates by JLL, investors ploughed a record 1.818 billion euros into the sector in 2019, an increase of 27.5% year-on-year.

Approximately 50% of the logistics facilities sold in 2019 were in Madrid, while a further 25% were located in Barcelona. Secondary markets, such as Bilbao and Zaragoza, are also gaining prominence. The increase in investor interest has also squeezed profitability in the two largest markets, falling from 5-6% to just 4.75%.

En español

Goodman Real Estate ha finalizado su adquisición de un terreno en Getafe, Madrid, de Lonestar, CaixaBank y la familia Masaveu por treinta millones de euros. El terreno, donde Goodman invertirá 90 millones de euros para construir una nueva plataforma logística, se encuentra en la zona sur de Madrid.

El acuerdo es un ejemplo del tipo de operaciones logísticas que están impulsando el sector español, ya que el aumento del comercio electrónico y un enfoque en las instalaciones de última milla están aumentando la demanda. Según las estimaciones de JLL, los inversores invirtieron un récord de 1.818 millones de euros en el sector en 2019, un aumento del 27,5% interanual.

Aproximadamente el 50% de las instalaciones logísticas vendidas en 2019 se encontraban en Madrid, mientras que otro 25% se encontraba en Barcelona. Los mercados secundarios, como Bilbao y Zaragoza, también están ganando protagonismo. El aumento en el interés de los inversores también ha reducido la rentabilidad en los dos mercados más grandes, cayendo del 5-6% a solo el 4.75%.

Original Story: El Confidencial – E. Sanz / C. Hernanz

Translation/Summary: Richard D. Turner

Patrizia to Sell Amazon’s Logistics Platform in Madrid

4 January 2020 The German firm Patrizia has decided to sell two logistics assets in Madrid. The platforms include Amazon’s logistics centre in Getafe and a warehouse in Torrejón de Ardoz. Patrizia is looking to raise 150 million euros with the sale.

Amazon’s facility in Getafe is raising the most investor interest. The 58,000-m2 asset has a long-term lease with the e-commerce giant and is located near the M-50 ring-road. Patrizia acquired the property in 2017 and paid 40 million euros to build the platform.

La firma alemana Patrizia ha decidido vender dos activos logísticos en Madrid. Las plataformas incluyen el centro logístico de Amazon en Getafe y un almacén en Torrejón de Ardoz. Patrizia busca recaudar 150 millones de euros con la venta.

Las instalaciones de Amazon en Getafe están generando el mayor parte del interés de los inversores. El activo de 58,000 m2 tiene un contrato de arrendamiento a largo plazo con el gigante del comercio electrónico y está ubicado cerca de la carretera M-50. Patrizia adquirió la propiedad en 2017 y pagó 40 millones de euros para construir la plataforma.

Original Story: Idealista / El Economista

Translation/Summary: Richard D. Turner