Unemployment to Fall to Pre-Crisis Levels in Madrid

3 December 2019 – The Community of Madrid has had a series of years of growth above the average for Spain as a whole. According to the forecasts by BBVA Research, Madrid had the highest regional growth in 2018 and will continue to do so in 2019 ad 2020. Thus, in 2020, unemployment in Madrid is expected to fall to pre-crisis levels, which, until now, had only been done in the Balearic Islands and the Canary Islands.

BBVA Research stated that GDP in the Community of Madrid is expected to grow by 2.6% this year, a significant reduction in the pace of growth compared with last year (3.7%). The regional average for the country as a whole, however, only reached 1.9%. Next year, growth in Madrid is expected to fall to 2.2%, compared to the Spanish economy at 1.6%.

Original Story: Expansión – Pablo Cerezal

Adaptation/Translation: Richard D. K. Turner

Idom Hires Savills to Sell its Headquarters in Madrid and Bilbao

3 December 2019 – The Basque engineering firm, Idom, has given a mandate to the consultancy Savills Aguirre Newman to sell its headquarters in Madrid and Bilbao. The firm intends to stay on in the offices, in what is known as a sale and leaseback operation.

The firm’s headquarters is located in the neighbourhood of Montecarmerlo in Madrid, while the property in Bilbao is on the Deusto canal in front of Zorrotzaurre.

Idom is reportedly negotiating with two investment funds. The sale could potentially be worth more than €80 million.

Original Story: Expansión – Rebeca Arroyo / Marian Fuentes

Adaptation/Translation: Richard D. K. Turner

General de Galerías Comerciales to Acquire 146,000-M2 Plot of Land in Valdebebas

2 December 2019 – The Valdebebas Compensation Board has approved the sale of a 145,790 square meter plot of land to the socimi General de Galerías Comerciales (GGC) under its Urban Action Program (PAU) for the district in Madrid. Details of the transaction, however, were not announced, though it is believed that the socimi would have paid over 200 million euros.

GGC plans on building a new commercial complex on the site, including 36,500 square meters of offices and more than 24,500 square meters of green areas and parks.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Mercal Inmeubles Sells Two Stores in Madrid for €1.7 Million

2 December 2019 – Mercal Inmuebles has finalised its first sale of assets, selling two commercial premises in Madrid for 1.7 million euros. The two conjoined properties are located at Calle Guzmán el Bueno 16, on the ground floor and mezzanine levels of the building.

According to Ibertasa, the stores were valued at approximately 972,000 euros just last year, up from 903,000 euros in 2013. The assets together have 307 m2 and are currently leased to Bankia. Mercal had already had the assets in its portfolio for a decade.

Original Story: Idealista – David Martínez

Adaptation/Translation: Richard D. K. Turner

Mabel Villa de Paris: the Most Expensive Flats in Spain

2 December 2019 –

Sales of Spain’s most expensive new luxury apartment building, located in Madrid, have already begun and only one flat is still left for sale. The Mabel Villa de Paris development is under construction in a heavily-guarded area next to the country’s Supreme Court building.

The Mabel Villa de Paris, a former 19th-century building with a protected façade, is located on Calle General Castaños. Mabel Real Estate, a subsidiary of Mabel Capital, is in charge of the development, where flats are being sold for between €15,000-20,000 per square meter. The building will have just 12 three-to-five bedrooms flats, along with a spa and fitness centre. Marta Ortega, the daughter of the owner of Inditex, will live in the penthouse.

Original Story: Idealista – David Martínez

Adaptation/Translation: Richard D. K. Turner

Trinitario Casanova Loses Court Battle Over the Hotel Plaza España

2 December 2019 – Trinitario Casanova, an executive based in Orihuela who is the head of the Murcian Baraka Group, lost another round in his lawsuits against the RIU hotel chain. Casanova has been battling in court since an operation in which he intervened to buy the Edifício España in Madrid from Chinese investor Wanda and, simultaneously, sell it to the Mallorcan firm to turn it into a hotel. The courts had already ruled against the executive in May when RIU was allowed to open the hotel. Now the latest ruling stated that the Baraka Group did not have a repurchase option on the ground-floor commercial premises.

Original Story: Alicante Plaza – David Martínez

Adaptation/Translation: Richard D. K. Turner

ASG Homes to Invest €40 Million in New Rental Flat Project in San Sebastián de los Reyes

25 November 2019 – The Spanish subsidiary of the German developer ASG, ASG Homes, through its Fund VI investment vehicle, has finalised a deal to acquire enough land in San Sebastián de los Reyes (Madrid) to build more than 300 loft-style homes. The new rental housing project will involve a total investment of approximately 40 million euros.

With the acquisition, ASG Homes now boasts a 1,500-unit portfolio of rental flats, which it has built up in roughly a year and a half.

Original Story: El Economista – Alba Brualla

Adaptation/Translation: Richard D. K. Turner

Investments in the Build-to-Rent Sector Skyrocket in 2019

21 November 2019 – Investment funds and socimis active in the Spanish real estate market are increasingly investing in the residential build-to-rent sector. The constrained supply of rental housing and growing prices have led to funds and socimis like Ares, Vivenio, Azora and others to pile into the growing market.

Direct investment in the year to September reached €1.8 billion and are forecast to total €2.5 billion by the end of the year. In 2018, investment for the year as a whole reached just 900 million euros.

Funds and Socimis Invest in New Developments

The of the larger operations this year include a partnership between Aedas and Ares to sell four turn-key developments, with a total of 500 homes, in Torrejón de Ardoz, Alcalá de Henares and El Cañaveral (Madrid). Ares also recently acquired a portfolio of 400 homes to the east of Madrid. Stoneweg, for its part, will transfer a 300-flat development in Tetuán, Madrid, to M&G, while Vivenio is investing in a 340-home project in the growing area of Mahou-Calderón.

At the same time, Vivenio and Azora have joined forces with Áurea to develop projects in Móstoles and Cañaveral. Acciona, meanwhile, has finalised a deal to build 135 homes with Axa in Méndez Álvaro. Lastly, TPG is investing in a 391-home development called the Sardes project.

Financing for the developments usually takes the form of either forward funding or forward purchases. The former, which is used by investors looking for higher returns, and risk, usually involves an investor acquiring land from a developer subject to a pre-let but where the development has not been carried out. The developer will construct development paid for by the fund with an additional, profit-related, payment to the developer at completion. Forward purchases, which are considered more conservative, have the developer assume all costs until delivery.

Original Story: Expansión – Rebeca Arroyo

Adaptation/Translation: Richard D. K. Turner

Ares Acquires a Portfolio of Rental Homes to the East of Madrid

21 November 2019 – Ares has finalised the acquisition of a portfolio of 401 rental homes in the vicinity of Alcalá de Henares. The homes are in a new residential area that has easy access to Spain’s capital, Madrid, via the A-2 motorway and public transport.  

The acquisition is set to significantly increase the supply of rental homes in the area. Colliers advised Ares on the transaction.

Original Story: El Economista – Alba Brualla

Adaptation/Translation: Richard D. K. Turner

CBRE Global Investment Partners and IBA Capital to Sell Gran Vía 18 in Madrid

19 November 2019 – CBRE Global Investment Partners and IBA Capital announced their intention to sell the property located at Gran Vía 18, in Madrid for an estimated 70 million euros. The two firms acquired the asset in 2017 for €44 million and have since implemented a major renovation.

The building, which is on the corner of Calle Clavel, will become a mixed-use retail and office building. The retail side of the asset, which has a basement and seven above-ground floors, is large enough to accommodate a flagship store of a major retailer.

Original Story: El Economista – Alba Brualla

Adaptation/Translation: Richard D. K. Turner