Bankinter’s Socimis Manage Assets in Spain Worth €850M

23 April 2019 – Idealista

Bankinter currently has two Socimis operating in the Spanish market, Ores Socimi and Atom Hoteles Socimi. Between them, they manage a real estate portfolio worth more than €850 million, according to the latest reports filed by the entities with the Alternative Investment Market (MAB).

The hotel Socimi, controlled by Bankinter and GMA, has the largest portfolio, comprising 21 assets located all over Spain and worth €489.2 million at the end of 2018.

Almost 60% (12) of the hotels are vacation properties and the rest (9) are urban establishments. For the time being, the hotels are mainly concentrated in the Balearic Islands, Canary Islands and Andalucía, but the company is preparing to expand overseas, where it seeks to acquire establishments in the USA, France, Italy, Germany and Greece.

Meanwhile, Ores, which is jointly controlled by Bankinter and the Portuguese giant Sonae Sierra, owns a portfolio of 35 retail assets worth €362.5 million as at 31 March 2019.

Ores’s portfolio is well diversified by asset type, size and location, with occupancy rates of almost 100%. The properties include hypermarkets, supermarkets, retail parks and high street stores leased to chains such as Continente, Mercadona, Inditex, Media Markt and Mango.

Original story: Idealista (by Custodio Pareja)

Translation/Summary: Carmel Drake

Moraleja Green Gets a Makeover with 19 New Stores

7 March 2019 – Expansión

Moraleja Green, the shopping centre located in Alcobendas, in north  Madrid, saw its visitor numbers increase by 12% in Q4 2018, following the completion of a €12 million renovation project by its owner Kennedy Wilson. The US fund purchased the shopping centre, which has a surface area of 30,200 m2 and 1,300 parking spaces, from ING in 2015. Following its renovation, the medium-high end retail space opened 14 new stores last year and will welcome five more in 2019, with brands such as Mango, Dolores Promesas, Scalpers Women, Poete and Parfois all opening premises.

Shopping centres in Spain are enjoying something of a renaissance, despite the surge in online shopping. They offer consumers a plethora of in-person entertainment options besides retail, including gastronomic, leisure and sports facilities.

In particular, Moraleja Green’s renovation has allowed it to expand its gastronomic offering to include Tierra Burrito, Pizza Jardin and NYB restaurants, amongst others. The shopping centre also offers charging points for electric vehicles and access to wifi throughout its premises.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Mango’s Owner Sells a Logistics Warehouse in Barcelona to Jevaso for €25M

28 February 2019 – Idealista

Isak Andic, the owner of Mango, has sold its former distribution hub in Parets del Vallès, Barcelona to the logistics operator Jevaso for €25 million. The warehouse has a surface area of 35,000 m2 and the deal was actually completed in the second half of 2018.

Mango’s expansion means that the firm no longer needs this plant, in which it invested €45 million initially. It has already been replaced by the fashion retailer’s current complex in Lliçà d’Amunt.

Jevaso is one of the largest operators in the Spanish logistics sector and provides services to large fashion groups across the country.

Original story: Idealista

Summary translation by: Carmel Drake

Finestrelles Shopping Centre Opens with a 98% Occupancy Rate

27 November 2018 – Eje Prime

The Finestrelles shopping centre has fired the starting gun. The complex, located in the Catalan town of Esplugues de Llobregat, on the outskirts of Barcelona, has opened its doors today after two years under construction.

Finestrelles, which has a commercial surface area of 40,000 m2, spread over five floors, has opened with an occupancy rate of 98%. The complex contains 110 stores, with tenants of the calibre of JD Sports, Mango, H&M, Zara and other Inditex chains.

For the construction of the shopping centre, which is owned by the Belgian real estate firm Equilis, an investment of €120 million has been made and 1,500 direct and indirect jobs are expected to be generated. Moreover, the complex is expected to attract 8 million visitors during its first year given that it is located along one of the main entrances into Barcelona.

Initially, Finestrelles was scheduled to open at the beginning of October, but according to the construction firm, due to the poor meteorological conditions, a decision was taken to delay the opening until the end of November.

Original story: Eje Prime 

Translation: Carmel Drake

Invesco Buys 2 Warehouses in Madrid’s Prime Logistics Area from GreenOak

21 November 2018 – Eje Prime

Invesco is raising its commitment to the Spanish logistics sector. The British real estate group has purchased two warehouses located in the Puerta de Madrid Logistics Park from the US fund GreenOak. The two warehouses have a surface area of more than 38,000 m2, according to a statement from the company.

The assets are located on Calle de los Tapiceros in San Fernando de Henares, an area very close to the Spanish capital and the A-2 motorway, the busiest road in the last mile market. Invesco expects that the warehouses, which have a high degree of occupancy, will be finished by the end of the year. The operation has been advised by the real estate consultancy Cushman & Wakefield.

This new investment in Madrid, whose amount has not been revealed, follows the group’s search for a tenant for the 30,000 m2 logistics platform that it owns in Los Gavilanes, in Getafe.

Moreover, across the whole of Spain, Invesco has undertaken several operations in the logistics market over the last year. One of the most important took place last December when the real estate group acquired the facilities that house the headquarters of Mango in Palau-solità i Plegamans (Barcelona) for more than €100 million.

Original story: Eje Prime 

Translation: Carmel Drake

Mango Sells its Store on c/Corrida in Gijón & Leases it Back for €30,000/Month

28 October 2018 – El Comercio

Mango has sold the building located at number 28 Calle Corrida, in Gijón, which has housed its megastore in the city since 2015, to a domestic investor for €8 million. The Catalan multi-national textile firm acquired the iconic property, which used to house the former headquarters of Banesto, in 2014. At the time, it paid Banco Santander €6.2 million for the property. The building work for the commercial conversion of the building, which spans a surface area of 1,642 m2, spread over the ground first and attic floor, cost another almost €2 million.

On this occasion, the sale operation has been undertaken as a sale&leaseback deal (…). In other words, Mango has sold the asset on the city’s main high street but will remain there as the tenant, paying a sizeable rent to the new owner: more than €30,000 per month (…).

That is not the only change happening on Calle Corrida over the coming months. The Inditex Group is looking to relocate some of its brands onto the Golden Mile of Gijón despite the shortage of available units (…).

In terms of prices, according to Alejandro López, lawyer and director of the real estate consultancy firm Noxtrum Novotec, “the average rental price is €62/m2/month, with variations ranging from €50/m2/month to €70/m2/month”.

Original story: El Comercio (by M. Moro)

Translation: Carmel Drake

Urban Outfitters to Open Spain’s First Anthropologie Store in Barcelona

25 October  2018 – Eje Prime

The Spanish retail sector is welcoming a new international operator. After an arduous two-year search for premises on the prime high streets of Madrid and Barcelona, Urban Outfitters has found a space to launch its first Anthropologie store in the country. This debut comes four years after the US fashion group first opened its doors in the heart of the Catalan capital.

Anthropologie is soon going to open at number 27 Paseo de Gracia, in a store measuring almost 780 m2, distributed over two floors and owned by a family office. The chain is going to take over from the Italian firm Twinset Milano, which will shut down in the next few days. The rental operation has been brokered by the real estate consultancy firm Aretail.

Specifically, the ground floor of the future Anthropologie establishment has a surface area 365 m2, whilst the basement spans 414 m2. The company will share the street with luxury operators such as Fendi, Céline and Kenzo, as well as with major distribution groups such as Inditex, Fast Retailing, H&M and Mango, amongst others.

Urban Outfitters arrived in the Spanish market in May 2014, when it launched a subsidiary to manage its business in the country. That same year, the group opened the first store of its homonymous chain in the El Triangle shopping centre in Barcelona, where it replaced the home décor firm Habitat.

Two years after its first opening, the US company started to search for new locations both in the Catalan capital and in Madrid to open its first points of sale for Anthropologie and Free People, the other chain owned by Urban Outfitters. In the spring, rumours of the imminent closure of an operation were revived.

Anthropologie is the group’s largest division by turnover, ahead of Urban Outfitters itself. The female fashion chain closed 2017 with sales of $1.4 billion (€1.2 billion), up by 1.9%. That figure accounted for 39.4% of the group’s total revenues.

At the end of its last financial year (31 January 2018), the chain operated 226 stores in the USA, Canada and Europe. The company is immersed in an international expansion process, which includes an overseas growth strategy. For that reason, Anthropologie appointed Peter Ruis, the former director of Levi Strauss, as the senior director of the international business in July.

Original story: Eje Prime (by L. Molina and P. Riaño)

Translation: Carmel Drake

Madrid & Barcelona Enter Top 40 Most Attractive Global Cities for Retail

19 October 2018 – Eje Prime

Madrid and Barcelona are two of the most attractive cities in the world for retail. The two Spanish cities rank amongst the forty most attractive places for commercial activity, according to the Hot Retail Cities report, compiled by Modaes.es, with the support of Tendam and in collaboration with Instituto de Empresa.

The top 3 of the ranking features New York, Los Angeles and Singapore. Madrid and Barcelona are ranked ahead of metropolises such as Milan and Moscow, boosted by factors such as economic openness, the socio-economic environment and the presence of international operators. Moreover, in the fashion category, the two cities are also cradles of some of the world’s retail titans, such as Inditex, Mango and Tendam, and they are home to one of the largest European department store groups, El Corte Inglés.

Barcelona is ranked at number 29 on the list, scoring 425 points out of a possible total of 1,000. Tourism, the presence of fashion operators in the city, the commercial streets and their structure and geographical location are the key factors that place Barcelona within the top thirty hottest cities on the planet. In recent years, the city has become a gateway for major international retailers, such as Uniqlo, which chose the city for its debut in Spain.

Meanwhile, the Spanish capital is positioned at number 36 in the Hot Retail Cities ranking with 410 points. In the case of Madrid, factors that work in its favour include commercial openness, economic stability and recovery, and the multiplicity of prime thoroughfares such as Calle Serrano, Gran Vía, Fuencarral and Calle Preciados.

The criteria for compiling the ranking are grouped together under eight general points that companies assess when it comes to studying the city: demographics, economy, politics, socio-economic environment, tourism, retail, fashion and trendy cities. In addition, analysis criteria are included about the more or less optimal conditions of each city for international retailers.

Original story: Eje Prime 

Translation: Carmel Drake

Tritax Purchases Mango’s Logistics Centre from VGP for €150M

26 September 2018 – Expansión

Less than two years is the time that Mango’s logistics platform has been in the hands of the Belgian group VGP. In December 2016, the Brussels-based firm paid €150 million for the logistics complex that Mango had built in Lliçà d’Amunt (Barcelona) and which has a surface area of 250,000 m2 together with some adjoining land on which an additional 100,000 m2 may be built.

According to sources speaking to Expansión, VGP has just sold the asset to the British group Tritax Big Box, a firm listed on the London Stock Exchange.

The buyer of the complex, which Mango inaugurated in the middle of 2016, is a real estate investor specialising in the logistics market. Some of its largest properties include logistics platforms leased to large companies such as Amazon, Unilever, Kuehne+Nagel, L’Oréal, Hachette, Whirlpool, Kellogg’s, Tesco and DHL.

At the end of 2017, Tritax’s portfolio was worth GBP 2.61 billion (€2.92 billion at current exchange rates), 38.1% more than the previous year. Tritax has been advised by the law firm Ashurst in what has been its first operation in the Spanish market. VGP has been advised by the real estate consultancy firm JLL.

Last summer, Tritax raised €300 million through a public offer for sale on the London Stock Exchange. The objective of its managers is to use that money, together with external financing, to acquire logistics properties in Continental Europe.

“Barcelona is the second largest city in Spain and its logistics market is one of the strongest in Europe, with high demand and a limited supply of buildings and land, especially for logistics assets of this kind”, said Nick Preston, manager of Tritax Eurobox, in a statement.

The lease contract for the logistics centre, which has a surface area of 186,138 m2, has a 30-year term, until 2046, although Mango has the option to cancel it in 2036, 2039 and 2042. According to Tritax, the annual rent that Mango pays will allow it to obtain an annual yield of 5%.

Isak Andic decided to build this logistics platform in response to the increase in sales that the fashion chain was experiencing, although that growth has slowed in recent years.

Last year, Mango recorded losses of €33 million, down by 46% compared to 2016, the year in which the company recorded negative results for the first time in its history, with losses of €61 million. In 2017, sales decreased by 2.9%, the same drop as the previous year, and amounted to €2.194 billion.

Divestment

The sale of the logistics centre was the first divestment that Andic made after investing a large proportion of his profits in the real estate sector in previous years. But it was not the last, given that a year later, in December 2017, he sold the chain’s headquarters, located in Palau-solità i Plegamans (Barcelona) to the British group Invesco for €100 million.

Original story: Expansión (by M. Anglés, S. Saiz & R. Casado)

Translation: Carmel Drake

Torre Sevilla Shopping Centre to Open in September with 92% Occupancy Rate

20 July 2018 – Eje Prime

Torre Sevilla is getting ready to open with almost a full house. The complex in the city of Sevilla, which will open its doors in just two months time, has commercialised 92% of its space. In recent weeks, the managers of the complex have agreed the entry of several new operators.

In the field of fashion, H&M, Parfois and the jewellery chain Time Road are going to open stores in Torre Sevilla, following in the footsteps of other groups such as Primark, Mango, Women’s Secret, Springfield, Calzedonia and Foot Locker, amongst others.

The shopping centre has also announced the arrival of the supermarket chain Día, as well as several telecoms operators, including Movistar and Vodafone. The gastronomic offer is going to comprise companies such as Udon, Vips, La Tagliatella, Burger King and the bakery chain Granier.

The opening of the complex will complete the Torre Sevilla architectural project, in which CaixaBank has invested more than €320 million. In addition to a shopping centre, Torre Sevilla contains an office block, the Eurostars Torre Sevilla hotel, CaixaForum Sevilla and Magallanes Park.

Designed by the Argentinian architect César Pelli, the retail complex comprises two large buildings, which span a gross leasable area (GLA) of 26,700 m2 and a constructed surface area of 43,000 m2.

Original story: Eje Prime

Translation: Carmel Drake