Triuva Wants to Spend €100M in Spain Following Its Integration into Patrizia

3 April 2018 – Eje Prime

The German fund Triuva is looking for opportunities in Spain. The company, which has just completed its integration into another German real estate company, Patrizia, is going to allocate around €100 million to the acquisition of new assets in the Spanish market. The group is currently finalising the renovation of a building on Calle Serrano, 90 in Madrid, and has already leased the 6,300 m2 of retail and office space to Maisons du Monde and Natixis, respectively.

The fund is still hungry for new assets in Spain, and so it is considering the acquisition of office buildings, commercial assets and even hotels. Currently, the Spanish arm of Triuva is fully integrated into the Spanish business of Patrizia, which has its offices on the Madrilenian street Calle Génova.

Patrizia purchased the entire Triuva business in November last year, whereby creating a real estate giant of more than €30 billion. Triuva manages some forty funds around the world and has teamed up with more than eighty institutional investors in recent years.

Triuva has around 270 assets under management, worth €9.7 billion. In Spain, the fund owns three properties in prime locations. The first, acquired during the first quarter of 2015 for €70 million, is located on Calle Preciados, 4, and is leased to the fashion chain Sfera, itself owned by the Madrid-based department store group El Corte Inglés.

Last year, the fund acquired the Adidas flagship store located on Gran Vía, 21, also in Madrid, which had been owned until then by Iberfin Capital, which is in turn, owned by Medcap Real Estate. The consideration paid for that operation was not disclosed (…).

Serrano 90, its latest project 

The Serrano 90 building, also owned by Triuva, is located in the heart of Madrid’s golden mile. 70% of its total available space is allocated to offices and the remaining 30% to commercial use; the property also has a parking lot on its lower floors. According to sources in the sector, the fund has spent around €10 million on the renovation of the asset.

At the beginning of this year, Triuva closed the rental of 6,300 m2 of retail and office space. The retail premises have been leased to the French firm Maisons du Monde, which is going to open its first flagship high street store in Madrid, to accompany the store it already has in central Barcelona.

The household furniture and accessories firm is going to lease 1,860 m2 of space in the building spread over three floors (…). Similarly, the property is going to house the headquarters of Natixis, a French corporate and investment bank, whose offices are currently located in Recoletos. Triuva and the banking institution have signed a rental agreement for 2,940 m2 of office space, as well as the terrace and 34 parking spaces in the Serrano 90 building.

Original story: Eje Prime

Translation: Carmel Drake

KKH Capital Buys ‘Art Montfalcó’ Building In Barcelona For €24M

13 November 2017 – Eje Prime

New investment operation in the heart of Barcelona. In the midst of the political uncertainty, the real estate market is remaining active. The group KKH Capital has just acquired the Art Montfalcó building, located in the heart of the historical centre of Barcelona, for almost €24 million, according to market sources. The investment fund Medcap Real Estate and the real estate group Castmor had also submitted bids for the property.

The KKH Group has acquired the property through its parent company. Moreover, the company also operates in the real estate sector through KKH Property, a joint venture formed by KKH Capital, the investment group controlled by the former CEO of Renta Corporación, Josep María Farré, and Perella Weinberg, which participates in the partnership through one of its opportunistic funds.

The building, baptised as Palau Castañer in 1906, has been sold by the Güell family; it is currently leased to the Art Montfalcó souvenir shop. The surface area of the property is 2,000 m2. According to the same sources, the objective of KKH Capital is to renovate the retail premises and negotiate with a new operator (…).

KKH Capital, which specialises above all in residential assets, will add this property to its portfolio. The group, through KKH Property, has been acquiring assets over the last few years, including some as iconic as the Deutsche Bank tower in Barcelona, located at number 111 Paseo de Gràcia, which it bought from three Andorran families (the Reigs, the Ribas and the Cerquedas) for €90 million.

After negotiating with the hotel chain Four Seasons, the group has leased that building (the Deutsche Bank tower) to Seat. In total, it will comprise 2,600 m2 spread over four floors: a basement, ground floor and two upper floors. The store will not be a typical concession, but rather is looking to become a point of reference for the city. It will include a gastronomic space and a coworking area, whose features have not yet been defined.

The establishment will open at the end of 2018. KKR will undertake a major renovation of the building, for which it will engage the architecture firm OAB, led by Carlos Ferrater, author of the Olympic Village in Barcelona and the Catalunyan Palau de Congressos, amongst others.

One of its other most recent acquisitions is the Monte de Piedad building, located in Madrid. In that case, the group reached an agreement with the Fundación Montemadrid at the end of last year to buy the property for around €80 million. KKH’s plans for that property involve converting the asset into a luxury hotel.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

The Valencian ‘De Andrés’ Family Creates New RE Company

10 November 2015 – Expansión

The Valencian De Andrés family has grouped together all of its properties into a single company. It owns Louis Vuitton’s flagship stores in Madrid and Barcelona, amongst other iconic buildings.

A new real estate company is beginning its journey in the Spanish market. It is called Medcap Real Estate and it was created just a month ago, but it already owns assets worth €420 million. The origin of this prolific portfolio? The real estate investments built up by the Valencian De Andrés Puyol family over more than two decades.

“We are a family company, a newco, but with a 24-year history developing iconic retail projects”, explains Dimas de Andrés (pictured above), the CEO of Medcap Real Estate. “We have grouped together all of the assets that used to be spread across several subsidiaries into one new company, with the aim of specialising and growing more efficiently and more quickly”.

The new real estate company will continue to perform the activity that has allowed the De Andrés family to become the owners of some of the most important retail buildings in Madrid and Barcelona and to be the landlord of companies such as Apple, Desigual and Louis Vuitton. (…).

Currently, Medcap’s portfolio comprises 25 properties worth €420 million, according to the real estate consultancy Savills and the audit firm Grant Thornton. “Most of our properties are located in Madrid and Barcelona, but we also own some in Valencia and Murcia. They are all flagship stores and they are almost all rented out, with rental charges in excess of €2 million”, says Jorge Puyol, Head of the Retail Business at Medcap.

“We have always grown in an organic way and have always reinvested, which has allowed us to grow in terms of both investment volumes and number of assets”, adds De Andrés. 90% of Medcap’s portfolio has been acquired and developed between 2008 and 2015.

Investment

The family real estate company, which tends to work on two to three projects per year, is preparing to make new investments in the short term. “We have a very impressive pipeline of projects to invest in several properties in Madrid and also in Barcelona”, explains the CEO.

The new real estate company will have to compete with funds and Socimis for the best buildings, as those players are currently inundating the Spanish investment market. (…).

Profits

In terms of returns, “we expect to generate profits of around €40 million in 2016, in line with the historical average of the different subsidiaries over the last five years”, adds De Andrés.

With Medcap, the De Andrés family is also considering making investments overseas at some point in the medium term. (…).

However, Medcap has ruled out the possibility of becoming a Socimi. “That structure does not appeal to us because the requirements it imposes (of buying a building and then renting it out) are not compatible with our business model, since we do not always buy finished products”, says the CEO. “For the time being, we would rather operate as a boutique real estate company”.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake