Meridia Buys Assets In Madrid & Toledo For €40M

25 July 2017 – Expansión

The fund manager Meridia Capital will invest €40 million on the purchase and refurbishment of two office buildings in Madrid and a logistics warehouse in Seseña (Toledo), according to a statement issued by the company.

The logistics platform in Seseña, acquired by one of the funds of the manager, Meridia II, occupies a surface area of 40,000 m2. One of the office buildings in Madrid, which has a surface area of 4,000 m2 and 70 parking spaces, has been acquired by Meridia II and the other one, which spans 8,300 m2 and has 140 parking spaces, has been purchased by Meridia III.

The CEO of Meridia Capital, Javier Faus (pictured above) explained that the Spanish market for value added assets offers “great opportunities”. He also added that the manager expects to invest the remaining capital from its specialist funds (Meridia I, Meridia II and Meridia III) in the hotel and real estate sector over the next 12 to 18 months.

Original story: Expansión

Translation: Carmel Drake

Meridia Capital Buys 4 RE Assets For €20M

12 January 2017 – Inmodiario

Yesterday, Meridia Capital Partners announced the purchase of a portfolio of four assets with a combined surface area of 24,063 m2 – comprising one logistics platform and three retail units – located primarily in Madrid. All of the properties have been acquired by the fund Meridia II for a price of approximately €20 million.

The logistics platform has a gross leasable area (GLA) of 16,385 m2 and is located in one of Madrid’s main logistics areas (CLA, Getafe), which is home to several high profile logistics centres and companies (for example DHL, Decathlon, Flex, Conforama).

The three retail units have a combined GLA of 7,678 m2 and are leased to well known food retailers such as Mercadona – the market leader in Spain – and Día – which is the third largest player in its sector.

Launched in 2014, Meridia II is a €150 million real estate fund specialising in the logistics, retail and office sectors in Spain. Following this latest deal, the fund has now invested almost all (94%) of its available capital.

Juan Barba, Partner and Managing Director of Real Estate at Meridia Capital, said “This transaction is another example of the good opportunities for adding value that are currently available in the Spanish market. The presence of high profile tenants in the area of the recently acquired platform is proof of its excellent location. This deal strengthens our exposure to the Spanish retail/logistics sectors and complements our previous acquisitions, including a warehouse in Valencia, as well as the Consum and Aecus portfolios. Through this transaction, we incorporate the seventh Mercadona unit into our portfolio, whereby consolidating our relationship with the leading food retailer in Spain”.

In this deal, Meridia Capital was advised by Aguirre Newman and Cuatrecasas, whilst the vendor was advised by CBRE:

Original story: Inmodiario

Translation: Carmel Drake

Meridia Buys 2 Office Portfolios For Its Socimi

7 October 2016 – Expansión

Meridia Capital, the fund manager controlled by Javier Faus, has gone shopping again. The company has invested around €70 million in two real estate acquisitions.

On the one hand, Meridia has acquired two office buildings located in the Viladecans Business Park complex in Barcelona. This development was inaugurated at the end of 2007 by the property developer Goodman, which specialises in business parks. It houses the headquarters of companies such as Unilever. There, Meridia has acquired two properties with a combined surface area of 23,000 sqm and 282 parking spaces. The occupancy rate of the offices is around 80%, say real estate sources.

In addition, the manager has completed the purchase of a portfolio of offices with a surface area of 17,500 sqm, spread over several properties. Most of these buildings are located in Barcelona, although the portfolio also contains one asset in Pamplona. In Barcelona, the key asset is the Alta 1 building, located in Esplugues de Llobregat, next to the headquarters of Nestlé, which is also owned by Meridia.

The occupancy rate of this portfolio, acquired from a Catalan family office, stands at 84%.

Both acquisitions will be included in the portfolio of the Meridia Real Estate III fund, which filed its request to become a Socimi in April. This fund, which was created less than a year ago with initial capital amounting to €250 million (from large international investment firms) has an investment capacity of up to €600 million. The aim is that it will list as a Socimi on the MAB in 2018.

In addition to the two latest purchases, the new Socimi owns nine buildings (eight offices and one logistics warehouse) that Meridia bought from Inmoseguros in May for €50 million.

It is not the manager’s only fund. Meridia is also finalising the closure of its Meridia II fund, launched in May 2014, with an investment capacity of €400 million.

In total, Javier Faus’ management company has invested €180 million so far this year and expects to close some more deals before the end of the year. “We want to invest another €400 million over the next 18 months”, said Juan Barba, Director General of Real Estate at Meridia Capital.

Offices

Meridia Capital’s purchases come after several other office deals in Spain in recent times, such as the acquisition of Parque Adequa in Madrid – for which Merlin paid €380 million – which reflect the recovery of this segment.

In this way, the average return on the office market in Madrid increased by 9% during the third quarter of 2016 with respect to the same period in 2015 and by 18% with respect to Q3 2014, according to a report about the office segment by BNP Paribas Real Estate.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Meridia Converts New RE Fund Into A Socimi

19 May 2016 – Expansión

The private equity manager Meridia has decided to convert its latest real estate fund, Meridia Real Estate III, into a Socimi, which will be listed on the Alternative Investment Market (MAB) within a maximum period of two years, according to sources at the company led by Javier Faus (pictured above).

The fund, which was constituted last year, has available resources of around €250 million, but its investment capacity increases to €600 million including its bank debt.

The same sources explained that the conversion into a Socimi comes in response to the fact that, unlike its predecessors, large institutional players have invested in this fund – together with a family office. Such players tend to employ the REIT structure for their operations in the real estate sector. REITs are very similar companies to the Spanish Socimis, with significant tax incentives and the obligation to list on the stock exchange.

Meridia Real Estate III debuted in April with the acquisition of a batch of eight office buildings and a logistics warehouse located in Madrid and Barcelona. The package, which belonged to the real estate fund Segurfondo Inversión, managed by Inverseguros, was sold for €52.45 million. It is a diversified portfolio with great potential.

Original story: Expansión (by J.Orihuel and M.Anglés)

Translation: Carmel Drake

Meridia III Makes Its First Acquisition In Madrid & Barcelona

3 May 2016 – Press Release

Meridia Capital’s new real estate vehicle, Meridia III, makes its first acquisition in Madrid and Barcelona.

On Friday, Meridia Capital Partners, SGEIC, S.A., (“Meridia Capital”) announced the first deal of its recently launched real estate vehicle, Meridia III. The fund has acquired a portfolio of 9 assets in the metropolitan areas of Madrid and Barcelona. The portfolio totalling c.42,000 sqm mainly includes office buildings, as well as a logistics warehouse and 581 parking spaces. The properties are located in established and integrated business areas of Spain’s two main markets. Meridia III acquired this portfolio from the Spanish real estate fund Segurfondo Inversión (managed by Inverseguros).

Six assets, which account for 87% of the portfolio in terms of square metres, are located in Madrid, whereas the remaining 13% (totalling 3 buildings), are situated in Barcelona. The properties have attracted prominent tenants such as BBVA and Telefonica.

Juan Barba, Partner, Managing Director Real Estate at Meridia Capital, said “This is an excellent opportunity to acquire a diversified portfolio with high value creation potential. The country has been showing clear signs of recovery in the office segment, triggered by an increase in occupancy levels as well as gradual rental growth. This transaction brings new office assets to those acquired through Meridia II, thus reinforcing our local presence in this sector.”

Meridia Capital’s Founding Partner & CEO, Javier Faus, stated “The launch of Meridia III and this first deal demonstrate that we continue to be very positive about the prospects that the Spanish real estate sector offers. Through the new vehicle we aim to leverage on our track record and extensive experience in this market, which we believe will allow us to continue achieving attractive returns for our investors.”

Meridia Capital was advised on this deal by Aguirre Newman, Garrigues and Dokei.

Original story: Press Release

Edited by: Carmel Drake

Meridia Acquires Mercadona Supermarket In Terrassa

20 April 2016 – Aguirre Newman

The fund manager Meridia Capital Partners has acquired a 2,270 m2 supermarket, leased by Mercadona, in the city of Terrassa, in a deal advised by Aguirre Newman.

The purchase has been carried out through its real estate vehicle Meridia II, which now owns a portfolio of more than 20 supermarkets. Through this operation, Meridia seeks to increase its exposure to the retail sector. Mercadona closed 2015 as the leader of the consumer goods distribution sector, with a market share of 22.7% and a net profit of €611 million, up by 12% compared with 2014.

In 2016, Mercadona plans to invest approximately €650 million, which will be allocated mainly to the opening of 60 new stores, the refurbishment of 35 supermarkets, the continued drive for technological change and the on-going construction of its logistics plants in Abrera (Barcelona) and Vitoria-Gasteiz.

Original story: Aguirre Newman

Translation: Carmel Drake

Meridia Capital Acquires Nestle’s Spanish HQ In Barcelona

17 March 2016 – Press release

Meridia Capital Partners, SGEIC, S.A., (“Meridia Capital”) announced today that it has successfully closed the acquisition of Nestlé’s Spanish headquarters, located in Barcelona (Esplugues de Llobregat). The facilities include 5 buildings with a total built area of c.49,000 sqm and 579 parking spaces.

The complex, strategically located at the entrance of Barcelona, comprises 2 office buildings. The largest one is Nestlé’s headquarters in Spain and the second one, which is currently vacant, will be partly occupied by the Swiss multinational as well as by third parties. The other three assets are a convention centre, a showroom and a building with different amenities such as a restaurant, cafeteria and a bank branch. The 5 buildings are currently leased to Nestlé. Meridia Capital will carry out a CapEx programme to further improve the facilities.

Original story: Press release

Edited by: Carmel Drake

Meridia Buys A Logistics Centre In Ribarroja For €8.6M

23 February 2016 – Expansión

The fund has been given the green light by both the judge and Sareb after it submitted an offer for the 27,400 m2 logistics platform, which was constructed by Mafort and Bancaja, and which had an appraisal value of €15.7 million.

The large funds and Socimis are continuing their hunt for industrial assets to rent out…at bargain prices. The logistics centre that the property developer Mafort and Bancaja jointly developed in Ribarroja now has a new owner, in the form of the real estate fund manager Meridia Iberian Real Estate.

The fund has made an offer of €8.65 million for the property, which has been approved by the judge who is overseeing the bankruptcy proceedings of the (property development) company.

In addition, the fund has managed to obtain the approval of the owner of the mortgages, Sareb, which inherited the financing that Bancaja granted back in the day – which was then taken over by Bankia. Although formally, a ten-day window has been opened, during which time any interested party may submit a higher bid, all indications show that Meridia will become the new owner of this platform, given that it has already reached an agreement with Sareb.

Original story: Expansión (by A.C.A)

Translation: Carmel Drake

Meridia Buys Nestlé España’s HQ For €40M

27 October 2015 – Expansión

Meridia is continuing to invest in the Spanish real estate market. The firm has acquired the Spanish headquarters of the Swiss multinational Nestlé, located in Esplugues de Llobregat (Barcelona). The office complex has a total surface area of 50,000 m2 and according to sources in the sector, Meridia paid €40 million for the properties.

The facilities comprise two office buildings and around 600 parking spaces. Nestlé will remain as the tenant of the first building, the larger of the two, under a long-term lease contract. The second building, which is currently empty, will be leased to third parties or to Nestlé itself, according to statement issued by the multinational food company yesterday. The operation still needs to be formally registered but a preliminary agreement has now been signed, according to sources close to the process. The vendor has been advised by JLL and the buyer by CBRE.

Yesterday, sources at Nestlé said that the sale “was based on the desire to focus exclusively on our real estate assets in the industrial sector”. They also said that the change in ownership of the land and Nestle’s Spanish headquarters “will not have any impact whatsoever on the activity undertaken at the company’s headquarters, which has been conducted on this site for 40 years”.

Investment of €10 million

Over the past two years, Nestlé has invested almost €10 million in the renovation of the larger building, which houses its headquarters.

Thanks to the elimination of shared spaces and the conversion of all of the floors into open spaces, they have managed to concentrate all of the teams into one building.

The investor’s return on this operation is unknown. According to sources in the real estate sector, the rental price for offices in this area near Barcelona range between €6/m2/month and €10/m2/month.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

First-Generation Socimis Rush To List Before 30 Sept 2015

7 July 2015 – Cinco Días

Socimis are the investor vehicle of the moment. Their tax advantages and the international funds that they are attracting, have turned Socimis into key players in the timid recovery of the real estate sector. And they are going to become even more important. Many of the first generation Socimis (those constituted in 2013, following the reform of the law governing these listed real estate investment companies) are obliged to list on the stock exchange before 30 September 2015; failure to do so will mean that they lose their right to not pay corporation tax.

“The law made provisions for a transition period for the fulfilment of all requirements. The deadline for one of those, to list on the stock market, ends on 30 September”, explains Antonio Sánchez Recio, Partner at PwC. According to market sources, there may be a dozen companies in this situation, although some of them are small and will only list to comply with the law, rather than to raise capital, at least initially. (…).

They will join those that currently trade on the main stock exchange, namely: Merlin Properties, Hispania, Lar España and Axiare. As well as the smaller companies, which are listed on the Alternative Investment Market (MAB), namely: Entrecampos, Fidere (owned by Blackstone), Mercal, Promorent and Uro.

Around 25 entities are now constituted as Socimis, but some of them have been created in the last few months, and so they will not be affected by the upcoming deadline.

Furthermore, other companies are not obliged to list in Spain at all, since their shares are already traded on other European markets. That is the case of Pryconsa’s companies, called Cibra 2009 and InveRetiro, which in turn are owned by Saint Croix Holding Inmobiilier, a Socimi listed in Luxembourg. And that is also the case of Orion Columba, the owner of the Plenilunio shopping centre, which is now itself owned by the French listed company Klepierre.

In addition to the companies constituted in 2013, the market expects that a large number of these vehicles will undertake IPOs in the coming months. Such is the case of Trajano, the Socimi recently created by Deutsche Bank. One of the most eagerly awaited is the future Socimi Pontegadea, the family office owned by Amancio Ortega, which has assets of almost €5,000 million. (…).

Another large company on analysts’ radars is IBA Capital’s company Zambal, which owns the ABC Serrano shopping centre, amongst other buildings. Other companies also include GMP Property, created by the Montoro family and the sovereign fund GIC, which owns large assets such as Torre BBVA in Madrid. Acciona is in the same boat, it is assessing different options for its commitment to the residential rental sector, including the creation of a Socimi, according to sources close to the company.

Other companies and funds that are setting up their own Socimis include: Green Oak, Drago Capital, Corpfin, Autonomy Capital, Jaba, Meridia, Rodez (through Anglón Alza), Quabit (with the Socimi Bulwin), Brookfields, as well as Santander Real Estate (Banif Inmobiliario), Norfin, Banco Sabadell (Solvia), Triangle, Turanta, Unibail Rodamco and Urbas.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake