Merlin Properties to Build Torre Adequa, a New 25-Floor Office Building in Madrid

18 November 2019 – Merlin Properties announced that it would build a new high-rise office building in northern Madrid. The 25-floor Torre Adequa will be over 100 meters high and close to 30,000-m2 of surface area.

Construction on the site is set to begin in early 2020 and conclude approximately two years later. Merlin expects to invest about 110 million euros, including the acquisition of the land.

The new building, at Avenida Burgos 89, is in the existing Adequa office complex, near five other high-rises, including the Torre Caleido. The new office building will have a surface area of close to 30,000 m2, in a 76,000-m2 office park. The complex’s main tenants include Audi and Técnicas Reunidas. Adequa has stores, a gym, restaurants, pharmacy, paddle tennis courts and a nursery.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Merlin Properties Extends €129-Million Loan to San José

6 November 2019 – Merlin Properties has extended a €129.10 million loan to the San José construction group, part of a recent transaction which saw the Spanish socimi acquire a 14.4% stake in Operation Chamartín. The socimi agreed to pay €168 million as well as grant the loan to San José.

The loan is structured into two tranches, the first, worth 86.39 million euros, has a 20-year maturity and an interest rate of 2%.

The second, €42.72-million tranche, also pays 2%. Merlin structured the loan as a cash deposit to guarantee working capital financing that San José has until October 31. The second tranche will mature on December 2.

Original Story: Expansión

Adaptation/Translation: Richard D. K. Turner

Merlin Properties Acquires 14.4% of Operation Chamartín from San José for €168 Million

1 November 2019 Merlin Properties has acquired a 14.46% stake in the Operation Chamartín urban development from the San José construction group for 168.89 million euros.

The socimi has thus become the second major investor in the mega-project, through its acquisition of part of San José’s 24% stake in the development. BBVA, in turn, owns the remaining 74%.

The operation includes a loan to San José. Currently, Merlin has a portfolio of land, residential properties, shopping centres and logistics platforms valued at €12.375 billion. Merlin, the largest socimi in Spain, is coming into the development at a time when construction is finally set to take off, after twenty years of negotiations.

Original Story: La Vanguardia – Rocío Ruiz

Adaptation/Translation: Richard D. K. Turner

BBVA Breaks off Talks for Sale of Operation Chamartín with Merlin Properties

1 October 2019 – BBVA has informed Spain’s National Securities Market Commission (CNMV) that it has broken off talks regarding the potential sale of its development rights to the Operation Chamartín project. The bank did not cite a reason for the breakdown in the talks. Merlin Properties had recently  made a preliminary offer of almost 700 bank branches it leases to BBVA in exchange for the rights.

Recently, other candidates, such as the Canadian investment group Brookfield and the sovereign wealth fund Qatar Investment Authority, have also demonstrated an interest in the project. Construction in the Operation Chamartín area is expected to last for 25 years and require total investments of over €7 billion.

Original Story: La Vanguardia – Conchi Lafraya

Photo: Dani Duch

Adaptation/Translation: Richard D. K. Turner

Merlin Offers 699 Bank Branches to BBVA in Return for Rights to Operación Chamartín

30 September 2019 – Merlin Properties has offered 699 offices that it currently leases to BBVA in return for the Spanish bank’s rights to the Operación Chamartín, a 3.3 million-square-meter new urban development in northern Madrid. Merlin is in the final stages of negotiations with BBVA to take over what will be the largest urban development in Spain and one of the largest in Europe. For the bank, the deal offers the possibility of acquiring its offices with no capital outlay and avoiding future rental payments.

Operación Chamartín encompasses land that is 5.6 kilometres in length and up to one kilometre in width. The development will consist of residences, offices, retail stores, parks, gardens and other amenities and facilities such as schools.

In November 2018, BBVA had already re-acquired 166 branches from Merlin for €252 million. Based on that sale, the remaining 699 bank branches could have an estimated total value of approximately €1.1 billion.

Original Story: El País – Íñigo de Barrón

Adaptation/Translation: Richard D. K. Turner

Merlin Properties Sounding Market with View to Placing Long-Term €500-Million Bond

30 September 2019 – Merlin Properties is sounding the market to potentially issue a 15-year, approximately €500-million bond. The bond would be the first for the firm with such a long duration.

The socimi is hoping to take advantage of favourable market conditions to restructure its debt. The socimi also placed bonds in 2016 and 2017, in addition to taking out a €1.55 billion loan last April, the largest of its type in Spain.

Original Story: La Vanguardia

Adaptation/Translation: Richard D. K. Turner

BBVA in Negotiations to Transfer Development Rights for Operación Chamartín to Merlin Properties

30 September 2019 – BBVA is finalising negotiations to transfer its rights to the Castellana Norte District (DCN) to Merlin Properties. The sale would be potentially the largest real estate operation in Spain and Europe, according to knowledgeable sources.

The two firms have been negotiating the details of the agreement for weeks and BBVA is likely to retain a small stake, about 2%, in the new company. At the moment, BBVA controls 75% of DCN’s capital, while the construction company San José controls the remaining 25%. The project, known as Operation Chamartín, will include residential areas on 25% of the land, with offices, commercial premises and green areas on the rest.

BBVA will supervise the development until its completion, which, due to the size and complexity of the project, is expected to take 25 years.

Original Story: El País – Íñigo de Barrón

Adaptation/Translation: Richard D. K. Turner

Merlin Acquires Land to Expand Cabanillas Logistics Park

5 August 2019

Merlin Properties announced, during a presentation of its results for the first semester of 2019, that it had acquired 92,994 m2 of land to expand its Merlin Cabanillas logistics park in Guadalajara. Merlin will build four new logistics modules next to its existing platform where clients such as Inditex, XPO Logistics, Logista and Luís Simões operate. The original platform, which was inaugurated in May of 2017 will grow to a total area of 302,000 m2, after 56-million-euro investment.

The company stated that this expansion will be carried out in two phases, starting in 2020 and 2021.

Original Story: Guadalajara Diário

Adaptation/Translation: Richard D. K. Turner

Merlin Posts Solid Results in First Semester of 2019

3 August 2019

Merlin Properties announced an operating profit of €157.2 million in the first semester of 2019, an increase of 11.6%, along with net profits of 262 million euros. The socimi had revenues of €265.2 million, an increase of 7.3%, while Ebitda reached €210.4 million, an increase of 7.4%.

Receipts from Merlin’s office business increased by 8.3% due to a rise in employment and renovations carried out by the firm on its properties. Merlin also leased a total of 8,487 m2 in the Torre Chamartín, bringing occupancy to 83%.

The socimi’s shopping centre revenues rose by 3.9%, as the total occupancy rate grew to 92.6%. Income from logistics assets rose by 6.2%, as occupancy held steady at 95.7%.

Original Story: Cinco Dias – Manu Granda

Adaptation/Translation: Richard D. K. Turner

Merlin Acquires Old Warehouse in Barcelona’s 22@ District for New Loom Co-Working Office

30 July 2019 – Richard D. K. Turner

Merlin Properties, the socimi managed by Ismael Clemente, has acquired an old warehouse located at Calle Pere IV, 128, in Barcelona’s 22@ district. The developer plans to demolish the existing structure and construct a new building for use by its co-working subsidiary, Loom. Merlin expects Loom’s first office in the city to be ready by 2021.

Original Story: Eje Prime