Tag: negotiation

Partners Group Negotiates the Purchase of 5 More Office Buildings from Meridia Capital

10 January 2020 – El Confidencial

The Swiss manager Partners Group is in talks with Meridia Capital, led by the Catalan businessman Javier Faus, with a view to purchasing half of the office portfolio that Meridia put up for sale at the end of last year.

The two players enjoy a close relationship following a deal closed last April, which saw Partners acquire a portfolio of 18 offices from Meridia for €215 million, and the Socimi continuing to manage the portfolio.

A similar arrangement could be sought this time around. The portfolio on the table in 2020 comprises a dozen offices in Madrid and Barcelona worth around €200 million, although Partners is only interested in half of the properties.

Both parties declined to comment on the reports of a potential sale, however, sources in the know confirmed that a due diligence process has begun on five of the assets.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: 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

Anticipa Has Accepted 2,400 ‘Daciones En Pago’ In 1 Year

18 April 2016 – El Periódico

Anticipa Real Estate, the real estate manager that the fund Blackstone acquired from CatalunyaCaixa, began by purchasing a portfolio of non-performing mortgage loans from the former savings banks for €3,600 million. The portfolio included 40,000 mortgages worth €6,400 million. In addition, it bought portfolios of property developer loans from Sareb and CaixaBank. Since April 2015, when that operation was closed, Anticipa has worked to recover those loans and the underlying collateral – the repossession of the asset -. During this period, it has signed agreements with 3,000 borrowers, of which 2,400 have resulted in ‘daciones en pago’ – “the handing over of homes in exchange for the cancelation of debt” – and 600 have resulted in the renegotiation of the loan, in such a way that the borrowers can make their mortgage repayments, according to Anticipa’s own summary of its first year of management.

The servicer – which is also responsible for managing the real estate assets of CatalunyaCaixa, now BBVA – bought the portfolio on 15 April 2015 and between then and 30 March 2016, it has closed around 400 operations per month. “We have signed 20 operations per day”, say sources at the entity. “And we have prioritised friendly relationships to enable both parties to reach an agreement”. The entity highlights that this process has been carried out whilst maintaining a good understanding with the platforms of people affected by mortgages (PAH), although they acknowledge that there are certain discrepancies with the PAH in Barcelona, which regards Blackstone as a “vulture” fund, even though it is a long-term real estate investor, which is firmly committed to the rental management business in Spain.

Anticipa highlights that it applies the code of good practice under Spanish legislation, whereby those families who have nowhere to go after a ‘dación en pago’ are offered social housing. In fact, 25% of the borrowers of the 40,000 mortgages pay their monthly instalments on time. Anticipa sends out an invoice each month and collects the corresponding funds. Of the remaining 75%, some (25%) of the borrowers pay intermittently and the rest (50%) do not pay at all. The company prioritises enabling those borrowers who pay intermittently to become regular payers, through the refinancing of their loans. “We apply a partial discount, we amend the term, the interest rate and the loan principal, to reduce the instalment and whereby facilitate the payment”, explains the entity.

Case by case analysis

If the borrower is still unable to pay, he is offered a ‘dación en pago’, and the remaining debt is cancelled in most cases. “Each case is analysed on an individual basis”. Anticipa helps the borrower to find a home if he has to leave or offers him a property to rent “at market price” or by means of “social housing”, as appropriate.

The entity does not rule out mortgage foreclosures when there is no other way of reaching an agreement with the borrower…But, “we have not carried out any evictions”, say sources at the entity…and the objective is to negotiate in order to avoid eviction in all cases”, they add.

Anticipa, led by Eduard Mendiluce…employs 360 people, of which almost 150 are dedicated exclusively to negotiating with borrowers. (…).

Original story: El Periódico (by Max Jiménez Botías and Olga Grau)

Translation: Carmel Drake

Abengoa Finalises Sale Of Former HQ in Sevilla

21 January 2016 – Expansión

Abengoa is getting ready to receive a lifeline of between €250 million and €300 million, which would enable it to continue operating until 28 March, the deadline for its pre-bankruptcy phase, when it plans to launch its viability plan.

The injection of funds will come from two sources: 1) a loan from its bondholders; and 2) from the sale of assets, above all, some of the jewels in its real estate crown, such as its former headquarters in Sevilla.

Abengoa is finalising an agreement with its bondholders whereby they will grant it a loan amounting to between €150 million and €170 million. The details of the agreement, such as the term and tranches of the facility, are currently being finalised. In addition, Abengoa is finalising the sale of assets worth between €100 million and €150 million, including a renewable energy facility and above all, several of its properties. One of those includes its former headquarters on Avenida de la Buharia in Sevilla and the building it owns in Madrid, on General Martínez Campos. The former, located in a prime area, is one of the most iconic buildings in the city of Sevilla. Abengoa’s objective is that its board will approve its viability plan next week.

Discounts of 70%

In addition to the mass sale of assets, the viability plan will include a significant reduction in the group’s debt. Abengoa is negotiating with its banks and bondholders regarding a discount and the capitalisation of loans representing up to 70% of its debt. The aim is to arrive at a debt balance of less than €3,000 million.

Original story: Expansión (by M.Á.Patiño)

Translation: Carmel Drake