Franklin Templeton Teams Up with Meridia to Invest in Social Infrastructure

17 June 2019 – El Economista

The global investment manager Franklin Templeton has created a new fund to invest in social infrastructure across Europe, with a specific focus on Spain. To this end, it has teamed up with the Spanish manager Meridia to search for opportunities in the student hall, hospital, nursing home, university and school sectors, amongst others.

Franklin Templeton has committed €160 million to the fund in an initial phase, but the vehicle is open to new funding and so there are really no limits in terms of investment size

The alliance in Spain has already completed its first operation with the acquisition of a juvenile court in Madrid. Meanwhile, the Franklin Templeton Infrastructure Fund has also purchased a clinic in London and a nursing home on the outskirts of Milan.  

Original story: El Economista (by Araceli Muñoz)

Translation/Summary: Carmel Drake

BNP Paribas: RE Investment Rose by 8% in 2018 to €11.6bn

9 January 2019 – El Periódico

The volume of annual investment in the Spanish real estate sector amounted to €11.63 billion in 2018, which represented an increase of 8% compared to 2017. If we add the corporate operations with underlying real estate to that volume, then the figure increases to €19 billion, which represents an investment record since the end of the crisis, according to the latest report from BNP Paribas Real Estate in Spain. The report highlights that interest from investors in the Spanish real estate sector in 2018 was at its highest level for a decade.

During the fourth quarter of the year, the volume of direct investment in real estate assets – offices, logistics warehouses, hotels, retail and residential – amounted to €3.7 billion in total, which represented an increase of 58% YoY. The evolution of investor activity, therefore, exceeded the expectations of the sector at the beginning of the year.

“The good times that the fundamentals of the market are enjoying, with occupancy levels at maximums and rents that are stable or expanding in the most consolidated markets, together with the surplus capital and the limited alternatives offered by other financial products, have fostered a frenetic pace of activity in the investment market”, explains the report.

By type of asset, the commercial sector (retail) was the star of the year. The volume invested in commercial assets during 2018 amounted to €4.28 billion, which represents an increase of 23% compared to 2017. During the fourth quarter, investment reached €1.26 billion, and so the sector achieved a quarterly market share of 35%. The largest operation during the final quarter of the year was the purchase of a portfolio of three shopping centres – Max Center, Gran Casa and Valle Real – by Sonae Sierra and Perter Varbacka for €485 million.

Commercial yields

Demand from investors for high street retail assets was high, given that they consider them to be a very stable product. Similarly, there was a high interest in land for the development of retail parks, in light of the scarce supply of this type of asset. The yields continued at 3.00% for prime premises; between 5.00% and 5.25% for prime shopping centres; and at 5.75% for prime retail parks.

In terms of the office market, the investment volume recorded during the fourth quarter was €986 million taking the total figure for the year to €2.228 billion. That represented a slight YoY decrease of 4%. The shortage of products for sale meant that fewer operations materialised in 2018 than in 2017. The prime yield in the office market remained at 3.25% in Madrid and 3.50% in Barcelona.

The logistics market continues to rise. The increase in e-commerce and the strong performance of the consumer sector and the economy, in general, have encouraged investment in this type of asset. The investment volume registered during the fourth quarter of the year amounted to €400 million, whilst the total figure for the year (€1.3 billion) represented a new investment record, and an increase of 30% compared to 2017. The shortage of products, combined with the high investment pressure resulted in a considerable adjustment in yields, which amounted to 5.30% in the prime logistics market in the fourth quarter of 2018.

Investors

Investment funds were the great stars of the market, representing 61% of the total volume transacted in 2018. Socimis have been very present in the investment market, both on the buy and sell sides in the main land transactions to develop new products. Finally, the presence of family offices (private investors) stood out, with acquisitions, in general, for volumes of less than €50 million.

Alternative investments remained in the spotlight of investors, who were mainly attracted by student residences, clinics and nursing homes for the elderly. The cumulative volume invested in those types of assets amounted to €600 million in 2018.

Original story: El Periódico (by Max Jiménez Botías)

Translation: Carmel Drake

Threestones Acquires a Nursing Home in Debut Spanish Deal

29 November 2018 – IPE Real Assets

Luxembourg-based Threestones Capital has made its debut Spanish investment with the acquisition of a nursing home.

The manager’s €600m TSC Eurocare Real Estate Fund is buying the property site in Cambrils, Cataluña from a private vendor for an undisclosed sum. It has also entered a rental agreement with Spanish healthcare operator MutuaTerrassa.

The asset comprises a complex of buildings covering over 3,400 m2, with an adjoining park and gardens spanning 43,000 m2.

Giovanni Perin, a partner at Threestones Capital, said: “This acquisition underlines our commitment to growing a strong presence in Spain where we perceive considerable opportunities to create value and deliver robust returns for our investors.”

While continuing to invest in core markets such as Germany, Threestones will leverage its experience to respond to the ongoing acceleration of ageing populations across Europe and other parts of the world, Perin said.

“There is an urgent need to create a care infrastructure of an appropriate quality and adequate volume to meet future requirements.

“We and the investors in our funds are focused on helping to deliver against this objective, though it clearly requires both private and public investment,” Perin said.

Launched in 2016, the TSC Eurocare Real Estate fund is the manager’s fourth private equity real estate fund and its third fund focused on senior residential care.

Original story: IPE Real Assets 

Edited by: Carmel Drake

A Businessman from Benalmádena Buys the Military Government Building for €4.5M

18 October 2018 – Diario Sur

The former Military Government building, located at number 6 Paseo de la Farola, no longer belongs to the Ministry of Defence. On 24 September, the deed of sale was signed before a notary whereby this property, constructed in the 1950s and in disuse since the early 1990s, will pass into the hands of a company linked to the Benalmádena-based businessman Antonio González, owner of the 5-star Vincci Aleysa hotel and the Don Gustavo tourist apartments. The Ministry of Defence put the building up for auction for €5 million last year but did not receive any bids for it in the first or second rounds. As such, the lot was opened up to the option of being acquired directly by any interested party at the asking price established in the second round of the auction, and that is what happened in the end.

The property has been purchased for €4,538,987 by the aforementioned businessman behind the Hotel Aleysa in Benalmádena, who has still not explained what he is going to use the building for (…). The property spans a surface area of 2,438 m2, distributed over four floors (the ground and first  floors measure 631.12 m2 each; the second floor spans 597.11 m2 and the third floor measures 202.66 m2) and stands on a plot measuring 1,063 m2, which is classified as for community use, which means that it cannot be used for residential, hotel, commercial or office purposes, unless a modification of the urban development plans can be carried out to modify the use of the plot.

Sources close to the new owner of the property (….) indicate that it is very possible that the building will be renovated and turned into a high-end nursing home for the elderly, in the form of sheltered housing with the corresponding medical and social support. “We think that this is a very good location for that”, said the sources, who admitted that this option would avoid the need to undergo any urban development processes, which could take at least a year and which would force the businessmen to establish some kind of economic or land compensation for the loss of a community space for the city. Another option could be to dedicate the property for use as a private clinic relating to the world of aesthetics and wellbeing, in which other businessmen are also interested.

Plans

In any case, the intention of the new owner of the Military Government building is to define his plans over the coming months so that the building can be used once again (…).

Original story: Diario Sur (by Jesús Hinojosa)

Translation: Carmel Drake

Healthcare Activos: Jorge Guarner’s Investment Vehicle Continues its Spending Spree

8 October 2018 – Eje Prime

Jorge Guarner (pictured below), formerly the head of Sarquavitae, is raising his commitment to the purchase of healthcare real estate assets. Healthcare Activos, the investment fund that he manages, has an ambitious plan underway to compete with other residential care operators in the sector. The firm expects to conclude the year with more than 22 assets in its portfolio and will exceed the investment barrier of €205 million.

Last week, Healthcare Activos entered the Spanish hospital sector with the acquisition of Hospital Campo de Gibraltar in Palmones (Cadiz) from the Quirón group. In this way, it closed the purchase of its 18th asset in Spain.

In a statement to PlantaDoce, Guarner said, “the company’s objective is to exceed 22 assets this year”, whilst noting that, for the time being, “none of its purchases are going to be conducted beyond the Iberian Peninsula”. To date, Healthcare Activos has invested almost €110 million this year. Looking ahead to 2019, the firm will invest another €200 million.

Two weeks earlier, the company conquered the centre of Madrid with the opening of a commercial office on Paseo de la Castellana. That site, which is located at number 45, will respond to the expansion plans that the company is preparing for the whole of the domestic territory. The facility comes in addition to the central offices that the group has on Calle Pau Casals in Barcelona.

The next steps for Guarner’s company involve two projects in Cataluña. Healthcare Activos has already started to renovate two residential centres, one located in Cerdanyola del Vallès and the other in Igualada. Both will be fully operational as of next year.

After the Catalan centres, the company is going to launch the Amézola residence, during the second half of 2020, with capacity for 140 beds and with a surface area of 8,315 m2, which will be located in Bilbao.

Healthcare Activos has scheduled its debut on the stock market for 2020. The investment arm of the former Sarquavitae CEO plans to debut on the Alternative Investment Market (MAB) within two years (…).

In the words of Guarner, the sector for the care of the elderly has a lot of potential in Spain. “We need to focus on people aged over 85 years because 15% of them are having to be admitted to hospital or specialised care centres”, recognises the CEO of Healthcare Activos.

Original story: Eje Prime (by Alberto Escobar)

Translation: Carmel Drake

La Saleta Invests €60M in its Expansion Across Spain

2 May 2018 – Eje Prime

La Saleta is committed to becoming one of the leading operators of nursing homes in Spain. The Valencian company, which has been owned by the Belgian firm Armonea for the last two years, has completed the acquisition of six nursing homes so far this year in operations worth €60 million.

La Saleta already owns its first centres in Valladolid, Burgos and Asturias, which it integrated with the purchase of the company Bau Gestión at the beginning of the year. To that, it has added the acquisition of a new property in Álava, the Albertiaetxea home, and it is now negotiating new purchases in the País Vasco. La Saleta has also added two centres in the province of Alicante, one in El Vergel and the other in the capital, with a management agreement, according to Expansión.

These six additions contain 935 beds and increase La Saleta’s total capacity to 4,500 beds. Moreover, the firm has started work on the construction of two new nursing homes in Tomares (Sevilla) and Lugo, which involve €16 million of investment and 310 additional beds.

La Saleta transferred the ownership of three properties acquired from Bau Gestión to the fund Healthcare Activos and also sold another six properties in the Community of Valencia to the French fund Primonial Reim for €35 million. “The aim of La Saleta is to expand (capacity) by 2,000 beds and so we are already halfway there”, said Fernando Ruiz Castillo, CEO of the group. La Saleta closed 2017 with turnover of €58.1 million.

Original story: Eje Prime

Translation: Carmel Drake

A Family Office Buys a Nursing Home in Barcelona from Sanitas

26 April 2018 – Eje Prime

Alternative assets are attracting attention from a large number of players in the sector, including even the most discrete. A family office, whose identity has not been revealed, has acquired the Sanitas Cornellà nursing home, located in the town of Baix Llobregat, in Barcelona.

The home, which is located in Plaça Catalunya and which has been operational since December last year, contains 140 beds spread over 118 rooms, of which 96 are individual and 44 are double. The asset has a surface area of 6,270 m2.

The centre will continue to be operated by Sanitas Mayores, the specialist division of the insurance group. That company currently manages 46 nursing homes, including eleven in Catalunya and fourteen in Madrid, along with 3 day-centres, comprising more than 6,000 beds in total and employing a team of more than 3,000 professionals. The average occupancy rate of its properties amounts to 96%.

Original story: Eje Prime

Translation: Carmel Drake

Mango’s Owner Sells H&M Store in Burgos for €12.6M

11 January 2018 – Eje Prime

The property will continue to be occupied by H&M after the operation. The Swedish retailer leases the 3,000 m2 building, which Mango purchased at the end of the economic crisis for €8 million.

Mutualidad General de Abogacía is adding new assets to its property portfolio. The company has acquired the building that houses the flagship store of the Swedish giant H&M in Burgos for €12.6 million, according to sources close to the operation. Until now, the property had formed part of the portfolio of Punto Na, the real estate company owned by the businessman Isak Andic, founder of the Catalan fashion chain Mango.

The property has a retail surface area of 3,000 m2, spread over four floors. The operation, which has been brokered by the real estate consultants Torit Allocation and Otto Capital, will allow Mutualidad General de Abogacía to fatten up its collection of retail assets, which account for 30% of the group’s total portfolio. Following the acquisition, the fashion chain H&M will continue to operate in the store, whereby guaranteeing the Mutua de los Abogados a profitable long-term tenant.

The building is located on the corner of number 1 Plaza de Santo Domingo and number 2 Calle Moneda, and has a façade measuring 66 m. The store is located next to several Inditex and Mango shops, as well as a large El Corte Inglés department store.

Punta Na acquired the building at the end of the economic crisis for €8 million. Until then, the building had been occupied by the historical Caja de Ahorros Municipal de Burgos (…).

In recent years, the owner of Mango has been growing his portfolio of assets by buying up retail premises. Although the businessman’s real estate company is Punto Na, Andic also operates in the retail sector with Punto Fa, which is the company through which he operates Mango.

Thus, like Amancio Ortega has done with Pontegadea, the founder of the Catalan fashion chain, owned assets worth €1.329 billion in 2016 and his objective was to continue to increase his portfolio by acquiring retail premises to lease them to large fashion retailers, which tend to sign long-term lease contracts (…).

The lawyers’ mutual society, a not-for-profit organisation that offers investment solutions for legal professionals, owns a large portfolio of properties all over Spain. The entity has 44 assets under management, spanning a total surface area of 271,816 m2, of which 89% are occupied by tenants (rental arrangements).

By type of assets, 53% of the portfolio comprises offices, 20% hotels, and the remaining 27% is split between retail premises, nursing homes, industrial assets and parking lots.

In terms of the geographical distribution, most of the portfolio’s real estate assets are located in the Community of Madrid, specifically, 29 assets. The other properties are located in Barcelona, where it owns 4 assets; plus it has around ten more buildings in Alicante, Almería, Bilbao, Granada, Málaga, Salamanca, Santander, Sevilla, Lérida, Valladolid and Vigo.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Fiatc Invests €27M to Grow its Nursing Home Business

28 November 2017 – La Vanguardia

The insurance company Fiatc is going to give a fresh boost to its nursing home business, with the opening of two new centres, one in Vall Park and the other in the former Sant Josep clinic. Altogether, the firm is going to make an investment amounting to €27 million. Meanwhile, it is also considering growing its business as an operator of buildings built for this purpose.

Joan Castells (pictured above), President of the insurance company, explained that, in the end, they have opted to convert the former Sant Josep del Putxet clinic into a nursing home and day centre. “We want to build an above-ground complex measuring 4,500 m2 and we are negotiating the plans with the Town Hall to decide whether to demolish the building and construct a new one or conserve the existing structure and restore it”, he explained. The centre will focus on elderly people who have a certain degree of personal independence and the firm wants to obtain the necessary municipal permits to begin construction in 2018. Fiatc purchased the property from Building Center in the summer for €4.1 million and plans to invest €15 million in the project in total.

Meanwhile, according to Castells, Fiatc is also finalising the municipal permits to start construction work on a new nursing home in Vall Park, above the Ronda de Dalt in Gràcia. That property will have 150 beds and will require an investment of more than €12 million. The firm wants to grow in the sector, including as an operator, and is also considering taking over the management of a residence owned by a private group in Terrassa.

The insurance company started to operate nursing homes for elderly people in 2006, with Blau Almeda, a complex measuring 8,600 m2 with 144 beds. It then added the Cugat Natura complex in Sant Cugat, which includes 32 sheltered apartments and a nursing home with 172 beds. Its most recent project, in 2014, was in Les Masies de Mollet, with 148 beds and 40 spaces in the day centre.

Fiatc recorded revenues from premiums of €539 million last year, up by 7.9% compared to 2015, and a profit of €3 million. In recent years, the insurance company has focused on growing its life division, which grew by 23% in 2016, to account for 30% of its total portfolio. Life now exceeds the health insurance division (27%), whilst the automobile division, where the firm first started out, accounts for just 14%. The company now has 50% of its business outside of Cataluña, as well as 60% of its 517,000 members.

The insurance company currently employs 850 people, although that figure rises to 1,450 for the group as a whole, including the Diagonal clinic in Esplugues de Llobregat, two medical centres in Barcelona and another one in Vilanova i la Geltrú. According to Castells, the company bases its growth on its network of exclusive agents: it has 54 branches located all over Spain and a network of 1,700 agents, as well as agreements with around 3,000 brokers.

Original story: La Vanguardia (by Rosa Salvador)

Translation: Carmel Drake

French Fund Primonial Makes First Purchase In Spain

4 September 2017 – Expansión

The Spanish real estate market has a new investor: Primonial Reim, a French real estate fund manager that, with a portfolio of more than €10,700 million under management, has just completed its first purchase in Spain.

Primonial has acquired the Sant Antoni nursing home and clinic in Barcelona. The centre, located in La Marina del Port, has 300 beds, with a total surface area of 16,000 m2. For this asset, Primonial Reim has disbursed €20 million, in an operation that has been advised by Cuatrecasas, JLL and Grant Thornton, which has performed the financial due diligence.

The Sant Antoni centre, owned until now by the firm Hucasve, will be incorporated into the portfolio of its subsidiary SCPI Primovie, whilst the management of the centre (engaged to the Catalan Health Service) will remain unchanged, under the terms of the long-term contract in place.

Alternative assets

The Spanish real estate sector has been on the radar of all overseas investors for several months now, given the expectations of a macroeconomic recovery and the affordable prices of assets compared with those in other similar locations. Due to this high demand, the assets most favoured by investors (such as offices and commercial assets) are scarce, and so properties known as alternative assets are becoming a highly attractive option. These properties include medical centres, nursing homes and halls of residence.

According to Deloitte, investment in alternative assets in Europe accounts for 14% of the total, although that figure is much lower in Spain. As such, the segment in Spain offers significant potential, with returns of 6% on average, well above those of other real estate assets.

The most high profile transactions in this market in recent times include a purchase by another French group, the investment fund Eurosic Lagune – owner of the Socimi Eurosic – which bought 16 nursing homes from the SARquavitae Group for €116 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake