Azora Prepares a Fund to Invest €1.3bn in Hotels & Hostels

30 May 2019 – El Confidencial

Azora is currently holding conversations with various investors to launch a new fund through which it hopes to invest between €1.2 billion and €1.3 billion in hotels in Spain as well as in hostels in the main tourist markets across the Mediterranean.

The company founded by Concha Osácar (pictured above) and Fernando Gumuzio expects to launch the vehicle within the next few weeks as soon as agreements have been signed with the first anchor investors.

Azora, which used to manage the Socimi Hispania, until it was sold to Blackstone last year, has been very active in the Spanish hotel market in recent months after it purchased a hotel portfolio in Benidorm and the Costa del Sol in March comprising 1,670 rooms.

The company is also expected to enter the market for nursing homes for the elderly in conjunction with another fund, with the aim of investing up to €300 million over the next few years.

Original story: El Confidencial (by E.S.)

Translation/Summary: Carmel Drake

BNP Paribas: Investment in the Real Estate Sector Amounted to €2.0bn in Q1 2018

1 April 2019 – Eje Prime

Investment in real estate assets amounted to €2.0 billion during the first quarter of 2019, down by 5% compared to the same period in 2018, according to data from the consultancy firm BNP Paribas Real Estate.

Investment in the office sector amounted to €900 million, accounting for 47% of the total, with prime yields remaining stable at 3.25% in Madrid and 3.5% in Barcelona.

Investment in the retail segment amounted to €410 million, where prime yields reached 3% on high street stores, 5% on shopping centres and 5.75% on retail parks.

Investment in alternative assets amounted to €305 million, with investors increasingly interested in halls of residence for students and nursing homes for the elderly.

Finally, in the logistics sector, investment amounted to €206 million, boosted by the growth in e-commerce and consumption.

By type of investor, 50% of the transacted volume proceeded from investment funds, whilst Socimis contributed 18% of the total volume.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

DomusVi Acquires Gerovida to Add 2,287 Nursing Home Beds to its Portfolio

7 March 2019 – Alimarket

In December, the DomusVi Group acquired the nursing home specialist Gerovida to add 2,287 beds and more than 300 day places in 19 residential centres to its portfolio.

This deal consolidated DomusVi’s position as the market leader in Spain, bringing its total number of nursing home beds to almost 20,000, in 75 centres. Across Europe, the group has 372 centres, located in France (180), Portugal (4) and Spain (188).

In Spain, the DomusVi group is owned by the holding company GeriaVi, which closed 2018 with revenues of more than €532 million.

Original story: Alimarket (by Eva de Frutos)

Summary/Translation: Carmel Drake

Colisée Purchases Armonea, Owner of La Saleta Care Nursing Homes

7 March 2019 – Alimarket

The French nursing home manager Colisée has completed the purchase of its Belgian counterpart Armonea, owner of La Saleta Care in Spain, from its main shareholders, the Van den Brande and Spoelberch families. The operation converts Colisée into the eighth largest nursing home operator in Spain, with more than 5,500 beds and another 212 places in sheltered housing.

The structure of the operation still needs to be configured, and the necessary approvals obtained, but according to Armonea, the integration of the two groups will create the fourth largest nursing home operator in Europe with 26,800 beds, 18,350 employees and a presence in Germany, Belgium, France, Spain and Italy.

In terms of the Spanish market, Armonea acquired La Saleta Care, led by Fernando Ruiz (pictured above), in 2016. It has 40 nursing homes (38 residences and two housing complexes) containing 4,512 beds, which generated revenues of around €81 million last year (+43% YoY). In the case of Colisée, it owned just one nursing home in Spain, in Valldoreix-Sant Cugat (Barcelona), prior to its purchase of the Catalan group STS in September last year.

Original story: Alimarket (by Eva de Frutos)

Summary/Translation: Carmel Drake

C&W: Investment in High Street Premises Soared by 70% in 2018 to €1.7bn

6 March 2019 – Eje Prime

According to the latest edition of Cushman & Wakefield’s Investment Insight report, investment in high street assets in Spain soared by 70% in 2018 to reach €1.7 billion. In total, 52 operations were closed last year, accounting for 38% of all investments in commercial assets. The fashion and banking sectors accounted for the most deals.

Meanwhile, 32 operations were closed in the shopping centre segment, where the total investment amounted to almost €1.9 billion, down by 25% compared to 2017. In addition, 7 retail parks were sold last year for €236 million.

In the office sector, investment rose by 29% YoY in 2018 to reach €3.1 billion, with Madrid accounting for 66% of that total (€2.1 billion) and Barcelona accounting for 31% (€950 million).

In the logistics sector, e-commerce drove a sharp increase in investment to reach €1.2 billion, with 890,000 m2 of logistics space leased in Madrid and 345,000 m2 in Barcelona.

In terms of alternative assets, investment in student halls amounted to €220 million in 2018, whilst investment in nursing homes leapt to €281 million.

Original story: Eje Prime

Translation: Carmel Drake

Lagune Spain Buys 2 Nursing Homes in Zamora & Valladolid

11 February 2019 – La Vanguardia

Lagune Spain, the European investment vehicle and Spanish subsidiary of the Batipart group, has purchased two nursing homes for the elderly from the social services company DomusVi, one in Valladolid and the other in Zamora.

It is an operation that guarantees the management of the properties on a rental basis for the next 25 years.

Both residences, which have a capacity of 235 and 169 beds, respectively, will be added to the 18 properties that it already owns together with DomusVi, according to reports from the investment vehicle in a statement, which did not reveal the amount of the operation.

Batipart’s representative in Spain, Philippine Derycke, said that this new operation forms part of a strategy of alliances with European operators for the company’s real estate investment.

Lagune, which has a total portfolio of €1.7 million and which is present in countries such as France, Germany, Switzerland and Italy, amongst others, acquired 16 nursing homes from DomusVi in 2017.

Meanwhile, in addition to the vehicle Lagune Spain, the Batipart group, which has been present in Spain since 2015, owns the hotel sector Socimi Elaia Investment Spain (EIS), which made its debut on the Alternative Investment Market (MAB) in 2017.

Original story: La Vanguardia 

Translation: Carmel Drake

Healthcare Activos Adds Nursing Home in Salamanca to Portfolio

8 February 2019

The investment fund, which specialises in real estate assets in the health and dependency sector, recently finalised the acquisition of the Sauvia residence.

Healthcare Activos, a Spanish investment fund specialising in real estate assets in the health and dependence sector, has just started 2019 with a  new acquisition in Salamanca. The asset is the group’s fourth in the region, according to a report today by PlantaDoce.

The company, led by the former CEO of Sarquavitae, Jorge Guarner, has finalised the acquisition of the Sauvia residence in the town of Villares de la Reina, six kilometres from Salamanca. The geriatric centre has 219 beds and an area of ​​11,646 square meters, according to sources at the company, which, however, declined to reveal the amount it paid for the asset.

Healthcare Activos takes over ownership of such residences and subsequently leases the properties to one of the principal nursing home operators in Spain, such as La Saleta Care, DomusVi, Amavir and Orpea, among others.

Healthcare Activos has a network of 23 nursing homes in Spain

The current tenant of the Sauvia centre is the La Saleta Care group, which acquired eight nursing homes in Salamanca last September from another operator, Esgra. One of those residences is Villares de la Reina, which opened in mid-2017.

The nursing home has private and public spaces (the latter arranged with the Regional Government of Castilla y León), for indefinite and temporary (holidays, weekends, specific stays) stays, including patient recoveries (postoperative, convalescence and injury).

Since its creation at the end of 2016, Guarner’s firm has already acquired 23 assets, 19 of which are currently operational and four are under construction or rehabilitation, with a total committed investment of 205 million euros.

Original Story: EjePrime – A. Escobar

Translation: Richard Turner

Vitalia Buys 2 Plots for the Construction of Private Nursing Homes

5 February 2019 – Alimarket

The nursing home management group Vitalia Plus has confirmed to Alimarket its intention to continue incorporating new projects and acquiring residences in operation in Spain. In recent days, Vitalia has signed agreements for the purchase of two plots of land in Valencia and Salamanca, cities where the firm has not had a presence until now. In the case of Salamanca, Vitalia is planning to build a private nursing home in the city with 130 beds and 30 day spaces. Meanwhile, in Valencia capital, the group will build 128 residential spaces and 30 day spaces. Two other plots are expected to be added to those two new projects, whose purchase the group is currently negotiating in two other Spanish cities.

The new projects form part of a second phase of investments planned by Vitalia, worth more than €100 million, which the group will finance with own funds (more than €50 million) and a €50 million loan, requested recently from the European Investment Bank (….).

Currently, besides the new homes announced in Valencia and Salamanca, Vitalia has 22 other nursing homes in different phases of completion – including the Vitalia Expo in Zaragoza, Vitalia Toledo and the expansion of one of its centres in Teruel (…) – which contain 3,443 beds in total (3,701 beds including the new projects in Valencia and Salamanca). These centres will be added to the 44 nursing homes that the group manages in Spain, with 6,461 beds (…).

Since March 2017, the group Vitalia Plus has been controlled by the investor CVC Capital Partners (which owns an 80% stake), whilst the investor Portobello Capital owns 10% and the executive President and founder José María Cosculluela Salina holds the remaining 10%. In 2017 – the most recent data available – Vitalia recorded a consolidated turnover of €91.05M with 2,850 workers.

Original story: Alimarket (by Eva de Frutos)

Translation: Carmel Drake

Catella Invests €200M in Housing in Spain & Enters the Nursing Home Segment

4 February 2019 – Eje Prime

Catella is growing its portfolio in the Spanish market. The Iberian subsidiary of the company’s fund manager, Catella Asset Management Iberia, is starting the year with plans to strengthen its position in all areas of the residential segment: from the traditional market, where it now has a portfolio comprising 1,000 homes, to alternative assets such as student halls and nursing homes for the elderly, a segment that it is planning to enter in Spain.

In Spain, the German manager owns a portfolio worth €250 million in assets under management distributed across Madrid, Barcelona and Pamplona. Most of its portfolio comprises residential rental assets, according to explanations provided by Eduardo Guardiola, Director and Partner of Catella Asset Management Iberia, speaking to Eje Prime.

The company currently has 1,000 homes under management in the Spanish market and its objective for this year is to add another 1,000 units, with an investment of around €200 million.

Catella also wants to strengthen its position in one of the fashionable residential segments: that of student halls. The manager has a fund that specialises in that market, through which it first entered Spain in 2017 with the purchase of an asset in Pamplona (…).

The company is planning to invest between €30 million and €60 million in such assets this year, with the aim of adding three or four new residences in the Spanish market.

The latest asset that Catella is backing are nursing homes for the elderly. The manager has just entered that segment in France, where it purchased six homes for €130 million two weeks ago.

“It is a very fragmented sector that is tending towards consolidation”, said Guardiola. “There are many owners who are also operators, who are now planning to sell their properties to focus on operations, and that opens up an opportunity for those of us who are searching for property”, said the executive (…).

They are non-medicalised assets, for non-dependent people, which include some services within the rental price as well as other ad hoc provisions (…).

Catella Asset Management also operates in the retail segment with retail parks and shopping centres, “provided they have a management component” (…).

Catella Asset Management specialises in the investment and management of real estate assets throughout the whole cycle, until exit. The company purchases existing assets as well as turnkey projects from property developers. In Spain, the group also operates its other line of business, that of real estate consultancy.

Original story: Eje Prime (by Iria P. Gestal)

Translation: Carmel Drake

Korian Makes its Debut in Spain with the Purchase of 7 Nursing Homes

31 January 2019 – Eje Prime

Korian is going on a shopping spree on the Costa del Sol. The French company has announced the acquisition of Seniors, a Spanish company that operates seven nursing homes for the elderly in Málaga. The Andalucían residential group, which recorded revenues of €15 million in 2018, has a supply of around 1,300 beds.

The operation represents Korian’s debut in Spain, the fifth market in which the company has a presence. In fact, the purchase forms part of its expansion strategy across Europe. Currently, the company also has operations in France, Germany, Belgium and Italy.

Although the economic terms of the sale have not been revealed, the CBRE group (which has acted as the financial advisor) said in a statement that “it is one of the largest corporate operations of 2018 by investment volume in the nursing home sector”. The Seniors group, founded in 1998, is a family company backed by 100% Andalucían capital.

Original story: Eje Prime 

Translation: Carmel Drake