Tag: nursing homes

Savills: Spain Leads RE Inv’t in Southern Europe

12 December 2017 – Expansión

Real estate investment in Spain is on the verge of setting a new record and positioning the country as the leader of the sector’s boom amongst its counterparts in Southern Europe. Specifically, investment in the tertiary market (offices, retail, hotels and logistics assets) in Spain looks set to amount to €8.9 billion in 2017, which represents an increase of 5% compared to the previous year and the highest figure in a decade, according to a report from the consultancy firm Savills.

The report reveals the strong performance detected in the retail and hotel sectors and also highlights that the growth in e-commerce in Spain is expected to result in greater demand for logistics and storage space, a segment that has lagged behind the main markets in Europe until now.

Luis Espadas, Director of Capital Markets at Savills España, also points out that, to the extent that demand in the more traditional sectors grows, so investors are starting to focus on alternative products, such as student halls and nursing homes. “That market may be small still but it has the potential to develop more attractive returns and price differentials”.

Other countries

The recovery of the sector in Spain has been followed by an upturn in other countries such as Italy, Portugal and, more recently, Greece and Cyprus. In this way, after a few years of weak investor activity, the volume of investment in Southern Europe increased by 277% in 2017, compared to the minimum of €5.2 billion recorded in 2012.

Overall, total investment volumes increased by 8% YoY. The markets in Southern Europe now account for 10% of the total investment in the European Union, compared to the 5% that they represented in 2012. “Economic growth, the decrease in unemployment rates and renewed consumer confidence are attracting investors back to Southern Europe”, says Alice Marwick from the Europe Research department at Savills.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

The Alternative Asset Boom: Student Halls, Co-Working Spaces & Data Centres Are On The Rise

26 September 2017 – Eje Prime

2017 is going to be remembered in the real estate sector as the year of alternative assets. A large number of corporate operations in the student housing segment and healthcare sector means that investors are looking more carefully at these products. So much so that 44% of international investors say that they plan to spend money acquiring these kinds of assets over the next few years.

One of the main reasons for focusing on these types of investments is geographical behaviour and demand, important for 69% of the international funds surveyed. The next most important reason, for 46% of investors, is the stability of the returns from such investments, according to the Emerging Trends Europe 2017 study prepared by PwC. Diversification and high yields are also reasons for 46% and 45% of investors, respectively, according to the findings of the report.

For 61% of investors, the student housing business has one of the most promising outlooks, in that case, due to the demand from the demographics. “It is important to highlight that this looks like being a secular trend rather than a cyclical one”, explain sources at PwC.

Nevertheless, the corporate operations that have been carried out in recent months in the sector support this trend. The most recent saw Azora, Artá Capital, March Campus (Banca March’s client investor vehicle) and Mutua Madrileña, reach an agreement to sell Grupo Resa to a group of international investors, represented by Axa and CBRE. Even so, and although these kinds of assets are on the rise, only 23% of the funds specialising in real estate hold such properties in their portfolios.

After student halls of residence come hotels. 51% of investors have either acquired or have been exploring the possibility of investing in this kind of asset. In Spain, the Socimi Hispania has decided to specialise in this type of asset, whereby positioning itself as one of the largest companies in the hotel segment in the country.

Nursing homes for the elderly and clinics (healthcare) have also been gaining in importance during 2017 and will be the assets to watch in coming years (…).

One recent operation involving this kind of asset in Spain saw Healthcare Activos Investment acquire the Los Tilos nursing home for €15.5 million, in a transaction brokered by BNP Paribas Real Estate (…).

The most alternative assets

Within the group of alternative investments identified by PwC are some that break the mould due to their lack of history in the real estate sector. One of them is shared offices, also known as co-working spaces. In recent months, they have sparked interest amongst investors of all kinds, with operators such as WeWork and Spaces leading the way (…).

Last week, Spaces, an international workspace company, announced that it is going to open an office measuring 1,511 m2 in Madrid, at number 4 Calle Manzanares, known by the group as Spaces Rio. And within the next few weeks, it will open a new Spaces centre in Barcelona (in the 22@ district).

Meanwhile, WeWork confirmed its arrival in Spain earlier this month. The company, which specialises in the management of coworking spaces, has leased an office building in the 22@ district in Barcelona (…).

Finally, data centres, where data servers are managed and stored, have also seen their profile rise in the real estate business. These types of asset, which are mostly located on the outskirts of major cities, are expected to capture the attention of 15% of investors this year (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Alternative Assets: Investors In Spain Get More Adventurous

16 March 2017 – Expansión

Over the last two and a half years, investors’ appetite for real estate assets and the lack of investment alternatives have resulted in a compression in yields in Spain. Parking lots, storerooms, gas stations, student halls and nursing homes/hospitals have sparked interest from investors specialising in alternative assets.

Although in some European countries, such as the UK, these business segments are already well established, the markets are not very mature in Spain. Nevertheless, they have potential for growth, according to the experts. “In Europe, total real estate investment volume amounted to around €254,000 million in 2016, of which 14% related to alternative assets. In Spain, that percentage was much lower”, explained Alberto Valls, Partner in Financial Advisory at Deloitte.

Nick Wride, Director of Alternative Investments at JLL, said that these sectors are consolidating in other countries, which means that the yields that investors can achieve in those countries are not as attractive anymore due to the (high level of) competition. “European markets such as Spain are becoming interesting again”, he said.

The Director of the Corporate Finance department at Aguirre Newman, Alfonso Aramendía Peralta, said that although it is a “relatively new” segment in Spain, it is sparking a lot of interest “given that it offers more attractive returns than those generated by more established products such as offices, residential assets and shopping centres, where there is more competition”. (…).

Valls highlights the advantages of these assets, which include, the high management component, as this leads to higher returns, albeit with higher risk, and the fact that these assets are less exposed to economic cycles than traditional properties. (…).

Sources at Knight Frank explain that these kinds of assets are known for their long-term lease contracts, which tend to last more than 10 years; moreover, they offer returns of around 6% or more in some cases. (…).

Fragmented market

The alternative real estate investment market includes assets ranging from parking lots to storerooms – a very fragmented segment – to health centres, nursing homes and student halls of residence, with a very significant management component. In this sense, Aramendía points out that they are assets that suffer more wear and tear, due to their intensive use and therefore, they require tenants that are able to commit CapEx to maintain them in good condition.

Whilst the volume of transactions involving alternative assets has been relatively low in recently years, if we consider the corporate operations undertaken by industrial groups that have a strong real estate component such as Quirón, Parkia, Vitalia and SARquavitae, then we see that 2016 was, in fact, a record year.

Consolidation

Experts think that the likely consolidation of these industrial groups will allow investors demanding higher volumes to enter Spain and may even lead to a boom in specialist Socimis, like has happened in other countries.

Moreover, according to the consultancy firms, one of the ways of financing the growth of these groups now involves the sale of properties to a fund specialisation in the real estate sector. (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Aura REE Launches Operations In Portugal

3 May 2016 – Aura REE

After 2 successful years providing RE advisory and valuation services in Spain, Aura REE has decided to expand its operations internationally, starting with Portugal with immediate effect (from 1 May 2016).

– Aura REE is the leading advisor to foreign institutions acquiring REO & debt portfolios in Spain.  Our proprietary IT platform, launched in 2009, contains more than 14 million real estate assets, with links to the cadastral databasase and national brokers, as well as access to real transaction prices in Spain’s top markets. Our team covers every local market in Spain and operates across all asset types (hotel, residential, land, industrial, nursing homes, commercial, offices,…). In 2015, we performed over 50 portfolio valuations involving assets worth more than €10 billion (Atalaya, Cadi, Goya, Eurostar, Commander, Tourmalet, Wind, Empire, Pampa, Ponte, Jetty, Mirage, Chloe, Liceo, Mamut, Kite, Stream, Aneto, Babieca, Pegasus, Macarena, Silk, Veleta,…)

– Aura REE Portugal has hired Jose Covas, MRICS (Head of Portugal & Head of Valuations) to lead our new team and he will be supported by local teams located across the country, including in the islands. Jose has extensive knowledge of the Portuguese market and wide-ranging experience from his time with WORX/Knight Frank (Portugal Head of Valuation & Advisory), DTZ (Iberia Head of Valuations), Colliers International (Portugal Head of Valuation). Moreover, Jose currently serves as the Portuguese Chairman of the RICS Valuation Group. Our IT platform already contains almost 1 million comparable assets in Portugal.

–  Aura REE plans to continue to expand its operations to other European countries before the end of 2016.

Original story: Aura REE

Edited by: Carmel Drake

‘La Mutualidad de la Abogacía’ To Auction Off 2 Buildings

17 September 2015 – Expansión

La Mutualidad de la Abogacía has decided to cash in two of the buildings that form part of its real estate portfolio. The lawyers’ insurance company has put two buildings up for sale in Madrid and Barcelona, one residential property and one office complex.

The assets are located on Calle General Moscardó in Madrid and Ronda General Mitre in Barcelona. The Madrilenian property has a surface area of 1,836 m2 and the Barcelona building has a surface area of 1,560 m2.

Neither of the buildings is currently being used, but both could house offices or homes. La Mutualidad has engaged the real estate consultancy BNP Paribas Real Estate to manage the sale, which will be marketed through an auction. The combined market price of both properties is expected to exceed €6 million.

La Mutualidad de la Abogacía’s real estate portfolio comprises 42 assets, of which more than half are offices and 25% are hotels; the remainder includes commercial premises, nursing homes, industrial buildings and car parks.

The portfolio has a net cost of more than €463 million, and a current appraisal value of €568.6 million.

Original story: Expansión (by R.R.)

Translation: Carmel Drake

Goldman Sachs Buys 18 Buildings in Barcelona For €90 Mn

12/01/2015 – Expansion

Goldman Sachs reaffirms the willingness to invest in the Spanish property market. The U.S. bank has bought a package of 18 buildings from developer La Llave de Oro for around €90 million. They are 13 free-market blocks of apartments, three subsidized buildings and two nursing homes. All of them are located in Barcelona and 90% occupied.

At the transaction, Goldman teamed up with an experienced local partner, the B Capital Partners group, which contributed to the purchase as a minority partner.

Back in March, the U.S. entity injected €20 million in real estate firm Colonial and thereby took a 5.072% stake in it.

 

Original story: Expansión ( by Marisa Anglés)

Translation: AURA REE