Tag: occupancy rate

Barceló’s Profits Soar By 86% In 2014 To Reach €46.4M

23 April 2015 – Expansión

Barceló’s results are improving thanks to the economic recovery. The tourism group closed 2014 with turnover of €2,056.6 million, up 6.2% from a year earlier. Net income increased by 22.1% to €1,329.7million – €888.4 million in Spain – whilst its gross operating profit (EBITDA) amounted to €216.7 million. The group’s profit for the full year after tax shot up by 85.6% to €46.4 million and its net debt decreased by 15.3% to €717.3 million, to yield a ratio of net debt over EBITDA of 3.3x.

By division, Barceló Viajes, which will soon be renamed B The Travel Brand, recorded revenues of €1,200 million in 2014, up 14.2%. The increase came as a result of the decrease in the number of operators in the Spanish market – after the disappearance of Marsans and Orizonia – and the upturn in domestic demand.

At 31 December 2014, Barceló had 653 agencies, several tour operators and the charter airline Evelop.

Latin America

In the hotel segment, the company highlights the rise in the average daily (room) rate and revenue per room, which allowed it to offset the 0.6% decrease in its occupancy rate. In Latin America, Barceló’s properties recorded EBITDA increases of 30% and overall accounted for 74% of the group’s total profits. In addition to the increase in (room) rates, Barceló’s policy to refurbish its hotels has also had an effect. Since 2007, the group has spent more than €1,000 million in this area – €90 million in 2014.

At 1 March 2015, Barceló operated 95 hotels – it owned 55% of these and rented 27% – and 29,375 rooms in 16 countries. 59% of its properties are four-star hotels and 65% are sun and beach locations. Moreover, Barceló owns a 40% stake in Crestline, a company that manages another 74 properties in the USA.

After opening two hotels in 2014, the Group’s routemap includes resuming growth. As such, the chain has started the year by opening a new hotel in Puebla (Mexico) and will incorporate another six properties (into its portfolio) before 2016.

In parallel, at the beginning of 2015, the Group created a Socimi with Hispania. It will transfer 16 hotels and two shopping centres valued at €421 million to this entity to reduce its exposure to real estate, which is currently at its highest level ever. Similarly, in 2014, Barceló sold a number of its hotels in the USA and Dominican Republic.

This year, the goal of the company, which is controlled by the Barceló family and employs 23,681 people, is to generate EBITDA of €251 million and net profit of €99.8 million.

In 2014, Barceló agreed to distribute €10 million in dividends and has proposed an additional payment of €4.3 million in 2015, which is pending shareholder approval.

Original story: Expansión (by Y. Blanco)

Translation: Carmel Drake

Mutua Owns Prime RE Assets Worth €1,200M

9 April 2015 – Expansión

The real estate subsidiary of the insurance company owns more than twenty assets, including 15 (properties) on the Paseo de la Castellana, Madrid’s prime (real estate) axis.

Mutua Madrileña is not only one of the largest insurance companies in the Spanish market, it is also one of the largest owners of office buildings. Through its real estate subsidiary, led by Emilio Colomina, Mutua manages a portfolio of more than twenty real estate assets, with a (combined) surface area of around 200,000 square metres.

Fifteen of the buildings in the portfolio are particularly noteworthy; they have a (combined) surface area of approximately 175,000 square metres and include several properties located on the prime axis (the most sought after area) of Madrid. Mutua Inmobiliaria owns numbers 31, 36, 50 and 110 on the capital’s main thoroughfare, the Paseo de la Castellana, as well as the Torre de Cristal, located in the Cuatro Torres complex, at number 259.

And just a stone’s throw away from La Castellana, in the heart of the capital’s financial district, the company also owns the Alfredo Mahou building (pictured), which has a surface area of around 24,000 square metres; as well as the Torres de Colón.

At the end of 2014, these fifteen buildings had an appraisal value of €1,200 million, representing a slight increase on the previous year, with unrealised gains of €356 million.

In 2014, the real estate company recorded turnover of €46.8 million from rental payments, and (its buildings) had an occupancy rate of 90%, i.e. 2% higher than last year.

“The favourable development of Mutua Inmobiliaria’s business is due, to a large extent, to the investment plan that the company launched in 2008 and completed in 2014. As a result, the company modernised its (portfolio of) buildings”, explains the insurance company.

During this period, Mutua invested around €150 million in upgrading (its buildings, including) the Torres de Colón, for example – work there began in late 2011 and involved a budget of around €25 million. “The investments made have allowed us to build loyalty and retain customers, sign new rental contracts, at maximum prices, and reduce operating costs, which has increased the attractiveness and efficiency of our properties”, says Colomina.

The new (rental) contracts include: the move of the law firm Hogan Lovells to Castellana 36-38 late last year, where it leases 4,608 square metres, and KPMG’s upcoming move to Mutua’s skyscraper in the Cuatro Torres, which has a surface area of 20,000 square metres.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Hispania Buys Residential Complex And Office Block For €86M

30 March 2015 – Hispania Press Release

Hispania has closed two separate deals: the acquisition of an office building located on C/ Príncipe de Vergara – for €25 million – and the purchase of a residential complex containing 284 dwellings in Sanchinarro, Madrid, for €61.15 million.

Following these transactions, Hispania now has committed investments amounting to an aggregated GAV of €877 million. 

Hispania Activos Inmobiliarios, S.A., through its 100% subsidiary company Hispania Real Socimi, has closed two off-market transactions in Madrid for a total amount of €86.15 million, which have been fully financed using Hispania’s own funds.

Office building on Príncipe de Vergara, 108 (Madrid)

Hispania has acquired an office building located on C/Príncipe de Vergara, 108, where the street intersects with C/Joaquín Costa. The acquisition price amounted to €25 million (€3,718 /sqm).

The asset is located in the city centre of Madrid and enjoys excellent visibility. The building has a GLA of 7,324 sqm, distributed over 12 floors and commercial surface, as well as 68 underground parking spaces.

Residential complex in Sanchinarro (Madrid)

Hispania has also purchased a residential complex in Sanchinarro (Madrid) with a GLA of 39,000 sqm, distributed across 284 dwellings (2 and 3 bedroom properties), 311 parking spaces, 284 storage units and a retail unit, which is currently occupied by a major supermarket chain. The dwellings are in a closed complex with garden areas.

The total purchase price amounted to €61.15 million. The purchase price of the dwellings -excluding annexes and a retail unit- is equivalent to €2,050/sqm above ground. The dwellings are currently rented, with an approximate occupancy rate of 80%. Hispania’s business plan involves investing in the asset and expanding the surrounding facilities in order to convert it into a unique asset in the residential rental market in the Sanchinarro area, with the ultimate aim of optimizing its occupancy rate.

Located to the north of Madrid’s city centre, Sanchinarro is one of the most dynamic residential areas in Northern Madrid. Over the last few years, various companies have chosen to locate their corporate headquarters in Sanchinarro and its surrounding areas. This has increased the already strong demand for residential properties in the area.

“These two deals prove, once again, Hispania’s ability to invest in high-quality assets through off-market deals in consolidated areas”, said Concha Osácar, Board Member of Hispania.

Hispania has committed investments amounting to €877 million during the last 12 months.

After these two transactions, Hispania has committed investments amounting to an aggregated GAV of more than €877 million. Hispania has a committed asset portfolio with an office GLA of 97,940 sqm –mainly in Madrid and Barcelona- 683 dwellings in Madrid and Barcelona and 22 hotels in Madrid, Barcelona, the Costa del Sol, the Canary and Balearic Islands and the Costa de la Luz.

Original press release: Hispania

Edited by: Carmel Drake

French fund Klépierre Acquires Plenilunio For €375M

17 March 2015 – Cinco Días

The shopping centre in Madrid, which measures 70,000 square metres, is home to brands such as H&M, Primark and Media Markt.

The active market for the sale and purchase of shopping centres in Spain recorded another milestone yesterday. The French fund Klépierre announced the acquisition of the Plenilunio shopping centre in Madrid, from Orion Capital Managers for €375 million. The transaction had been in the pipeline for months and was expected to close during the first half of the year.

The Plenilunio shopping centre is located in Madrid and measures 70,000 square metres. It is home to brands such as Primark (where the Irish company has its largest store in Spain, although its flagship store on Gran Vía will take over that title when it opens later this year); Inditex, Mercadona, H&M, Mango and Media Markt.

The transaction announced yesterday is the second largest ever involving a shopping centre in Spain. The largest involved the sale of Puerto Venecia in Zaragoza. The investment fund Orion, which was also the vendor of Plenilunio, received €451 million from that sale. Through these two transactions, which have taken place within four months of each other, more than €820 million has changed hands in the sale and purchase of shopping centres. The third largest sale in Spain was also closed in 2014 involving the Marineda City shopping centre in La Coruña, which was sold for €260 million.

Plenilunio is the first large sale to be closed in 2015, after record figures were registered in the shopping centre real estate market in 2014 – total investment amounted to €2,500 million, according to data from the Spanish Shopping Centre Association (‘Asociación Española de Centros y Parques Comerciales’ or AECC). The organisation itself thinks repeating the volume recorded last year again this year will be challenging.

The sector’s trade association also highlighted the importance of contributions from overseas funds to ensuring that investment volumes in Spain are higher than their pre-crisis levels. The French firm that has acquired Pleniluno already has a presence in the country through the La Gavia and Príncipe Pío shopping centres in Madrid; Meridiano in Santa Cruz de Tenerife and Maremagnum in Barcelona.

Turnover of €21 million per year

The French investment group confirmed yesterday in a statement that it expects the Plenilunio shopping centre, which had an occupancy rate of 99.3% at the end of last year, to generate annual revenues of €21 million. Its turnover increased by 15% last year. The fund said it has “plans to differentiate” the property, which (it expects) will result in improved cash flows.

Klépierre reported that it had paid the €375 million consideration using its own funds. The group ended last year with liquidity of €2,700 million. Nevertheless, according to the statement, it does not rule out (the possibility of taking out) a mortgage loan (on the property). The company estimates that it has assets in Spain valued at €1,400 million. PwC advised Klépierre on the transaction and Cushman and Wakefield advised Orion.

The French group confirmed that Plenilunio is a “dominant shopping destination” in Madrid, with more than 10.5 million visitors per year and a catchment area of 1.5 million inhabitants. Its proximity to the centre of the city, its visibility from the main arteries (roads) into and out of the city and its good public transport links are the main attractive features for the company. It said that 14,000 homes are currently being built in the area, which in general has a purchasing power than is 30% higher than the Spanish average and where 33% of the population falls into the highest income bracket.

Original story: Cinco Días (by Diego Larrouy)

Translation: Carmel Drake

DIA & Blackstone Close Largest Industrial RE Transaction Since 2013

11 March 2015 – ABC

The two companies have signed a contract for the rental of logistics buildings covering 30,000 square metres.

Logicor, the logistics platform owned by Blackstone, has signed a long-term rental agreement with the supermarket chain DIA for 30,000 square metres of space, which makes it the largest lease transaction in the industrial sector since 2013.

The rental contract covers a substantial part of a 37,000 m2 warehouse in the Miralcampo Logistics Park (in Corredor de Henares), a building that was acquired by Logicor at the beginning of 2014, according to JLL, the real estate consultant that has advised this transaction.

Logicor is the largest owner of logistics warehouses in the Iberian Peninsula, with a portfolio of 960,077m2. According to Logicor’s director general for Southern Europe, the positive changes in the real estate investment market in Spain are starting to be reflected in occupancy rates in the logistics sector.

That, combined with the limited availability of large, modern logistics warehouses in Madrid, has meant that tenants are under more pressure to hire the highest quality products, he added.

The CEO and Chairman of Logical, Mo Barzegar, highlighted that this transaction reflects the company’s investment strategy to purchase functional warehouses, close to urban areas, that are attractive to clients. JLL España advised Logicor in this transaction.

Original story: ABC

Translation: Carmel Drake