Tag: office buildings

Qatari Sovereign Fund Becomes Colonial’s Largest Shareholder

8 November 2018 – Europa Press

Colonial has approved a capital increase at an extraordinary shareholders’ meeting, whereby enabling the Qatari Sovereign Fund to become the Socimi’s largest shareholder since it will see its stake in the company double to 20%.

Qatar is becoming the largest shareholder of the second largest Socimi in Spain, a firm that owns office buildings in Madrid, Barcelona and Paris worth €11 billion, through an agreement reached with Colonial to exchange the shares of its French subsidiary Société Foncière Lyonnaise (SFL).

Specifically, Colonial is going to give Qatar the own shares that it issues during the capital increase and, in exchange, the fund is going to hand over the 22% stake that it holds in SFL.

In this way, Qatar will double its presence in Colonial from its current position of 10% to the aforementioned figure of 20% and will become its largest shareholder. Meanwhile, the real estate firm will increase the controlling stake that it holds in SFL from 59% to 80.74%.

It is an operation worth €718 million, which Colonial is framing in the context of simplifying the group’s shareholder structure and of strengthening its position in SFL and in France, a company and market that it considers to be “strategic”.

The real estate company is tackling this transaction after completing the merger of the Socimi Axiare and at a time when it is immersed in a full growth strategy through investments in purchases and the new build developments.

In the case of Qatar, it is strengthening its position as the largest shareholder of the second largest listed real estate firm in the country, in line with the commitment that many large international funds are making to the Spanish real estate sector. Moreover, it will retain an indirect stake in SFL.

No changes on the board

These shareholder exchanges will not have any impact on the Board of Directors of Colonial, given that the Qatari fund will retain the two seats that it has had on the management board for a while, when it had a larger stake, according to a statement made by the President of the Socimi, Juan José Brugera, after the meeting.

Brugera said that the operation was approved unanimously by all of the shareholders, whereby ruling out any bad feeling on the part of Colonial’s largest shareholder until now, the Mexican group Finaccess, not only for losing its status (as the largest shareholder), but also for seeing its stake diluted from 18% to 16% as a result of the capital increase.

Original story: Europa Press

Translation: Carmel Drake

Vitruvio Submits €32M Bid to Acquire Única Real Estate

8 November 2018 – Eje Prime

Vitruvio is planning to grow from inside the Alternative Investment Market (MAB). The Socimi chaired by Joaquín López-Chicheri has submitted an offer amounting to €31.96 million for Única Real Estate, the manager that is also listed on the same exchange, according to a statement filed by the company with the MAB.

The bid covers 100% of Única’s share capital, for which the Socimi has established a payment of approximately €27.14 per share, on the basis of the number of shares in circulation to date and the valuation that Vitruvio has determined for the company.

The team led by López-Chicheri has agreed that the payment may be made both in cash as well as by exchanging shares in Vitruvio. Each shareholder that participates will have to accept a share exchange as the payment form for at least 25% of the shares that they sell and a maximum of 75% in cash, explained the company.

Moreover, the Socimi is offering Única the possibility of postponing the appointment of a representative to its Board. After learning about the interest of the listed company in purchasing it, the operation must be approved at the General Shareholders’ Meeting by 51% of Vitruvio’s shareholders, once the favourable reports have been received from an independent expert designated by the Mercantile Registry and following the legal, technical and financial review.

Vitruvio: profits up by 22% to June to €580,000  

The Socimi, specialising in the management of office buildings, homes and commercial premises, recorded a profit of €578,459 during the first half of 2018, up by 21.8% compared to the same period in 2017.

Supported by its 288 investors, of which only one owns more than 5% of the company, Vitruvio owns around thirty real estate assets located all over Spain. Nevertheless, the Socimi has a clear focus on Madrid, given that the Spanish capital accounts for 79% of its portfolio. The other assets are located in Bizkaia (10%), Barcelona (4%) and a number of other cities ranging from Palencia to Salamanca, and including Ourense, Badajoz and Zamora.

Original story: Eje Prime 

Translation: Carmel Drake

Lar España Sells 2 Out-of-Town Stores in Pamplona to AEW for €11.5M

3 August 2018 – Eje Prime

Lar España is continuing its selling spree. The Spanish Socimi has divested two out-of-town stores in the Parque Galaria Retail Park in Pamplona for €11.5 million. The buyer is the company Fructiregions Europe, owned by the fund AEW, which has acquired a gross leasable area (GLA) of 4,108 m2, according to a statement filed by Lar with Spain’s National Securities and Exchange Commission (CNMV).

With this operation, the Socimi is strengthening its divestment and asset rotation plan, which it currently has underway and which has allowed it to raise up to €276.5 million to “focus its efforts on strategic commercial assets”, according to explanations from the company.

For the assets sold in Pamplona, Lar España has managed to obtain profits of 37% with respect to the €8.4 million that it paid for them in July 2015. In total, the two out-of-town stores occupy a gross leasable area (GLA) of 4,108 m2.

As well as divesting its non-strategic assets, Lar España has launched a three-year plan that includes the purchase of strategic commercial assets, such as the deal it carried out recently with the Rivas Futura Retail Park (Madrid), which it acquired for €62 million, and the Abadía Shopping Arcade (Toledo), which it purchased for €14 million.

In total, the Socimi has funding to invest €247 million in commercial developments. Examples include Palmas Altas in Sevilla, which will open its doors in 2019, and for whose construction the company has raised almost €100 million in bank financing; and Vidanova Parc, in Sagunto (Valencia), which recently debuted its first phase. Moreover, Lar España is going to spend €49 million on the renovation of retail assets that it holds in its portfolio.

After divesting its logistics portfolio a few weeks ago, for which the fund Blackstone paid €120 million, Lar España now has 18 real estate assets in its portfolio worth €1,401.5 million, of which €1,136.5 million correspond to shopping centres, equivalent to 81% of the total. 6% of the portfolio comprises office buildings, worth €85 million, and the remaining 13% belongs to the residential market, where the company has €180 million in developments under construction.

Original story: Eje Prime

Translation: Carmel Drake

Catalana Occidente Finalises Purchase of Gaudí’s Torre Bellesguard for €30M

20 July 2018 – Idealista

Catalana Occidente is adding a new asset to its portfolio. The real estate investment arm of the insurance company Catalana Occidente is finalising the purchase of Torre Belleguard, constructed by Antoni Gaudí at the beginning of the 20th century, for €30 million. The Town Hall of Barcelona, the Generalitat and the Regional Council of Barcelona have declined to exercise their right of first refusal and preferential acquisition.

The Catalana Occidente Group, which is headquartered in Sant Cugat del Vallès, has expressed its interest and is willing to pay the owners €30.1 million, excluding taxes, such as the property transfer fee, which would increase the consideration to at least €33 million, according to El País.

The acquisition of this property (which has been classified as an Asset of National Cultural Interest since July 1969) is pending “a few finishing touches” and the intention is for the building “to continue to be open to the public because we are aware of its importance and great heritage value”, explain sources at the company.

Torre Bellesguard was threatened in 2008 when deteriorations caused by the passage of time forced its owners to undertake a comprehensive restoration project and invest €600,000 (a cost shared equally between the family, the Generalitat and the Town Hall).

The high cost of the renovation led the family owner of the property to open it to the public in 2013, organising guided tours inside the tower. It also opened its gardens for the celebration of cultural and social events.

Following this purchase, Catalana Occidente would increase its asset portfolio. The insurance group has invested up to €208 million in the purchase of properties in Spain over the last two years. In total, the company has acquired six offices buildings located in Madrid and Barcelona.

The largest purchase made by the company, which is itself controlled by the Serra family, was the acquisition last year of two properties (Luxa Silver and Luxa Gold) in the 22@ district of Barcelona for which it paid €90 million to the fund Stoneweg.

Moreover, at the end of 2016, the insurance company purchased the building at number 55 Paseo de la Castellana, in Madrid, for which it disbursed €60 million. The asset, which was sold by Standard Life with a 100% occupancy rate, has a surface area of 5,625 m2.

The €27 million that it paid for a second property in the Spanish capital, located in the Montecarmelo area (…) completes the number of acquisitions made by the group’s parent company since 2016.

With these investments, Catalana Occidente’s real estate portfolio in Spain amounted to €1.265 billion at the end of the first quarter of 2018. This line of business generates gains of €476.6 million for the group, in which the real estate component of the investment portfolio (€12.2 billion) amounts to 11.3%.

Original story: Idealista

Translation: Carmel Drake

Lar España Excites the Market with its Logistics Portfolio

23 April 2018 – Expansión

The Socimi, which owns five complexes in Guadalajara and Valencia, has received a dozen offers for its assets, all of them for a price of more than €75 million.

Some of the players that have bid for Lar España’s logistics portfolio include the US fund Blackstone, P3 Logistic Parks – a platform controlled by the Singapore sovereign fund -, Palm Capital, CBRE Global Investors, Ares Management and Nuveen, according to market sources speaking to Expansión.

In the logistics sector, the Socimi in which the fund manager Pimco holds a stake, owns four complexes in the municipality of Alovera (Guadalajara), in the heart of the Corredor del Henares.

Together, that site comprises ten logistics warehouses with a total constructed surface area of 142,630 m2 occupied by tenants such as Saint Gobain Isover Ibérica, Tech Data, Carrefour and Factor 5. In addition, the Socimi owns a logistics complex in Almussafes (Valencia) containing a logistics warehouse with a constructed surface area of 19,211 m2. That warehouse is occupied by Valautomoción, the supplier of car parts and accessories to Ford, which was acquired by Ferrostaal in 2015.

According to the latest figures published by the Socimi, its portfolio of logistics assets has a valuation of almost €90 million. Moreover, Lar owns around 200,000 m2 of space for a new logistics development in Cheste (Valencia), which it is not planning to sell until it has finished construction there, to make the investment profitable, according to information reported by the company at the time.

According to Lar’s accounts, the land, which it purchased less than a year ago from Bertolín, has doubled in value since the investment was made. The Socimi paid €2.2 million for the 112,813 m2 plot in Cheste in May 2017 and, at the end of last year, it had a market value of €5.2 million.

Other divestments

Lar España has launched an asset rotation plan to raise cash and undertake new investments in shopping centres After selling two office buildings to Colonial, both in Madrid, for €112 million, the company now has three office buildings in Madrid and Barcelona worth around €85 million.

Moreover, it expects to raise €110 million from the sale of its stake in the luxury residential development Lagasca 99 (Madrid), which it owns jointly with Pimco.

In parallel, the company is going to maintain its investment plan. It expects to allocate €220 million to new acquisitions in retail centres and parks and will invest €247 million in developments, especially commercial ones, and another €49 million on improving its assets.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Duro Felguera Sells 2 Madrid Office Buildings to Signal Capital

14 March 2018 – Property Funds World

Signal Capital Partners has completed the acquisition of two office buildings in Madrid from Duro Felguera. Optimus Global Investors acted as sole advisor instructed by the vendor.

The largest building is the corporate headquarters of Duro Felguera in Madrid, which is located at Via de los Poblados 7, in the consolidated Campo de las Naciones Business Park. The freestanding office building comprises an area of almost 14,000 sqm GLA, set over five floors, as well as two basements with 228 car parking spaces. Duro Felguera has entered into a new lease over part of this building.

The Campo de las Naciones office market is considered to be one of Madrid’s most established and attractive office markets outside the CBD, strategically located midway between the Barajas airport and the CBD and near Madrid’s exhibition centre. The building benefits from both high visibility from the main ring road (M-40) and large open plan floor layouts. It is also next to the Cristalia Business Park, comprising almost 100,000 sqm of office accommodation, a modern hotel and amenities such as a nursery and several restaurants.

The second property is a vacant office building located at Calle Jacinto Benavente 4 in Las Rozas, Madrid. That property comprises an area of 2,600 sqm GLA, set over three floors and with 133 car parking places. The property, next to Tripark, is located in the Las Rozas Business Park, a consolidated office area in the northwest of Madrid in which well-known multinationals such as HP, Bankia, Oracle, Día, Santander, Adidas, ING and Triodos, amongst others, are located. It has a high occupancy rate, is easily accessible by car from the main highways of Madrid (A-6, M-40 and M-50) and enjoys amenities such as restaurants, gyms, shopping centres (Las Rozas Village and Heron City) and leisure activities.

Kris Van Lancker, Managing Director at Optimus Global Investors, says: “This has been one of the most complex transactions in which Optimus has successfully advised. The difficulty lay in finding the fine balance between the financial and office space needs of Duro Felguera in the scope of its global refinancing program and the investment requirements of Signal Capital Partners. It allows Duro Felguera to divest its non-strategic assets and at the same time helps Signal meet its risk-adjusted return targets.”

Original story: Property Funds World

Edited by: Carmel Drake

Arcano Will Invest €200M with its Second Real Estate Fund: Ava II

19 February 2018 – El Economista

Arcano Asset Management, the asset management arm of the Arcano Group, is redoubling its commitment to the Spanish real estate market with the launch of its second fund specialising in property.

Known as AVA II, the new vehicle will have a target size of between €150 million and €200 million and will replace its first real estate fund, Asoref, by raising and investing its funds over a period of 18 months.

AVA II is going to focus on value-added operations and will complete its first close at the end of March, although it already has €40 million of funding committed, from domestic and international investors.

The fund, which is going to be open to new investors for the next 15 months, has a target net rate of return (IRR) of 15% and is going to invest in operations involving all types of real estate assets, with a clear focus on residential assets and offices in Spain’s main cities.

In addition, and in an opportunistic way, Arcano’s new fund is also going to have the option of exploring beyond Spain’s borders and investing in real estate assets in Portugal and Italy, although under no circumstances shall its investments in those countries exceed 20% of the fund’s total value.

Eduardo Fernández-Cuesta, Partner at Arcano Real Estate; José Luis del Río, CEO of Arcano Asset Management; and Pablo Gómez-Almansa, Director of Investments at Arcano Real Estate, are going to be responsible for leading this new vehicle, supported by a team of six professionals, including the recent new recruit Diego Vizcaíno, as Development Director.

Operations in Madrid

Asoref, Arcano’s first real estate fund, which has just completed its investment process, has disbursed or committed more than €170 million in total, focusing primarily on office assets and residential properties. Its most recent operation involved the purchase of Hotel La Moreleja in Madrid, for approximately €12 million, which it is going to convert into a state-of-the-art office building, designed by the architecture studio Rafael de la Hoz. The firm is going to spend around €14.5 million on the construction of that project.

That acquisition follows the purchase of another office building for corporate headquarters in Madrid at number 24 Calle Ríos Rosas, in the heart of the Chamberí neighbourhood, which has an above ground surface area of 3,517 m2.

Likewise, through this fund, Arcano has entered the residential market, closing the acquisition of a plot with a buildable surface area of 6,029 m2 in the north of Madrid, in Las Rozas, for the construction of high-end housing.

It also completed the purchase of a residential plot in the centre of Madrid, on Calle Divino Pastor 5, in the Malasaña neighbourhood, for the construction of 30 homes. Beyond Madrid, the fund closed the acquisition of a plot of land on the seafront in Benalmádena, with a buildable surface area of 12,000 m2.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Lar Buys Adadía de Toledo Shopping Arcade for €14M

20 February 2018 – Eje Prime

The Socimi Lar España is continuing to grow its portfolio of assets. Almost a year after taking control of the Parque Abadía shopping centre for €63.1 million, the Socimi has acquired the Abadía shopping arcade for €14 million, as reported by the Group to Spain’s National Securities and Exchange Commission (CNMV).

The arcade has a surface area 6,138 m2, which, added to the footprint of the shopping complex (37,114 m2), takes the combined surface area of the site to 43,252 m2, in such a way that the Socimi has become the owner of 80% of the total surface area of Parque Abadía.

Overall, the park has a total surface area 54,100 m2 as well as a parking lot with 2,861 spaces. The shopping arcade has an occupancy rate of 92% and is home to 38 retail premises.

“This acquisition fits perfectly with the Socimi’s strategy to increase the ownership percentage of its commercial assets so that the management improvement measures that we are carrying out have the maximum impact”, explains José Luis del Valle, President of Lar España.

Lar currently owns 32 real estate assets whose value amounts to €1.536 billion, of which €1.179 billion corresponds to shopping centres located in Madrid, Toledo, the Balearic Islands, La Rioja, Vigo, Valencia, Sevilla, Alicante, Cantabria, Lugo, León, Vizcaya, Navarra, Guipúzcoa, Palencia, Albacete and Barcelona; €85 million to office buildings; €87 million to logistics assets; and €185 million to promotions under development.

Original story: Eje Prime

Translation: Carmel Drake

The Value of Lar España’s Asset Portfolio Rises by 29% to €1.5bn

25 January 2018 – Eje Prime

Lar España said goodbye to 2017 with more valuable assets in its portfolio. The Socimi has reported that its property portfolio experienced a 29% increase in value last year, up to €1.538 billion. According to the Socimi, that figure is higher than the sum of the prices at which it purchased its properties (€1.196 billion).

The company specified that the valuation of its real estate portfolio has been prepared by Cushman&Wakefield and JLL Valoraciones, according to Europa Press. This increase in the value of its portfolio is due to the various efforts undertaken in respect of its assets and the investments made during the course of the last twelve months.

As Lar España itself explained, between 2016 and 2017, it invested €74 million in improvements to assets in its portfolio, split between shopping centres (€20 million), office buildings (€11 million) and developments (€43 million).

Moreover, according to the Socimi, from the point of view of management, several actions have been undertaken. Specifically, the company highlights the purchase of properties for numerous rental rotation operations. In total, those types of operations account for 22% of the surface area occupied by the Socimi’s assets to date.

Original story: Eje Prime

Translation: Carmel Drake

Zriser Buys Caja Madrid’s Former HQ in Valencia

13 December 2017 – Mis Oficinas

The real estate group Zriser, the investment company owned by Ana and Pablo Serratosa, has carried out a new acquisition and whereby fully entered the real estate sector in the centre of Valencia. Specifically, it has purchased the Gallery building, which formerly housed the headquarters of Caja Madrid on Calle Pintor Sorolla, from Goldman Sachs.

The building is currently leased in its entirety and its main tenants are Valencia International University and Aegon Seguros. In recent years, the building has undergone a major renovation, leading to the modernisation of its facilities, allowing it to be awarded the prestigious Leed certification.

With this acquisition, Zriser now owns a gross leasable area of around 28,000 m2 in Valencia, spread over 5 buildings in different parts of the city: two in La Alameda (the Albereda and Senda de Senent buildings), one in Alfahuir and two in the centre (Ayuntamiento 27 and Gallery on Pintor Sorolla 18).

The Zriser Group also specialises in the management of office buildings,  plus it owns stakes in the share capital of several companies such as THU Ceiling Solutions, an auxiliary construction company specialising in profiles and roofing solutions; Auditmedia, a group of companies specialising in the monitoring of media and analysis of advertising investment; and Punt Mobles, an iconic company in the furniture and home decor sector, amongst others.

Original story: Mis Oficinas

Translation: Carmel Drake