Ores Acquires Store Leased to Inditex for €11 Million

23 June 2019Idealista

The Ores socimi, which is owned by Bankinter, has just acquired a new commercial space. The store, located in the town of San Sebastián, is currently leased to the Spanish retail giant Inditex and has a total area of ​​729m2.

The store is located at 26 Calle San Marcial and is occupied by a Zara Kids store.

Ores paid €10.9 million for the asset as part of its continuing strategy to seek growth in its home market of Spain. Last year, the socimi paid out almost 180 million euros in acquisitions. Ores Socimi currently has 34 assets in its portfolio, with a market value of over 357 million euros and a gross annual income of 21 million euros.

Original Story: Idealista – Custodio Pareja

Translation/Summary – Richard D. Turner

 

Ores has Invested €362.5M in 35 Assets Across the Iberian Peninsula

16 April 2019 – Eje Prime

Ores, the Socimi owned by Bankinter and Sonae Sierra, has invested €362.5 million in 35 assets across the Iberian Peninsula since its creation, according to a report filed by the company with the Alternative Investment Market (MAB) at the end of Q1 2019.

During the first quarter of this year, the company purchased a retail store in Burgos with a gross leasable area of 724 m2 for €5.2 million.

The company’s portfolio comprises hypermarkets (28.1%), mini-hypermarkets (17.8%) and retail parks (15%), amongst others. Its assets are located mainly in Madrid and Barcelona, as well as in prime areas of provincial capitals.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Socimi Ores Acquires Stradivarius’ Premises in Burgos for €5.2M

29 March 2019 – Idealista

The Socimi Ores, owned by Bankinter and Sonae, has acquired a commercial premise in Burgos, occupied by Stradivarius, for €5.2 million. The store has a surface area of 724 m2 and is located at number 13 Calle Moneda. The purchase has been financed using available cash, taking Ores’ purchases so far this year to more than €92.2 million.

Original story: Idealista (by Custodio Pareja)

Translation/Summary: Carmel Drake

Ores Doubles its Portfolio in a Year & Closes 2018 with Assets Worth €357.4M

11 February 2019 – Eje Prime

Olimpo Real Estate (Ores) is establishing itself in the market. The Socimi owned by Bankinter and Sonae Sierra closed last year with a portfolio comprising 34 assets worth €357.4 million. In this way, the company has doubled the valuation of its assets since the end of October 2017, a few months after it made its debut on the stock market. At that time, the firm held a total of 16 investments worth €172.6 million.

At the end of 2018, the value of the Socimi’s portfolio amounted to €357.4 million across 34 assets, comprising mainly hypermarkets (28.5%) and supermarkets (14.7%), retail parks (15.2%) and out-of-town stores (14.4%), as well as premises (8%) located on the main streets of large cities.

During the last four months of 2018, four investment operations were undertaken for a total value of €27.5 million. Specifically, the firm completed the purchase of two supermarkets, an out-of-town store in Santander and a commercial premise in Vigo.

“These operations are in line with Ores’ investment strategy, in urban locations in Spain’s main cities, and with first-class operators as tenants and long-term and stable lease contracts”, said the company in a statement sent to the Alternative Investment Market (MAB).

Ores is a company whose main activity is the acquisition and management of commercial real estate assets, both in Spain and Portugal. The company was created in December 2016 by Bankinter and Sonae Sierra, made its stock market debut at the end of February 2017 and has been increasing its investments and assets ever since.

Original story: Eje Prime

Translation: Carmel Drake

Bankinter Creates a Fund to Invest €400M in Student Halls

19 November 2018 – Real Estate Press

Bankinter has launched a venture capital fund that is going to invest €400 million in the promotion of student halls in the main university cities across Spain and Portugal. The fund is called ‘Fondo V Student Iberia’ and is going to be managed by Plenium Partners. To date, it has acquired a plot in Granada and it plans to buy more land in Valencia and Porto.

The fund has an initial capital fund of €150 million, and although it was created with the idea of giving the option for the entity’s private banking clients to invest upwards of €200,000, Bankinter itself has contributed €10 million. In addition, the US real estate manager Valeo – which owns more than 75,000 beds in student halls and nursing homes, primarily in the USA, contributed another €4 million and Plenium Partners, €1.5 million.

From there, “Fondo V Student Iberia” established its main hypotheses, which include the construction within a period of 2 years and the launch and operation a year later of at least four university residences containing 2,500 beds in total, in which it is going to invest up to €200 million.

With that objective in mind, it has already carried out its first acquisition, the purchase of a plot of land in Granada for which it has paid €8.8 million. It calculates that it is going to invest €41.3 million in total to build a 5-storey student residence containing 519 beds there, which will open its doors in September 2020.

Moreover, it is negotiating other alternatives to grow to almost 2,500 beds in the near future and has identified different opportunities to expand its portfolio to 9,000 beds.

The group is seeking to expand initially in the Iberian market, through the development, construction, execution and management of residential assets for students, primarily in Madrid, Barcelona, Valencia, Granada, Sevilla, Málaga, Lisbon and Porto.

The aim is to constitute a portfolio of assets that generate “predictable and recurrent” annual income in the hands of managing partners with proven experience, explains the document.

In this way, Bankinter is continuing its strategy of investing in alternative funds, after launching Helia, a venture capital fund that invests in renewable energy, and launching onto the market the Socimis Ores with commercial properties and Atom with hotels.

But now, it has placed its focus on university residences because Spain has 1.6 million students in total, close to the historical maximum, and also because it is one of the main destinations for international university students (and the top destination for those participating in Erasmus).

It is considered to be a sector with stable and growing demand; and it is estimated that between approximately 400,000 and 470,000 students are looking for accommodation. Moreover, a potential increase is expected in the student population in Spain and of Asian students, especially from China and India, where they have a lower presence than in other European countries such as Italy, Germany and France.

All of this will help the internationalisation strategy of the Spanish universities and the aim of obtaining value from the fact that Spanish is the second most widely spoken language in the world, with 400 million speakers.

Original story: Real Estate Press

Translation: Carmel Drake

Ores Socimi Acquires 3 Commercial Assets for €19.7M

25 October 2018 – Idealista

Ores Socimi has circumvented some of the operations that it was studying and has leapt into action. The Socimi owned by Bankinter and the Portuguese real estate company Sonae Sierra has acquired three commercial assets, occupied by the supermarkets Mercadona and Día, and the home decor store Conforama, for €19.7 million. The purchases have been carried out in Madrid and Santander.

In Madrid, Ores has purchased an asset occupied by Mercadona, located in the town of Humanes, which has a retail surface area of 2,334 m2. That transaction was carried out for €4.1 million.

Ores has also purchased a supermarket in Getafe, which is leased to and operated by the company Día. That asset has a total surface area of 1,956 m2 and the amount of the operation was €3 million. In Santander, meanwhile, the company has invested €12.6 million in an asset operated by Conforama and with a surface area of 8,000 m2.

These acquisitions form part of a new period of purchases by Ores, which has set itself the objective of investing €30 million, as revealed by Idealista News.

In this way, Ores is continuing to grow its portfolio, which comprises 30 assets and has a combined market value of more than €328 million and a gross annual income of €19.4 million.

Ores is aimed at private banking clients. Although its portfolio of assets is small, for the time being, the Socimi made its debut on the stock market with the objective of investing €400 million in retail premises on high streets, as well as supermarkets, retail parks (up by 20,000 m2), bank branches and singular assets with long-lasting leases and solvent tenants.

Bankinter and Sonae Sierra launched their real estate vehicle in record time. On 15 December last year, the two groups constituted the company and, within just two months, they carried out the process to create the vehicle, raised sufficient capital to get it going and completed its stock market debut.

Original story: Idealista (by Custodio Pareja)

Translation: Carmel Drake

Ores Signs a €35M Loan to Finance New Purchases

11 October 2018 – Eje Prime

Ores is obtaining more fuel to continuing buying Spanish real estate. The Socimi, controlled by Bankinter, has signed a mortgage loan amounting to €35 million, which will facilitate “the execution of the company’s business plan with respect to future acquisitions”, according to a statement filed by the real estate manager with the Alternative Investment Market (MAB).

The company has formalised with a loan with a Spanish bank, whose identity the company declined to disclose. The loan term expires on 11 October 2023 and the principal will be returned with a single bullet payment. The loan has been structured in the following way: €28.1 million at a fixed rate of 1.79% and €6.9 million at a rate of 3-month Euribor with a floor of 0%, plus a spread of 1.35%.

The capital inflow to Ores arrives just in time. At the end of the first half of the year, the Socimi had already achieved more than 90% of its total investment target and it only had €30 million left for purchases.

Between January and June 2018, Bankinter’s Socimi obtained net income of €8 million and a gross operating profit (EBITDA) of €6.3 million. Nevertheless, the company saw its net profit fall during the first six months of the year, with losses amounting to €3.9 million.

During the first half of the year alone, Ores completed the acquisition of thirteen new assets in Spain and Portugal. The company disbursed €117.5 million for those properties, exceeding its forecast investment target by 10%. Similarly, the group, together with Sonae Sierra, purchased the Millenium de Madrid retail park for €31 million in July.

Ores currently has thirty assets in its portfolio, worth €328 million, which generates a gross annual income of €19.4 million. With these latest operations, the Socimi is on track towards the target established when it was created in December 2017 of investing €400 million in high street retail premises, supermarkets, retail parks (up to 20,000 m2), bank branches and unique assets with long-lasting rental contracts and solvent tenants.

Original story: Eje Prime

Translation: Carmel Drake

Ores Acquires Millenium Retail Park in Madrid for €31M

20 July 2018 – Eje Prime

Ores is still on its shopping spree in Spain. The Socimi owned by Bankinter and Sonae Sierra has acquired the Millenium retail park in Madrid from the property developer Procinco for €31 million. The investment reinforces the new asset purchase plan that is being developed by the company, the most active of the entities listed on the Alternative Investment Market (MAB) so far this year.

Millenium is a commercial complex located in El Carralero, within the municipality of Majadahonda, which was inaugurated in 2002. It has a gross leasable area of 11,353 m2 and its tenants include Media Markt, Aldi and Toys’r’us. Savills Aguirre Newman and JLL have advised Procinco on the sale.

“This operation demonstrates the high degree of interest from institutional investors in retail parks in Spain”, says Salvador González, National Director of Capital Markets at Savills Aguirre Newman.

In June, Ores purchased a package of four retail premises from Inditex for €12.5 million. With these latest operations, the Socimi is continuing with its new growth phase, which is going to be financed with a €140 million loan. With that financial injection, the group is going to undertake new real estate acquisitions in Spain and Portugal.

Original story: Eje Prime

Translation: Carmel Drake

CBRE: Investment in High Street Premises Will Exceed €1.1bn in 2018

5 July 2018 – Eje Prime

Commercial premises, especially those located on the most prime streets of Spain, are proving highly sought-after. According to CBRE, the high street investment market is going to achieve record figures in 2018, up to a total of €1.1 billion. The culprits? The German fund Deka and Inditex, in addition to the strength of secondary cities in the country.

During the course of the last two years, investment in high street assets remained stable at around €800 million per year, after peaking at €1.01 billion in 2015. In 2018, according to calculations from the real estate consultancy CBRE, the investment volume will exceed the €1 billion threshold again, primarily due to the impact of the sale to Deka of a batch of 16 Zara stores for €400 million and the boost from activity beyond Madrid and Barcelona.

Deka has whereby become a catalyst for the retail investment market in Spain, together with Generali and Union Investment, which also starred in major investment operations during the first few months of 2018.

Deka’s €400 million operation was the largest in the last year and a half, followed by the purchase by Hines of number 17 Paseo de Gracia for €113 million and the acquisition by Generali of number 9 Preciados for €107 million.

Institutional investors are the main drivers of the investment market in this segment, according to the Retail keys in Spain report in CBRE. “In recent years, several overseas institutional investors have entered the Spanish market and many have been active in 2017 and 2018”, according to the document, which points out that Socimis such as Tander, Ores and Silicius have also been interested in the sector.

Madrid and Barcelona are continuing to be the main magnets for high street investment in Spain and, together, they account for 79% of the total expenditure. “Nevertheless, other cities in Spain are booming and demand is rising for investment products in cities such as Bilbao, Valencia, Sevilla and Málaga”, says the document.

The displacement of demand to other cities is a consequence of product shortages and low returns. On the one hand, according to CBRE, operators have accentuated their preferences for prime streets, which has strengthened the shortage of products. “Premises with recently signed contracts are sparking a lot of interest, given that if they reflect market rents, they become a very stable long-term investment”, says the document.

On the other hand, the pressure on returns remains strong and in 2017, they were compressed further still, reaching levels of 3.25% in Madrid and 3.50% in Barcelona for the most prime products. The “historically low” values are repeated in other European cities, with 3.25% in Berlin, 3% in Milan, 2.75% in Paris and 2.25% in Munich.

As a result of those two elements, investor interest is extending to other cities in Spain, although the operations closed tend to be of greater importance, “given that the premises and the rents are lower and the returns are higher”.

With investment of €170 million outside of Barcelona and Madrid in 2017, several purchases stand out such as M&G’s acquisition of the H&M store on Reyes Católicos in Granada as well as of the El Corte Inglés building in Plaza la Magdalena in Sevilla.

Valencia and Bilbao are the markets that, typically, generate the most interest from investors due to the size of the two cities, the importance of their high streets and the role of tourism. The tradition of investment in the segment by local family offices means that returns there are compressed to 4%.

Retail and shopping centres

High street premises accounted for 25% of the total investment in retail in 2017, well behind shopping centres, which accounted for 51% of the total, but ahead of retail parks (15%) and portfolios of supermarkets and hypermarkets (9%) (…).

In Spain in 2017, investment in the Spanish retail market amounted to €3.3 billion. CBRE forecasts that the figure will amount to €2.9 billion in 2018, boosted by high street investment (…).

Original story: Eje Prime (by P. Riaño)

Translation: Carmel Drake

CBRE: Investor Interest in High Street Stores Skyrockets

5 July 2018 – Cinco Días

Stores on the most commercial streets of Spain have become an object of desire for investors in the real estate market. Large funds and insurance companies alike are investing in these types of assets and experts predict that a new record is going to be set in the segment this year.

Investors are expected to spend around €1.1 billion on these types of commercial premises in 2018, according to forecasts from the consultancy CBRE. That figure would exceed the amount invested in high street stores in 2017 by €300 million, equivalent to a growth rate of 36.9%. Of interest are shops on commercial thoroughfares such as c/Preciados and c/Serrano in Madrid and Paseo de Gracia and Portal de l’Àngel in Barcelona. In fact, those two cities accounted for 79% of total investment last year. “Nevertheless, other cities in Spain are on the rise and there is growing demand for investment products in cities such as Bilbao, Valencia, Sevilla and Málaga”, according to the report “The Keys to Retail in Spain”, published by CBRE yesterday.

Investors regard these types of well-located assets as a good option for placing their money, a solid alternative in the context of low-interest rates and because these high street stores perform better (than other commercial assets) in the face of competition from online retailers. Currently, according to CBRE; the returns on these properties amount to 3.5% in Barcelona and to 3.25% in Madrid; in other cities (with more risk), the returns are greater.

The stars of these acquisitions are mainly the large funds. Hines, M&G, AEW, Thor, Union Investment, CBRE GI and Deka. “In 2017, in addition, an insurance company entered the high street sector for the first time: Generali acquired the Pull & Bear store on Calle Preciados in Madrid”, according to the report. Other active players include the Socimis, such as Tander, Ores, and Silicius, which have started to express interest.

In terms of large operations so far this year, in January, the German fund Deka acquired 16 Inditex stores for €400 million. Another significant operation was the acquisition of Mercado de San Miguel by the Dutch fund Redevco, for €70 million.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake