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

Bankinter’s Socimi Buys 4 Retail Premises from Inditex for €12.5M

15 June 2018 – Eje Prime

The Galician giant Inditex is continuing to divest some of its real estate assets and the main players in the sector are taking advantage to acquire retail premises on some of the country’s main high streets. Ores, the Socimi owned by Bankinter and the Portuguese firm Sonae, has purchased a package of four assets from the owner of Zara for €12.5 million. The establishments, which together span more than 1,930 m2 are currently leased to the female fashion chain Stradivarius.

Ores Socimi has acquired one store measuring 700 m2 at number 28 Rúa de Urzaiz, in Vigo; another measuring 450 m2 at number 23 on Calle de los Fueros, in Vitoria; a third measuring 430 m2 at number 2 Calle Emilio Arriesta, in Pamplona; and a fourth measuring 350 m2 on the corner of Plaza del Olivar and Calle San Miquel, in Mallorca.

“With this acquisition, financed by available cash held by Ores Socimi, the company is continuing to fulfil the investment objectives set out in its business plan and in accordance with the financial parameters committed to the shareholders”, explain sources at the group.

The purchase of these stores, located on the main high streets of the respective cities, follows another acquisition carried out at the beginning of this month in Madrid. That deal involved an establishment located at number 157 Calle Alcalá, with a surface area of 374 m2, as revealed by Eje Prime. Those premises are currently rented out to the restaurant group Tim Hortons (…).

Ores is aimed at private banking clients. Although its asset portfolio is, for the time being, limited, the Socimi made its debut on the stock market with the aim of investing €400 million in commercial premises on the high street, as well as in supermarkets, retail parks (measuring up to 20,000 m2), bank branches and single assets with long-term rental contracts and solvent tenants.

Bankinter and Sonae Sierra launched this new venture in the real estate sector in record time. The two groups constituted the company on 15 December last year and, in just two months, completed the vehicle creation process, raised sufficient capital to get it moving and made the leap onto the stock market.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Ores Acquires 2 Commercial Premises in Madrid & León for €4.9M & €3.8M, Respectively

4 June 2018 – Eje Prime

Ores is ratifying its position as one of the most active Socimis in Spain in terms of acquisitions. The Socimi owned by Bankinter and Sonae has just purchased one commercial premise located on Calle Alcalá in Madrid for €4.9 million. That purchase was carried out after the Socimi signed a €140 million loan with ING, as revealed by Eje Prime.

The commercial establishment is located at number 157 Calle Alcalá and has a surface area of 374 m2. The premise is currently leased to the Tim Hortons restaurant group. The operation, according to sources in the sector, has been brokered by the real estate consultancy Aretail.

In addition, Ores has bought a commercial premise at number 13 Calle Ordoño II in León. That store, which has a surface area of 745 m2, is occupied by the Catalan fashion chain Mango as the tenant. The Socimi paid €3.8 million for the space.

“With these acquisitions, financed using available cash from Ores, the company is continuing to fulfil the investment objectives established in its business plan, in accordance with the financial parameters committed to with the shareholders”, add sources at the group.

These purchases form part of a new growth phase that Ores is embarking on, which is being financed by a €140 million loan. With this financial strength, the group is going to carry out new real estate acquisitions in Spain and Portugal. The group’s most recent purchases include two plots in Mejorada del Campo in Madrid for €6.6 million. With a surface area of 8,000 m2, they are both leased in their entirety to the Valencia-based supermarket group Mercadona.

The year 2018 is proving to be one of the most active for Ores in terms of property purchase operations. At the beginning of the year, the company invested €86 million in the acquisition of six commercial premises in Portugal (…).

Ores is aimed at private banking clients. Although its portfolio of assets is reduced, for the time being, the Socimi made its debut on the stock market with the aim of investing €400 million in high street retail premises, supermarkets, out-of-town retail parks (measuring up to 20,000 m2), bank branches and single assets with long-term leases and solvent tenants.

Bankinter and Sonae Sierra launched this new venture in the real estate sector in record time. The two groups constituted the company on 15 December last year and in just two months, carried out the process to create the vehicle, raised sufficient capital to bring it to life and completed its stock market debut.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Bankinter Continues to Fatten Up its New Hotel Socimi Atom

3 April 2018 – El Español

After the success of Ores, the shopping centre Socimi managed by Sonae Sierra and whose ownership Bankinter shares with the insurance company Mapfre, the bank has recently constituted another real estate investment company as an alternative way for its most select clients to generate greater returns from their wealth (…).

The company is called Atom. Another Socimi that, with a share capital of almost €25 million, started work three months ago from offices leased to it by the bank in the La Finca Business Park, in the Madrilenian suburb of Pozuelo de Alarcón.

No date set for its stock market debut

Although at first, the possibility was considered that Atom would make its stock market debut during the first quarter of 2018, that decision has now been delayed. “No date has been set for the stock market debut. It could happen at any time. In a matter of weeks or months”, say sources at the bank led by Dolores Dancausa (pictured above), the CEO (…).

Bulky portfolio in just 3 months

Nevertheless, and unlike Ores – which made its debut on the MAB on 22 February 2017 without a single asset in its portfolio – Atom is going to start its stock market life with a bulky portfolio of assets. In just three months, it has acquired around 20 hotel establishments.

The last six – including the Hotel Rey Don Jaime de Valencia- were incorporated at the end of March, when the Socimi took advantage of an asset divestment by the private equity firm Atitlán, led by Aritza Rodero and Roberto Centeno, the son-in-law of the President of Mercadona, Juan Roig. Atom added 900 bedrooms to its portfolio through that operation.

Although it has not been disclosed, sources in the sector consulted by this newspaper indicate that the other hotels acquired by Atom could be the 11 establishments that Banco Sabadell left out of the operation, closed in October, in which the entity chaired by Josep Oliu sold the hotel management platform HI Partners to the fund Blackstone for almost €631 million.

Whilst in the case of Ores, Bankinter engaged Sonae Sierra as a specialist shopping centre manager, for Atom, it has empoyed Global Myner Advisors Hotels Capital Invest (GMA-HCI), a company led by Víctor Martí Gilabert, which has proven experience in the management of hotel assets (…).

Atom’s Board

In addition to Martí Gilabert, on the Board of Atom – which is chaired by Eduardo Ozaita, who was recently appointed the Director General of the Commercial Bank of Bankinter, switching roles with Fernando Moreno, who has moved to lead Business Banking –  sits Esther Colom García, who has been hired as the Legal Counsel of the new Socimi (…).

Together with Ozaita, on Atom’s Board as Bankinter’s representative is its Director of Investment Banking, Jaime Íñigo Guerra, who also sits on the governing body of the Socimi Ores. Atom’s Board is completed by Antonio Riestra and Ignacio Díaz, the sole administrator of Otels Hospitality Services.

In theory, the idea being proposed by Bankinter is for Atom to make its debut on the MAB with a portfolio of hotels worth around €200 million, with two-thirds of the establishments located in holiday environments and the remaining one-third located in strategic urban nuclei.

The split of Atom’s share capital will be similar to that of Ores

To raise this share capital, Bankinter has committed to contributing around €20 million, the manager GMA-HCI around €10 million, and other institutional investors another €30 million. Most of the money, around €120 million, will be provided by Bankinter’s own private banking clients. The minimum investment per client will be €200,000, up to a maximum of 15% of each individual’s financial wealth.

Bankinter wants Atom to have a similar shareholder structure to that of the Socimi Ores, in which the financial institution holds a 10% stake (7.48% through the parent company and 2.54% through Línea Directa), the insurance company Mapfre holds 6%, the Castellón based companies Corporación Juan Segarra and Inmuebles Gil Comes hold 5% each, and the manager Sonae holds 3.75%. The remaining 70% is owned by Bankinter’s private banking clients.

Original story: El Español (by Juan Carlos Martínez)

Translation: Carmel Drake

Atitlán Sells 6 Hotels to Bankinter’s New Socimi Atom Hoteles

19 March 2018 – Valencia Plaza

Atitlán is continuing to shake up the real estate market with its operations, in this case focusing on the hotel sector. The investment firm owned by Roberto Centeno and Aritza Rodero has sold six hotels to a new Socimi in the sector that is being promoted by Bankinter. According to sources familiar with the operation, speaking to Valencia Plaza, the asset sale has included the Hotel Rey Don Jaime de Valencia, amongst others.

The transaction represents Atitlán’s departure from a market in which it has operated by stealth since 2013 when it began to acquire hotel assets in Spain. Its modus operandi involved buying up hotels in need of refurbishment in good locations. The company then invested in the renovations before putting the properties back on the market, in some cases affecting a change of operator to optimise the management.

The brand acquired the aforementioned portfolio, containing six hotels in total, located in the cities of Madrid, Sevilla, Palma de Mallorca, Santiago de Compostela and Valencia, in the case of the latter through the purchase of the Hotel Rey Don Jaime from Grupo Beatriz, whose management was entrusted to the operator Hotusa.

That acquisition was completed in 2015 when the hotel was in the midst of a redundancy program. According to reports at the time by the Valencian edition of El Mundo, the investment made by the new owner – Atitlán – was €5 million. The 14-storey building is one of the largest hotels in terms of capacity in Valencia.

When asked about the subject, sources at Atitlán confirmed to this newspaper that a portfolio of six hotels – comprising 900 rooms in total – was sold in February – including the Hotel Rey Don Jaime. The firm declined to confirm the location of the other properties or the total amount of the transaction.

The operation comes shortly after another high profile sale by the company owned by Roberto Centeno – the son-in-law of Juan Roig – and Aritza Rodero. Last month, the firm sold three plots that had been owned for years by a subsidiary of Nuevas Actividades Urbanas (NAU) for €33.6 million, after taking control of NAU just over a year ago for €8.7 million.

The buyer, in that case, was the US fund Harbert Management Corporation, which made its debut in Valencia through this operation hand in hand with the property developer Momentum Real Estate Investment Managers.

Atom Hoteles Socimi

Sources familiar with Atitlán’s hotel operation add that the company that has acquired the assets is Atom Hoteles Socimi SA, a firm promoted by Bankinter, which owns 19 hotel establishments in total spread all over Spain.

The bank has also been silent about the project, although the Mercantile Registry reveals that the new company, which was constituted in January, is chaired by Eduardo Ozaita Vega, the Director General of Bankinter.

At the end of last year, market sources revealed Bankinter’s intention to launch a Socimi focused on the hotel sector this year for its private banking clients, in which it will maintain a stake of around 10%.

The entity led by María Dolores Dancausa plans to launch this investment vehicle on the Alternative Investment Market (MAB) with a share capital of around €200 million, for those clients whose wealth exceeds €1 million. The minimum investment to participate in the Socimi will be €200,000 per client, up to a maximum of 15% of total assets.

In this way, Bankinter is replicating the model of Olimpo Real Estate (Ores), a Socimi that it launched to invest in small and medium-sized retail assets in which the entity retains a 10% stake and which was designed to respond to clients who were demanding higher returns in the context of low interest rates.

Original story: Valencia Plaza (by Dani Valero)

Translation: Carmel Drake

Ores Buys Two Assets Spanning 8,000m2 in Madrid

12 February 2018 – Iberian Property

A few days after investing €86 million in the purchase of 6 commercial assets in Portugal, Ores Socimi (owned by Sonae Sierra and Bankinter) has bought two plots in Mejorada del Campo, Madrid, for €6.6 million.

The two assets cover a surface area of 8,000 m2 and are both leased to Mercadona, which operates a supermarket on both plots, according to Eje Prime.

In a statement sent to the MAB, the Socimi explains that “the Company continues to meet the investment objectives set out in its business plan, in accordance with the financial parameters committed to its shareholders”.

The operation was financed exclusively through equity capital.

Original story: Iberian Property (by Ana Tavares)

Edited by: Carmel Drake

Bankinter Prepares to Debut its Hotel Socimi in Q1 2018

26 December 2017 – El Confidencial

Bankinter has started to offer its private banking clients the option of acquiring a stake in a listed real estate investment company (Socimi) that owns a portfolio of 4- and 5-star hotels located across Spain, which it plans to debut on the stock market during the first quarter of 2018.

This Socimi will be created with a share capital of almost €200 million invested in a selection of hotels: 65% holiday establishments and the remainder urban, including several properties operated by high-profile chains such as Marriott and Meliá, according to reports made today by sources close to the project.

In recent weeks, Bankinter has been in charge of choosing the hotels, all of which are operating, in order to offer an annual dividend of approximately 5% to all of the shareholders of the Socimi, which will make its debut on the MAB, the stock market segment designed for SMEs.

The main shareholders will be Bankinter’s private banking clients, who have already pledged to contribute around €120 million to the project on 18 January. The minimum investment per client will be €200,000 and the maximum will be 15% of each individual’s financial wealth.

In addition, other investors, including Bankinter itself, the manager of the Socimi and institutional investors, will invest at least €60 million more.

The idea is that the bank led by María Dolores Dancausa will invest €18 million and the manager of the Socimi, GMA, €9 million, which would mean that both will hold a minority stake in the company, but one that is sufficient to entitle representation on the Board of Directors.

Unlike other Socimis, the investment vehicle designed by Bankinter has a divestment period of 7 years, although the bank reserves the right to extend its life.

This Socimi is not the first to be launched by the financial institution, given that in February, it placed Ores on the market, together with the company Sonae Sierra. Ores invests in commercial assets such as shops and large retail spaces in Spain and Portugal.

Original story: El Confidencial 

Translation: Carmel Drake

Ores Socimi Buys 4 Retail Assets In Northern Spain For €63M

4 October 2017 – Eje Prime

Ores is fattening up its portfolio of assets with some new purchases. The company, which had invested just over €60 million in the acquisition of commercial assets in Spain prior to August, has taken its chequebook out again and broken its own record. The Socimi, owned by Bankinter and the Portuguese firm Sonae Sierra, has purchased four commercial assets in the north of Spain for €63 million, according to confirmation from the company itself to Eje Prime.

Ores has acquired four hypermarkets in different parts of the north of Spain. It has purchased one commercial asset in Logroño, on Calle Rio Lomo, which is operated by Carrefour and which has a surface area of 14,912 m2. In Calahorra, Ores has bought a property operated by Eroski, located on the Logroño road, which has a surface area of 10,252 m2.

The Socimi has also carried out purchases in Tolosa and Guernica. In Guipúzcoa, the company has acquired a commercial establishment in Barrio de San Blas, measuring 4,147 m2, whilst in Guernica, it has bought a commercial asset measuring 4,348 m2 in the Txaporta neighbourhood. Both of those properties are operated by Eroski.

“With this acquisition, financed entirely using own funds, the company is continuing to fulfil the investment objectives set out in its business plan and in accordance with the financial parameters that we committed to our shareholders”, say sources at the group.

In recent months, Ores has been expanding its asset portfolio in Spain and Portugal. At the beginning of August, Ores acquired a property, which is leased to and operated by the supermarket chain Pingo Doce, located in Lisbon, Portugal. That asset has a gross leasable area of 2,200 m2 and is located in the Alta neighbourhood (…).

Ores is aimed at clients of Bankinter’s private bank segment. Although its portfolio of assets is limited, for the time being, the Socimi came to the stock market with the aim of investing €400 million in high street retail premises, supermarkets, retail parks (spanning a maximum surface area of 20,000 m2), bank branches and single assets with long-term leases and solvent tenants.

Bankinter and Sonae Sierra launched their new venture into the real estate business in record time. The two groups constituted Ores on 15 December last year, completed the process to create the vehicle and raised sufficient capital to give it a head start and debut on the stock market.

Ores was created with contributions from clients of Bankinter’s private banking segment (in other words, wealthy investors) through a capital increase amounting to €196.6 million. In this way, the private banking clients and some institutional investors control almost 86% of the company’s share capital. Meanwhile, the entity led by María Dolores Dancausa has retained a 10% stake, with Sonae Sierra holding onto just under 4% of the shares.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Socimi Ores Buys Portimão Shopping Centre In Portugal

7 April 2017 – Idealista

(…) After completing its first purchases last week, Ores, the Socimi backed by Bankinter and the Portuguese real estate company Sonae Sierra, has now made its debut in the Portuguese market with the acquisition of the company Portitail, which owns the Portimão shopping centre, located in Portimão (in the Algarve region), although the operation still needs to be approved by the competition authorities in Portugal.

Olimpo Real Estate, whose commercial name is Ores, has been trading on the ever-growing Socimi segment of the Alternative Investment Market (MAB) for just over a month. It debuted on the MAB on 22 February without any assets in its portfolio and with a market value of €200 million. Currently, its market capitalisation amounts to €202.6 million, after a slight increase in its share price in recent weeks.

The company came to the market with a very clear objective: to invest around €400 million in high street commercial premises, supermarkets and hypermarkets, retail park spaces (less than 20,000 m2), bank branches and unitary assets with long-lasting lease contracts and solvent tenants.

In fact, its intention is to look for commercial assets in good locations, in the main cities in Spain and Portugal. The domestic market will account for around 65% of the portfolio, whilst the remaining 35% will be invested in Portugal. The investment plan is due to be completed by the end of 2018.

According to the IPO document, Olimpo Real Estate has a period of five years (specifically, until 29 December 2021) to liquidate its entire portfolio of assets, otherwise, it must retain them for another five years. In this case, and once 10 years have elapsed since its launch, a shareholders’ meeting will be called to decide whether to continue the company’s activity or liquidate it.

Original story: Idealista (by Ana P. Alarcos)

Translation: Carmel Drake

Bankinter & Sonae Sierra’s Socimi Buys Its First Two Assets

27 March 2017 – Observatorio Inmobiliario

Ores, the Socimi created recently by Bankinter and Sonae Sierra, whose main activity is the acquisition and management of commercial assets in Spain and Portugal, has acquired two out-of-town stores in a deal that represents its first acquisition since its debut on the market.

The two commercial spaces, located in Artea, Bilbao and in the Galaria retail park, in Pamplona, have a combined surface area of approximately 8,400 m2 and are leased to Forum, a retailer specialising in sports, which has a long-term lease contract following a sale & leaseback operation signed in 2010.

Savills, the international real estate consultancy, has advised an investment fund with an extensive track record in Spain on the sale-side. On the legal side, Eversheds Nicea has advised the vendor and Cuatrecasas the buyer.

Luis Espadas, Director of Capital Markets at Savills, explains that “the out-of-town store market continues to form part of the focus of investors. It is a segment that still has significant potential for growth in terms of GLA volume and new operators entering the market and where we are seeing new interested investors, such as in this case”.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake