Tag: parking space

Catella Asset Management Buys 4 Properties For €84M

3 November 2016 – Expansión

The fund manager Catella Asset Management has just completed its first transactions in Spain. In a period of just one month, the Swedish firm has carried out four investment operations to put the perfect finishing touches to its first year in the Spanish market.

Specifically, Catella AM has purchased a retail park in Vinaroz (Castellón) and three residential buildings in Madrid and Barcelona for a total investment of €84 million. “In the last month, we have closed four residential and retail operations, involving the type of assets that we are particularly focusing on”, explained Javier Hortelano, Partner-Director at Catella Asset Management for Spain and Portugal.

In the first operation, Catella has purchased two residential buildings located in Barajas (Madrid) and Rambla de Poblenou (Barcelona), containing almost 150 homes in total. “The building in Barcelona has a 97% occupancy rate and the building in Madrid has a 95% occupancy rate”. In addition, the properties have 66 and 82 parking spaces, respectively.

Subsequently, the Swedish management company acquired a third property, measuring 4,500 m2, on Calle Génova in Madrid. The building, which contains 24 homes, 29 parking spaces and a retail outlet, has an 85% occupancy rate.

The fourth operation has involved the acquisition of the Portal Mediterráneo retail park in Castellón; this purchase has been performed on behalf of a third party, the Belgian company Mitiska Reim.

Last year, the listed Swedish group Catella launched a new investment platform for the Spanish market. The group’s consultancy arm, Catella Property, has been operating in the country since 2008, and at the end of 2015, the company opened an office for its investment manager, which has now made its first purchases. “Catella AM’s approach is to invest using the funds that the management company has raised or to invest on behalf of investors with whom we usually work and who come from Europe, as well as Asia and America”, said Hortelano. The Director, who joined Catella from PwC, has extensive experience in the retail sector, having previously served as the President of the Spanish Shopping Centre Association and COO at Redevco.

Fund

The residential buildings that Catella has acquired will be placed in a pan-European investment fund called Catella Wohnen Europa, which Catella created this year. “This fund began operating six months ago and already has €250 million under management. It also has another €500 million of operations in the due diligence phase and it is planning to continue at a very intense pace next year”, said Hortelano. “It is not the typical fund that buys assets to sell them off piecemeal, rather its objective is to buy properties, and then manage and maintain them through long term lease contracts”, said Eduardo Guardiola, Partner at Catella AM Iberia.

Following the completion of these purchases, the Swedish management company hopes to be very active in Spain: “We hope to close one or two more operations this year to reach a total investment of €100 million and then exceed that figure next year”.

When it was launched, Catella AM set itself an investment target of between €500 million and €1,000 million over a couple of years in Spain and Portugal. Its purchases are focused on large tertiary assets (both shopping centres and retail parks), requiring management, as well as on residential rental properties in good locations.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Idealista: Garage Rental Yields Averaged 5.6% In Q1 2016

13 June 2016 – Expansión

Investment / Buying a parking space for rent generates an annual gross yield of 5.6% in Spain. That figure is even higher in the most sought-after neighbourhoods of the large cities, where it reaches up to 8%.

Now that debt and deposits are offering such meagre returns and the stock exchange is trading well below the levels seen a year ago, alternative investments are gaining strength. That is the case with housing, and also with garages. In this sense, the central areas of Madrid and Barcelona are full of very attractive opportunities to buy parking spaces and rent them out, with yields of more than 6% gross per annum.

The average return on garages in Spain is 5.6%, according to a study from Idealista, compiled using data from Q1 2016. That is, no less than 1.1 percentage points higher than the figure a year ago (4.5%) and four times the yield on 10-year government bonds (1.4%).

The highest average returns are obtained in Murcia (5.7%), followed by Málaga (5.5%), Almería (5.4%) and Castellón (5.1%). Parking spaces in Pamplona (4.6%) and Guadalajara (4.5%) also perform well. At the opposite end of the spectrum, the (regional) capital cities with the least profitable garages are Barcelona, with 2.1%, Oviedo (2.3%) and Salamanca (2.6%). In Madrid, the return is 2.8%.

But the arithmetic means are not representative in the two largest cities, as the markets there are very heterogeneous. In peripheral areas, there is hardly any demand for garages and there they generate minimal returns, whilst in prime areas of Madrid and Barcelona, parking spaces generate yields of more than 6%. (…).

Original story: Expansión (by Juanma Lamet and Rebeca Arroyo)

Translation: Carmel Drake

Northwood Puts Diagonal Mar Shopping Centre Up For Sale For €500M

9 May 2016 – Expansión

The US investment firm Northwood has put the Diagonal Mar shopping centre in Barcelona up for sale, for an estimated price of €500 million, according to sources close to the deal.

CBRE, the agency responsible for the management and leasing of the shopping centre since it was opened in 2001, has been appointed to manage the sale. Sources at the real estate consultancy declined to make any comment. The investment firm bought the shopping centre in May 2014 from a group of investors represented by Avestus Capital Partners, however that retained the asset management of the property.

Diagonal Mar – one of the largest shopping centres in Cataluña – covers a surface area of almost 88,000 sqm, including 27,100 sqm owned by Alcampo.

Opened in November 2001, the centre was designed by Jean-Louis Solal and the architect Robert A.M. Stern. Diagonal Mar is located in a prime position, situated approximately five kilometres to the north west of the city centre, in the 22@ district.

This centre has more than 200 stores dedicated to fashion, restaurants, leisure, a bowling alley and other services, as well as 4,800 parking spaces, provided free of charge for three hours.

Moreover, the shopping centre has an open air leisure and restaurant area, “La Terrassa del Mar”, which is open to customers, neighbours, employees from the office towers and tourists from nearby hotels in the area.

More than 3,000 jobs

Diagonal Mar received 16.7 million visitors last year, which represented an increase of 2.3% with respect to the previous year, and resulted in a 9% increase in sales during the period.

The centre owned by Northwood employs more than 3,000 people. The centre’s current tenants include Media Markt, Fnac, Primark, Zara, H&M and Cinesa, amongst others.
In addition, brands such as Revlon, Napapijri and the toy store Drim have opened shops in the centre within the last year.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Meridia III Makes Its First Acquisition In Madrid & Barcelona

3 May 2016 – Press Release

Meridia Capital’s new real estate vehicle, Meridia III, makes its first acquisition in Madrid and Barcelona.

On Friday, Meridia Capital Partners, SGEIC, S.A., (“Meridia Capital”) announced the first deal of its recently launched real estate vehicle, Meridia III. The fund has acquired a portfolio of 9 assets in the metropolitan areas of Madrid and Barcelona. The portfolio totalling c.42,000 sqm mainly includes office buildings, as well as a logistics warehouse and 581 parking spaces. The properties are located in established and integrated business areas of Spain’s two main markets. Meridia III acquired this portfolio from the Spanish real estate fund Segurfondo Inversión (managed by Inverseguros).

Six assets, which account for 87% of the portfolio in terms of square metres, are located in Madrid, whereas the remaining 13% (totalling 3 buildings), are situated in Barcelona. The properties have attracted prominent tenants such as BBVA and Telefonica.

Juan Barba, Partner, Managing Director Real Estate at Meridia Capital, said “This is an excellent opportunity to acquire a diversified portfolio with high value creation potential. The country has been showing clear signs of recovery in the office segment, triggered by an increase in occupancy levels as well as gradual rental growth. This transaction brings new office assets to those acquired through Meridia II, thus reinforcing our local presence in this sector.”

Meridia Capital’s Founding Partner & CEO, Javier Faus, stated “The launch of Meridia III and this first deal demonstrate that we continue to be very positive about the prospects that the Spanish real estate sector offers. Through the new vehicle we aim to leverage on our track record and extensive experience in this market, which we believe will allow us to continue achieving attractive returns for our investors.”

Meridia Capital was advised on this deal by Aguirre Newman, Garrigues and Dokei.

Original story: Press Release

Edited by: Carmel Drake

Banco Sabadell Launches Fund To Invest In Parking Lots

29 April 2016 – Expansión

Banco Sabadell is exploring new ways of diversifying the investments of its private banking clients in the current low interest environment. The financial entity has just created a private equity fund called Parking Rotation Capital FCR, a vehicle through which it will invest in the purchase of short-stay car parks in Spain and Portugal.

The fund, which has already been registered in the CNMV, will be managed by Sabadell Inversión and is starting life with a committed capital of more than €31 million. This figure has been contributed by the clients of Sabadell Urquijo Banca Privada and by pension funds, says Cirus Andreu, Director of Investments, Products and Analysis at Banco Sabadell.

“We are launching this fund in order to offer better returns to our private banking and institutional clients”, says Andreu. The objective is to reach yields equivalent to those generated by other private equity investments, rather than those currently being generated by fixed income.”We expect to see very low interest rates until 2018, which means that we need to diversify portfolios and invest in liquid positions, with maturity horizons of seven to nine years”, explained the Executive of Sabadell, who hopes to achieve yields of more than 8% through this new vehicle.

The idea is that Parking Rotation Capital FCR will co-invest in the car park sector with two other Spanish funds so as to be in a position to invest in larger operations. Thus, Sabadell has joined forces with the financial services firm Altamar Capital Partners, founded by Claudio Aguirre, and with Firmium Capital, a new investment company, which has created a division specialising in car parks with funds raised from high net worth individuals and institutional investors.

Sabadell, Altamar and Firmium expect to spend €150 million on the acquisition of short-term car parks that are already operating and that have extensive future operational time horizons. They are looking for urban car parks that generate cash flows and recurrent yields.

According to Cirus Andreu, the car park ownership market in Spain is very fragmented, which means there is a great opportunity for a specialist fund to lead the concentration of the sector. During the first phase, it will optimise the commercial and operational management of the parking lots and, over the medium term, it will group together assets into different portfolios for their subsequent sale to wealthy investors.

Experience

Firmum’s partners include the son of Juan Abelló, Cristian Abelló Gamazo – who was a Director at Saba, the leading company in the sector -, Bernardino Díaz-Andreu, who has spent his professional career at Torreal – owner of 20% of Saba -; Estanis Jasinski, who comes from UBS; and Fernando Pire Abarca, who led the car park division at the Isolux Corsan group. The partners of Firmum have been involved in the purchase of 34,000 parking spaces in total.

Meanwhile, in September 2015, Altamar Capital Partners launched Altamar Infraestructure Income FCR, a fund that expects to raise €400 million to invest in infrastructures and “real assets” to combat the volatility of other financial assets and circumvent the low interest rates.

Original story: Expansión (by Sergi Saborit)

Translation: Carmel Drake

Eugenio Hinojosa Resumes Empark Negotiations

13 October 2015 – Expansión

The Spanish businessman Eugenio Hinojosa has resumed his plans to purchase Empark, the leading car park company in Spain and Portugal. The operation could amount to around €900 million, including debt. Hinojosa, one of the largest operators of parking spaces in Madrid, has resumed talks to purchase Empark after exclusive negotiations broke down between the shareholders of the parking company and the funds that control Vinci Park (Ardian and Crédit Agricole), the car park giant in France.

Last week, sources close the operation said that the negotiations are progressing and only a few minor details now need to be resolved relating to avals, guarantees and creditor approvals (mainly bondholders) due to the change in control of the company. “Financing is not a problem”, assured the sources consulted.

Hinojosa plans to join forces with other partners, including the company Andersen Partners, to buy Empark. Empark declined to comment on the matter. Empark’s controlling partner with a 50.3% stake, is Assip, a vehicle named after the Portuguese company A. Silva & Silva, which is in turn controlled by the founding families of the company who participate in the management of the group. The main executives of Empark, which manages 500,000 parking spaces in Spain, Portugal, UK and Turkey, are José Augusto Tavares (Chairman), Pedro Mendes (CEO) and Antonio Moura.

The remaining capital is divided amongst several investment funds, managed by BES (22%) and Ahorro Corporación (8.2%). The Mello family holds a 2.6% stake. In theory, these partners are also selling their respective stakes in the company. Ahorro Corporación’s stake is now being managed by the fund GED Capital.

Political risk

In July, Vinci Park reported that the negotiations to purchase Empark had broken down after the due diligence (audit of the assets) was completed with findings that were not satisfactory. Sources close to the company say that behind the decision was the high exposure that Empark has to town halls governed by parties linked to Podemos following the municipal elections in May.

Eugenio Hinojosa, who is a related by marriage to the founding family of Cortefiel, has been building up a sizeable portfolio of car park assets in Madrid, and now owns more than 12,000 parking spaces. He was one of the main competitors in the tender for the Aena car parks in 2013, but was his offer was outbid by Empark and Saba. He managed to suspend the award after filing a special appeal with the Central Administrative Court of Contractual Appeals against the airport operator’s decision, but then lost the ruling.

In 2014, the controlling shareholders of Empark engaged JPMorgan and Caixa Banco de Investimento (CBI) to find a buyer. One of the reasons for their exit from the company (they purchased it from Ferrovial in 2009) has been the financial problems of its Portuguese partners, which have undergone a complicated bankruptcy process and have had to make loan repayments in recent months.

Empark closed 2014 with sales of €180 million and an EBITDA of €66 million. As well as managing some of the busiest car parks in Madrid, Aena awarded the group the operation of its car parks in the Western region (including Barajas) in 2013, requiring the management of 40,600 parking spaces. Two years ago, the company also won the tender to manage 82,000 ground-level parking spaces in Madrid.

Original story: Expansión (by C. Morán)

Translation: Carmel Drake

Inbisa Sells 1,600m2 Of Office Space In Barcelona

31 July 2015 – Noticias Logística y Transporte

Inbisa Inmobiliaria has sold 1,600 m2 of office space, 9 parking spaces and 2 store rooms in the Torre Inbisa Plaza Europa, in Barcelona to a Russian private equity investor. The building’s occupancy rate will increase to 80% as a result of the sale.

According to Inbisa Inmobiliaria, “the buyer, which has been advised by Residae Barcelona Real Estate Consultancy, has valued the investment on the basis of the solvency of the tenants, the stability of their contracts, the characteristics of the asset and the potential for the growth in value of the property”. (…).

Plaza Europa has consolidated its position as a strategic area in Barcelona thanks to its proximity to the Barcelona-El Prat airport, the port, the AVE station and the city centre; and many companies have chosen to locate their headquarters there. Torre Inbisa Plaza Europa is the only building in the area that offers to sell offices, with spaces available measuring as little as 200 m2.

The tower is more than 100m tall and has a total above-ground constructed surface area of more than 19,500 m2 over 25 floors, measuring 800 m2 each. It also has 2 underground floors with capacity for 237 parking spaces, 700 m2 of store rooms and a dining room, which may be used by the building’s occupants. (…).

Inbisa Inmobiliaria confirmed that “special care was taken with the design (of the tower) from the start to control the climatic exposure,  the light, ensure the correct thermal and acoustic insulation and natural ventilation, with the aim of optimising the facilities”.

At the end of June, Inbisa Inmobiliaria sold industrial warehouses measuring more than 3,700 m2 in Vizcaya in the Centro Empresarial Inbisa Derio.

Original story: Noticias Logística y Transporte

Translation: Carmel Drake

The Owner Of McKinsey’s HQ Puts Its RE Portfolio Up For Sale

19 May 2015 – Expansión

 More than €200 million / The Cotoner family is selling six buildings in Spain and two in Paris

A new batch of office buildings has sparked interest amongst large investment funds, Socimis and family offices. There are eight buildings in total – six in Spain and two in France – located in some of the most iconic streets of both countries. In total, they occupy a combined surface area of more than 27,000 m2 and generate more than €3 million in annual rental income.

The assets are owned by the company Marzabal S.L., created by the Cotoner family to manage its real estate assets. They include eight buildings: two in Pairs, one in Navarra, another one in Bilbao and four in Madrid. The jewel in Marzabal’s crown is located in the capital: the current headquarters of McKinsey. The consultancy firm has occupied the building, located on Calle Sagasta 31, for years, as well as several floors in the adjoining building. Both are owned by the company now for sale.

In total, the building houses 10,114 square metres of office space (fully leased) and 93 parking spaces; it generates annual rental income of €1.64 million.

Rental income

The other buildings in Madrid include a historical building (from 1923) on Avenida de Felipe II; another one on Paseo de Eduardo Dato; and a third on Francisco de Rojas, occupying more than 4,400 square metres and leased to several tenants, including the distance learning university, Uned. Currently, they generate rental income of more than €500,000 per year.

Marzabal also owns a residential building in Tudela (Navarra), built in 2013, measuring more than 2,650 square metres, which also houses several shops on its ground floor.

In Bilbao, the company owns a residential property measuring around 800 square metres, located in the old town, next to the San Francisco de Asís church.

The company for sale is the owner, in turn, of a company based in Denmark, which owns two office buildings in Paris. One of them, located in the “second district” of the French capital, houses office space measuring 2,100 square metres and is fully leased to the private equity company Partech International.

It generates rental income of almost €900,000 per year.

The second asset in Paris includes four office buildings measuring 4,200 square metres and 39 parking spaces. The property, located on Pereire Boulevard does not currently have any tenants.

Bids are expected to amount to more than €200 million for the batch of assets, although the book value of the Spanish assets amounts to €68 million, with share capital of €10.4 million and net financial debt of €34 million. The Danish company, which owns the two properties in France, is worth €62 million; its share capital amounts €37 million and has net financial debt of €24 million. The Spanish entity’s main creditors are BBVA and Santander; the Danish entity’s main creditors are Crédit Foncier and BNP.

Bids are expected to be received during the first half of June and the process will close during the following three weeks. The sale is being managed by the private banking division of Banco Santander and the firm Aiga Investment.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Vinci Park In Exclusive Negotiations To Buy Empark For €900M

23 April 2015 – Expansión

Exclusivity / The group controlled by Ardian will purchase the parking space market leader, which has debt of €500 million.

Yesterday, the French company Vinci Park (controlled by the fund Ardian, together with Credit Agricole and Vinci) announced that it had begun exclusive negotiations with the shareholders of Empark regarding the “potential purchase” of the market leading parking space company in Spain and Portugal, which is controlled by Portuguese shareholders. “We are still negotiating to arrive at a final agreement” say sources at Vinci Park. The company is committed to maintaining an investment grade rating.

A few days ago, Empark’s shareholders said that an agreement with Vinci was imminent for the sale of a controlling stake.

Financial troubles

Other investors have expressed interest in Empark, valued at around €900 million (including debt of €500 million), including the Spanish businessman Eugenio Hinojosa who, with the support of several financial institutions, including Santander, designed a purchase offer to compete against the bid made by the French group. Empark will have to explain the transaction to its bondholders in London.

Assips is Empark’s controlling shareholder, with a 50.3% stake – the vehicle is controlled by the Portuguese firm A. Silva & Silva, which is in turn controlled by the founding families of the company who participate in the management of the group.

The top executives at Empark, which manages 500,000 parking spaces in Spain, Portugal, UK and Turkey, are José Augusto Tavares (Chairman), Pedro Mendes (CEO) and Antonio Moura.

The remaining capital is divided amongst several investment funds managed by BES (22%) and Ahorro Corporación (8.2%). The Mello family holds a 2.6% stake. These shareholders will also sell (their stakes) to Vinci Park.

Other movements

The controlling shareholders commissioned JPMorgan and Caixa Banco de Investimento (CBI) to search for a buyer in 2014. One of the reasons for exiting the company (which they acquired from Ferrovial in 2008) has been the financial troubles of the Portuguese shareholders, which have been going through a complicated bankruptcy process and have had to deal with debt maturities in recent months.

Empark recorded sales of €180 million in 2013 and a gross operating profit (EBITDA) of €63.3 million. During the first three months of 2014, Empark recorded turnover of €42.8 million, down 0.6% (on the previous year) and a gross profit of €15.3 million, in line with 2013. Vinci Park, which has operated in Spain since 1994, manages 39 car parks in various cities across the country. The company also has a presence in a further thirteen countries and generates total revenues of €704 million.

The sale of Empark coincides with the decision by KKR, Torreal and ProA to sell 49% of Saba.

Original story: Expansión (by C.Morán and D.Badía)

Translation: Carmel Drake

Car Parks: Isolux Joins Forces With Oak Hill

28 January 2015 – Expansión

Cash inflow of €100 million / The group, which is in the middle of an IPO, has granted its new partner the option to buy its car park business from 2019.

Isolux has strengthened its car park subsidiary, one of the outstanding loose ends in its business, which will become more attractive through this transaction, as the company continues with its plans to go public in mid-February. Specifically, the Spanish group has signed an agreement with the fund Oak Hill Capital Partners to jointly develop the business.

The investment firm has injected €100 million into the company in the form of a loan, which is fully intended to increase the company’s portfolio of assets. In return, Isolux has granted Oak Hill an option to take ownership of the car park subsidiary from 2019.

The agreement transforms Isolux Infrastructure into one of the most active competitors in the Spanish parking sector. The car park business map has undergone a profound transformation in the last year, due to: the divestment processes that are underway (the sale of the market leader, Empark); the merger of companies (Mutua Madrileña and EQT have created a joint venture); and the award of large public concessions (Saba has acquired car parks from the Ayuntamiento de Barcelona, as well as some of those previously owned by Aena).

Currently, Isolux is one of the largest operators in the sector, with almost 24,000 parking spaces; it generated revenues of €14 million to September last year and a gross operating profit (EBITDA) of €8 million during the same period.

The agreement with Oak Hill, signed last year, ends a period of uncertainty for this branch of Isolux’s activity, which it had put up for sale after other attempts to form strategic alliances had fallen through. At the beginning of 2013, the Spanish group signed a preliminary agreement with the French fund Edifice Capital for the investment of €150 million between 2013 and 2014. The resources were going to be used to purchase new car parks with the aim of reaching 50,000 spaces in total. Surprisingly, the French firm did not keep to its word and withdrew from the project.

(….)

Original story: Expansión (by C. Morán)

Translation: Carmel Drake