Spaces Leases 3,100 m2 of Office Space from MGS in Recoletos

13 December 2018 – Eje Prime

Spaces is going to be looking closely at the goddess Cibeles from now on. The co-working firm owned by Regus has found a space on Paseo de Recoletos in Madrid, one of the most prime areas of the Spanish capital, where it is going to lease the entire building that Mutua General de Seguros (MGS) owns there, according to reports from sources close to the operation speaking to Eje Prime.

The building is located at number 5 on the central Madrilenian street, very close to Plaza Cibeles. There, Spaces is going to occupy the property’s entire surface area of 3,053 m2, spread over five storeys and an attic. It will be the company’s sixth centre in the Spanish capital.

Spaces’ new office in Madrid has been owned by MGS since 2017 when that firm purchased the building from a local family office for €30 million. A year before the sale, the former owners completely renovated the property, which now has a large entrance hall with high ceilings, two elevators, a raised floor and Led lighting.

On the other hand, the co-working owned by Regus is already studying the rental of its seventh asset in Madrid. It is another prime space in the city, where the company is looking to occupy between 4,000 m2 and 5,000 m2.

With these new operations, Spaces could add more than 15,000 m2 of space to its Madrilenian portfolio during the fourth quarter of 2018. The company recently signed two other spaces in Méndez Álvaro and María de Molina, spanning 5,500 m2 and 3,500 m2, respectively.

Expansion in Spain

In addition to consolidating its presence in Madrid, the company led in Spain by Philippe Jiménez is working on its domestic expansion. The company is finalising openings in Bilbao, Sevilla and Gijón, as revealed by Eje Prime. Moreover, the manager is already looking for spaces in some of the country’s other major cities, such as Valencia (…).

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Reale Seguros Reorganises its Properties to Obtain Higher Returns

15 October 2018 – Expansión

Reale Seguros is reorganising its real estate investments with the aim of achieving higher returns.

The insurance company, the Spanish subsidiary of the Italian firm Reale, has removed from its balance sheet properties with a combined market value of €67 million, which it has transferred to Igarsa, a real estate company belonging to the Reale group, under the formula of a capital increase.

The properties are not linked through provisions to the activity of Reale Seguros. The main asset is located on Vía Augusta in Barcelona and is occupied by Deutsche Bank as the tenant. The package also includes smaller offices, which Reale Seguros could divest.

The assets contributed by the insurance company to Igarsa will join those already owned by that company, with a market value of €80 million, says José Ramón López, Director General of Resources and Media at Reale Seguros. Its main assets are two properties located on Paseo de la Castellana and Paseo de Recoletos in Madrid, which are leased to Condé Nast, the editor of Vogue, and Garrigues, respectively.

The relocation of the real estate assets of Reale Seguros is the starting point for starting to apply an active management of these properties with purchases and sales depending on the opportunities in the market.

The divestments are expected to focus on the smaller offices and in terms of acquisitions, “we are looking at alternatives, although we do not have anything concrete on the table at the moment”, said López.

To move forward with this project, the insurance firm has signed an agreement with the real estate arm of the group in Italy, which has assets under management amounting to €1.5 billion and “which will help us to undertake an industrial management of our portfolio, with the possibility of selling assets to funds as well as looking for opportunities”, said the director of Reale Seguros.

Igarsa, which is headquartered in Madrid, is controlled (95%) by the Italian firm Mutua Reale, whilst the Spanish firm Reale Seguros owns the remaining 5% stake.

The properties linked to the commitments of Reale Seguros remain on the company’s balance sheet. They include its headquarters in Madrid, located on Calle Príncipe de Vergara, a building that was purchased from Sabadell.

Reale recorded premiums of €456 million during the first half of 2018, up by 2.5% compared to the same period in 2017.

Original story: Expansión (by E. del Pozo)

Translation: Carmel Drake

CBRE GI Invests €10M in Star Project in Plaza de Colón (Madrid)

21 June 2018 – Eje Prime

CBRE Global Investors (CBRE GI) is increasing its commitment to Spain with its latest project. The investment arm of the CBRE group is going to invest €10 million in the project to renovate the building at number 1 Plaza de Colón and, to this end, the multinational firm has engaged one of the most sought-after architects in the world, Norman Foster. The new property, which is going to be constructed on the site of the former Barclays headquarters, will become the star of CBRE GI’s growth plan in Spain.

The asset manager acquired the former Barclays headquarters in 2017. In November of the previous year, the financial institution started to sound out the possibility of selling the building on Plaza de Colón (at the intersection of Paseo de la Castellana and Paseo de Recoletos) to move to another location and, three months later, in January, it sealed the deal.

Three years after the acquisition, CBRE GI is preparing to transform the building, a project that has formed part of its plans since it completed the operation. The former Barclays headquarters is now beginning a renovation that will convert it into Axis, where offices and a commercial area are going to be opened on the four floors that will comprise the new asset.

This project forms part of an investment plan that will amount to €800 million. The company has almost one hundred properties in its portfolio, spread across the retail, office, logistics and hall of residence markets.

Nevertheless, in May, the company announced that it is going to enter the residential sector in 2018. The consultancy firm’s investment fund wants to access that segment through the rental market (…).

The company’s objective for this year is to repeat or even exceed the investment figure recorded last year. In 2017, the manager closed transactions amounting to €1.3 billion.

In addition, CBRE GI, which works with eight investment funds in Spain, manages a portfolio of assets worth €3.2 billion (…).

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Lladó Family Buys Office Building in Madrid from Axiare for €30M

22 December 2017 – Eje Prime

Axiare is ending the year by starting a new divestment phase and the Lladó family is growing its portfolio of assets. José Lladó, President and majority shareholder of Técnicas Reunidas, is exercising his real estate leg with the purchase of a building on Calle Fernando el Santo, owned by the Socimi Axiare, for €30 million. The asset will become the new headquarters of the European investment fund Eurofund Capital Partners.

The Socimi has begun its divestment phase and has decided to get rid of its Fernando el Santo property, a prime building located in the centre of Madrid, for which it will receive proceeds of €30 million.

The property, measuring 3,254 m2 spread over six floors, is located at number 15 Calle Fernando el Santo.  It has 42 underground parking spaces and currently houses the headquarters of the Argentinian embassy and consulate in Spain. It is adjacent to the current residence of the Argentinian ambassador.

The Socimi has obtained a return of 82% from this asset in just three years, after having purchased the property in 2014 for €16.5 million. Moreover, the building’s rent has risen by 43% during the three years that the company has managed it.

The new owner of the building is the Lladó family, which in recent months has opted to acquired assets located in prime areas where the value of those assets may exceed their prices over the coming years. Before acquiring this property from Axiare, the company purchased another building from the Socimi Hispania, which will house the future headquarters of the law firm Uría y Menéndez for €29 million.

In recent years, the owner of Técnicas Reunidas has also purchased a building at number 2 Marqués de la Ensenada, located just a stone’s throw from Plaza Colón in Madrid, for €6 million. In July 2014, the family office also purchased a building from Vía Célere at number 15 Paseo de Recoletos, for almost €20 million. The Lladó family also owns the property at number 33 on the same street.

Axiare starts divesting at the height of its takeover bid

The Socimi Axiare, which on the offensive, after Colonial launched a takeover bid to take control of the Socimi, is beginning a new divestment phase with the sale of this asset.

Axiare’s portfolio appeals to Colonial because it mainly comprises offices (74%), but also contains other types of assets, such as commercial premises, which account for 9% of the total, and logistics assets, which represent 18% of the total. The Socimi is led by Luis Alfonso López de Herrera-Oria.

The main assets of Axiare, whose tenants include companies such as eBay, Cuatrecasas, Konecta, McKinsey&Company and Alantra amongst its clients, are its office buildings on Calle Sagasta in Madrid, measuring 7,054 m2; on Calle Velázquez, measuring 16,816 m2; and on Calle Manuel de Falla, measuring 6,252 m2.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

MSG Buys Building On Paseo De Recoletos, 5 For €30M+

14 July 2017 – Expansión

The insurance company MGS has strengthened its real estate portfolio with the acquisition of an office building in Madrid.

According to sources close to the operation, the former Mutua General de Seguros has paid more than €30 million for the property, which is located at number 5 on Paseo de Recoletos, close to Plaza de Cibeles.

The building has been sold by a family group, whose identity has not been revealed. It has a surface area of 3,053 m2, spread over five open-plan floors, plus an attic with a terrace.

The property has been renovated recently and, according to MGS, combines classic architecture with the latest technological advances. Key features include its large entrance hall with high ceilings, amongst others.

Yesterday, the insurance company said that it placed value on the asset’s central location, which fits with MSG’s strategy, focused on acquiring high-quality assets in prime locations in Spain’s largest cities. At the same time, with this operation, the company, which is headquartered in Barcelona, is increasing its presence in the Spanish capital.

Portfolio

Also in Madrid, MGS is the owner of the building on Calle Alcalá 65, which houses the headquarters of the insurance company’s foundation organisation. In the Catalan capital, it owns the property at number 543 on La Diagonal, which is home to the company’s corporate headquarters.

Last year, MSG closed real estate investments amounting to €121.2 million. 53.5% of its assets are real estate properties for its own use, whilst 46.5% are buildings that it leases out.

Original story: Expansión (by J.O.)

Translation: Carmel Drake

Lladó Buys Uría y Menéndez’s Future HQ From Hispania

16 May 2017 – El Confidencial

In the same way that Amancio Ortega is using the juicy dividend that he receives from Inditex to build his real estate empire, another successful home-grown businessman, José Lladó, President and majority shareholder of Técnicas Reunidas, is also investing the bulk of the money that he receives from his infrastructure group into iconic buildings.

Last year, Lladó reportedly received €29 million and he has used those funds to acquire the new headquarters of the law firm Uría y Menéndez. As circumstances would have it, that was the only building that Hispania had left out of the sales mandate that it awarded to CBRE and JLL, when it appointed them to find a buyer for its entire office portfolio. Sources at the Socimi have declined to comment.

According to three sources in the market, the reason is that the Lladó family has put a juicy offer on the table that limits the yield on its investment to 3.5%. It is a classic move by this kind of family office, which tend to prioritise the best assets and tenants possible, even if that means securing lower returns, given that their strategies are typically aimed at acquiring good properties, with stable and guaranteed returns.

Uría y Menéndez is the second largest law firm in Spain by turnover and last October, it signed a 17-year lease contract for the building located on Calle Suero de Quiñones 42 in Madrid, and it is obliged to fulfil at least half of that term.

Currently, Hispania is immersed in the comprehensive renovation of the property, in a project worth €5 million, which is expected to be completed at the end of this year. The law firm will rename the new headquarters, which will be complementary to the property it already owns at nearby Príncipe de Vergara, 187, as the “Aurelio Menéndez Building”: its new design is the handiwork of architect Rafael de la Hoz.

This acquisition follows the pattern applied by Lladó last year, involving investing areas on the rise, where the value of the asset itself promises to increase significantly over the coming years. On that occasion, the owner of Técnicas Reunidas purchased a building on Calle Marqués de la Ensenada 2, located just a few metres from Plaza de Colón, for €6 million.

In the summer of 2014, it made another significant acquisition on Paseo de Recoletos, 15 from Vía Célere, the property that houses Catalunya Caixa’s headquarters in Madrid, for almost €20 million, to join the neighbour at number 33 on the same thoroughfare, which is also owned by Lladó. (…).

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake