BNP Paribas: Investment in Logistics Assets Amounted to €1.85bn in 2019

9 January 2020 – Cadena de Suministro

According to data compiled by BNP Paribas, investment in the Spanish logistics sector amounted to €1.85 billion in 2019, which represented a new record, for the fifth consecutive year, and an increase of 42% YoY. The rise was driven by the boom in e-commerce and the attractive returns in the segment.

During Q4 2019, investment in the sector amounted to €545 million with prime yields falling to 4.90%. Notable transactions during the quarter included the sale by GreenOak to Patrizia of the largest logistics portfolio in Europe for €1.3 billion (€225 million in Spain); and the acquisition by Roebuck of the Pikolin logistics platform in Zaragoza for €78 million.

Original story: Cadena de Suministro

Translation/Summary: Carmel Drake

Patrizia to Sell Amazon’s Logistics Platform in Madrid

4 January 2020 The German firm Patrizia has decided to sell two logistics assets in Madrid. The platforms include Amazon’s logistics centre in Getafe and a warehouse in Torrejón de Ardoz. Patrizia is looking to raise 150 million euros with the sale.

Amazon’s facility in Getafe is raising the most investor interest. The 58,000-m2 asset has a long-term lease with the e-commerce giant and is located near the M-50 ring-road. Patrizia acquired the property in 2017 and paid 40 million euros to build the platform.

La firma alemana Patrizia ha decidido vender dos activos logísticos en Madrid. Las plataformas incluyen el centro logístico de Amazon en Getafe y un almacén en Torrejón de Ardoz. Patrizia busca recaudar 150 millones de euros con la venta.

Las instalaciones de Amazon en Getafe están generando el mayor parte del interés de los inversores. El activo de 58,000 m2 tiene un contrato de arrendamiento a largo plazo con el gigante del comercio electrónico y está ubicado cerca de la carretera M-50. Patrizia adquirió la propiedad en 2017 y pagó 40 millones de euros para construir la plataforma.

Original Story: Idealista / El Economista

Translation/Summary: Richard D. Turner

Patrizia Finalises Acquisition of Logistics Portfolio from BentallGreenOak

10 December 2019 – Patrizia has finalised its acquisition of a major portfolio of logistics and industrial assets, including 42 buildings and projects under development in Europe. Of those, eleven, or almost a third, are located in Spain.

The company agreed to pay the US fund BentallGreenOak €1.2 billion euros for the portfolio, which includes 309,000 square meters of space in Spain, out of a total of 1.4 million square meters of pre-existing space for rent, and another 138,000 additional square meters under development.

A group of institutional investors including both a Danish and a Korean pension fund, alongside Patrizia’s Logistik-Invest Europa II fund.

Original Story: Expansión – Rebeca Arroyo

Adaptation/Translation: Richard D. K. Turner

Patrizia Launches €650-Million Fund Targeting Residential Sector in Europe

2 December 2019 – The German fund Patrizia has launched a €650-million, pan-European investment vehicle to invest in the residential sector in Europe’s main cities. The fund also plans to invest more than €1 billion just in 2020.

Patrizia intends to focus on long-term investments, allocating 20% of the capital to the acquisition of alternative residential assets, such as co-living spaces and homes for students and the elderly (though probably not together…).

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Patrizia Looks to Invest Up to €500 Million in Spain and Portugal

2 December 2019 – The German investment fund Patrizia plans to invest up to 500 million euros in the Spanish and Portuguese real estate markets over the coming years. The fund currently intends to divide its investments between offices (40%), residences (40%) and logistics (20%) though the relative weight of each sector could vary. The firm is first looking to enter the market for student housing in 2020, either by building new facilities or acquiring in and will enter the market for student residences in 2020. Regardless, the firm would lease the facilities to outside operators.

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

GreenOak Sells €1.3 Billion Portfolio of Logistics Assets to Patrizia

8 October 2019 GreenOak announced that it was close to finalising a deal to sell a pan-European portfolio of logistics assets to Patrizia, the German real estate investment giant. The German group is in exclusive negotiations with the US fund to acquire the portfolio for roughly €1.3 billion. The two firms expect to finalise the transaction before the end of the current fiscal year.

The portfolio consists of 1.5 million square meters of logistics assets, which the US firm acquired over the last three years for its second pan European logistics fund.

At the same time, GreenOak is acquiring assets for its third fund. In April, the US fund acquired 40,000 square meters of logistics space in the town of Seseña from Pavasal.

Original Story: El Confidencial – Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

Patrizia Buys a Logistics Asset in Toledo for €37.5M

28 November 2018 – Eje Prime

Patrizia Immobilien AG is gaining financial muscle in the Spanish market. The German fund manager has purchased a space measuring 66,424 m2, divided into two properties, south of Madrid for €37.5 million. With this operation, the company is strengthening another of its key segments in the Spanish real estate market, after launching its first residential project in the country in July 2017.

The latest complex is located in the municipality of Ontígola in Toledo and is leased in its entirety to two tenants: the transport company DHL and the company specialising in logistics for the textile sector Logisfashion. Both groups are expected to begin their activity in the premises during the first half of 2019.

Patrizia has acquired this logistics unit through its latest fund. In fact, it is the seventh fund that the company has launched in Europe with the aim of buying real estate assets, in particular in the segment for offices, industrial assets and residential properties.

“This operation underlines the company’s commitment to the Spanish logistics sector, which is experiencing one of its best ever moments due to the boost from e-commerce and the shortage of good-quality assets”, said Eduardo Roza, Head of Operations at Patrizia in Spain, in a statement.

Currently, the group manages four logistics properties located in Madrid and Barcelona, spanning more than 200,000 m2 in total. In Spain, Patrizia also has a portfolio of residential rental assets worth €1 billion. The company has its headquarters in Spain in Madrid, where it employs a workforce of fourteen.

The group is headquartered in Augsburg, Germany and was founded in 1984 by its current CEO, Wolfgang Egger. Patrizia Immobilien is one of the largest real estate investment management entities in Europe. The company controls a real estate portfolio worth €19.5 billion with assets located across more than fifteen countries in the Old Continent.

The company operates as a strategic investment advisor, both for large institutional investors (insurance companies, pension funds, sovereign funds, savings banks and credit cooperatives), as well as for domestic and international investors.

Original story: Eje Prime (by Berta Seijo)

Translation: Carmel Drake

Triuva Wants to Spend €100M in Spain Following Its Integration into Patrizia

3 April 2018 – Eje Prime

The German fund Triuva is looking for opportunities in Spain. The company, which has just completed its integration into another German real estate company, Patrizia, is going to allocate around €100 million to the acquisition of new assets in the Spanish market. The group is currently finalising the renovation of a building on Calle Serrano, 90 in Madrid, and has already leased the 6,300 m2 of retail and office space to Maisons du Monde and Natixis, respectively.

The fund is still hungry for new assets in Spain, and so it is considering the acquisition of office buildings, commercial assets and even hotels. Currently, the Spanish arm of Triuva is fully integrated into the Spanish business of Patrizia, which has its offices on the Madrilenian street Calle Génova.

Patrizia purchased the entire Triuva business in November last year, whereby creating a real estate giant of more than €30 billion. Triuva manages some forty funds around the world and has teamed up with more than eighty institutional investors in recent years.

Triuva has around 270 assets under management, worth €9.7 billion. In Spain, the fund owns three properties in prime locations. The first, acquired during the first quarter of 2015 for €70 million, is located on Calle Preciados, 4, and is leased to the fashion chain Sfera, itself owned by the Madrid-based department store group El Corte Inglés.

Last year, the fund acquired the Adidas flagship store located on Gran Vía, 21, also in Madrid, which had been owned until then by Iberfin Capital, which is in turn, owned by Medcap Real Estate. The consideration paid for that operation was not disclosed (…).

Serrano 90, its latest project 

The Serrano 90 building, also owned by Triuva, is located in the heart of Madrid’s golden mile. 70% of its total available space is allocated to offices and the remaining 30% to commercial use; the property also has a parking lot on its lower floors. According to sources in the sector, the fund has spent around €10 million on the renovation of the asset.

At the beginning of this year, Triuva closed the rental of 6,300 m2 of retail and office space. The retail premises have been leased to the French firm Maisons du Monde, which is going to open its first flagship high street store in Madrid, to accompany the store it already has in central Barcelona.

The household furniture and accessories firm is going to lease 1,860 m2 of space in the building spread over three floors (…). Similarly, the property is going to house the headquarters of Natixis, a French corporate and investment bank, whose offices are currently located in Recoletos. Triuva and the banking institution have signed a rental agreement for 2,940 m2 of office space, as well as the terrace and 34 parking spaces in the Serrano 90 building.

Original story: Eje Prime

Translation: Carmel Drake

Patrizia Wants to Buy a Property Developer to Become Rental Giant in Spain

8 February 2018 – El Economista

Over the last six months, the German real estate fund manager Patrizia has closed three acquisitions that have turned it into the new property giant in Europe, with assets under management worth around €40 billion.

With a solid structure, the firm is pushing ahead with its plans to grow in Spain through the purchase of a property developer. “A few months ago, we were analysing two operations. We are still looking and would love to close something this year, because we have the funds and the desire”, explained Borja Goday (pictured above), Head of Patrizia Immobilien in Spain, who added that what he is looking for is “a company that is well-balanced in terms of the team and its bank of land”.

“Much of the development that we would be looking to carry out would be focused on homes for rent”, highlighted the director, who added that Patrizia’s objective is to become one of the major players in the rental market in the country.

In fact, the fund manager already has extensive experience in the residential market in some of Europe’s main countries, where it manages the rental of more than 50,000 homes.

In Spain, this business is still emerging, and there are just three large companies operating. “We want to introduce the institutional model that already works so well in other European markets, such as in Germany, and we are backing this segment because we think that the business in Spain will have an institutional base in 10 or 20 years”, explains Goday, who firmly believes that the 23% of the population that currently chooses to rent a home in Spain will grow significantly over the coming years.

Whilst it continues the search for a property developer, the fund manager will take its first steps into the residential rental market in Madrid, where it is finalising the acquisition of a property. “We are also negotiating the purchase of another building, which needs renovating, like we did with our project on Calle Claudio Coello 108, where there is just one home left for sale”, revealed Goday.

Investment strategy

The growth plans of the fund manager, which is finalising the process to integrate Rockspring, Triuva and the Danish firm SPI, are not based solely on the residential market.

“Our portfolio is very diversified, both geographically as well as by asset type, given that we have a presence in the hotel, office, high street retail and logistics segments”, said the director.

Following its recent acquisitions, Patrizia has established a portfolio worth around €1 billion in Spain and is positioning itself as an overseas real estate manager with one of the largest teams in the country, comprising 14 professionals.

“One of the major factors that differentiates Patrizia from other fund managers is that it does not invest in a country unless it has a local team with experience there”, stressed Goday.

“With these three operations, we have doubled our portfolio at the European level and we will now start to look more actively at the shopping centre segment, where we can add value”.

Moreover, the German firm, which works with investors from all over the world, wants to raise Spanish capital. “We are a wonderful partner for institutional investors and family offices who want to get involved in the real estate sector, since we give them the opportunity to also invest in Europe and to do so alongside a listed firm like Patrizia”.

Although the fund manager has doubled its volume of assets, it is committed to maintaining the same profile as always. “We are very comfortable closing operations of between €15 million and €100 million, because we think that that range is very well adapted to the reality of the current supply in the Spanish market”.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Vía Célere, Aedas, Neinor & Aelca are Open to Corporate Operations

22 January 2018 – Expansión

Spain’s large property developers are warning that the shortage of land and the slow pace at which licences are being processed will lead to a rise in house prices.

Following the start of the concentration of the large Socimis, with the takeover of Axiare by Colonial as the main exponent, the real estate sector is looking to other companies in the sector to star in the new corporate operations, namely, property developers led by investment funds.

With a land portfolio spanning almost 5 million m2 and more than 10,000 homes under construction, Neinor Homes, Aedas, Vía Célere and Aelca are the leading property developers to have emerged from this current real estate cycle. With the first two listed on the stock market and the second two with plans to that end, their directors say that the commitment from large investment funds and the creation of new property developers is positive, despite the competition. “Competition motivates and helps us. It improves processes, which leads to a better purchase experience for the end customer”, explains Javier Gómez (pictured above, top right (on the left)), CEO and founding partner at Aelca, speaking at the New Housing Industry conference, organised by Expansión and its supplement magazine ‘Su Vivienda’ (Your Home), both part of the El Mundo group.

Operations

Although companies and funds, such as Harbert, Patrizia and ASG, have their own growth plans in the residential market, the shortage of available land for all of them implies that they will have to form alliances between them. “We are in a privileged position. We hold land on our balance sheet for the development of our business plan over the next five years. Having said that, we are obliged to analyse operations that add value for our shareholders, including corporate operations”, said Sergio Gálvez, Director of Business Development at Aedas.

In this context of corporate operations, Vía Célere, which is preparing to debut on the stock market in 2018, and Aelca, have something in common, which, nevertheless, also pushes them apart: their largest shareholder is the US fund manager Värde Partners. “There has been a lot of talk about whether Aelca and Vía Célere could work together, but the structure of and funds and the assets they own are different and that could lead to conflict. We would need to resolve that first”, said Juan Antonio Gómez-Pintado (pictured above, top left), founder and CEO of Vía Célere.

“We think that Spain is a market that is going to be consolidated, where there is space for between five and ten large players and where size is a significant advantage”, reveals Juan Velayos (pictured above, bottom left), who, nevertheless, recognises that it is difficult in his case, since his firm does not have a single controlling shareholder, following the gradual departure of its founder, Lone Star, from the company’s share capital over the last few months.

Original story: Expansión (by Rocío Ruiz and Jesús de las Casas)

Translation: Carmel Drake