Spanish Real Estate Snapped Up by Latin American Fortunes

20/10/2014 – Expansion

Southern American businessmen have not missed the good times the Spanish property market is living right now. As the latest example of a large purchase sealed in the country may serve the investment of the Coto family, the owners of the most famous supermarket chain in Argentina.

At the end of this summer, the Cotos (through their property holding company) bought a building located at number 16 of the Paseo de la Castellana street in Madrid. Prior to the acquisition, the 4.116 square meter property housed headquarters of Icex. The family paid €20 million for the office building with view to converting it into a high-end residential block.

Furthermore, at the end of 2013, a group of Mexican investors led by Moises El Mann purchased 253 banking branches fully rented to Banco Sabadell for €290 million from Moor Park. Another Latin American group, Sambil, bought the M-40 retail park in Madrid to revive the property and establish its first outlet in Europe which will open next year.

In May, Mexican family Aramburuzabala, the hier of the Modelo beverage group, acquired the Madrid headquarters of IBM situated on the Avenida de America avenue. They paid €130 million for the property to Morgan Stanley.

Patricio Palomar, Research director at CBRE which advised the Cotos on the Castellana building purchase, assures: ‘Spanish market undoubtedly seduces the Southern American investors due to the closeness our language and culture respresents, as well as the family ties they sometimes have in Spain.’

The last to get on the real estate opportunity train to Spain was Jorge Perez, the owner of a large part of Miami skyline properties. Owning an over $3.1 billion worth of assets, the businessman is at the verge of sealing its first investments in the country, amounting to €120 million. In total, the Argentinian investor of Cuban descent wants to spend €500 million on the Spanish real estate.

 

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

Miami Skyline Holder Keeps His Word & Invests in Spain

2/10/2014 – Expansion

The owner of half of the Miami skyscrapers. One of the Times‘s 25 most influencial Hispanics. The number 193 of America’s richest people by Forbes. Possessing a $3.1 billion (€2.46 billion) worth of real estate. Jorge Perez, the president of Related Group, announced some time ago that he wanted to invest €500 million in the Spanish real estate. And so he did.

Presently, Mr. Perez is at the brink of closing his first acquisitions in Spain, amounting to €120 million in total.

With belief that the country’s market has got a huge potential and the moment to invest is perfect, the businessman created Related Spain. The arm is led by one of his sons, Nicolas. ‘We are setting our focus on rental buildings in big cities like Madrid and Barcelona. Also, we will target land, both in large metropolises and residential tourism areas, seeking zones where the product is diminishing’.

Perez held talks with Spanish banks and Sareb but he has not taken any decisive steps yet. ‘Most of the investments we are carrying out are agreed on with property owners directly. When it comes to the real estate investment arms of entites, we sincerely think they must still cut in asking prices’, he explained.

Competition

The investor who constructed, developed and managed over 100.000 residences, properties and condominia in the U.S.A., admits that over the last months in Spain the competition has grown pretty fierce. ‘Above all, around rental assets in Madrid and Barcelona. Return from this product brings similar rate as in the United States and other countries’, Mr. Perez adds.

Spanish home prices went up 0.8% year-on-year in the second quarter of 2014, marking the first rebound since the Q1 2008. The chairman of Related Group is conscious that opportunities may fade out in mid-term. ‘I think there will be further value loss, especially in case of land, but it is also clear than in the upcoming months will see bargains thinning out. However, I believe that there is a huge volume of finished housing stock and hectares of land awaiting their sales’.

The magnate does not seem disturbed by the uncertainty of the Catalonian region and neither he rules out seeking opportunities in Italy and Portugal.

 

Original article: Expansión (by D. Badía)

Translation: AURA REE