Tag: petrol stations

C&W: Inv’t In RE Assets Amounted To €10,300M During YTD Sept

20 October 2017 – Expansión

The interest from investors in the Spanish real estate sector is far from slowing down; in fact, it has intensified in recent months. Specifically, during the 9 months to September, the total volume transacted on direct purchases, in other words, excluding corporate operations, amounted to €10,300 million, up by 74% compared to the same period last year, whereby exceeding the figure recorded during the whole of 2016, according to a report compiled by Cushman & Wakefield.

The report also forecasts that “the appropriate environment for investment that Spain offers” will allow the volume of investment in direct purchases to reach €12,000 million by the end of the year.

By area, one of the best performing segments so far this year has been the retail sector (retail premises, stores, shopping centres, retail parks and outlets). Between January and September, €3,100 million was invested in the segment, which represents 30% of the total investment in the real estate sector. The consultancy firm calculates that the investment volumes for the whole year could reach record levels, last seen in 2015, when purchases amounting to €4,150 million were made.

Offices were the second most sold asset by volume, with a 24% share of investment. Investment in offices during the first nine months of the year reached €2,500 million, of which almost €1,500 million corresponded to Madrid and €816 million to Barcelona.

Tourism is still one of the main attractions for investors. Hotel investment rose by 67% during the 9 months to September, to €2,000 million, thanks to the push from the Costa Brava, Costa del Sol, Palma de Mallorca, Canary Islands and Madrid.

Another niche segment with a strong outlook is the logistics sector. Cushman & Wakefield forecasts that investment in that area will amount to €1,000 million in 2017. The consultancy firm explains that the good figures in terms of leasing and the scarcity of high-quality assets are boosting the development of land up to 500,000 m2, in both Barcelona and Madrid.

New opportunities

In addition to the traditional segments, investors are paying attention to alternative assets, such as student residences, parking lots and petrol stations, which generate better returns.

In terms of the forecast evolution, the consultancy firm explains that the major activity recorded in recent years will result in a lower level of supply and will incentivise new acquisition formulae with indirect purchases through corporate operations and joint ventures. Moreover, the new cycle of property development will encourage investors to participate in the initial phases of developments, whereby redistributing the burden of property developer risk and facilitating investment.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

 

Spain’s First Gas Station Socimi Will Debut On The MAB Tomorrow

10 July 2017 – Cinco Días

Kingbook Inversiones, a Socimi that owns 57 petrol stations operated by Petrocorner, will debut on the Alternative Investment Market (MAB) tomorrow, 11 July, at a price of €4.78 per share, which represents a company valuation of €23.9 million.

This makes it the 36th Socimi to debut on the market, and the first to be constituted from real estate assets dedicated to fuel distribution in the retail sector and other commercial activities.

Kingbook owns a portfolio of 57 service stations throughout the country. The operation of all but one of them is leased to Petrocorner; the exception is a gas station located in Almería, which is operated by BP. The firm also owns a hotel in Mirando de Ebro and an industrial warehouse in Jaén.

The company, chaired by Antonio Eraso Campuzano, said that although it has begun life focusing on gas stations, it has a “general profile” and for that reason, “it does not rule out investing in other sectors in the future”.

It is one of the Socimis that is expected to debut before 1 August, when according to the experts, between five and eight new Socimis may debut, due to a change in legislation with respect to minority shareholders. From next month, the one-year deadline that these companies have to comply with in terms of diffusion requirements disappears (2% of minority shareholders or €25 million must be in free float).

At the end of the first quarter of this year, Kingbook reported rental income from its gas stations of €1.59 million, however, it registered a loss of €175,983. In financing terms, the Socimi holds debt amounting to €42 million, equivalent to 84% of its asset value.

Finalising a €100 million loan

Nevertheless, the brochure submitted for the firm’s debut on the MAB explains that it is currently in the process of negotiating new bank financing, for which it has already agreed the general terms.

It is a €100 million loan with a five-year term granted by a group of banks that, although it has not been signed yet, already includes ING Bank and Banco Santander. The financing will be structured into three tranches, one for €30 million, a second for €45 million and a third, for €25 million.

With this loan, Kingbook is seeking to refinance its current debt with shareholders and bank financing and obtain funds to pay for its new asset purchases with the aim of growing.

Original story: Cinco Días

Translation: Carmel Drake