Mapfre & GLL Launch New €300M Office Fund

8 March 2018 – Iberian Property

The insurance company Mapfre and GLL have just formed a new partnership for the launch of a new investment fund amounting to €300 million.

The vehicle will focus on the purchase of offices in some of the major European markets, such as Germany, France, the Netherlands, Italy and Luxembourg, according to the Spanish real estate firm. The idea is to achieve returns of 4%-6% per year, diversifying the portfolio of the entities.

In Spain, Mapfre already owns a portfolio of buildings including Plaza de la Independencia, 6 in Madrid and Torre Mapfre in Barcelona.

Original story: Iberian Property

Edited by: Carmel Drake

Madrid Attracts Many Of The Companies Relocating Their HQs From Cataluña

10 October 2017 – Expansión

Over the last 10 days, several companies with their headquarters in Cataluña, such as Oryzon, Dogi, Eurona, Proclinic and Sabadell have announced that they are moving their HQs outside the region. Oryzon has established its registered address on Carrera de San Jerónimo in Madrid (…) and the telecommunications operator Eurona has also moved to the Spanish capital (…). Meanwhile, Proclinic has announced that it is moving its headquarters to Zaragoza; Sabadell is moving to Alicante; CaixaBank to Valencia; Gas Natural and Abertis to Madrid, in both cases; and Catalana Occidente is still considering if/where to move.

According to sources consulted, no effective consultations are being carried out at the moment, but Madrid is becoming one of the major alternatives. Prime rents are higher in the capital than in Barcelona, ranging between €25/m2/month and €35/m2/month along Paseo de la Castellana, and peaking at historical maximums of €37/m2/month in Torre Serrano. Meanwhile, in Barcelona, the average rent in the city centre amounts to €19/m2/month, reaching maximums of €24/m2/month on Avenida Diagonal. In any case, the performance of prime rents in both cities has been very good so far this year, with growth of 9% in the last quarter with respect to the same period last year, according to CBRE (…).

In terms of absorption, 128,108 m2 of space was leased during the second quarter of the year in Barcelona and 156,334 m2 of space was leased in Madrid. Availability is greater in Madrid, at around 12%, compared to 8% in the Catalan capital.

According to José Miguel Setién, of JLL, whilst it is really hard to find spaces of 3,000 m2 on Avenida Diagonal, there is more high-quality space available in the business district in Madrid, due to the renovations that have been carried out since 2013. As such, the market for medium-sized operations has performed exceptionally well there, even during the summer.

Overall, it is estimated that 1.5 million m2 of surface area is available in Madrid; of which 220,000 m2 is free in the centre of the capital, according to Ángel Estebaranz, National Director of Offices at Aguirre Newman. There is space available in several well-known offices such as Torre Foster, Torre Europa, Castellana 81, Castellana 77, Castellana 200 and Plaza de la Independencia, mostly grade A renovation products. Even Torre Picasso has almost two floors available, which would allow the right tenant to locate its corporate headquarters in one of the most iconic buildings in the city (…).

When it comes to choosing a new location, the nature of the company’s business plays a critical role. In this way, financial and legal companies tend to locate their offices in the business centre of cities, whilst pharmaceutical companies, for example, position themselves between the M30 and M40 ring roads, since they do not require such iconic buildings, but do need a lot of space, available in areas such as Campo de las Naciones, Alcobendas, Moraleja, Sanchinarro… Tech firms, like Google and Amazon, tend to establish themselves within the city centre but not in prime areas, such as Atocha, for example. Meanwhile, publicity firms are moving to Chamberí, with WPP and Havas’ new headquarters to be located in that neighbourhood, and Telcos are concentrating in urban areas of the city with rents of between €22/m2/month and €25/m2/month, says José Mittelbrum, National Director of Offices at CBRE (…).

Original story: Expansión (by Lucía Junco)

Translation: Carmel Drake

Mapfre Sold 45 Properties Worth €34.5M In 2015

23 February 2016 – Expansión

Mapfre is taking advantage of the emerging recovery of the Spanish real estate sector to accelerate the disposal of non-strategic assets from its investment portfolio. And, as a result, increase its economic return from the sale of homes, premises and offices, amongst others.

Last year, the insurance company sold 45 properties of different types for €34.5 million in total, according to its annual report submitted to the CNMV. The gross profit from these transactions amounted to €11.3 million, more than twice the amount recorded a year earlier from similar operations. In 2014, Mapfre reported profits of €4.5 million from the sale of properties.

The main asset sold in 2015 was a plot of land in Cotochico, Marbella (Málaga), which was disposed of for €12.2 million. Mapfre also sold the San Javier and San Antonio clinics in Bilbao for €4 million and €3.3 million, respectively. The other 42 properties sold by entity were “minor, non-significant assets”.

On the buy-side, the insurance group did not pass up the opportunity to acquire several iconic buildings. As such, it invested €82 million in the acquisition of a property in Madrid’s Plaza de la Independencia, 6. And, outside of Spain, it bought an office block in One Winthrop Square in Boston (USA) for €55 million. At the end of 2015, Mapfre held a property portfolio worth €2,267.7 million, which represented 4.9% of the entity’s total investment portfolio, which in turn amounted to €46,264.7 million and mainly contained sovereign debt (57.1%) and corporate fixed income (22.5%).

€943.4 million (41.6%) of the Group’s real estate portfolio related to facilities that it makes use of itself, in other words, retail outlets and offices that provide support to the insurance company’s administrative and commercial network. The remaining 58.4% (€1,324.3 million) comprises every kind of asset, available for sale and rent. The occupancy rate of its properties for rent increased slightly with respect to the previous year, to 85.9% at the end of 2015 (compared with 85.5% in 2014).

Unlike other investments in its portfolio, some of Mapfre’s properties are accounted for at book value, i.e. at acquisition cost, and not at market price. Thus, the group calculates that it has unrealised gains of €975 million. Meanwhile, the Group says in its annual report that “the unrealised gains will offset a decrease in property prices equivalent to approximately 30.06% of their own market value”.

Accounts

Mapfre clarified to the CNMV that the Brazilian CEO, María Leticia de Freitas Costas, has not signed the 2015 accounts yet “due to her inability to attend the Board meeting”, and not because of any kind of disagreement.

Original story: Expansión (by M. Ponce de León)

Translation: Carmel Drake

Mapfre Buys Historic Building In Puerta de Alcalá For €80M

11 June 2015 – Cinco Días

Mapfre has acquired a beautiful trophy. It has taken ownership of a historic building next to the Retiro Park, in the Puerta de Alcalá, which has one of the best views in Madrid and of the historic park.

The insurance company has acquired the building located at number 6, Plaza de la Independencia for €80 million. It was auctioned by the Mutualidad de Notarios.

The building contains approximately 12,000 m2 of office space, spread across eight floors, and also houses retail premises.

The Mutualidad Notarial acquired the building more than 20 years ago.

Original story: Cinco Días

Translation: Carmel Drake