Tag: Plenilunio shopping centre

Sareb Puts 209 Assets Up For Sale, Including 37 Hotels

21 July 2017 – Cinco Días

Sareb has launched a campaign to sell a portfolio of 209 properties. The portfolio includes commercial premises, warehouses, offices and 37 hotels, located primarily in the interior of Spain.

The entity has already taken advantage of the increasing interest in the hotel sector to sell Hotel Parque Central de Valencia this week to the Hoteles Playa Senator chain. The four-star complex, located in the capital of Valencia, has 192 rooms and 128 parking spaces.

The entity has launched the so-called “Your business project…starts here” campaign and has also created a website www.sarebterciarios.com, with information about the 209 assets up for sale. The properties are located across 15 autonomous regions, although the majority can be found in Madrid and Castilla y León.

Most of the hotels are actually located in the latter region. The cheapest is located in Mombeltrán, a small town in Ávila; the so-called Real Posada estate is on the market for €528,000. At the other end of the spectrum, the tourist complex with the highest price is located in Las Palmas, comprising 103 apartments; its asking price exceeds €6 million.

The most expensive asset up for sale as part of this campaign is located in the north of Madrid: an office building worth €18.9 million. In the same autonomous region, the bad bank is also selling the cheapest office of the 33 on offer: a unit close to the Plenilunio shopping centre, which has an appraisal value of €80,000.

In terms of the 97 commercial assets, Madrid is also the autonomous region that is home to the most, with 14. Noteworthy properties include the former Cines Cristal on Calle Bravo Murillo, which is being sold for €6.7 million. Behind the capital in this ranking comes Cataluña with 13 assets and Valencia and Andalucía with 12 properties each. The most affordable commercial space is located in Las Palmas; that property is worth €160,000.

Of the 42 industrial warehouses up for sale, half are located along the Mediterranean Coast, 12 are in Cataluña and 9 are in the Comunidad Valencia. The most expensive warehouse is located in Polinya, Barcelona, and its asking price is €7.6 million. By contrast, the cheapest is being sold for €11,003 and is located in Betera, Valencia.

Original story: Cinco Días (by Fernando Cardona)

Translation: Carmel Drake

CBRE: Non-Residential RE Inv’t Exceeds €13,000M In 2015

28 December 2015 – Expansión

The Torre Espacio skyscraper, Gran Vía 32 retail store, the Plenilunio shopping centre and the Hotel Ritz in Madrid are just a few examples of the real estate assets that have changed hands in the last year and which have placed the level of real estate investment in Spain at levels never seen before.

Between January and December, investment in non-residential properties (in other words, in offices, shopping centres, retail premises, hotels, warehouses and logistics centres) amounted to €12,250 million, according to the consultancy CBRE; and 2015 is expected to close with a total volume of €13,000 million, an unprecedented figure in the sector in Spain.

Even though the volume of real estate investment was strong in 2014, with a total of €10,000 million – returning to the pre-crisis figure of 2007 – that amount was surpassed within the first nine months of 2015: between January and September, purchases involving assets worth €10,800 million were closed, up by 57% compared with 2014 and by €600 million compared with 2014 as a whole.

This record figure is explained by the return of international funds to the Spanish market, following their exit when the bubble burst (they have been returning slowly since the end of 2013), as well as the rise in a new type of company: the Socimis.

This type of company emerged in 2009 when legislation was created for the launch of these vehicles, inspired by the American REITs. Nevertheless, it was not until the reform (of that legislation) in 2012, that the first Socimis, which were primary managing family wealth, started to flourish. Two years later, the first large real estate companies debuted on Madrid’s stock exchange and there are now four such listed companies: Merlin Properties, Hispania, Lar España and Axiare. (…).

Indeed, one of these, Merlin Properties, has starred in the largest operation in the sector this year, which, despite being a corporate purchase, is included because of its real estate component: the purchase of Testa, formerly a subsidiary of the construction group Sacyr.

Excluding this acquisition, the sector recorded total investment of €7,621 million during the 9 months to September, after a very active summer (traditionally a period when very few operations are closed).

The largest operations included acquisitions of single assets, such as the Megapark shopping centre in Bilbao, which the Socimi Lar España purchased for €170 million, as well as the purchase of batches of properties, such as the Thunder portfolio, comprising two office complexes in Madrid and Barcelona, acquired by Axa Real Estate; and the purchase of 16 supermarkets leased to Dia and Carrefour by the fund Kennedy Wilson, which paid more than €85 million.

Hotels

Hotels have also experienced a significant boost in terms of investment this year. “In 2014, hotel investment amounted to €1,100 million; this year, we have already exceeded €1,900 million and we expect to close the year with a volume of €2,000 million”, said Mikel Marco-Gardoqui, from CBRE. (…).

The experts at the consultancy firm expect interest from the funds to continue into next year. “We think that investment will amount to around €10,000 million in 2016, although we expect to see fewer operations, because prices are going to increase (…)”, says Heriberto Terual, Director of Corporate Finance at CBRE.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Madrid Leads Global Growth In RE Investment

15 October 2015 – Expansión

The volume of real estate operations in the Spanish capital shot up by 164% during the 12 months to May 2015, to reach €6,347 million. As such, Madrid recorded the highest rate of growth in the world.

Between June 2014 and May 2015, real estate investment in Madrid reached the record figure of €6,347 million, up by 164% compared with the same period a year before. That places the Spanish capital at the top of the global ranking of real estate investment growth, according to a study conducted by the consulting firm Cushman & Wakefield.

“This report clearly shows that the Spanish property market is continuing (to grow) at a very good pace and that both Madrid and Barcelona continue to be in the spotlight of global real estate investors”, says Oriol Barrachina, CEO of Cushman & Wakefield España.

In total, more than €13,000 million was invested in the Spanish market in one year, thanks to purchases by large international funds, as well as by listed real estate investment companies (Socimis). In Madrid, highlights included the purchase of the building at Gran Vía, 32 for €400 million by Pontegadea, the investment vehicle owned by Amancio Ortega, and the Plenilunio shopping centre, for which the French company Klépierre paid €375 million.

Total investment

Despite the significant increase, Madrid still falls well below the major cities in the world that account for the most real estate investment in absolute terms. That ranking is led by New York, with a total investment volume of more than $74,799 million (36% more than in 2014); London, with $55,207 million (up by 13%); and Tokyo, with $37,971 million (up by 0.7%).

In fact, in terms of total investment volumes, Madrid is ranked number 27 in the world, above European cities such as Milan, Dublin, Hamburg and Oslo. “Europe continues to be a very attractive market for cash flows, but North America is the region that has grown the most, demonstrated by the strong presence of US cities in the report”, says David Hutchings, Director of Investment Strategy for EMEA at Cushman & Wakefield. In fact, 14 of the top 25 cities in the ranking are American, compared with, for example, three that are German. In terms of the origin of investments, the USA also occupies the top places in the ranking.

Barcelona, whose investment volumes grew by 46% last year, still does not feature in the top fifty cities by investment volumes. However, the authors of the report are certain that the two Spanish cities will continue to capture the attention of investors over the coming year.

Yields

The furore over real estate assets in Spain has dampened the yields of these purchases somewhat, which now amount to 4.5% in the case of offices, 4% for commercial assets and 7% for logistics properties.

By types of asset, over the last twelve months, investors have chosen to buy commercial, residential and hotel assets in New York, offices in London and industrial assets in Los Angeles. In terms of property development, cities in Asia accounted for the majority of investment. Thus, between September 2014 and June 2015, $29,390 million was spent on these kinds of projects in Shanghai, followed by $23,392 million in Beijing, and in third place, $14,244 million in Chongqing. All three cities are located in China.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake