Rockspring’s New Logistics Platform In Getafe Ready By YE

1 August 2016 – Mis Naves

Construction of the logistics platform that Inbisa is building for the UK fund Rockspring in Getafe is progressing nicely, and all indications are that it will be completed by the end of 2016 or beginning of 2017, just nine months after the first stone was laid at the site.

In fact, as at July 2016, just four months after construction began, almost 50% of the structure has been built, and the workmen have now started to construct the platform’s walls and roof.

Located in the Puerta Mayor “Los Gavilanes” business and logistics park in Madrid, the new platform will cover an area equivalent to eight football pitches, with a total constructed surface area of 58,000 sqm, on a plot measuring 88,000 sqm. The platform may be split into eight modules measuring more than 7,000 sqm each.

Both Rockspring and ProEquity, the real estate consultancy responsible for the exclusive marketing of this project, are excited about the new platform, which is particularly suitable for major retailers and e-commerce specialists that need to base their logistics operations close to Spain’s capital city.

In this sense, the logistics park in Getafe is located at the junction of the A-4 Madrid-Andalucía motorway and the M-50 ring-road, 27 km from Barajas airport and 20km from the centre of Madrid.

The platform will be equipped with the highest quality standards, a certificate of sustainable construction and complete facilities with a dock ratio of 1/860m2, which means 64 docks, concrete structure and walls, wide handling bays measuring more than 35m, an interior height of 12m and LED lighting, amongst other state-of-the-art features.

Original story: Mis Naves

Translation: Carmel Drake

Baraka Group Agrees To Buy Edificio España For c. €265M

20 July 2016 – Expansión

The Baraka group, controlled by the businessman Trinitario Casanova, has reached an agreement with the Chinese group Dalian Wanda to acquire Edificio España in Madrid, according to reports by the El Mundo newspaper.

The holding company is finalising the details of the operation, which is expected to be completed after the summer. Casanova’s offer, which is understood to amount to around €265 million, reportedly exceeded the bids made by the other interested parties, including the Chinese firm Fosun, Hemisferio and Platinum Estates.

According to reports, Baraka is undertaking a significant expansion program. It recently acquired a plot of land measuring more than 10 million sqm in Valdebebas (Madrid) for around €75 million.

The “for sale” sign went up over the iconic Edificio España building in January, when Wanda engaged the real estate consultancy JLL, which has not confirmed the operation, to find a buyer.

The Chinese group, controlled by Wang Jianlin, the richest man in China, opened the door to the possible sale of the building after discrepancies arose with the Town Hall of Madrid regarding the renovation of the building. Wanda’s plans, which included the construction of a luxury hotel, a shopping centre and homes, clashed with the demands of the Town Hall, which insisted on the conservation of the front and side façades of the building, as established by the law governing the protection of historical buildings. In any case, Wanda has maintained contact with Madrid’s Town Planning team, in parallel with the sales process, and last met with them on 14 June.

The Chinese group paid Banco Santander €265 million in June 2014 for the building. Now, it is on the verge of selling it for a similar amount.

Wanda’s future divestment of Edificio España comes shortly after the Asian holding company announced its purchase of the UCI Odeon group – which owns the largest cinema chain in Spain.

After several years trying to sell the British Odeon cinema chain to AMC Theatres, Wanda’s subsidiary in the USA, the private equity firm Terra Firma announced the deal on 12 July. The price of that transaction amounts to GBP 921 million (around €1,100 million), of which GBP 407 million relates to the debt held by UCI Odeon, which the buyer will take on.

One of UCI Odeon’s main assets, to be taken over by Dalian Wanda, is the chain Cinesa, which is the largest film company in Spain with 535 screens across the country. In total, the chain owns 2,236 screens in 242 cinemas in Spain, the UK, Italy, Austria, Portugal and Germany. (…).

Original story: Expansión

Translation: Carmel Drake

Madrid City Council sells three land plots in Arroyo del Fresno

22 May 2015 – El País

Arjusa and CP Grupo Inmobiliario, which has invested 50 million euros, will build 750 subsidized housing units

The Municipal Housing and Land Company of Madrid has sold three pieces of land in the new district of Arroyo del Fresno to build 750 subsidized housing units. The total investment amounts to 50 million euros, according to BNP Paribas Real Estate which has been in charge of the marketing process.

Two of the land plots have been acquired by CP Grupo Inmobiliario. The first plot – and the last  transaction to go through – features a space with a building permit over 19,900 meters for 249 housing units that will be under the basic public subsidy scheme for housing. The second plot has 24,617 meters, where 254 subsidized housing units under some sort of limited price scheme are to be raised.

Arjusa purchased the third lot, whose characteristic use is for residential property under the basic public housing subsidy scheme, with a building space of 19,862 meters with 218 homes.

According to Araceli Burgos, country manager of the Land and Urban Management unit at BNP Paribas Real Estate in Spain, “this transaction clearly evidences stabilization in a market as cyclical as the land market. It highlights the strength of mature markets like Madrid and the absorption capacity of developments in the ‘Zona Norte’. Similarly, the whole pre-sale process of the final product shows the presence of a solvent demand side as well as a moderate recovery on a macroeconomic scale that would affect purchasing power.”

Original story: El País

Translation: James Leahu

Sareb Expects To Complete 22 Housing Developments In 2015

11 May 2015 – El Economista

The Asset Management Company for Bank Restructurings (Sareb) expects to finalise (the construction of) 22 housing developments during the course of the year; in the meantime it will study the selection of 60 other construction works with a view to their completion.

Sources at the so-called ‘bad bank’ have explained to Europa Press that the developments that will be completed this year are located in (the autonomous communities of) Cataluña, Valencia, Galicia, Castilla y León, Extremadura, Madrid and Cantabria, and they have indicated that “in theory” they will be available for sale.

In 2014, the company approved the launch of 52 housing developments and 30 of those obtained their First Occupancy Licence during the year. Investments in real estate assets during the year amounted to €35.6 million, primarily focused on the urbanisation of land and plots (of land) and on the progression and finalisation of work in progress.

Specifically, 19 developments were approved in Cataluña, 17 in Valencia, four in Galicia, three in Cantabria, three in Castilla y León, two in Castilla-La Mancha, two in Madrid, one in Extremadura and one in La Rioja. Of those, it is expected that the following developments will be completed this year: nine in Cataluña, five in Valencia, two in Galicia, two in Castilla y León, one in Extremadura, one in Madrid and two in Cantabria.

Maintain the rate of property sales

Sareb has set itself the objective of maintaining the rate of property sales at close to 15,000 in 2015 and retaining its position amongst the five largest players in the market. It is also seeking to increase the quality of services through its new “servicers”.

The ‘bad bank’ is looking to intensify its offer to those investors that specialise in adding value, as well as to sell a “wide range” of portfolios to institutional investors during the year.

The company generated income of €1,115 million during 2014, thanks to sales to specialist investors. It also closed eleven major transactions, primarily involving loans, which accounted for 84% of its wholesale transactions (during the year).

In this way, Sareb closed the sale of the following portfolios: ‘Kaplan’ (loans to SMEs secured by residential property and land); ‘Crossover’ (land in Alicante, Baleares, Barcelona and Madrid); ‘Dorian’ (rental housing); ‘Klaus’ (loans to SMEs); and ‘Pamela’ (loans secured by buildings in Madrid).

Other transactions included the sale of ‘Agatha’ (loans and rental property); ‘Aneto’ (loans secured by residential property and land); ‘Olivia’ (loans secured by residential and commercial property); ‘Meridian’ (loans secured by tourist assets); and ‘Corona’ (offices leased in Madrid).

Original story: El Economista

Translation: Carmel Drake

Cooperatives Queue Up To Buy A Plot That The Treasury Purchased 30 Years Ago

16 February 2015 – El Confidencial

All eyes are focused on one plot of land in Madrid. A plot of land, which the Treasury purchased from a group of nuns for 800 million pesetas in 1985, could now, three decades later, be sold for several million euros. It is one of the largest and rarest gems left in Madrid and many of the large housing cooperatives have already expressed interest. These same cooperatives were responsible for some of the most talked about transactions in the country last year; and this deal would allow them to offer hundreds of low cost homes in the centre of Madrid, just a few metres from the Paseo de la Castellana, something that was unthinkable a few years ago.

The plot measures just over 15,000 square metres and is located at the intersection of Calles Padre Damián and Fray Bernardino Sahagún, very close to the Castellana and ten minutes away from the Santiago Bernabeu stadium and the Torres KIO. It is owned by State Heritage (Patrimonio del Estado), which in turn reports to the Treasury (Ministerio de Hacienda). The land has its own history…it used to house a convent, which was demolished shortly after the plot was acquired by the Government. Three decades later…., the plot may come back onto the market in a perfect transaction for the public coffers, thanks to the increase in land values during the intervening period.

Nevertheless, before the plot is auctioned, some administrative hurdles will need to be overcome to change its intended use. The State Heritage department has proposed a one-off amendment to the General Urban Plan for Madrid because, for this land to be attractive in the market, and for the Treasury to obtain the maximum price for its sale, its use must be residential; currently it may only be used for the collective services of the Public Administration. (…)

This one-off amendment is awaiting provisional approval by the Town Hall of Madrid and definitive approval by the Community of Madrid, according to sources from the Treasury who say that until this happens, the plot will not be put up for sale. (…)

(…)

Under the spotlight of the management cooperatives

“The size of the plot, its location, its environment, its intended suitability for construction, its scope, the potential appeal of the project that could be developed makes this plot of land a clear target that is going to generate a lot of interest”, said Leopoldo Morena, the CEO of the Ibosa Group, the cooperative manager that was responsible for one of the most important land transactions in the capital last year, when it was awarded ownership of Metro de Madrid’s depots in Cuatro Caminos for €88 million. That project, Residencial Metropolitan, which will bring more than 400 homes onto the market, with prices upwards of €2,600 per square metre, has almost all been sold (95%).

Nevertheless, the operation of the year was, without a doubt, the sale of a plot of land on Calle Raimundo Fernández Villaverde by the Ministry of Defence in a bid that was won by the cooperative manager Domo. Its offer for €111 million exceeded those made by Ferrovial, Pryconsa and Construcciones Amenabar; all of the homes in the development have already been sold. The sales price of the 355 homes was expected to start at €3,300 per square mete.

These two transactions boosted the market in 2014. According to data from the real estate consultant Irea, transactions involving land in Spain amounted to €346 million last year, which represented just 4% of the total investment in the market. A low percentage, however, in 2013, there weren’t any transactions involving land above five million euro, the threshold that Irea uses to prepare its analysis of investment in Spain (and so the deals closed in 2014 did represent a move in the right direction).

“Transactions such as the one in Calle Raimundo Fernández Villaverde, the Metro de Madrid and more recently, Amenabar’s purchase of various plots of land from Sareb, without financing, were unthinkable a few years ago”, explains Mikel Echavarren, the CEO at Irea.

In his opinion, the main players that may sign land-related transactions in Spain this year will continue to be domestic companies, developers and cooperatives, which are capable of financing their land purchases with their own funds: “There are scarcely six companies in Spain at the moment with sufficient financial capacity to finance land purchases”….

The role of international investment funds in the direct purchase of land will be practically zero, but they will be involved in the acquisition of portfolios of debt that contain land or residential developments as underlying collateral.

The plot of land in Madrid has also attracted interest from prospective house buyers, as evidenced by the fact that some managers have received requests from more than 2,000 interested parties. And it is no wonder: if the land falls back into the hands of cooperatives, they may build homes right in the centre of Madrid at very competitive prices, especially compared with those in private developments, such as the one that will start soon in Calle Juan Bravo, 3, where the prices of the luxury homes that are going to be built on the site may reach €9,000 per square metre, significantly higher than the less than €4,000 per sqm being charged by both the Ibosa Group and Domo Gestora for their recent acquisitions in Madrid.

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake

Sareb Sells 11 Plots Of Land In Madrid For €64.3m

21 January 2015 – El Economista

The land has capacity for 420 homes, an office building and a shopping centre

The Asset Management Company for Bank Restructurings (Sareb) has reached an agreement with CP Amenabar for the sale of 11 plots of land, for residential and commercial use, in Arroyo del Fresno (Madrid) for €64.3 million.

This agreement will allow CP Amenabar – a consortium formed by the property developer CP Grupo and the company Construcciones Amenabar – to build 420 homes, both subsidised and unsubsidised, as well as an office block and a shopping centre.

The sale in Arroyo del Fresno joins the list of plot-related transactions undertaken in recent months. Last year, Sareb awarded 190,000 square metres of land, which included the Crossover project, for more than €100 million.

A few days ago, the company chaired by Belén Romana (pictured above) closed the transaction involving the Aneto portfolio, a portfolio of loans secured by homes and plots of land prepared for the construction of buildings. The Head of Transactions at Sareb, Luis Martin Guirado, said “This transaction forms part of a strategy to create value from Sareb through the preparation of land for its development”. “The sale of these plots is a just another symptom of the improvement we are observing in the real estate market”, he said.

According to the company, this improvement allowed it to exceed the commercial objectives set in 2014. During the last few weeks of the year, the company closed wholesale transactions amounting to more than €1,000 million.

Original story: El Economista

Translation: Carmel Drake