Santander, Popular & BBVA Transfer Land For 3,700 Homes To Metrovacesa

11 September 2017 – Levante EMV

Santander, Popular and BBVA have transferred land to Metrovacesa for the construction of 3,700 homes in the Community of Valencia. According to real estate sources, the three banks have contributed more than 440,000 m2 of buildable land in some of the best development areas of Valencia and Alicante. The operation includes plots for the construction of hundreds of homes and a retail space in La Patacona.

As a result, Metrovacesa has become the largest real estate company in the Community of Valencia. If we add these latest plots from the banking institutions to Metrovacesa’s previous portfolio, the company now has 660,000 m2 of buildable land for the construction of 5,700 homes.

The land transfer forms part of Project Horizonte, which has seen Santander, Popular and BBVA (all shareholders of the real estate company) contribute land worth €1,108 million to Metrovacesa for the construction of 40,000 homes across the whole of Spain. Santander (which has recently absorbed Popular) and BBVA relaunched Metrovacesa as a platform to provide an outlet for their land portfolios. The banks are looking to make a profit from the rising economic cycle in the construction sector.

Sources close to the operation specified that the most significant plots of land are located in Benimaclet, Moreras and Patraix (Valencia); the development area of La Patacona (the urban plan for Bodegas Vinival in Alboraia); Benalúa Sur and Albufereta (Alicante); Nou Nazareth (Sant Joan d’Alacant); El Acequión (Torrevieja); several plots in Castelló and Sagunt; and buildable land on the seafront in El Puig (…).

Restructuring

With Project Horizonte, BBVA and Santander have concluded the restructuring of Metrovacesa, which they were forced to take over during the crisis, when at the end of 2008, they foreclosed the debt of the Sanahuja family, which was the majority shareholder of the entity at the time.

By virtue of Project Horizonte, the entity chaired by Ana Botín has decreased its stake in Metrovacesa to 61.3%, from the 70.3% that it held until now. Nevertheless, its stake really amounts to 70.5% if we include the 9.2% owned by Banco Popular. Meanwhile, BBVA has increased its stake in the real estate company from 20.5% to 29%. These variations are a result of the various land contributions made by each one of the shareholder entities, which have materialised through a capital increase.

Original story: Levante EMV (by Ramón Ferrando)

Translation: Carmel Drake

CBRE: New House Prices Are Soaring In Spain’s Large Cities

22 June 2017 – Idealista

New homes are becoming an “endangered species” in the real estate market in Spain’s large cities and along the coast. The increase in demand versus the shortage of supply means that prices are rising by more than the average growth rate of 4%-6% in capital cities such as Madrid and Barcelona, according to the forecasts published by CBRE for 2017. In addition, despite the greater increase in construction activity, the gradual rise in the value of buildable land is having an effect on the final price of new homes.

According to the residential report from CBRE for 2017, the average price of homes in Spain will grow during the course of this year by between 4% and 6%, although in some markets, such as in the large cities and along the coast, the increase in house values will be greater, given the demand-side pressure.

“Although the recovery in the residential market is not leading to significant tensions in terms of house prices at the national level, sharp rises are being seen in the price of new homes in certain local markets with high demand and a very limited supply of new homes”, said Samuel Población, National Director of Residential and Land at CBRE.

New housing is starting to become scarce in markets such as Madrid and Barcelona, as well as in areas along the coast such as Alicante and Málaga, despite the fact that the construction of new homes is being concentrated in these capital cities. The report warns that the current levels of construction are not going to be sufficient to absorb the demand for these types homes over the next two years.

CBRE calculates that this demand amounts to between 120,000 and 140,000 units per year, whereas in recent years, an average of around 51,000 homes have been completed per year. Moreover, the number of housing permits being granted still falls below the threshold of 80,000 homes per year.

“There is potential for the construction of new homes, given that the building rates for the next 2 or 3 years are unlikely to cover the entire demand”, explained Samuel Población. “The increase in the construction of homes in areas such as Madrid, Barcelona, Valencia, Costa del Sol, the Balearic Islands and País Vasco, is key to containing the inflationary trends in prices”, he added.

Controlling the increase in demand for buildable land

(…). According to data from the Ministry of Development, the average price of urban land in provinces such as Madrid, the Balearic Islands and Málaga amounted to 27%, 36% and 40%, respectively, of the historical series (which ranges between the maximum and minimum in the period 2004-2016) in the fourth quarter of 2016. “This suggests an intensification in demand for land in these locations”, said sources at the consultancy.

CBRE warns that in the last few months of 2016 and the first months of 2017, the market for land saw more activity and the number of transactions involving urban plots of land rose by just over 10% in 2016 with respect to 2015 (…).

Original story: Idealista (by D. Marrero)

Translation: Carmel Drake

Aliseda Beats Sareb’s Sales In Levante & Sells Barcas 5 Building

19 June 2017 – Expansión

Aliseda, the real estate servicing company in which the funds Värde and Kennedy Wilson together hold a 51% stake and Banco Popular owns the remaining 49%, whose purpose is to sell the bank’s real estate assets, recorded revenues of €370 million last year in the Community of Valencia and Murcia, where its Levante division undertakes its activity.

Popular’s servicer – the name by which these firms are known in the sector – even exceeded the sales volumes of another major player born out of the real estate financial crisis, namely Sareb. That firm, which took over the toxic assets of Bankia and Banco de Valencia, amongst others, recorded revenues of €199 million in the Community of Valencia and Murcia, with the sale of almost 2,814 properties, compared to Aliseda’s 1,900.

One of the reasons for the larger sales volumes sold by the entity in which Popular holds a stake is due to the fact that 32% of the assets sold in the region were plots of land and 44% were finished properties. The plots of land sold included land next to PAU 5 in the San Juan de Alicante area and in Malilla in Valencia, which were purchased by Neinor.

Aliseda’s Regional Director, Vicente Brotons, commented that the area of San Juan de Alicante could be described as a “mini-bubble” given the strong demand there and he said that demand for land under management in Valencia and Alicante is recovering.

Although Aliseda’s vocation is the sale of land, it has just created a brand Averon for the construction of developments. Brotons explained that it is considering this option for some of the plots of land that it still owns. In Valencia capital, it owns plots of land in Patraix, Parque Central and Moreras.

Following Santander’s recent purchase of Popular, and with it all of its real estate assets, Aliseda’s future is one of the matters that still needs to be resolved.

Sale of Barcas 5 building

Last year, Aliseda sold two unique buildings in the centre of Valencia, one of which was the former Hostal Londres to the chain Casual.

The other was number 5 on Calle Barcas, which was sold to an investment group for its renovation and subsequent rental.

Aliseda’s stock in Valencia and Murcia comprises 16,000 properties worth €3,400 million.

Original story: Expansión (by A. C. A.)

Translation: Carmel Drake

Sareb Rejects Reyal’s Proposed Payment Plan

1 June 2017 – Expansión

Reyal Urbis has taken another step closer to the precipice. Sareb, its main creditor, has voted against the agreement presented by the property developer to circumvent its liquidation. Yesterday, the deadline set by the judge for Reyal’s creditors to sign up to the proposed agreement came to an end and, according to market sources, the public company has rejected the plan submitted by Reyal Urbis, which filed for bankruptcy four years ago.

Sareb, the real estate company’s main creditor, with debt amounting to €1,000 million, had already expressed its doubts regarding Reyal’s payment plan. In the end, it has opposed the plan because it considers that the proposed discounts (on the debt), of between 88% and 93%, are too high and that the proposal to free up assets that are securing certain loans only serve to benefit Rafael Santamaría, the company’s President and majority shareholder.

Reyal’s other major creditors include Santander and funds such as Värde Partners, which are now working to find out the current value of the company’s assets, with a view to its possible liquidation. The US fund has been acquiring some of Reyal’s debt from overseas entities over the last few months and is now negotiating the purchase of more land, as Expansión revealed on 22 May. Värde’s aim is to take ownership of some of the real estate company’s plots of land and whereby strengthen its commitment to Spanish property, which has led it to buy Vía Célere and Aelca in recent times.

Another key player in the creditor pool is the Tax Authority, to which Reyal Urbis owes more than €400 million. The real estate company has offered to pay this debt using the funds it obtains from the sale of its assets, but it is proposing a very long term horizon.

At the end of 2016, Reyal Urbis’ liabilities amounted to €4,660 million and the group had negative own funds of €3,449 million. The assets, most of which are plots of land to be developed, were worth €1,170 million and its annual revenues amounted to less than €9 million. Reyal Urbis was created in 2007 following the merger of Reyal, led by Santamaría, and Urbis, the real estate arm of Banesto.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Neinor’s Share Price Rises By 3.16% On First Day Of Trading

31 March 2017 – Eje Prime

Neinor Homes ended its first day of trading on the stock market on a high, as its share price increased by 3.16% following its debut on Wednesday. Its shares ended their first trading session at a price of €16.98 per share compared with the price of €16.46 set for their debut on the stock market.

The largest real estate development company to be listed in the last decade saw its shares appreciate by 9.96% at one point, given that during trading its share price fluctuated between a low and high of €16.98 and €18.10 per share, respectively.

The real estate company’s shares began trading at 12:00, following the traditional ringing of the bell by its CEO, Juan Velayos (pictured above) and the representative of Lone Star, Juan Pepa, at the Bilbao Stock Exchange, where the firm has its corporate headquarters.

The objective of the real estate company’s IPO is to reduce debt and continue acquiring plots of land in areas with strong demand. Neinor intends to list on the stock markets in Madrid, Bilbao and Valencia.

The group owns one of the largest portfolios of buildable land in Spain, comprising 161 developments and 9,086 homes. As at 31 December 2016, its buildable land portfolio was worth €1,120 million and had a development value of €2,548 million.

Original story: Eje Prime

Translation: Carmel Drake

Ebrosa Buys Ministry Of Defence’s Last Auctioned Plot In Madrid

9 February 2017 – Expansión

The Ministry of Defence is continuing with its real estate divestment plan. Its last major sale was completed yesterday with the sale of an urban use plot that has a surface area of 3,569 m2 and a buildable surface area of 9,865 m2. The plot is located in the former central park of the engineers in Villaverde, in the neighbourhood of Los Angeles, in the south east of Madrid.

Like in the case of the Administration’s other assets, the sale has been conducted through a public auction, which was publicised through the real estate portfolio addmeet. Specifically, the Ministry of Defence had planned to carry out two simultaneous auctions, for an initial asking price of €4.7 million (in the first round of bidding) and a second asking price of €4.28 million (in the second round). In the end, the second round was not necessary as the initial bids exceeded the initial asking price, and the plot was awarded to the real estate company Ebrosa, which bid €5.04 million.

This Zaragoza-based property developer will use the land, for which planning permission has already been granted, to build a block of flats similar to those projects that it is already developing in other areas of Madrid, such as in Las Tablas and Sanchinarro, in the north east of the city, as well as in Ensanche de Vallecas.

Ebrosa’s new development will be located next to “residential developments that are being sold at a good rate”, according to information included in the addmeet advert. Specifically, one hundred homes that Inmoglacial is promoting together with the investment fund Aquila Capital, in the same central park of the engineers in Vallaverde, after it was awarded nine plots of land from Sepes in July 2015, covering a buildable surface area of 120,000 m2. That project, which is being completed in nine phases, involves a total investment of almost €200 million to construct more than 1,200 homes, whose first phase is due to be completed in the spring of 2017.

According to the most recent annual accounts, corresponding to 2015, Ebrosa generated a profit of €31.38 million, compared with €4 million the year before, from a turnover of €16.68 million.

Divestment plan

The sale of the plot in the neighbourhood of Los Angeles was included in the real estate asset sales plan that the Ministry of Defence launched in 2013, with the aim of divesting some of its land, premises, rural estates and homes.

The most high profile sales in this plan include the sale of the former Precisión Workshop, located on Calle Raimundo Fernández Villaverde, next to Paseo de la Castellana and Nuevos Ministerios. In November 2014, the Ministry of Defence awarded those unused plots to the housing manager Domo for €111 million, which acquired them with the aim of constructing a 320-home development on the site, with an average price of €325,000.

Currently, the Ministry of Defence has two other plots of land up for sale, in Alcalá de Henares and in the Campamento area. The latter, whose sales price has not been revealed, is one of the most attractive sites for construction in the capital, given its location, between the Somosaguas area and the former land of Campamento, whose sale is also being considered by the Ministry.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Bank Of Spain Buys 142,000m2 Plot In Madrid For €40M

29 December 2016 – Inmodiario

The Royal Spanish Mint (‘Fábrica Nacional de Moneda y Timbre’ or FNMT) no longer complies with the conditions set out by the European Central Bank (ECB) for the printing of bank notes. As a result, the Bank of Spain has been forced to purchase a plot of land in Madrid’s Vicálvaro neighbourhood from the Ministry of Defence.

Through its company Imbisa, the FNMT has paid almost €40 million to the Institute for Housing, Infrastructure and Defence Equipment (Invied) for a plot of land measuring 142,000 m2, where it is going to build a new factory.

The plot of land acquired for the construction of the new facilities – which will house around 720 employees – is located in the east of Madrid, between the M-40 motorway, the old Vilcálvaro road and Avenida de Daroca (see map above).

The company Imbisa was constituted by the Bank of Spain in June 2015, with share capital of €50 million, in order to comply with the new regulations issued by the ECB, which required bank notes to be manufactured by private companies under tender, or by the national central banks themselves.

The institution led by Luis María Linde (the Bank of Spain) owns an 80% stake in Imbisa and the FNMT will continue to hold the remaining 20% stake until December 2017, when those shares will also pass into the hands of the supervisor. (…).

Once the agreement has been formalised, Imbisa will make a payment amounting to €1.97 million (…) and the balance, in other words, €37.4 million, will be handed over when the public sale and purchase deed is signed.

Despite the purchase of this land, the new factory will not be operational until 2020, by which time it is hoped that the new property will comply with all of the security requirements established by the ECB for the printing of bank notes. (…).

Original story: Inmodiario

Translation: Carmel Drake

Ministry Of Employment Sells 2 Plots Of Land In Málaga

16 December 2016 – Real Estate Press

The Ministry of Employment has managed to sell off two plots of lands located in Málaga capital, which it no longer requires after it rules out an operation to construct the new headquarters for the Comisiones Obreras and UGT trade unions on one site and a building for the Malagan Confederation of Entreprenuers (CEM) on the other.

On Tuesday, the auction called by the Government to award these plots of land was tentatively resolved, after a first attempt in April 2015 was abandoned because no offers were received. On this occasion, the plots of land were awarded to two provisional buyers. One of the plots, located on Calle Padre Jorge Lamothe, behind the Ibis Hotel, which was previously going to house the new headquarters for local businessmen, was put up for auction for €406,366 and has been awarded to the Malagan-based construction group Rivervial for €610,005, according to sources at the Ministry of Employment.

The other, located on Calle Mesonero Romanos, in the Teatinos neighbourhood, and which had been initially reserved for a new building for the trade unions, is going to be sold to the company Resa, Encampus Residencias de Estudiantes, for €1,752,000, which represents an increase of €184,050 above its original asking price. In this way, the central Government will pocket €2,362,005 from the sale of both plots of land.

High demand for halls of residence in Málaga

In both cases, the plots of land will house halls of residence for students, a real estate product that, according to sources consulted, is in high demand in Málaga at the moment. Sources close to Rivervial agreed; the construction group is seeking to diversify its current business portfolio through this project. In this case, the land is located in the heart of the city’s Historical Centre, next to the Guadalmedina River.

The site on Mesonero Romanos will allow Resa to build its third hall of residence for students in Andalucía; it already owns one in each of Sevilla and Granada. Its Commercial Director, Carlos Cano, explained that the hall of residence in Málaga will have 300 beds in a nine-storey building that will have a constructed surface area of 8,500 m2. “The idea is to start processing the construction licence as soon as the Ministry confirms that we have been awarded the plot, so that the hall of residence can open its doors in September 2019”, explained the Head of Resa, which currently owns 33 properties of this kind, containing 9,000 beds in 19 cities. The building in Málaga will offer air-conditioned rooms, equipped with their own kitchen, study rooms, classrooms, a swimming pool, cafeteria and car park, amongst other facilities.

Original story: Real Estate Press

Translation: Carmel Drake

Sogepsa Has Sold 3 Ha Of Industrial Land For €1.8M In 2016

13 December 2016 – Finanzas.com

This year, the Company for the Management and Promotion of Land in Asturias (‘La Sociedad de la Gestión y Promoción del Suelo de Asturias’ or Sogepsa) has sold almost three hectares of industrial land, spread over 22 plots of land, for which it has recorded revenues of €1.8 million. However, it has not sold any residential land.

This data has been provided by Belén Fernández, the Minister for Infrastructure and the President of Sogepsa, in her appearance at the budgetary meeting of the General Meeting of the Principality.

Fernández also said that the Principality currently has €92.8 million of avals with this company and that since 2013, it has disbursed loans amounting to almost €43 million.

Nevertheless, in response to questions from the Partido Popular MP José Agustín Cuervas-Mons, she said that the level of sales is a debate that has nothing to do with the future of this company.

In fact, she confirmed that, whatever happens with Sogepsa, the industrial and residential land that it has generated exists and has value, although it will be harder to sell it now than during the boom years.

The Minister also appeared convinced that the Bobes industrial estate in Siero, where construction has been suspended and whose debt caused Sogepsa to file for creditor “pre-bankruptcy” (preconcurso), may be sold, although she acknowledged that the site is not very attractive because it has not been finished yet and completion of the works will require an investment of several millions of euros.

Original story: Finanzas.com

Translation: Carmel Drake

Insur To Invest €135M Building New Homes In Madrid

25 November 2016 – Expansión

The real estate group Insur is planning to invest around €135 million on the development of new homes in Madrid over the next three or four years. These homes will be constructed on land that the company has already acquired in the capital, according to comments made by the firm’s Chairman, Ricardo Pumar.

The real estate market in the capital, along with the Costa del Sol, constitutes Insur’s “major focus” for the geographical diversification of its business, which until now, has been centred in the south of the country.

Insur will take a step forward in its diversification strategy to grow in Madrid, which is a “more competitive, but safer market”, said Insur’s Chairman. To this end, the company has invested around €45 million buying plots of land in the capital.

Original story: Expansión

Translation: Carmel Drake