Merlin Properties Nears Sale of Portfolio of 26 Office Buildings

18 November 2019 – Merlin Properties is close to finalising the sale of a portfolio of 26 office buildings in Madrid and Barcelona for an estimated 200 million euros. The socimi is selling assets, with a total area of 133,000 square meters, which it considers to be non-strategic. Merlin expects to finalise the sale by the end of November and disclosed that it already has received a deposit from the presumed buyer.

The sale is taking place a few weeks after the firm managed to enter into Madrid’s Operation Chamartín as a partner. Chamartín is the largest urban development project currently underway in Europe. Merlin acquired a 14.4% stake in Distrito Castellana Norte, the owner to the development rights for Operation Chamartín from the San José construction group. The socimi agreed to pay 169 million euros for the stake, in addition to granting an €86 million loan to the construction group.

Original Story: La Información

Adaptation/Translation: Richard D. K. Turner

Portobello Capital to Sell Year’s Largest Portfolio of Hotel Assets

8 November 2019 – Portobello Capital is selling the properties where the Blue Sea Hotels & Resorts chain operates for an estimated 230 million euros. The sale, which would be the largest of the year, would separate the properties from Blue Seas’ hotel management business.

The portfolio of properties includes sixteen assets with a total of about 3,300 rooms.

Original Story: El Economista – Alba Brualla / Araceli Muñoz

Adaptation/Translation: Richard D. K. Turner

Spain’s Banks Look to Sell €19 Billion in Real Estate Assets and NPLs in 2019

21 October 2019 – Although the pace of sales has fallen in recent years, Spain’s banks are continuing their efforts to reduce their exposure to non-performing loans and foreclosed real estate assets left over from the financial crisis of the first half of this decade. In the year to date, those banks have sold portfolios of toxic assets worth a total of more than €7 billion. Another twelve other transactions worth approximately €11.7 billion, however, are on course to conclude by the end of this year.

Sabadell has been particularly active, having sold €2.55 billion in portfolios such as Greco and Rex. Unicaja and Ibercaja have also sold assets worth more than €1.5 billion. Santander is currently negotiating the sale of another two portfolios.

Spain’s financial institutions are expected to end the year with total sales of nearly €19 billion, compared to 41.7 billion euros last year, down by more than half.

Original Story: El Español – María Vega

Adaptation/Translation: Richard D. K. Turner

Santander to Sell Two Portfolios of Land and NPLs Worth Nearly €6 Billion

21 October 2019 – Santander is finalising plans to sell two major portfolios of NPLs and REOs, worth a total of approximately 6 billion euros. The bank has already contacted major potential investors to prepare themselves to analyse two portfolios: €2.7 in NPLs, called the Project Atlas, and another €3 billion in land.

Santander has been analysing the portfolios since the spring of this year. The bank is looking to increase the pace at which it is reducing its exposure to the Spanish real estate market. According to publicly available data, Santander had €12 billion worth of NPLs and another €10 billion in foreclosed properties as of June.

These would be the financial institution’s largest divestments since 2017, when it sold €30 billion in assets it had inherited from Banco Popular to Blackstone. Market sources believe that the bank will only finalise the sale during the first quarter of 2020, due to its size and complexity.

Original Story: El Confidencial – Jorge Zuloaga & Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

BBVA Looks for Buyer to Acquire Up to €1.3 Billion in Toxic Real Estate Assets

14 October 2019 BBVA is looking to sell off up to a third of its approximately €1.3-billion portfolio of non-performing real estate assets. The Spanish bank acquired many of the assets during Spain’s financial and real estate crisis when BBVA bought up several of the country’s failing savings banks.

The bank is looking to rid itself of the €3.6 billion in foreclosed assets and €1.345 billion in shares of real estate companies, in addition to unpaid loans from SMEs and individuals valued at about €5 billion.

Some of the groups potentially interested in acquiring the assets include Cerberus, which already bought BBVA’s real estate business in 2018, Apollo, Blackstone, Bain Capital and Lone Star.

The sale, which consists of residential, commercial and land assets is still in its initial phase. However, the bank is looking to complete any sale before the end of the year.

Original Story: Business Insider – Adrián Francisco Varela

Adaptation/Translation: Richard D. K. Turner

Hines Invests in Two Last-Mile Logistics Assets in Villaverde

8 October 2019 Hines, the world’s fourth-largest real estate fund by volume of assets under management, has finalised its first acquisition in the logistics sector in Spain, as the growth of e-commerce continues to roil the market.

The US fund has acquired two last-mile logistics assets in Villaverde, on the outskirts of Madrid, from Allegra. Allegra hired Knight Frank to lead the sale of a portfolio consisting of two warehouses in Villaverde and a plot of land in San Fernando de Henares. Hines paid 20 million euros.

Both warehouses have a 10-year leasing contract with the logistics operator Ontime. The two units have a surface area of ​​9,798 and 7,676 square meters, respectively.

Original Story: El Confidencial – Ruth Ugalde / Elena Sanz

Adaptation/Translation: Richard D. K. Turner

Retailing Giant Opts to Sell Real Estate Assets Through El Corte Inglés Real Estate

8 October 2019 While the Spanish company El Corte Inglés is one of the biggest retailers in the world, it is also one of the large owners of real estate in Spain.  The firm has assets valued at more than €17 billion. The retailer has given up on a plan, called Operation Green, that the consultancy PwC had designed for the portfolio. Instead, it is now planning on channelling the assets through a new real estate subsidiary, El Corte Inglés Real Estate.  

Original Story: El Confidencial – Ruth Ugalde

Photo: EFE

Adaptation/Translation: Richard D. K. Turner

GreenOak Sells €1.3 Billion Portfolio of Logistics Assets to Patrizia

8 October 2019 GreenOak announced that it was close to finalising a deal to sell a pan-European portfolio of logistics assets to Patrizia, the German real estate investment giant. The German group is in exclusive negotiations with the US fund to acquire the portfolio for roughly €1.3 billion. The two firms expect to finalise the transaction before the end of the current fiscal year.

The portfolio consists of 1.5 million square meters of logistics assets, which the US firm acquired over the last three years for its second pan European logistics fund.

At the same time, GreenOak is acquiring assets for its third fund. In April, the US fund acquired 40,000 square meters of logistics space in the town of Seseña from Pavasal.

Original Story: El Confidencial – Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

US-Fund TPG Looks to Sell Portfolio of Rental Flats for €75 Million

17 September 2019 The US fund TPG announced its intention to sell nine buildings with rental flats located in Malaga, Tarrassa, Badalona, ​​Girona, Sabadell, Alicante, Valencia, Madrid and Valdemoro. The firm hopes to raise at least 75 million euros through the sale.

The nine buildings have a total of almost 400 flats and 600 parking spaces and are currently 90% occupied. TPG acquired the buildings just over two years ago through its subsidiaries Sardes Holdco and Hadley Investments.

The Catalunya Caixa Propietat FII real estate investment fund, which was liquidated, previously owned the nine residential developments.

Original Story: El Confidencial – Elena Sanz

Photo: E.S.

Adaptation/Translation: Richard D. K. Turner

Blackstone Fails to Sell Portfolio of More Than 1,000 Homes

16 September 2019 – The US-based investment giant Blackstone has cancelled the sale of a portfolio of more than 1,000 un-subsidised rental flats in Barcelona and Madrid. The financial services firm had been asking for approximately 180 million euros for the asset. Market sources see the cancellation as a confirmation that the market is softening due to political uncertainty, regulatory changes and a cooling economy. Blackstone now reportedly plans to sell the properties off piecemeal, much as it did with its proposed sale of three subsidised apartment blocks to Vivenio.

Original Story: El Confidencial – Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner