Tag: portfolio

El Corte Inglés is Selling Major Offices on c/Hermosilla and c/Santiago de Compostela in Madrid

11 April 2019 – El Confidencial

The 95-strong asset portfolio that El Corte Inglés put up for sale a few weeks ago not only contains commercial assets. It also includes three important office buildings, all located in Madrid, which have sparked a great deal of interest amongst institutional investors.

They include one of the jewels in the crown of the retail giant, a 20,450 m2 office building located on Calle Hermosilla, opposite the group’s headquarters. It is currently occupied by the Purchasing Division and, according to sources familiar with the operation, may be converted into homes, which would make it a golden opportunity in one of the most sought-after areas of Madrid. Nevertheless, ECI would remain as the tenant of the property for at least three years under a sale and leaseback arrangement, with the option of extending that term for another three years.

The second office building is located on Calle Tomás López, which backs onto the Purchasing division’s offices. And the third office building, which is located on Calle Santiago de Compostela, 100, houses the headquarters of Provincial Court of Madrid. It is known as the Edificio Marbella and spans 6,200 m2. The regional Government has an agreement to lease the property and so the potential buyer would be guaranteed of a stable tenant, with a long-term contract and an annual rental income of almost €1 million.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Solvia Joins Forces with Orion Capital & Will Manage an Asset Portfolio Acquired from Goldman

8 April 2019 – Idealista

Solvia has joined forces with Orion Capital, which has entrusted the servicer with managing the portfolio that it purchased from Goldman Sachs at the end of last year.

The portfolio has a nominal value of €400 million and contains loans originated by CaixaBank. As such, Solvia will lead the sales process for all of the real estate assets included in the portfolio and for the properties that are recovered as solutions are found to the non-payment of loans.

Original story: Idealista 

Translation/Summary: Carmel Drake

Galil Capital Revises its Loss Forecast for 2019 Down to -€25M

1 April 2019 – Eje Prime

Galil Capital, the Socimi led by the Israeli businessman Gil Avraham Shwed expects to close the year with losses of €25 million. It has revised its forecasts down from losses of €46 million (-44%) after completing a €6.59 million capital increase, which will allow it to acquire new residential properties. As such, the Socimi expects to increase its rental revenues by 5% to €1.26 billion.

Galil Capital expects to add one small and one medium-sized building to its portfolio this year. At the end of June 2018, its portfolio comprised six assets and was worth €31.36 million.

Original story: Eje Prime

Translation/Summary: Carmel Drake

General de Galerías Comerciales Buys ‘Las Terrazas’ Shopping Centre for €42M

22 March 2019 – Europa Press

The Socimi General de Galerías Comerciales has purchased Las Terrazas shopping centre in Telde, Gran Canaria for €42 million. The asset has a total constructed surface area of 121,461 m2, as well as a plot measuring 22,045 m2.

The portfolio of the Socimi, which is listed on the MAB, now contains seven shopping centres, including five properties in Andalucía and one in Cataluña.

The Socimi currently has a share price of €107, up by 35.4% since its debut price of €79, taking its market capitalisation to around €2.8 billion.

Original story: Europa Press

Translation/Summary: Carmel Drake

Realia Adopts RICS Standards for its Asset Valuations

21 March 2019 – Eje Prime

The Board of Directors of Realia has unanimously approved the decision to change the valuation method for its assets linked to property development to bring it in line with market practice.

The listed real estate company has notified the National Securities and Exchange Commission (CNMV) that it will adopt the July 2017 professional standards of the Royal Institution of Chartered Surveyors (RICS) from the end of H1 2019 onwards.

The company closed 2018 with a profit of €40.2 million, up by 31.8% and a portfolio valuation based on market value of €1.84 billion, up by 3.1% YoY.

Original story: Eje Prime 

Translation: Carmel Drake

Mazabi to Grow its Socimi to Make Stock Market Debut with €1bn in Assets

18 March 2019 – Expansión

Mazabi, the firm that manages the wealth of 35 family offices and which owns €1.54 billion in assets, is getting its ducks in a row ahead of the planned debut of its Socimi Silicius. The intention is for that entity to take ownership of the majority of the firm’s rental properties and whereby grow its portfolio to at least €1 billion before its IPO.

Currently, Silicius owns 17 assets, spanning 71,244 m2, worth €156 million in the office, retail, hotel and logistics segments. During 2019, new properties will be transferred to it to increase its portfolio to €740 million by the end of the year, with an associated debt of €240 million.

Moreover, 80% of the operations that the manager executes over the coming months will also be transferred to the Socimi. Mazabi typically invests between €100 million and €150 million per year, according to its CEO, Juan Antonio Gutiérrez (pictured above).

New investors

At the same time, Mazabi is looking for investors who want to get involved in its project. To this end, it has engaged KPMG to find an investor to acquire a stake in the Socimi before it is listed. At this stage, the firm has not decided whether Silicius will make its debut on the MAB or the main stock market. The timings have not been confirmed either, but if Silicius is registered as a Socimi in July, then it would make its debut on the MAB no later than July 2021.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Collegiate Seeks Funding of €2bn to Build More Student Halls in Spain

12 March 2019 – Idealista

Collegiate, a global leader in the student halls sector, is looking to raise €2 billion to grow its portfolio of halls of residence in countries such as Spain, the UK and Portugal.

The company, which already manages more than 20 developments in the United Kingdom and across the Iberian Peninsula, typically invests between €35 million and €100 million per asset, and so the company could be looking to open up to 60 new halls of residence if it obtains the aforementioned funding. Collegiate is looking to meet an unprecedented demand for high-end student accommodation.

In 2018, the student hall sector in Spain received investment of €450 million, up by 2.3% YoY, according to a report from DBK. Across the country, there were 1,025 halls of residence last year, containing 91,066 beds, a figure that is expected to rise to 95,500 beds by 2020.

Original story: Idealista (by Custodio Pareja)

Translation/Summary: Carmel Drake

TPG, Round Capital & Ares Enter Final Round of Bidding for Témpore

12 March 2019 – El Independiente

Sareb has reactivated the sale of its Socimi Témpore Properties and the funds TPG, Round Capital and Ares are some of the candidates in the final round of bidding.

The bad bank was close to signing the transaction last year but called it off due to a lack of transparency. Then, it was the US investment fund TPG, shareholder of companies such as Spotify, Airbnb and Burger King, who was the likely buyer of Témpore, which manages 2,249 residential homes worth €338 million.

Now, TPG is back in the final round of the new process, this time against two opponents. The real estate fund Round Hill already has a presence in Spain – just a few weeks ago it launched a joint venture with the fund KKR and the logistics firm Pulsar Properties to buy logistics platforms. Meanwhile, the US fund Ares has also starred in several transactions in Spain, particularly in conjunction with the Dutch real estate firm Redevco.

Témpore closed 2018 with a loss of €384,394, but is forecast to generate profits from 2020. Its portfolio of residential assets, which is managed by Azora, generated rental income of €7.3 million last year. Moreover, 80% of its assets are located in the metropolitan areas of major capitals and the rest are in areas with significant rental demand, such as Valencia, Sevilla, Zaragoza, Málaga and Almería.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

El Corte Inglés Doubles its Assets for Sale to €3bn & Invites Preliminary Offers by End of March

11 March 2019 – El Confidencial

El Corte Inglés has set a deadline of the end of March for interested parties to submit their preliminary bids for its real estate assets. Moreover, it has increased the perimeter of the portfolio from the initial value of between €1.5 billion and €2 billion to €3 billion.

ECI engaged PwC at the end of 2018 to help it define the perimeter, which comprises non-strategic assets, primarily land, offices, logistics platforms and stores.

The portfolio can be divided into three batches, based on on the liquidity of the assets: assets in good locations and with the possibility of being sold quickly (liquid) account for around one third of the perimeter; intermediate assets represent around 15% of the total; and just over half of the portfolio comprises assets that are not very liquid or that are located in complicated areas.

The aim of the sale is to use the funds raised to reduce the distribution group’s debt, which amounted to €3.8 billion at the end of 2017, equivalent to around four times its EBITDA of c. €1 billion.

Original story: El Confidencial (by Jorge Zuloaga & Ruth Ugalde)

Translation/Summary: Carmel Drake

Habitat’s Land Portfolio Now Spans 1 million m2 with Capacity to Build 10,000 Homes

9 March 2019 – Expansión

The property developer Habitat now owns more than 1 million m2 of land after investing €121 million last year to expand its portfolio. As such, the firm led by José Carlos Saz (pictured below) has the capacity to build around 10,000 homes. Specifically, the firm backed by Bain Capital acquired 27 plots last year on which to build around 2,500 homes. 5% of those plots were non-buildable (in the process of being approved for construction).

The company expects to reach cruising speed with the delivery of 2,000 homes per year from 2021 onwards. Last year, it handed over 270 homes across 4 developments in Barcelona, Málaga and Madrid, to generate turnover of €89 million, EBITDA of €1.83 million and a net profit of €250,000. The company plans to invest €500 million in land purchases until 2021, financed by Bain.

Moreover, like its competitors Neinor, Aedas and Metrovacesa, Habitat is also considering entering the rental home sector and may even begin to build developments for Socimis.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake