Sonae and Bankinter to Launch Second Socimi, This Time in Portugal

11 December 2019 – After the success of their jointly-controlled socimi in Spain, Sonae and Bankinter are planning on launching a new investment vehicle in Portugal in 2020. The new socimi will have an initial investment capacity of 100 million euros and will eventually seek a stock market listing in Portugal.

The new socimi reportedly will not focus on any single type of real estate asset. Instead, it will invest in a wide range of assets, from commercial real estate to offices, along with logistics assets and other investments.

The two firms’ socimi in Spain mainly invests in commercial real estate and is aimed at Bankinter’s private banking clients. Ores currently controls a portfolio 34 assets with a combined market value of over 357 million euros and an annual gross income of 21 million euros.

Original Story: Idealista – Custodio Pareja

Adaptation/Translation: Richard D. K. Turner

Syllabus and Invesco Developing Nine Student Residences in Spain and Portugal

21 October 2019 – Urbania’s subsidiary Syllabus, which signed an agreement with Invesco at the beginning of the year, currently has projects for nine student residences underway in Spain and Portugal.

In total, the firm’s investments will add 3,000 beds to its portfolio, in addition to the 2,500 it had already planned to build by 2021. The total investment in the nine projects in Spain and Porto is forecast to exceed €150 million.

The company is planning or building two student residences in Madrid and one each in Valencia, Malaga, Pamplona, ​​Seville, Salamanca and Porto in addition to other investments the firm has yet to disclose.

The projects are part of a collaboration agreement Syllabus signed with Invesco at the beginning of the year. The two firms agreed to invest 250 million euros over five years in student residences in Spain.

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

The Abarca Family Sells Two Hospitals in Sale and Leaseback Operation

8 October 2019 The Abarca Cidón family, the owner of HM Hospitales, has finalised the sale of the properties where two of its main healthcare centres, HM Sanchinarro and HM Torrelodones, are located for approximately 150 million euros to an unnamed US fund.

The Abarca family sold the assets in a sale & leaseback operation whereby the family is seeking to reduce its total exposure to the healthcare sector. At the same time, the family’s fund, patrimonial ACCT 2010 Management Initiatives, has just inaugurated a hotel in Lisbon and they are finalising work on another in Porto. Casual Hotels, the Valencian chain of themed urban establishments, will operate the two hotels.

Original Story: El Confidencial – Víctor Romero / Carlos Hernanz

Adaptation/Translation: Richard D. K. Turner

Amro Plans to Invest €500M to Reach 5,000 Beds in Spain & Portugal in 3 Years

18 June 2019 – Eje Prime

Amro Real Estate Partners is planning to invest €500 million to grow its portfolio of student beds in Spain and Portugal to 5,000 over the next 3 years.

The British company, which specialises in investing in and managing student halls is going to undertake the investment in partnership with a family office whose name has not been disclosed. It plans to accumulate between 10 and 15 halls of residence by 2022.

In this vein, the company has just purchased its third asset in Spain, a plot of land with a buildable surface area of 6,000 m2, which will house 229 beds, in the Teatinos neighbourhood of Málaga. Work will start on the construction of that hall of residence in Q1 2020 with completion scheduled in time for the academic year commencing September 2021.

Amro’s two existing assets in Spain are under development and include a hall of residence in Granada, which will contain 354 beds with a buildable surface area of 11,300 m2, and a student hall in Sevilla, which is going to have 341 beds and a buildable surface area of 9,172 m2.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

Casual Hoteles to Open 5 New Hotels in 2019

7 March 2019 – Expansión

The Valencia-based hotel chain Casual Hoteles is planning to open four new establishments in Spain in 2019 (in San Sebastián, Cádiz, Valencia and Madrid) and one in Portugal (in Lisbon). The group currently operates 11 hotels and expects to increase revenues by 58% YoY in 2019 to €12 million and to €20 million in 2020.

The firm is also evaluating its expansion into Italy, France, the Netherlands and the UK by 2023 when it expects to have 30 hotels in its portfolio and to generate revenues of €50 million.

Original story: Expansión

Translation: Carmel Drake

Izilend to Spend €200M Financing Real Estate Projects in Spain

1 February 2019 – Expansión

Izilend has arrived in Spain with the launch of a vehicle, which has funding of up to €200 million to finance real estate projects in the country.

Since September, the alternative financing firm has already undertaken ten operations worth €20 million and it plans to finance operations amounting to €50 million during the course of this year.

Izilend, which has a presence in Portugal with a real estate crowdfunding platform, forms part of the holding company FS Capital Partners, which also includes a servicer, Fintech, Finsolutia and a financial advisory company (EAFI).

Izilend is thereby joining other alternative financing platforms specialising in the real estate sector that have made their debuts in Spain in recent months, such as Íbero Capital Management, from the US investment fund Oak Hill Advisors, and the firm promoted by Azora and Oquendo.

Focus

In the case of Izilend, the firm focuses on the financing of projects amounting to between €1 million and €10 million. To date, it has financed investors, property developers, cooperatives and Socimis for projects in Madrid, Málaga, Sevilla and the Balearic Islands. The financing fund intends to continue expanding the focus and to finance different types of assets ranging from housing, offices, retail and land in the main cities of Spain and Portugal.

Francisco Jonet, one of the people responsible for Izilend’s business in Spain, explains that the company offers a solution to property developers and real estate investors to develop projects that the traditional banks are not interested in either due to the type of product, the situation of the operation or the response times.

“To date, we have financed firms ranging from small property developers to Socimis, and products ranging from land to residential blocks, located in different provinces around the country”, said Jonet.

Gonzalo Gutiérrez de Mesa, the other person in charge of the fund, forecasts that the demand for alternative financing will double over the next five years and will thereby approach the market rates in more mature countries in Europe, where this type of financing accounts for between 30% and 40% of the total market. “We are creating a new niche in which we believe there is great potential”, adds Gutiérrez.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Aquila to Invest €200M in 2 Developments in Barcelona

14 January 2019 – Eje Prime

Aquila Capital is stepping up a gear in Spain. The German fund manager, through its property developer AQ Acentor, is going to invest €200 million in two residential developments in the province of Barcelona. The company has closed two land purchases, one in Viladecans and the other in Zona Franca, where it is going to construct 1,100 homes, according to Sven Schoel, manager of the company, speaking to Eje Prime.

In Viladecans, the property developer has acquired a plot of land spanning 500,000 m2 of free and protected land on which it is going to build 500 homes. On the other hand, in the Zona Franca, right next to Barcelona Fira District, the company has acquired a plot measuring 70,000 m2 of free and protected land for the construction of 600 homes.

“For us, Spain is a fundamental market at the moment and for that reason, we are looking for more land, above all in Barcelona, Madrid, Sevilla and Bilbao”, explained the executive, who added that during the course of 2019, the company expects to close more than one operation in those cities.

Following the latest two acquisitions, AQ Acentor currently has 5,000 homes under development, distributed over seven projects: three in the province of Barcelona (in Sant Adrià del Besòs, Sant Cugat del Vallès, Zona Franca, L’Hospitalet de Llobregat and Viladecans), two in Madrid (in the neighbourhoods of Lla Moraleja and La Ciudad de los Ángeles), two in Málaga (one in Rincón de la Victoria and another one in Estepona), and a final one in Valencia.

In Valencia, the company is working on the development of a residential and tertiary use complex, where it has made an investment of more than €350 million. That is the project through which the company debuted in Spain, in September 2018. It will house a total of 1,800 homes on a plot spanning 130,000 m2 (…).

On the other hand, the group also still has its sights set on Portugal, the country that Aquila Capital has entered through investments in the renewable energy sector. “We have identified two operations in the Lisbon residential market that we hope to close during the course of this year”, said the director.

AQ Acentor is financed by Aquila Capital, which is also present in the German residential market and has a portfolio of assets worth €7 billion. The fund manager’s commitment to the property developer is long term. In fact, the manager of the company denies any plans to debut on the stock market soon. “We have been in Spain for almost five years and we have no intention of divesting”, concluded Schoel.

Original story: Eje Prime (by Berta Seijo)

Translation: Carmel Drake

Patrizia is On The Hunt for New Purchases in Bilbao, Sevilla & Valencia

10 December 2018 – Eje Prime

Patrizia Immobilien is confirming its interest in the Iberian real estate market. The German investment manager, which has been present in Spain and Portugal since 2015, has set itself the short-term objective of entering Bilbao, Sevilla, Valencia and Oporto, through the purchase of new assets, according to comments made by Borja Goday, the Director General of the company in the Iberian Peninsula, speaking to Eje Prime.

Until now, the company has invested €870 million in total in real estate in the Spanish and Portuguese markets. Madrid, Barcelona, Málaga and Lisbon are the cities in which Patrizia is already present, “with minimum investments of €15 million but where that figure could exceed €500 million if the operation is worth it”, explained the executive.

In fact, the manager participated in the process to acquire one of the office buildings that comprise the Cuatro Torres Business Area in Madrid. Moreover, the company not only invests in the office segment, it is also committed to other markets such as the residential, retail, hotel, logistics and alternative asset segments (including student halls, complexes for the elderly and parking spaces).

Currently, Patrizia’s asset portfolio in Spain includes Serrano 90, located on Madrid’s golden mile and Gran Vía 21, also in the Spanish capital, which houses a hotel and a retail premise. Nevertheless, the latest major operation by the manager on the peninsula was the purchase of an industrial plot spanning 66,424 m2 in Toledo for €37.5 million. The other three logistics platforms that the company owns in Spain are located in Madrid and Barcelona.

Patrizia and its great interest in Spanish property

With its headquarters in Madrid and a staff of eleven, Patrizia arrived in Spain just three years ago. “At the end of 2017, we purchased Triuva and Rockspring, two companies that already owned assets on the peninsula”, explained Goday, who added that “the rapid growth of the group in both the Spanish and Portuguese markets is due to those two acquisitions”.

“Spain is still an attractive market, we still have demand and that is why we are launching new operations on such a frequent basis”, said the director. Since the beginning of the year, the manager has been on the hunt for capital from Spanish institutional investors, although, as Goday explains, it is not an easy task, since “they do not invest from one day to the next”.

One of Patrizia’s other plans on the peninsula is to strengthen its presence in the rental market. “It is a segment that we like a lot and for that reason, if we find an appropriate residential or office building, then we would not rule out buying it”, explained the executive. Nor does the group rule out alliances with Socimis or the acquisition of a property developer to grow in the Spanish residential sector. In this sense, Goday says that “a good opportunity has not presented itself yet” and that “it would all depend on the quality and location of the land that they own”.

Patrizia is currently present in more than twenty European countries, including, besides Spain and Portugal, important markets such as Italy, France, the United Kingdom, Ireland, Belgium and Luxembourg. The group’s main focus of activity is Germany, where it launched its activity 32 years ago and where it is a listed company (…).

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

Savills & HomeAway: Spain is the Most Attractive Market for Buying a Second Home

29 September 2018 – Finanzas.com

According to an international study compiled by the real estate consultancy Savills and HomeAwayTM, a global expert platform for holiday rentals, Spain is the most attractive destination for investing in a second home, according to 19.3% of those surveyed, followed by Portugal (13.2%) and France (13.1) in third place.

Spain is attractive for overseas investors

According to the survey, 44% of owners of second residences in Spain are foreigners. The main countries of origin of those owners are the United Kingdom (19%), Germany (12%), The Netherlands (4%), France (3%) and Belgium (2%). The remaining 56% of owners are Spanish.

The main areas where second homes are located in Spain include the Canary Islands (12%), the Costa del Sol (9%) and the Balearic Islands (9%).

Where are they buying homes?

People’s behaviour when it comes to acquiring a second home is different depending on where the buyers come from. The study reveals that British and Dutch owners are those who buy the most second homes outside of their own countries, nevertheless, Spaniards, Italians and Portuguese citizens tend to choose their own countries as the destination for acquiring second homes (around 95%).

Second homes: for personal use and to rent

According to the study, 28% of Spanish owners cover some of their expenses with revenues generated from the rental of their properties and 38% obtain a profit.

Summary of second homes in Spain

The average price of the second homes acquired last year by the Spanish owners surveyed amounted to €245,000, 22% lower than the average acquisition price ten years ago. Moreover, 28% of those surveyed confirmed that they personally financed the acquisition of their second home, 52% acquired it using a mortgage and 8% inherited or were gifted the property.

In the same vein, Spanish owners of second homes obtain an annual income of €12,000 (from their properties) and they rent them out for 19 weeks a year, on average. 43% of owners had the same number of reservations in recent months as they did during the same period a year ago, 41% had more reservations and 16% had fewer.

Second homes, with some specific characteristics

Two-bedroom apartments are the most popular types of second home for the Spanish owners surveyed.

Features that owners are looking for when it comes to buying a second home include: proximity to restaurants and bars (88%), a balcony or terrace (88%) and proximity to the supermarket and shops.

According to Juan Carlos Fernández, Director General for Southern Europe at HomeAway: “The fact that Spain is the most attractive destination for foreigners looking to buy a second home indicates that Spain is a robust market that is very attractive to investors and that is something that we must take care of and promote”.

Owner profile

  • Average age when they acquired the property, in 2017: 51 years old
  • Average number of weeks leased during the year: 19 weeks
  • Typical property type: 2-bedroom apartment
  • Average acquisition price in 2017: €245,000.

Original story: Finanzas.com

Translation: Carmel Drake

MK Premium Buys its First Retail Premise in Barcelona for €1.7M

26 July 2018 – Eje Prime

MK Premium is diversifying its investments. Specialising in the residential market, the Catalan family office has purchased its first retail premise in Barcelona for €1.7 million. The asset is located very close to Las Ramblas in the Catalan capital.

Spanning a retail surface area of 440 m2, the premises are located at number 44 Calle Escudellers, next to Plaza Orwell. The property is going to be renovated to recover the original serigraphs on its façade.

The property acquired by the family office that is owned by the brothers Daniel and Sergio Leiva was constructed in the 16th century, although the upper floors, dedicated to residential use, were built in 1769. The building has been declared an Asset of Cultural Interest by the Town Hall of Barcelona. MK Premium aspires to achieve an annual return of 5.5% from this property, located in one of the prime retail areas of the Catalan capital. The Leiva brothers will establish a monthly rent of €10,500 for the asset.

With this new purchase, the Catalan real estate company has finished the first half of the year with investments worth more than €9.3 million, spread between its offices in Barcelona, Madrid, Lisbon and Porto.

MK Premium ventured into Portugal at the beginning of 2018, as reported by Eje Prime. Its commitment to the neighbouring country is in line with the real estate company’s roadmap, which details that it is willing to invest up to €25 million this year.

Specifically, the most recent purchase that the company has carried out in the residential sector was in Lisbon. The Catalan real estate firm invested €0.5 million a few weeks ago in its first residential building in the Portuguese capital, as revealed by Eje Prime.

The family office’s portfolio now contains almost fifty assets, although it still needs to buy many more buildings and premises to reach the target of having eighty properties in its portfolio by the end of this year.

Original story: Eje Prime 

Translation: Carmel Drake