Ores has Invested €362.5M in 35 Assets Across the Iberian Peninsula

16 April 2019 – Eje Prime

Ores, the Socimi owned by Bankinter and Sonae Sierra, has invested €362.5 million in 35 assets across the Iberian Peninsula since its creation, according to a report filed by the company with the Alternative Investment Market (MAB) at the end of Q1 2019.

During the first quarter of this year, the company purchased a retail store in Burgos with a gross leasable area of 724 m2 for €5.2 million.

The company’s portfolio comprises hypermarkets (28.1%), mini-hypermarkets (17.8%) and retail parks (15%), amongst others. Its assets are located mainly in Madrid and Barcelona, as well as in prime areas of provincial capitals.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

CBRE: Law Firms Conquer the Prime Business Districts of Madrid & Barcelona

5 March 2019 – Expansión

According to a new report from CBRE about work spaces in the legal sector, law firms are, in many ways, the perfect tenants. They seek iconic buildings, lease more space per employee than companies in other sectors and although they drive a hard bargain in terms of price, they are willing to pay a premium for the right property. What’s more, their businesses are stable, they seek long-term contracts and they pay their rent on time.

In this context, there has been a great deal of activity in the segment in recent years. In 2017, records were set in terms of transaction volumes and numbers, with Baker McKenzie and Allen & Overy leading the charge to move offices in Madrid. Last year was quieter, but several international firms leased new space, including Andersen, Latham & Watkins and Pinsent Masons). Moreover, international firms lease twice as much space as their Spanish counterparts, on average, although local firms account for most transactions in Madrid (6 out of every 10).

On average, over the last decade, law firms have leased 11,000 m2 of office space per year on average in Madrid, more than twice as much as in Barcelona (where 4,500 m2 per year is leased, on average), the second most active market.

In the Spanish capital, the neighbourhood of Salamanca is the most sought-after area, accounting for 43% of interest in the market, followed by the Cuatro Torres area, with 17%. In Barcelona, 9 out of 10 operations involve domestic firms and the most sought-after areas are Paseo de Gracia and Avenida Diagonal.

Average rental prices in Madrid have soared by 60% in the last six years from a low of €17/m2/month in 2012 to €27/m2/month last year, with highs of €35/m2/month in the most prime areas. In Barcelona, average prices have risen by 50% since their lows of 2013, with prime rates reaching €24/m2/month in 2018.

Original story: Expansión (by Sergio Saiz)

Translation/Summary: Carmel Drake

Savills Aguirre Newman: International Investors Focus on Spain’s Offices

25 October 2018 – Eje Prime

Offices are the most sought-after assets by overseas investors in Spain. The limited availability of workspaces with the appropriate requirements is pushing international investors to bet heavily on this real estate segment.

In light of the shortage of high-quality stock, overseas investors have a Plan B for the country. According to the latest report from Savills Aguirre Newman, investors are currently looking for new build projects and are opting to renovate properties already being offered in the Spanish market.

The recovery of the economy and the consequent reactivation of employment has meant that buyers see Spain as a country with lots of opportunities in the office segment. This trend is expected to last for a few more years, above all in cities such as Madrid and Barcelona, where the creation of employment is set to grow above the European average; with annual growth of 1.7% and 1.5%, respectively (…).

In 2017, rents in the office segment rose, by 6% on average, in the main financial districts of Europe. Nevertheless, four cities led the growth in rental prices last year: London, up by 13.9%; Stockholm, 12.5%; Berlin, 12.4%; and Madrid, 10.7% (…).

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

Corpfin Capital Real Estate will Debut 5 Socimis on the MAB in 2019

26 September 2018 – Voz Pópuli

Corpfin Capital Real Estate Partners is planning to debut five new Socimis on the Alternative Investment Market (MAB) under the name Inbest before September 2019.

By the time they make their debuts, the Inbest Socimis will have an investment volume of almost €400 million. The Socimis intend to carry out investments with an average volume of between €50 million and €60 million to acquire properties located in commercial areas of Madrid and Barcelona, as well as in the main provincial capitals, and to provide them with added value and convert them into retail premises and flagship stores for major brands.

The management company of Inbest Socimis is currently in the process of becoming a management company that will be regulated by Spain’s National Securities and Markets Commission. It is chaired by Javier Basagoiti (pictured above), founding partner of the firm together with Carlos Lavilla and Patrick Gandarias. Basagoiti founded Corpfin Capital Real Estate in 2008 in conjunction with Felipe Oriol. Ana Granado, who joined the firm as the Managing Director last year, after working at Santander, Aguirre Newman and Deloitte, will lead the Inbest team, which will comprise 13 professionals in total.

Inbest will finish this year having raised €200 million during the year from various investors and plans to end its investment period in December 2021.

Corpfin Capital Real Estate’s real estate operations include the rental to Apple of its store in Valencia, a residential building that was renovated and whose use was modified to commercial, which was subsequently acquired by Pontegadea, the investment company owned by the Zara founder, Amancio Ortega; the renovation of a old bank branch in San Sebastián, which has now been converted into a shopping arcade that is home to major fashion labels; and the purchase of the premises that used to house the former Nebraska cafeterias in Madrid, establishments that are now occupied by McDonalds and VIPS.

Through Inbest, Corpfin Capital Real Estate wants to take advantage of the boom in the commercial real estate sector, which reported record investment figures in 2017.

The trend of the major brands is to occupy large retail spaces in the main shopping areas of cities, leaving smaller establishments and those set away from the prime areas, whereby opening a niche in the market in which Inbest is specialising. The consolidation of the e-commerce sector has also influenced this change in trend.

Original story: Voz Pópuli (by Alberto Ortín)

Translation: Carmel Drake

Catalana Occidente Injects €31M into its Real Estate Subsidiary to Buy Assets

20 September 2018 – Eje Prime

Catalana Occidente has given a boost to its real estate subsidiary to handle new purchases. Grupo Catalana Occidente Activos Inmobiliarios has carried out a capital increase amounting to €31.1 million, which has been fully subscribed by several group companies. Those funds have been earmarked for the acquisition of the WIP office building and the Bellesguard Tower, both located in Barcelona, according to sources at the company speaking to Eje Prime.

With this operation, the real estate arm of the insurance group is dealing with the strong investment activity in the real estate sector, with a cumulative investment of more than €200 million in two years. Following the increase, the share capital of Grupo Catalana Occidente Activos Inmobiliarios is set at more than €69 million.

In July, Catalana Occidente purchased the WIP office building from the property developers Castellví Group and the funds Stoneweg and 1810 Capital for €20 million. The property, located at number 121 Calle Ciutat de Granada, in the 22@ district of Barcelona, has a surface area of 4,400 m2 and is leased to the multi-national WeWork.

WIP is located next to two other buildings, Luxa Silver and Luxa Gold. They have a surface area of 10,000 m2 and 7,000 m2, respectively, and have formed part of Catalana Occidente’s asset portfolio since September 2017. The group spent €90 million on the purchase of the Luxa office complex, which is leased to Amazon and WeWork.

These three new buildings have been added to the one that the company purchased at the beginning of last year, also in the 22@ technological district, when it acquired the La Llave de Oro building, which houses the Atos headquarters, for €21 million.

A clear commitment to the office market

The other asset behind this capital increase is the Bellesguard Tower, a modernist building located in Barcelona and constructed by Antonio Gaudí. In July, Catalana Occidente reached an agreement to acquire that property, owned by the Guilera family, for €30 million.

The operation responds to the group’s intention to “add value to the company, and is exceptional nature”, according to a statement from the insurance company, which also plans to finance the conservation and restoration of the tower, which is open to the public.

At the end of 2017,  Catalana Occidente had real estate assets worth more than €1.17 billion. Its portfolio mainly comprises offices (95%), a strategy that seems to have a lot of potential. In fact, in the last two years alone, the company has spent €208 million on the purchase of six business buildings located in prime areas of Madrid and Barcelona.

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

Deutsche Bank’s Socimi To Buy Alcalá Magna Shopping Centre

23 January 2017 – Cinco Días

The Socimi Trajano, managed by Deutsche Bank, is finalising what will be its largest purchase since its creation in 2015. It is planning to acquire the Alcalá Magna shopping centre (Alcalá de Henares, Madrid) for €100 million.

Deutsche Bank is investing in Spain again and in a shopping centre once more. Whilst last year, it broke records through its vehicle Deutsche Asset Management’s purchase of  Diagonal Mar in Barcelona for €493 million, now it is planning to close its Spanish Socimi Trajano’s largest operation to date, by acquiring Alcalá Magna for around €100 million.

This shopping centre in Alcalá de Henares is currently owned by the Spanish fund Incus Capital, whose shareholders include Estanislao Carvajal, Álvaro Rivera and Alejandro Moya. The investment vehicle has assets amounting to €600 million in its portfolio and it spent €200 million on a dozen operations in 2016. In turn, Incus acquired Alcalá Magna from CBRE Global Investors two years ago.

Alcalá Magna was inaugurated in 2007, has a gross leasable area of 34,165m2 and employs around 500 people. It has 1,265 parking spaces and 94 stores, including H&M, Zara, C&A, Sfera, Cortefiel and a Mercadona supermarket. Moreover, almost 25% of its space is used for leisure and restaurant purposes.

For Trajano, the Socimi managed by Deutsche Bank, this will be its largest acquisition. Last October, the company successfully completed a €47 million capital increase “to be able to undertake additional investments amounting to between €95 million and €100 million”, according to reports by the company in a statement.

The company’s investment strategy focuses on: offices located in peripheral areas of Madrid and Barcelona and in prime areas of other cities; shopping centres that are in leadership positions and that generate recurrent cash flow; as well as logistics parks, primarily in Madrid, Barcelona, País Vasco and Valencia.

Trajano already manages €181 million in four assets, with a total managed surface area of 117,000 m2. It closed its last transaction at the end of last year, with the purchase of four logistics warehouses in Zaragoza for €42.9 million.

Original story: Cinco Días (by Alfonso Simón Ruiz and Pablo Martín Simón)

Translation: Carmel Drake

Axiare Seeks Tenant For Its Newly Renovated Office In Madrid

21 December 2016 – Expansión

The Socimi in which Colonial owns a stake has put the office building that it owns on c/Ramírez de Arellano up for rent. The property, which has a surface area of 10,515 m2, has been undergoing renovations for the last year.

The Socimi Axiare Patrimonio has accelerated its investments as 2016 draws to a close. The company, which has a significant cash balance after doubling in size last year, has closed acquisitions amounting to around €180 million in the last month and a half, including the purchase of the corporate headquarters of both Cuatrecasas and McKinsey. It is also negotiating the purchase of the Vocento group’s offices for another €35 million, say sources in the sector.

Besides expanding its real estate portfolio, which is worth more than €1,200 million, the Socimi is working to improve its assets and to that end, has invested tens of millions of euros over the last few months. These projects include the building on Ramírez de Arellano, 15. Axiare acquired the building last year for €16.5 million and in May 2016, the Socimi whose largest shareholder is the real estate company Colonial, engaged the consultancy firm Colliers to undertake the complete renovation of the property, which was completed just two weeks ago. “The complete renovation, which was designed and executed by Colliers International, has transformed Ramírez de Arellano, 15, into a modern and functional building, with high quality specifications that fulfil the most demanding requirements in terms of sustainability, energy efficiency and technology”, say sources at the consultancy.

After 8 months of construction work and an investment of around €3 million, the new office building has a surface area of 10,515 m2, spread over seven floors and 108 parking spaces, distributed over two underground parking floors”. There is a lot of interest for the office given its location, in the Arturo Soria neighbourhood, where the A-2 highway meets the M-30 ring-road”. The objective is to lease it in its entirety to a single company looking to locate its corporate headquarters there, according to the heads of the project.

During 2016, Axiare has signed 24 lease contracts covering a gross leasable area (GLA) of more than 100,000 m2. That figure that will soon increase by another 11,000 m2 (…).

The arrival onto the market of the office on c/Ramírez de Arellano comes at a time of shortage of office products in certain areas of Madrid, which has driven by rents in the prime area of the capital. In this way, prices in the CBD (central business district) increased by 6% YoY during the third quarter to amount to €27.5/m2/month, whilst theoretical prices in the prime areas outside of the M-30 ring-road and in secondary areas rose by 4% on average.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Dutch Firm Vastned Buys Jimmy Choo Store In Madrid

25 November 2016 – Expansión

The Dutch real estate group has strengthened its presence in Spain with the purchase of a luxury store at number 15 on the Madrilenian street of José Ortega y Gasset. The premises, which are occupied by the exclusive shoe and bag maker Jimmy Choo, have a surface area of 396 m2 spread over three floors – the basement, ground floor and mezzanine levels – . Market sources indicate that, given the location and characteristics of the asset, the store is worth between €15 million and €18 million.

The asset, which was previously owned by a private wealth fund, is located on Madrid’s Golden Mile, in the exclusive neighbourhood of Salamanca. The operation has been advised by the real estate consultancy JLL, which declined to comment on the transaction.

The Vastned group is headquartered in The Netherlands, where it is listed on the Amsterdam stock exchange. It owns assets in several European cities including Amberes, Madrid, Paris, Frankfurt and Istanbul.

The firm specialises in retail assets, which are located in prime areas and, therefore, susceptible to being leased to domestic and international luxury brands.

In the Spanish capital, Vastned owns two stores on Calle Fuencarral, at numbers 23 and 25, leased to Pepe Jeans and Crocs, respectively; one store on Calle Carmen 3, occupied by Real Madrid; and one store on Calle Serrano 36, leased to Salvatore Ferragamo.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Optimum RE Debuts On MAB With A €50M Residential Portfolio

28 September 2016 – Idealista

Optimum Re Spain is set to debut on the Alternative Investment Market (MAB) today (28 September). (…).

According to its market entry document, Optimum currently owns a portfolio of 14 residential buildings located in prime areas, which also receive high numbers of tourist visits. 13 of the buildings are located in Barcelona and the other one is in Madrid. The Socimi has also signed a purchase commitment to add another property to its portfolio on 31 October, located in the Catalan capital. These buildings comprise 186 flats in total and 30 commercial premises.

The document also reveals that the Socimi has paid €57 million net for those 14 properties, although their market value is estimated to amount to €108.4 million, using prices per sqm from specialist online portals such as Idealista as the benchmark. Moreover, their average occupancy rate is 75%.

The company’s strategy is to acquire entire residential buildings and then to sell them off subsequently, flat by flat, to obtain greater profits. “The company’s aim is to offer profitable investments with controlled risk and an absolute return based on a rising market driven by economic recovery: rental income and capital appreciation are being generated on the basis of selective acquisition and active management of the residential properties in Barcelona and Madrid”, said sources at the company.

The company added that, “we are diversifying our property portfolio, focusing on central areas, with a special emphasis on prime areas such as Sarriá, Eixample and Ciutat Vella in Barcelona. Similarly, we invset in mid-range areas with high demand and in tourist areas, such as the popular Gracia area in Barcelona”.

The company also admitted that its main business involves buildings, which are leased out partially or in their entirety, and that it has a limited exposure to commercial premises. “Optimum’s approach involves seeking out purchase transactions at below market prices, obtaining discounts of approximately 20%, acquiring entire buildings and, after making an investment to optimise the homes and after leasing them for 3-4 years, selling them flat by flat in order to increase the sales price”, it added.

Who are its shareholders?

This Socimi is backed by several companies, such as BMB Investment Management, Anangu Grup, Orca Invest, Finicon and Body of Knowledge, along with more than fifty minority shareholders.

And those companies are in turn owned by Catalan investors and businessmen, such as for example, the Gallardo family, owner of the pharmaceutical firm Almirall, and Ángel Javier Mirallas, Head of Prosegur in Cataluña and Chairman of the Brazilian Chamber of Commerce in the autonomous region. Other shareholders include: Joan Plensa, a relative of the Catalan sculptor Jaume Plensa, and Marc Sabe Richer, Director of Fujitsu in the UK. Josep Borrell Daniel is the Chairman and CEO of Optimum Re Spain – he is a professional investor who leads the firm BMB Investment Management.

With Optimum’s debut on the MAB, there are now 24 listed Socimis in Spain, with the Socimi Keka expected to join the ranks soon. That company manages a portfolio of commercial premises and garages in Madrid, Barcelona and Sevilla, worth €14 million and is owned by two members of the Borbón family.

Original story: Idealista

Translation: Carmel Drake

Tinsa: House Prices Rise By Most In Madrid & Barcelona

18 July 2016 – Expansión

The Balearic and Canary Islands are featuring in the housing recovery, but Madrid and Barcelona are leading the way; there, the number of transactions has picked up pace and prices are growing strongly once again. Most of these increases are due to the economic recovery, but the savings factor is also playing a major part.

In fact, the influence of private investors is still playing a crucial role in the strengthening of the two major real estate regions, whose central districts are the most sought-after by companies and individuals, both Spanish and foreign.

It is precisely the influence of these investors that boosted property prices in both capitals in the first place, firing the starting gun for the reactivation of the sector, as they committed to the prime areas before anyone else. These central districts, which are well-connected and offer good services, used to offer a certain degree of security for investors, and a great deal of potential for appreciation, even when everyone in the market was still searching for land.

Both cities were amongst the leaders of the increase in house prices during the second quarter of the year, according to data from the appraisal company Tinsa, published recently. Nevertheless, these increases were concentrated in some of the most expensive areas, as shown by the analysis by district of the local markets. Specifically, many of the neighbourhoods where prices stand at around €3,000/sqm in Madrid and Barcelona are also those where prices have risen by the most in the last year, whereas prices in those neighbourhoods that fall below the average have grown more moderately.

For example, prices in the Madrilenian neighbourhood of Salamanca have risen by 9.8% in the last year, whilst in Chamberí they have increased by 8.9%. Meanwhile, in Barcelona, the following districts stand out: Gràcia (where prices have risen by 12.7%), El Eixample (10.9%) and Les Corts (8.1%). These statistics show that the prime areas are recovering better than the rest. They are central, well-connected areas with very solvent demand, where returns are high and there is significant retail activity, which means they have significant potential for appreciation both for those buying to invest as well as those looking to put their properties up for rent. As with everything, there are notable exceptions, such as the Retiro area in Madrid and Sarrià-Sant Gervasi in Barcelona, which are increasing by below the average.

Other areas

Nevertheless, the real estate expert José Luis Ruiz Bartolomé indicates that the real estate market has now entered a new phase, in which the recovery is spreading to more and more areas. “Before, properties were only being sold in the best districts, but now the increases have spread to the most popular areas, as supply is limited and there are increasingly more buyers looking for homes to live in, rather than to buy as investments”, he explains.

For this reason, the most popular neighbourhoods have become more attractive with the recovery of the labour market and the opening of the bank financing tap. In this way, house prices in the Madrilenian neighbourhood of San Blas have risen by 9.9%, making it the second highest price rise district in the capital; meanwhile, Sant Andreu is also boosting prices in Cataluña, with an increase of 8.2%. Similarly, prices in all of the districts of Madrid that cost less than €2,000/sqm have increased by more than the average, with the exception of Villaverde, the cheapest of all, where prices have remained stable. Something similar is happening in Barcelona where the most popular areas, such as Nou Barris and Sants-Montjuïc, also grew by more than average. (…).

Moreover, Tasaciones CBRE indicates that the profile of investments funds “has evolved rapidly from being opportunistic to value-added, choosing instead to back development, the renovation of properties and, given that they have perceived the potential for refurbishments, they will gradually start managing plots of land in urban areas, with the aim of obtaining higher returns”. With this, the increase in demand and prices will increasingly move to more remote areas. (…).

Original story: Expansión (by Pablo Cerezal)

Translation: Carmel Drake