Tag: prime locations

Corpfin Prepares for Stock Market Debut of its Socimi Inbest

12 February 2019 – Idealista

The Socimis are continuing to make inroads in the real estate market. There are now more than 70 listed vehicles operating under this regime in Spain, and another twenty new vehicles could make their stock market debuts soon, according to the experts.

They include five that the manager Corpfin Capital Real Estate has been promoting through its investment vehicle Inbest Real Estate, including a company called Inbest Prime Inmuebles Socimi. And it is precisely that company that is finalising its stock market debut.

According to explanations provided by the manager to Idealisa News, the purchases that Inbest has completed recently have been materialised through those Socimis and its objective is for them to be listed on the stock market by September this year at the latest, just two years after their constitution and, therefore, by the deadline established by the legislation for continuing to enjoy tax incentives. Nevertheless, the firm chaired by Javier Basagoiti expects that the Socimis will be listed before the summer.

Although the valuation of the assets and the price at which the shares will debut are not yet known, the portfolio will include some very well-known and sought-after assets. They include four commercial premises in Edificio España in Madrid, whose purchase was recently signed between Inbest and the hotel chain RIU, the owner of the skyscraper, for almost €160 million. The investment vehicle’s plans include establishing four flagship stores for first-rate operators from the textile and restaurant sectors.

The assets also include three others that Inbest has acquired in recent months from the Spanish department store giant: El Corte Inglés. One of them is located on Calle Colón in Valencia and spans 7,000 m2, distributed between two adjoining premises, whilst another is located on Calle Princesa in Madrid, and another still on Gran Vía in Bilbao, with a combined surface area of almost 8,800 m2 in the case of the latter two. The investment in those three buildings amounted to around €180 million.

The Socimis have a combined investment objective of €400 million (half from own funds), of which almost 85% has now been consumed, whilst the remaining amount (around €60 million) could be targeted towards a new acquisition, given that that is exactly the ticket size that the manager is interested in.

Inbest’s strategy for this game of poker between the Socimis is based on searching for assets located in prime situations (above all in Madrid, Barcelona and other important provincial capitals), and focusing on unique assets in the commercial sector. Barring any last minute changes, the firm will keep the Socimis active for at least five years after finalising the investment period (…), although that term may be extended for another two years (…).

Original story: Idealista (by Ana P. Alarcos)

Translation: Carmel Drake

Optima Retail Buys Store in Marbella for €3M as part of €60M Investment Plan

12 September 2018 – Eje Prime

The retail sector in Marbella is attracting attention from investors. Optima Retail, one of the funds owned by the Spanish real estate and energy consultancy Optima Global Services, has acquired a retail outlet in Puerto Banús for €3 million. The operation forms part of the fund’s investment plan, through which it intends to disburse €60 million between now and 2019, according to explanations from Javier Alcalde, CEO of the group, speaking to Eje Prime. The objective will involve the firm spending €30 million in 2018 and another €30 million in 2019.

Launched in 2017, Optima Retail has just signed the purchase of the store located at number 17 Muelle de Benabolá in Puerto Banús from a family office. The asset, which has a surface area of 100 m2, is, and will continue to be occupied; it is let to the multi-brand footwear firm RKS. The operation has been advised by the real estate consultancy Catella.

The store displays the characteristics that the fund Optima Retail seeks for its portfolio: located in a prime area or provincial capital, as well as prices that do not exceed €4.5 million. The fund currently owns six units, located in cities such as Segovia, Vigo, Marbella and León.

Founded in 2004, and headquartered in Madrid, Optima Global Services comprises a group of companies dedicated to the real estate and energy sectors. One of the company’s areas of operation is the creation and management of real estate funds, both for external clients and on its own behalf. The company operates in a number of sectors, from retail to residential, to industrial, to hotel and including alternative assets such as hospitals and student halls.

Besides Optima Retail (its youngest vehicle), the company also operates through the fund Vastned, based in Amsterdam. In that case, Vastned focuses on assets located on prime streets of European cities, with Madrid and Barcelona amongst its targets in Spain. For example, Vastned’s assets in the Spanish capital include the properties at number 15 c/Ortega y Gasset and number 37 c/Fuencarral.

Optima Global Services also manages a portfolio of six shopping centres in Spain, located in Madrid (La Dehesa), Valencia (Mercado de Campanar), Zaragoza (Plaza Imperial), Córdoba (Connecta), Ciudad Real (Puerta del Ave) and Vigo (Travesía de Vigo). The company manages assets worth €600 million.

Original story: Eje Prime (by P. Riaño)

Translation: Carmel Drake

Testa Residencial Debuts on the MAB with a Share Price Rise of 1.44%

26 July 2018 – La Información

The shares of Testa Residencial have made their conclusive debut on the Alternative Investment Market (MAB) with a rise of 1.44% to €14.10 per share. The Socimi made its stock market debut at a price of €13.86 per share, which meant that the company became the second largest on the MAB by trading value, exceeding even some of the entities listed on the Ibex such as Indra and DIA.

The Board of Directors had established a reference price for its shares of €6, which represented a market valuation for the company as a whole of €204 million. The company’s trading code is going to be “YCPS”, Renta 4 Corporate is the Registered Advisor and Renta 4 Banco is acting as the Liquidity Provider.

Testa Residencial is the leading private company in the residential rental market in Spain (excluding portfolios owned by financial institutions). It is owned by Santander (36.8%), BBVA (25.6%), Acciona (20%) and Merlin Properties (17%).

The Socimi operates in the residential segment in Spain and has a portfolio comprising more than 10,000 homes. Its assets are primarily located in Madrid, although it also has a presence in San Sebastián, Barcelona, Las Palmas de Gran Canaria, Palma de Mallorca and Valencia. Its properties were valued at €2.276 billion by Savills Aguirre Newman at the end of 2017 and the majority of them, 77.5% of the GAV, are located in premium locations.

In addition, over the last year, the combined value of its properties has increased by almost €73 million, according to the latest data.

Testa had initially planned to make its IPO on the main stock market in June this year. The rental home Socimi wanted to make its debut through a public share sale offer (OPV) and a public subscription offer (OPS) of new shares, the latter for €130 million, both aimed at institutional investors. In the end, in light of the political situation, the firm in which Merlin Properties holds a stake decided to delay its debut until now and change its course towards the Alternative Investment Market.

Original story: La Información 

Translation: Carmel Drake

M&G European Property Fund Expands Portfolio in Spain

29 May 2018 – Real Assets

M&G European Property Fund has expanded its portfolio with the acquisition of industrial and retail assets in Spain.

The €3bn core European property fund, managed by M&G Investments’ real estate arm, said it bought two industrial and two retail assets for €80m.

The two retail acquisitions are H&M Reyes Catolicos in Granada and Gran Via 68 in Madrid.  Both sites, which total 3,668sqm, are leased.

The industrial sites Teka Logistics Platform and a further asset in the Getafe logistics corridor are both in Madrid. The sites have a combined size of 55,092 sqm.

Fund manager David Jackson, said: “Our latest research suggests the Spanish economy will continue to perform well, with its recovery having accelerated in 2017.

“This extends to the commercial real estate market, where we predict average rental growth in both industrial and retail will range between 3% and 4% per year for the next three years in Madrid.”

Jackson said these new acquisitions fit perfectly with our strategy to increase our exposure to Continental Europe by investing in core assets in strong growth markets.

“We see a strong correlation between the level of rental growth and tourist spend in major tourist destinations across Europe; Madrid and Granada are very good examples of this trend.”

Federico Bros, a director of asset management for Spain and Portugal, said: “We have seen strong demand for high street retail in prime locations across Spain. Both of the retail sites we have purchased are in established locations and offer great rental growth prospects.

“The industrial sector in Spain also offers strong rental growth prospects as online activity accelerates and these acquisitions help us diversify our portfolio in key sectors.”

M&G European Property Fund was launched in 2006, with a mandate to invest in a globally diversified portfolio of assets in mature European markets outside the UK.

Original story: IPE Real Assets

Translation: Carmel Drake

M&G Invests €80M to Strengthen its RE Portfolio

29 May 2018 – Expansión

The real estate division of the London-based firm M&G Investment has decided to bet significantly on the Iberian market, where its exposure now exceeds €500 million. “We are partners of institutional investors looking for core properties in the best locations across Europe. We opened our office in Spain in 2016, but we completed our first operations there a year earlier”, explains Federico Bros, Director of Asset Management for Spain and Portugal.

Its first operation involved the purchase of the former headquarters of Telefónica located on Calle Ríos Rosas (Madrid) and leased to the advertising giant WPP. “It is an example of what we look for, well-located assets with long-term contracts, 17 years in this case. Between the renovation and purchase we will invest €175 million in that property”, says Bros.

After that acquisition came others, such as an office building in Barcelona’s 22@ district and, recently, five operations with a very diverse profile. On the one hand, M&G purchased three commercial assets: two in Madrid and one in Granada. “The premise in Granada, measuring 2,500 m2, is located on Reyes Católicos, the best shopping street in the city”, explains Bros. In the case of Madrid, M&G acquired two retail premises on Gran Vía 68. “We closed this operation in May but we have been negotiating it for months, given that the building was being renovated. A few months ago, a large Tony Roma’s restaurant opened there and Sabadell is going to open its flagship branch in the other premise in a matter of days”, he said.

Similarly, the firm acquired two industrial assets in Madrid, specifically a logistics platform, leased to Teka, in the Corredor del Henares, and another complex in Getafe. Those two sites span more than 55,000 m2. In total, the firm has invested €80 million on its latest operations, channelled through two funds: MEP and EuroSPIF.

More opportunities

Following these investments, the manager is still looking for opportunities in the Spanish market.

“We are involved in several processes, both official and off-market, in Madrid, Barcelona and prime locations in other cities. Spain is a priority country for us”, says Bros.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Tiuna Invests €50M in the Luxury Residential Segment in Madrid

22 May 2018 – Eje Prime

Tiuna is adding new projects to its prime portfolio. The Spanish property developer, which specialises in luxury residential projects, has just finished the first of two phases of a residential development in Madrid. It is going to invest around €50 million in the project in total, according to sources speaking to Eje Prime.

The real estate company has placed twenty homes on the market located in one of the most exclusive areas of the Spanish capital, Parque Conde de Orgaz. At number 27 Avenida de los Madroños, the architecture studio Bueso-Inchausti & Rein has designed four floors of a building constructed on a plot of land measuring 7,341 m2.

The property developer has created three types of homes inside its latest project: ground floor homes with private gardens and individual swimming pools; homes on the intermediary floors with terraces; and triplex penthouses with gardens and swimming pools connected spatially by huge panes of glass. The private area of each home starts from 250 m2 upwards and they all have four ensuite bedrooms and terraces.

Similarly, the common areas of the urbanisation also comprise the typical garden areas, individual storerooms, between two and four parking spaces per unit, a gym and sauna with changing room.

The involvement of Bueso-Inchausti & Rein in this project is no coincidence. Not in vain, the three founding partners of the studio, Jorge Bueso-Inchausti, Alejandro Bueso-Inchausti and Pablo Rein, have been shareholders of the property developer since 1989, together with Germán Toro, founder of the real estate group in 1964, and his daughter Elisa. During its fifty-year life, the real estate company has built around forty developments.

The second phase of the project begins 

With 95% of the homes in this first phase sold, according to sources at Tiuna, the property developer is now starting work on the second phase of the project: a twin building located at number 29 on the same avenue, and expects to finish the work in 2020 (…).

Moreover, the property developer, encouraged by the strong performance of the residential sector in Spain, is currently holding negotiations to close the acquisition of two plots of land in prime locations in the Spanish capital (…).

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Mazabi’s Socimi Silicius Acquires an Office Building on c/Velázquez (Madrid)

21 May 2018 – Press Release

Silicius Inmuebles en Rentabilidad, the Socimi managed by Mazabi, has purchased an office building in the heart of Madrid’s CBD, on Calle Velázquez, 123.

The property, which has been renovated recently, meets the requirements of the investment policy established by the shareholders and represents another step in the Socimi’s growth phase, ahead of its debut on the stock market. The acquisition has been conducted entirely using own funds.

In the heart of Madrid’s CBD, the property has an above ground gross leasable area (GLA) of 2,346 m2 (offices and a commercial premise) plus 30 parking spaces. Currently, the 1st, 2nd and 3rd floors are available for rent; they are completely open plan and have a surface area of 300 m2 each. This is a highly visible property thanks to its location at the junctions of Calles Velázquez and María de Molina, and the floors enjoy lots of light (with 15 windows per floor). The property is currently in the pre-certification phase of obtaining a sustainability stamp.

This is a firm step forward for the Socimi as it advances its growth phase. The company, which specialises in long-term rental assets, is continuing its growth phase with the acquisition and contribution of new assets to its existing portfolio, following its policy to invest in diversified assets that generate stable rental income.

The Director-General of Silicius, Juan Diaz de Bustamante, said that “the purchase of this asset is a good example of the ideal asset for our portfolio, given that it meets the necessary requirements set out in our principles: to back conservative investments over the long term, as well as to ensure diversification and asset liquidity in order to pay an annual dividend to shareholders”.

With a very defined investment policy, Silicius is currently evaluating the purchase or contribution of properties worth approximately €500 million (commercial premises, out-of-town stores, shopping centres, office and hotels in Spain). The volume of investment/contribution per property amounts to between €5 million and €30 million.

Currently, Silicus owns assets worth €120 million, which generate annual rental income of approximately €6 million. The company’s assets include several commercial premises in “prime” locations with long-term tenants (Paseo de la Castellana, Velázquez, Blanca de Navarra and Paseo de Yeserías), a multi-tenant office building on c/Virgen de los Peligros (in the historical centre of Madrid), an office building on Calle Obenque, 4 in Madrid (with a façade overlooking the A-2) and a hotel with a long-term lease in Conil de la Frontera (Cádiz).

Silicius is a Socimi, managed by Mazabi, specialising in the purchase and active management of profitable assets that generate stable rental income over the long term for investors, providing them with an annual dividend (…).

Original story: Press Release

Translation: Carmel Drake

BMO Debuts its New RE Vehicle in Spain with €1bn to Invest

15 May 2018 – Eje Prime

BMO Real Estate Partners is backing Spain with its new real estate investment vehicle. The international fund has just launched Best Value Europe II (BVE II), which will specialise in the high-street retail market. One of the company’s first purchases has been a prime asset in Madrid, which it bought together with another commercial premise in Verona (Italy): for the two properties, BMO paid €39 million.

Nevertheless, BMO’s new vehicle has the financing to spend a lot more. The fund’s initial plan involves creating a portfolio of assets worth €500 million, a figure that it plans to double to €1 billion over the medium-term, according to Business Inmo.

After its initial purchases in Madrid and Verona, the fund has also just closed its third acquisition in Lisbon. BMO has paid €15.2 million for that asset, which is located on Avenida da Liberdade, the main commercial thoroughfare in the Portuguese capital. The property, which has been completely renovated, is designated for mixed use as offices and retail space, and has a total surface area of 2,104 m2.

The path that BVE II will follow will be similar to that of the first vehicle that BMO launched for this market and which focused on finding high street premises on the most prime streets of the main European capitals. The predecessor of this new company has now invested more than 90% of its funds; it owns a portfolio containing 12 assets worth more than €700 million.

Original story: Eje Prime

Translation: Carmel Drake

Mif Capital Expands its RE Business with 3 New Projects in Barcelona

14 May 2018 – Eje Prime

The property developer founded by Carles Maurí and Gregorio Ferrer Cervera will begin three new projects this year in the districts of Eixample and Sarrià. During its five year life, the real estate company has generated revenues of €20 million with developments completed exclusively in the Catalan capital.

Mif Capital will fulfil its annual objective in 2018: to start between two and three residential projects in Barcelona. The real estate company, founded in 2013 by Carles Maurí and Gregorio Ferrer, will start work on the renovation of a residential building in the Eixample district after the summer, and will also launch “two more projects at the end of the year”, both located in the Catalan capital, according to Maurí speaking to Eje Prime.

The executive, who has two decades of experience in major real estate companies, and his partner, together lead this property developer, which is finalising the handover of its latest project, in the heart of the Gràcia neighbourhood. The six renovated homes will be added to the two apartments that the company finished refurbishing recently on Avenida Diagonal. All of them are located in Barcelona because “we are based here, we like the city and we believe that it is a good location in which to develop real estate”, says the businessman.

Mif Capital’s new projects will adopt the same style as the five developments undertaken to date and will involve the renovation and sale of properties in prime locations. “In some cases, the homes are destined for rent and in others for sale”, explains Maurí, who has built up the company from nothing alongside Ferrer, and who says that “Between the two of us we take care of all the acquisitions and management of the assets” (…).

 “We want to grow organically” 

“We purchase buildings in which we would like to live”, responds Maurí to a question about what type of properties that most interest both him and his partner. In this sense, most of Mif Capital’s projects go up for sale, although the real estate company has also constructed some homes for rent. “Nevertheless, we are not interested in, nor do we own any tourist apartments”, says the businessman.

The founding partner of the real estate company knows the Barcelona real estate market well. He began his career in 1998 on the Diagonal Mar shopping centre project, when he was the Director of Business for Hines for five years. Subsequently, Maurí worked for Copcisa, the construction group owned by the Carbonell family, and then for Layetana Inmobiliaria, which built the iconic Torre Glòries, now owned by Merlin.

That experience led the co-founder of Mif Capital to Servihabitat, the servicer of La Caixa. After three years as the National Director of the bank’s real estate arm, during a time of deep recession in the sector, he decided to set up a new company with Ferrer (…).

The first asset that entered the property developer’s portfolio was a building located at number 42 Rambla Catalunya (…).

After two “very good” years, the objective of the real estate company for the next few years is “to continue with the same business plan”, with the aim of “continuing to grow organically”. With a clear focus on the city of Barcelona.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Property Developers Search For Buildings To Refurbish

3 May 2016 – Cinco Días

For the third year in a row, 2015 closed with an increase in the number of building permits, although the level of housing construction is still a long way below that recorded at the height of the boom. So great is demand in places like Madrid that investors/property developers are now allocating almost one out of every five euros to the acquisition of buildings in the centre of the capital for renovation and whereby bringing more new homes onto the market in prime areas.

The slight slowdown in construction detected by the Bank of Spain during the first quarter of the year does not seem to be affect real estate activity that much, but does affect other sub-sectors. In fact, the main market indicators show how the pull of demand for housing is continuing to strengthen and how that has driven the launch of new developments. Above all in places where most of the stock has now been absorbed and there is none left, or the surplus that remains unsold does not match what buyers are looking for.

A recent study compiled by the consultancy firm Knight Frank also shows how the recovery in housing has reduced auto-promotion, or the construction of homes by cooperatives, in favour of traditional property developers by 8%, and the banks have played an important role in the phenomenon as they have started to finance the most solvent developers with the most robust projects once again.

Nevertheless, although it might seem like the real estate business has returned to the high road once again, the fact is that the recovery has only fully arrived in certain, very specific enclaves and one of them is Madrid, and it has done so in a nuanced way and at different speeds.

“Madrid is the most sought-after area for investors in search of residential products, specifically, it receives 19% of all real estate investment. Andalucía, Valencia and Cataluña are the following most popular autonomous regions, accounting for 16%, 15% and 14% of total investment, respectively” says the report. (…).

And, in the meantime, the appetite to buy homes in the prime areas of the major cities is such that investors and property developers are starting to opt mainly to buy buildings that need refurbishing in the centre of cities, to then bring new homes onto the market that better suit the demands of buyers. In 2015, investment in entire buildings accounted for 19% of the total, whilst land purchases represented 81%.

Type of home

(…). In general, the typical buyer profile nowadays is a family with medium to medium-high purchasing power, looking for a home to reposition or improve the one they currently own “in locations with services, transport, urbanisations with common areas and quality in the design of the materials and finishes”. Thus, the most sought-after product is now a three-bedroom house, with an average price of between €230,000 and €450,000.

Does the market in Madrid offer that product in sufficient quantity so as to not generate perverse tensions in terms of prices? The conclusion of the study by the aforementioned consultancy firm is….that the supply is still insufficient. The municipality of Madrid has around 3,000 new homes registered as available. Only 30% of those are located inside the M-30, where the scarcity of land is most acute and prices are highest. 20% are located in the area between the two main ring roads (the M-30 and the M-40) and the remaining 50% are in the PAUs and new developments, some of which are located beyond the M-40. Demand for housing is distributed in a relatively similar way, which according to Knight Frank avoids major imbalances between supply and demand (…).

Original story: Cinco Días (by Raquel Díaz Guijarro)

Translation: Carmel Drake