Operación Calderón: Azora Set to Buy 2 of Atlético’s Plots for Rental Homes

23 May 2019 – El Confidencial

Azora, one of the largest rental home managers in the country, has made a surprise appearance in the home stretch of the process to sell the plots of land owned by Atlético de Madrid.

The company owned by Concha Osácar and Fernando Gumuzio has submitted a binding offer to the football club to buy two of the three plots that form part of Operación Calderón and, according to sources in the know, the bid fulfils all of the requirements of the team. As such, Azora looks set to take over the bulk of the land that the reds and whites are selling by the river.

The rental home specialist has declined to comment on the reports, but all indications are that it plans to build rental homes on the two plots, to boost the growing rental market in the Spanish capital. It would thereby follow in the footsteps on the fund Ares, which has just signed an agreement with Stoneweg to build a block of rental homes on a plot on Paseo de la Dirección, in the north of Madrid.

Indeed, the Spanish-Swiss firm is one of the favourites to acquire the third plot of land in Operación Calderón, which Azora did not bid for. The cooperative manager Concovi is also in the running for that site.

Atlético de Madrid expects to raise around €180 million from the sale of the three plots and 11% of the residential space will be dedicated to social housing properties.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Sabadell Revises Down its Price Expectations for the Sale of its Property Developer SDin

21 May 2019 – Cinco Días

Banco Sabadell put its property development arm Solvia Desarrollos Inmobiliarios (Sdin) up for sale several months ago. Initially, the bank was expecting to receive proceeds of around €1 billion for the company, its employees and land. However, in light of the current climate, it is now revising down its expectations.

Investment funds are starting to face problems when it comes to generating returns from their investments in land and property what with many of the large property developers, such as Neinor Homes, slashing their short-term forecasts, the political uncertainty following the recent general election and the general nervousness that the current boom cycle is coming to an end.

As a result, the bank chaired by Josep Oliu (pictured above) is now hoping to receive binding offers amounting to around €900 million, which would considerably reduce the entity’s expected gains from the sale. Nevertheless, SDin owns around 300 prime plots and 130 promotions under development, whose combined valuation amounts to €1.3 billion, according Savills Aguirre Newman.

For the time being, Sabadell has four offers on the table from investment funds, including from Cerberus and Oaktree. The fund Kronos is also still in the running although it is less likely to prove victorious.

Sabadell had initially planned to close this operation by the end of June, but may now wait a little longer.

Original story: Cinco Días (by Ángeles Gonzalo Alconada)

Translation/Summary: Carmel Drake

Telefónica Finalises the Sale of its Catalan Headquarters

4 May 2019 – Expansión

Telefónica is on the verge of selling its headquarters in Barcelona for more than €150 million in a sale and leaseback operation that will see the group continue to occupy 8 floors of the property, but on a rental basis.

The 16-storey skyscraper, known as Diagonal 00, has a surface area of 34,000 m2 and is located next to the Fòrum on the edge of the 22@ district. The property was constructed by the Consortium of the Zona Franca in Barcelona (CZF) as a turnkey project for Telefónica, which moved in in 2011.

The telecommunications giant went on to purchase the property from CZF in 2014 for €107 million plus VAT (€129.4 million) and is now selling it as part of its debt reduction process, which has already seen it divest businesses in Central America and the insurance company Antares.

Original story: Expansión (by M. Anglés & I. del Castillo)

Translation/Summary: Carmel Drake

Masaveu Sells Land in the Port of Vigo for €2.8M

31 January 2019 – La Nueva España

Cementos Tudela Veguín, which forms part of the Asturian business group Masaveu, has obtained almost €2.8 million from the sale of land in the Port of Vigo. The plot measures 19,000 m2, was barely being used and is located in Rande.

Cementos Tudela Veguín, which has several warehouses in the Port of Vigo, also owned an area of land that was of interest to the Port authority to improve access and expand the area reserved for logistics. The directors of the Port of Vigo learned of the details of the land purchase operation last Friday, which was closed for €2,783,000, an amount that has already been transferred to the cement producer company.

The Masaveu family is considered to be the richest in Asturias and is amongst the wealthiest in all of Spain. Their wealth is estimated to amount to around €2.1 billion, according to a new list compiled by El Mundo, which analyses the largest 200 fortunes. The Masaveu family occupies 16th position in the ranking, which is led by the President of Inditex, Amancio Ortega, with assets worth €50.4 billion. He is followed by Rafael del Pino from Ferrovial, and Juan Roig from Mercadona (…).

Original story: La Nueva España (by A.O. & J.L.S)

Translation: Carmel Drake

The Owner of ‘Nevada Shopping’ Acquires Another Building in Central Granada

2 July 2018 – Eje Prime

General de Galerías Comerciales (GGC) is increasing its portfolio of assets. The company specialises in making investments in retail parks and shopping centres, but, this time, it has opted for a building in the centre of Granada, according to a statement filed with the Alternative Investment Market (MAB).

The Socimi has acquired a building located at number 55 Calle Reyes Católicos. The company, which has financed the operation using own funds, has invested €6 million in the purchase in total.

Controlled by Tomás Olivo, GGC made its debut on the MAB in July last year, to become one of the Socimis with the largest market capitalisation in the sector. The company, which has twenty years of experience, carries out its activity across the whole value chain: from land purchases to management.

The main assets in its portfolio are retail parks and shopping centres in Spain, including La Cañada (Marbella), Mediterráneo (Almería), Mataró Parc (Mataró), Gran Plaza (Almería), Las Dunas and Nevada Shopping (Granada).

The company also owns a large portfolio of residential assets and commercial premises, as well as land, primarily in the south of Spain. At the time of its debut on the MAB, the company’s asset portfolio was worth €1.906 billion.

GGC closed 2017 with a net profit of €103.18 million, up by 58% compared to the previous year, when it recorded a net result of €65.4 million. The Socimi recorded sales of €111.3 million in 2017, up by 27% compared to the previous year. The majority of the company’s turnover proceeds from the rental of its properties, €93.35 million in 2017 compared to €64.9 million in 2016.

Original story: Eje Prime

Translation: Carmel Drake

Valencia CF Expects to Receive c. €100M from Sale of Mestalla Plot

4 June 2018 – Expansión

Valencia Football Club (Valencia CF) is making progress with the financing for its new football stadium. Market sources estimate that the club could receive proceeds of more than €100 million from the sale of the land on which its current Mestalla stadium is located, a site between the sought-after avenues of Aragón and Suecia.

The sale of that plot, known as the old Mestalla and with buildability for residential and tertiary use, could materialise before the end of 2018, taking advantage of the good times in the real estate market. The plot measures 12,000 m2 and has a buildable surface area of 70,000 m2.

That amount would allow Valencia CF to partially finance the completion of the construction of its new site, where it has fixed assets in progress worth €115 million, and to reduce the debt that it currently holds with financial institutions and which amounts to around €185 million. It also holds liabilities with the public administrations.

The work on this construction site began in August 2007 but was suspended in February 2009, which means that the project has been paralysed now for almost a decade. Since then, several attempts have been made to restart it, but those efforts have always been postponed due to the need for financing.

The club has decided to accelerate its plans to move to the future Mestalla and push ahead with the reduction in its debt and the clean up of its balance sheet to focus on its sporting efforts. Only the arrival in December 2014 of the Singaporean magnate Peter Lim saved the team from bankruptcy, which has recorded losses of €60.2 million in total over the last three years, in large part due to this real estate expenditure. Losses are also forecast for this year.

In this context, the President of Valencia CF, Anil Murthy, now considers that “the real estate market has evolved enough to meet our objectives”. Thus, the club is going to continue working with the Town Hall to process the amended licences to start the building work.

Inauguration: in 2021

Murthy said that for this process, Valencia CF has engaged Deloitte, which will be its comprehensive advisor in all aspects financial, real estate, technical and economic relating to the entire process necessary to move to the future stadium within the timeframes set out in the Valencia Strategic Territorial Action Plan.

In addition, Deloitte will be responsible for the business plan and sale of the tertiary space in the new stadium, which will have more than 40,000 m2 of buildable space available for commercial use (…).

Original story: Expansión (by E. S. Mazo & R. Arroyo)

Translation: Carmel Drake

Criteria to Make a Decision Regarding the Remaining 49% Stake in Saba on 24 May

23 May 2018 – Expansión 

Tomorrow (Thursday 24 May), the Board of Directors of Criteria, the investment arm of La Caixa, will make a decision regarding the future of Saba, the parking lot group of which it is a controlling shareholder, with a 51% stake. Criteria must decide whether to purchase the remaining 49% share capital currently in the hands of KKR, Torreal and ProA Capital or, by contrast, accept an offer for the purchase of 100% of the company chaired by Salvador Alemany.

According to sources close to the operation, Criteria’s position will be to emerge as the buyer, once the economic estimate of the asset has been made known, whose valuation ranges between €1.2 billion and €1.4 billion.

The investment by La Caixa’s industrial holding company will put an end to the period of uncertainty that the company has been experiencing since Torreal (20%), KKR (18.5%) and ProA (10.5%) agreed to sell their combined 49% stake in a coordinated way more than a year ago. Saba’s minority shareholders have forced this outcome. According to the shareholders’ agreements, the drag-along clause was activated in May, which means that any of the shareholders may require the sale of 100% of the company. KKR, ProA and Torreal notified La Caixa of their intention to find a buyer. According to sources consulted, Criteria has expressed its willingness to buy at the estimated prices. Several funds have also expressed their interest in Saba. As Expansión revealed in November 2017, Arcus was one of the first funds to propose an agreement. In the market, sources also point to Macquarie, which purchased Empark last year.

For Criteria, which has declined to comment, the investment in Saba would represent its first major buy-side move since it sold 10% of Gas Natural Fenosa to the fund GIP in 2016 for around €1.8 billion and following its exit this month from Abertis, after accepting the joint takeover bid presented by ACS and Atlantia. For its 18% stake in the highway group, Criteria has received more than €3 billion, which it will use to fund new investments.

The conversations have accelerated in recent weeks to the point that Saba had to postpone its General Shareholders’ Meeting. Originally, it had been convened for 9 May, but it has been postponed until 12 June pending an agreement between the shareholders.

Original story: Expansión (by C.M., M.P.L. and A.Z.)

Translation: Carmel Drake

Sabadell Earns €35M From the Sale of its Last 11 Hotels

15 May 2018 – La Vanguardia

Banco Sabadell has definitively completed its divestment from the hotel business by selling off the last of the establishments that did not form part of the package acquired by Blackstone last year. Overall, the bank chaired by Josep Oliu has recorded income of around €35 million from the sale of 11 medium-sized establishments in different parts of Spain. The last one to be sold is the Barceló Estepona, which has been acquired by Hotusa.

In that case, the financial entity has sold the ownership of the property in which the hotel is located. In the majority of cases, the establishments were managed by a specialist company. All of the hotels were left over from the real estate crisis. Sabadell ended up taking ownership of them in recent years in lieu of payments for the debts that their owners had taken out and which they could not repay. In other cases, they were the direct result of mortgage foreclosures for non-payment.

In recent months, the bank led by Jaume Guardiola has been considering several alternatives for its hotel portfolio, including a possible stock market debut. In the end, the entity opted to sell most of the assets owned by the company HI Partners to Blackstone last year. The 11 establishments that were left out of that operation are the ones that have just been sold. In the operation with Blackstone, the bank obtained gains (extraordinary profits) of €55 million from proceeds of €630.7 million. In that deal, it sold establishments such as the ME Sitges Terramar, the Hilton Sa Torre in Mallorca and the Axel Hotel in Madrid to the international fund.

In addition to the Barceló Estepona, the bank has also just divested the following hotels: Barcelona Gate, Margas Golf, Cunit and La Selva. Most of the establishments sold in this final phase were not beachfront properties, nor were they large. Other properties sold recently include the Asta Regia Hotel Jerez de la Frontera acquired by Hotusa, the Aparthotel Augusta in Boí Taüll bought by Kesse Invest, the Balt Hotel Spa in Gijón purchased by Artiem, the Barceló Oviedo acquired by Barceló and the AC Lleida bought by AA Hoteles.

In parallel, the bank is continuing with the process to divest a large proportion of its non-hotel real estate assets that also resulted from the real estate crisis, including those inherited from the now extinct entity CAM. The bank has launched the sale of toxic assets amounting to €10.8 billion through a number of separate operations. It is a significant amount with respect to the €13.5 billion in assets that the bank had registered on its balance sheet at the end of last year.

The CEO Jaume Guardiola also announced last month during the presentation of the entity’s quarterly results that the entity is analysing the future of its real estate subsidiary Solvia. “When there is an opportunity to create value”, it will be sold, explained the director (…).

Original story: La Vanguardia (by Eduardo Magallón)

Translation: Carmel Drake

Adveo Puts 4 Warehouses Up For Sale for €40M

18 March 2018 – Eje Prime

Adveo is continuing with its divestments. The Spanish wholesale group, which specialises in office equipment and services, has put four warehouses up for sale, three of which are located in Spain, through which it hopes to raise €40 million.

The domestic assets are located in Madrid, País Vasco and La Rioja, whilst the fourth asset is located in Belgium. The proceeds from the divestment will be used to continue reducing the debt, according to sources at the company, whose liabilities amount to €190 million. The objective of the company is to reduce that figure by €10 million in 2018, according to Expansión.

In January, Adveo completed another sale in France. On that occasion, the group sold a warehouse to the company IDI Gazeley for €8 million, which, by virtue of the contract, is going to lease the logistics centre to the French subsidiary of the Spanish company.

All of these operations form part of the Strategic Plan for 2017-2029 designed by the group, which seeks to transform the company into “a service platform with logistics solutions adapted to the new reality of the business”, according to the company.

Original story: Eje Prime

Translation: Carmel Drake

‘Valencia Parque Central’ Hopes to Raise €300M From Sale of Buildable Public Plots

22 February 2018 – Eje Prime

Valencia’s public institutions want to recover some of the investment that they are making in Parque Central. The company that is promoting the development, which is owned by the Government of Spain (50%), the Generalitat Valenciana (25%) and the Town Hall of Valencia (25%), hope to raise €300 million from the sale of the buildable public plots in this area. Those proceeds would cover 15% of the total cost of the building work, which has an approximate cost of €2 billion.

According to explanations provided by the Town Hall, the intention of the company is to propose a first public auction of the land to the Board of Directors. The Director-General of Valencia Parque Central, Salvador Martínez, has explained that “they will study two formal questions: the specifications that regulate the sales process and the sales strategy”, according to Valencia Plaza.

The work that needs to be carried out in the Russafa and Malilla areas will bring with them the largest urban planning operation underway in Valencia. This is a railway and urban project, in which, in addition to placing the railway underground and building a new train station, the city will benefit from a new green space with a park spanning 230,000 m2. The company’s forecasts suggest that the garden will be inaugurated in June.

Original story: Eje Prime

Translation: Carmel Drake