Tag: puerto venecia

Best Start To The Year For Real Estate Market Since 2010

6 February 2015 – El Economista

Investment activity in the non-residential real estate sector in Spain has started the year with the same strength with which it closed 2014. In just one month, investment has risen to almost €1,100 million, approximately equal to the total amount recorded during the first quarter last year, according to data published by Savills, the international real estate consultancy.

This has been the best start to the year for the real estate market since 2010 in terms of transaction volumes. Nevertheless, in terms of the number of transactions, the level has not been particularly noteworthy compared with other periods – as of yesterday, only nine deals had been closed.

“In January and February, we tend to see transactions left over from before the holidays being closed, however, the pipeline of investment transactions in retail and offices currently exceeds €2,000 million. We expect investment volumes to be similar to or even exceed those recorded in 2014”, said Luis Espadas, Director of Capital Markets for Savills España.

Two transactions have accounted for almost 80% of the total investment in 2015. Firstly, the sale of Gran Vía 32, which was acquired by Pontegadea for around €400 million, according to market sources and secondly, the Puerto Venecia shopping centre, which was sold for €451 million – the deal was announced at the end of the year, but was actually closed in January.

“Both transactions not only support the rising trend in mega-deals (those exceeding €100 million), which accounted for 2.5% of all transactions in 2011 and for 9% last year, they also far outweigh the size of the largest operations recorded in 2014. Moreover, Savills highlights that in each case, the transactions involved a single building, rather than portfolios (of buildings) like in 2014 (when the Junta de Andalucía sold 70 buildings for €300 million and Carrefour sold a portfolio for €350 million).

Success in the office market

Amongst other transactions, interest for the office segment in Madrid stands out once again. It broke records in 2014 for the highest number of transactions ever recorded, with 71 transactions; and which has started 2015 on the right foot. Five buildings were sold in two weeks, almost all located within the M-30.

“The shortage of high quality properties for sale in the business district and other urban areas diverted the search for opportunities towards well-established business centres outside of the M-30, although 75% of investment last year was located inside the periphery” explained Espadas.

Nevertheless, there is an increasing drive towards refurbishment “to add value to office blocks, particularly those that are well located, which are being used either as offices or for conversion into hotels and shops”, added Espadas.

Meanwhile, yesterday, the consultancy firm Irea published its report about investment in the real estate sector in 2014, a year in which direct transactions in real estate assets tripled. Such investments accounted for €9,660 million worth of transactions, out of a total investment volume in the sector of €23,028 million, compared with €5,344 million in 2013.

Original story: El Economista (by A. Brualla)

Translation: Carmel Drake

Klépierre, Invesco And TH Offer €350m For Plenilunio

19 January 2015 – Expansión

The home straight/ Orion receives three binding offers for the Plenilunio Retail Park. Unibail Rodamco withdraws from the process.

The sales process for one of the largest shopping centres in Madrid is in its final stages with three finalists. The French company Klépierre and the funds Tiaa Henderson (TH) and Invesco have all submitted binding offers for the property.

Invesco is the latest candidate to join the bid for the centre; the French-Dutch group Unibail Rodamco has withdrawn from the process. The shopping centre operator had expressed interest in acquiring Plenilunio to create a Golden Triangle in Madrid, as the owner of three landmark properties: La Vaguada, ParqueSur and through this transaction, Plenilunio. However, the high price offered by its competitors has put pay to Unibail Rodamco’s aspirations, explain industry sources. The British real estate company Grosvenor has also expressed interest in the centre, according to real estate sources.

Thus, TH – which bid alongside a sovereign fund -, Invesco and Klépierre would all be willing to pay €350 million for this property, which occupies a surface area of 220,000 square metres. Plenilunio has 70,000 square metres of retail space (GLA), distributed over three floors, plus 2,500 parking spaces, according to the Spanish Association of Shopping Centres. The property, which has an occupancy rate of almost 98%, generates annual rental income of €20 million.

Upon receipt of the binding offers, the current owner, the US fund Orion, must choose whether to negotiate with a single finalist or to conduct a final competition with two of the finalists. It is expected to take this decision quickly as it aims to close the sale during the first quarter of 2015, as revealed by Expansión on 17 December.

Plenilunio, which opened in May 2006, was developed by the Spanish real estate firm Riofisa (acquired soon after by Colonial). Before its opening, Banco Santander bought the property for €275 million, and then sold it onto Orion for €235 million in 2009.

The US fund controls the property through its company Orion Columba which adopted a Socimi structure in September 2013. The sale of Plenilunio is the second large divestment that Orion has undertaken in Spain in recent months – it closed the sale of the Puerto Venecia shopping centre in Zaragoza at the end of 2014. The property, the largest in Spain, was acquired by the British real estate company, Intu Properties for €451 million. In October 2013, Orion paid €144.5 million for the 50% of the centre that it did not already own.

Plenilunio is one of 80 shopping centres expected to change hands over the next few months in Spain, according to Deloitte Real Estate. In 2014, more than €2,100 million was invested in shopping centres across the country, driven by the sale of Marineda in La Coruña for €260 million and Islazul in Madrid for €232 million.

Original story: Expansión (Rocío Ruiz)

Translation: Carmel Drake

Spain’s Real Estate Sector Closed 2014 With A Record High

02/01/2015 – Expansión

The arrival of international funds and the implementation of large REITs have increased investments, with respect to previous years, up to 9 billion euros. Both the total figures and number of operations have skyrocketed. Well-located large shopping centers and office buildings have been the most desirable assets in 2014.

After more than five years of decline in business, the Spanish real estate sector predicted that recovery would arrive in the year 2014. However, the more optimistic reality has exceeded all expectations.

In anticipation of the year-end figures, this is already the second best year in the last decade, surpassed only by 2007, in the boom of the Spanish economy. “The market this year has been proportionally more active than in 2007. A higher number of assets have been purchased, and the prices, when compared with 2007 figures, are much higher,” explained representatives from the research department of JLL Spain.

So far this year, more than 6.18 billion euros have been invested in real estate for tertiary use (i.e. non-residential), according to Deloitte Real Estate.

This figure soars to 9 billion, according to the consultancy group, Aguirre Newman, if we take into account multiple debt portfolios whose securities were real estate assets, and the sale of land and housing.

These figures are double those recorded in 2013, 2012 and 2011, and are explained by a combination of several factors. “2014 was a year in which all the elements were present to favor real estate investment: the improvement of the overall economic situation, the emergence of new players with liquidity and the pressure to invest (the REITs), the return of funding and the need to sell certain closed funds,” says Javier Garcia-Mateo, director of Deloitte Real Estate.
New investors

The new players in the real estate sector, the REITs, are among the most influential reasons for investment growth. Only four major listed real estate companies, Merlin Properties, Hispania Real, Lar España and Axia Real Estate, have invested over 2.4 billion euros. Among their investments was the purchase of Marineda City, a shopping center located in La Coruña (Galicia), by Merlin Properties for 260 million euros, the largest purchase of a shopping center until December 24, 2014.

A few days ago, the British real estate company, Intu Properties, beat this record by paying 451 million euros for Puerto Venecia in Zaragoza. With these last transactions, investment in shopping centers in 2014 amounted to 3 billion euros, the same amount invested across the real estate sector in 2013.

Shopping centers are not the only commercial properties to be the star of large operations. Street storefronts have also been key players in investments. Thus, companies such as Mango bought property in Madrid and Bilbao to create large retail stores; while international funds, such as Axa Real Estate and Deka, bid for being the landlords of the main brands along the Gran Via in Madrid.

As for office buildings, investment has soared over 200% from January to September to 2.4 billion euros, according to CBRE. These figures are due to the purchase of portfolios such as the four buildings located in Barcelona and Madrid held by Blackstone, in addition to the other four buildings that the same fund bought from SAREB a few days ago.

Also noteworthy is the purchase of two properties in Barcelona — Torre Agbar and Paseo de Gracia 111 — which will be transformed into luxury hotels, and the numerous buildings sold by public administrations such as the Generalitat.

“A year of great investment activity has closed and the market should expect the same level of activity for the next year, albeit with some changes in the profile of investors,” says Jaime Pascual, Executive Managing Director of Aguirre Newman.

Original article: Expansión (by Rocío Ruiz)
Translation: Aura REE

Real Estate Sector To Close A Record Year In Spain

30/12/2014 – Expansión

BOOM INVESTOR / The arrival of international funds and launch of large investment REITs have increased investment over previous years to 9 billion euros. Both number of operations and total figures have soared. Large shopping malls and prime-location office buildings have been the most sought-after assets in 2014.

After more than five years of business decline, it was forecast that recovery would come to the Spanish real estate sector in 2014. However, the most optimistic scenario has played out in reality and exceeded all expectations.

Awaiting the year-end figures, this is already the second best year over the past decade, surpassed only by 2007, amidst the boom of the Spanish economy. “The market this year has been considerably more active than back in 2007. A larger number of assets and in higher volumes have been purchased, when compared to the 2007 prices,” explained experts from the Research division of JLL España.

So far this year, more than 6.18 billion euros have been invested in real estate for tertiary use (i.e. non-residential), according to Deloitte Real Estate.

This figure goes even further up to 9 billion, according to the Aguirre Newman consultancy, taking into account various debt portfolios secured with real estate assets as well as sale of land and housing.

These figures are double those recorded in 2013, 2012 and 2011 and attributable to a combination of several factors. “2014 was a year in which we had all the factors to foster investment: overall improvement of the economic situation, the rise of new players with liquidity and willingness to invest (the REITs), the return of funding and the need to sell certain close-ended funds,” says Javier Garcia-Mateo, director of Deloitte Real Estate.

New investors

Among the factors which most influenced the increase in investment are the new players in the sector: the REITs. Only four major listed real estate companies – Merlin Properties, Real Hispania, Lar Spain and Axia Real Estate, have invested over 2.4 billion euros. Among those investments made by December 24 was the purchase of the largest shopping mall in 2014: the Marineda City in La Coruña, by Merlin Properties for 260 million euros.

Just three days ago, the British realtor Intu Properties beat this record by paying €451 million for Puerto Venecia in Zaragoza. With these transactions, investment in shopping malls in 2014 amounted to €3 billion, the same amount invested in the entire real estate sector back in 2013.

The malls are not the only type of commercial property that has defined large-scale transactions. Street locations have also been blue-chip investment. Thus, companies such as Mango bought properties in Madrid and Bilbao to open large stores, while international funds, such as Axa Real Estate and Deka seek to be the landlords of the major brands on Gran Via in Madrid.

In the case of office space, investment has soared from January to September over 200%, up to 2.4 billion, according to CBRE. These figures are due to the purchase of portfolios, as for example, in addition to its four buildings in Barcelona and Madrid, Blackstone has acquired other four from SAREB a few days ago.

In terms of offices, it’s worth noting the purchase of two properties in Barcelona — Torre Agbar and Paseo de Gracia 111 — that will be turned into luxury hotels, as well as the numerous buildings sold by public administrations like that of the Generalitat.

“We are at the close of a fiscal year of a great deal of investing activities and we should expect the same level of activity for the next year on the market, though with certain changes in the investors’ profile,” states Jaime Pascual, CEO of Aguirre Newman.

Original article: Expansión (by Rocío Ruiz)

Translation: Aura REE