Vivenio, Millenium & Atom Invested €543M in New Purchases in 2019

9 January 2020 – Eje Prime

Vivenio and the hotel Socimis drove the MAB in 2019. The Socimi controlled by Renta Corporación, plus Millenium Hoteles and Atom Hoteles together invested €543 million in new acquisitions during 2019. That figure accounted for 71.2% of all the funds spent on asset purchases by the MAB’s Socimis during the year.

Specifically, Vivenio invested €234 million, including €75.5 million on some of the Operación Calderón plots; Millenium closed 3 operations amounting to €192.4 million, including the purchase of 2 buildings in central Madrid which it is going to convert into a 5-star hotel; and Atom Hoteles spent €116.6 million on 5 hotels in Madrid, A Coruña, Cádiz, Tenerife and Gran Canaria.

In total, all of the Socimis on the MAB spent €762.1 million on the purchase of assets during 2019, up by 34.1% compared to 2018.

Original story: Eje Prime (by Marc Vidal Ordeig)

Translation/Summary: Carmel Drake

Tauro Real Estate Buys Torre Ámbar in Madrid

3 July 2018 – Eje Prime

The new Tauro Real Estate is rearing its head in the Spanish residential market. The fund, which is now under the mandate of Globe Invest, the Israeli company that acquired the firm in April by paying €180 million to its former shareholders, has recently purchased Torre Ámbar in the centre of Madrid.

In the middle of May, Globe Invest, owned by the multi-millionaire Teddy Sagi, acquired the rights to purchase the residential block from the Inveriplus group. The tower comprises 64 prime homes very close to Paseo de la Castellana, according to confirmation from sources involved in the operation. The amount of the transaction has not been revealed. The vendor in this operation, Inveriplus, is a group dedicated to investment in real estate assets for their subsequent management and value generation. The company, which is headquartered in Madrid, is led by Óscar Bellette.

The asset has been acquired after the clean-up that Inveriplus conducted of the tower. It, in turn, had purchased the homes during the crisis from several merchants of the Proinlasa real estate group. For the last few years, the manager has succeeded in leasing the block in its entirety.

Torre Ámbar is one of the skyscrapers that comprises the residential area of Isla Chamartín, located to the north of Madrid. The building, whose first homes were handed over in 2009, was designed for sale, but the change in economic cycle forced a change in the objectives and it was put up for rent in 2014.

The sale was signed “at market price”, according to sources close to the operation speaking to Eje Prime. “The returns that the property could generate are of much greater interest than the purchase opportunity”, say the same sources.

Torre Ámbar comprises luxury one and two bedroom homes, as well as several studios. The urbanisation is private and has security gates, a swimming pool, garages and storerooms, a padel court and private green spaces, according to Proinlasa’s corporate website.

The owner of the property has real estate assets for sale and rent in Madrid, Valladolid, Palma and Córdoba. In its property development plan, the group says that, in addition to residential land, it is also backing the tertiary and industrial market.

The owner of Camden Market’s commitment to Spain

Teddy Sagi is an Israeli multimillionaire and owner of the renowned Camden Market in London. The businessman, through Tauro Real Estate, has acquired 600 homes spread between Madrid and Barcelona.

Tauro has fattened up its portfolio in less than four years with the purchase of assets, primarily from banks, involving the investment of up to €160 million. In Madrid, it owns 350 homes and in Barcelona, it has another 250 properties. In the Catalan capital, it owns tourist apartments, which comprise 30% of the assets that Tauro owns in the city (…).

Original story: Eje Prime (by J. Izquierdo & P. Riaño)

Translation: Carmel Drake

KKR, Altamar & Elix Inject €12M into their Socimi

16 March 2018 – Eje Prime

It’s non-stop for the Socimi owned by Altamar, the property developer Elix and KKR. After taking its first steps last year with the acquisition of its first assets, Elix Vintage Residencial has received a capital injection of €12 million to move ahead with the purchase of assets located in Barcelona and Madrid, as explained by company sources speaking to EjePrime. This new capital injection comes in the same year that the Socimi is planning to make its debut on the Alternative Investment Market (MAB).

According to the Official Gazette of the Mercantile Registry, the company has carried out a €12 million capital increase in its company Elix Vintage Residencial Socimi. As such, the subscribed capital of the company now amounts to €15 million. The first purchases that the company carried out were four residential assets, in Barcelona and Madrid, last year.

Currently, the company led and founded by the businessman Jaime Lacasa and Jorge Benjumeda, have 25 projects underway, which will result in the placing on the market of more than 300 homes. Of those projects, six are new builds and 19 are renovations.

Under the framework that Socimis are obliged to adhere to, the company plans to make its debut on the Alternative Investment Market (MAB) before the end of this year, whilst its mission in 2019 is going to be to start to trade on the main stock market. On the MAB, the company will start trading under the name Elix Vintage Residencial Socimi.

KKR and Altamar Capital Partners joined forces last July to invest in the Spanish market in the renovation and rental of homes. The two funds signed an agreement with one of the property developers that has most experience in this sector, Elix, to launch a Socimi that will invest more than €200 million in the purchase of properties in Barcelona and Madrid. The objective of both funds with the investment vehicle is to list it on the stock market once it has made the bulk of its investments.

This company, headquartered in Barcelona, was created with share capital of €100 million, most of which was contributed by KKR and a group of international and domestic investors including Altamar and Deutsche Finance Group. The rest of the shares are owned by Lacasa and Benjumeda

The Socimi’s plans involve purchasing around forty buildings over three years to subject them to a comprehensive renovation and put the homes on the rental market once renovated. That rental income will feed the Socimi, which plans to rotate the portfolio of assets that it builds every three years.

Elix will be the company responsible for transforming the properties, and so will act as the industrial partner. With this vehicle, the company is going to manage to scale its business model, which until now had been very concentrated in El Eixample, Barcelona. The company, founded in 2003, launched its activity in Madrid last year (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Spain’s Property Developers Accelerate Their Land Purchases

31 August 2017 – Expansión

Spain’s large real estate companies have launched ambitious investments plans with the aim of starting to build thousands of homes over the next few years, whereby benefitting from the upwards cycle that the housing market is currently enjoying.

The most active players include some of the new property developers led by investment funds such as Neinor Homes, Vía Célere and Aelca. These companies, the first of which is listed on the stock market and the latter two which have plans to make their stock market debuts within the next few months, have accelerated their land purchase plans in recent months, backed financially by their owner-shareholders and loans from the banks.

Such is the case of Neinor Homes. The property developer owned by Lone Star has invested €157.5 million so far in 2017 on the acquisition of various plots of land spread across locations such as Valencia, Málaga and Madrid. These purchases will allow it to build 1,750 homes, in addition to the around 4,000 units that it already has underway.

In the case of Vía Célere, acquired in February by Värde and five other funds, its land purchases so far in 2017 amount to €100 million, which has allowed it to increase its portfolio of land by 212,016 m2 to 2.7 million m2.

Another one of the companies that has invested a lot in land in recent months in Aelca. The company led by Värde and its founding partners, Javier Gómez and José Juan Martín, has spent €170 million so far in 2017 to increase its buildable portfolio by 362,000 m2. Following these purchases, it plans to build around 3,900 homes.

New leader

But the leader of this growth is Metrovacesa. The property developer led by Jorge Pérez de Leza has started a new phase this year, following the transfer of its rental assets to Merlin, with the ultimate aim of recovering its leading position in the sector, this time, focusing on the residential market. To this end, its main shareholders, Banco Santander and BBVA, have transferred it land worth €1,108 million, covering a buildable surface area of 3.1 million m2.

Metrovacesa’s plans for these plots, which have capacity for 24,000 homes, include the sale of some of the asset to competitors, which are eager to expand their portfolios. Currently, the property developer owned by Santander and BBVA is the second largest landowner in the country, with land spanning 6 million m2, exceeded only by Sareb.

Meanwhile, the ACR group (which has invested in some projects together with Allegra, the investment arm of Mario Losantos, the former owner of Riofisa) has purchased land worth €43 million, with a buildable surface area of 88,000 m2, where it plans to build 810 homes. (…).

Amenabar has a similar investment policy. The Basque real estate company, the current leader house building ranking in Spain, with more than 4,000 units underway, has acquired land covering more than 352,000 m2 this year, which will allow it to build another 2,976 homes. (…).

Another of the classic property developers, Quabit, has undertaken 13 operations involving buildable land in just two months, allowing it to incorporate almost 120,000 m2 into its portfolio. (…) The listed company will build 1,097 homes with a forecast revenue of €196 million.

Meanwhile, the Inbisa group has invested more than €80 million in the residential market over the last 18 months and plans to spend another €30 million before the end of the year.

Another fund that has made a significant commitment to the housing market in Spain in ASG. That firm, which also invests in commercial properties, has spent €200 million this year on the acquisition of 16 urban plots of land.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Socimi Ores Buys Portimão Shopping Centre In Portugal

7 April 2017 – Idealista

(…) After completing its first purchases last week, Ores, the Socimi backed by Bankinter and the Portuguese real estate company Sonae Sierra, has now made its debut in the Portuguese market with the acquisition of the company Portitail, which owns the Portimão shopping centre, located in Portimão (in the Algarve region), although the operation still needs to be approved by the competition authorities in Portugal.

Olimpo Real Estate, whose commercial name is Ores, has been trading on the ever-growing Socimi segment of the Alternative Investment Market (MAB) for just over a month. It debuted on the MAB on 22 February without any assets in its portfolio and with a market value of €200 million. Currently, its market capitalisation amounts to €202.6 million, after a slight increase in its share price in recent weeks.

The company came to the market with a very clear objective: to invest around €400 million in high street commercial premises, supermarkets and hypermarkets, retail park spaces (less than 20,000 m2), bank branches and unitary assets with long-lasting lease contracts and solvent tenants.

In fact, its intention is to look for commercial assets in good locations, in the main cities in Spain and Portugal. The domestic market will account for around 65% of the portfolio, whilst the remaining 35% will be invested in Portugal. The investment plan is due to be completed by the end of 2018.

According to the IPO document, Olimpo Real Estate has a period of five years (specifically, until 29 December 2021) to liquidate its entire portfolio of assets, otherwise, it must retain them for another five years. In this case, and once 10 years have elapsed since its launch, a shareholders’ meeting will be called to decide whether to continue the company’s activity or liquidate it.

Original story: Idealista (by Ana P. Alarcos)

Translation: Carmel Drake

C&W: RE Investment Grew By 20% In Q1 2016

22 April 2016 – Expansión

According to Cushman & Wakefield, during Q1 2016, 40 operations were closed in the real estate sector, worth €2,400 million.

Real estate investment in Spain grew by 20% during the first quarter compared with the same period in 2015, with the signing of around 40 operations, worth €2,400 million, according to a report published on Thursday by Cushman & Wakefield.

“The first quarter of the year continues to show the strength of investment activity in the Spanish real estate sector”, said the real estate consultancy, which explained that more than 40% of the figure recorded during the 3 months to March related to a single transaction, namely the portfolio of offices acquired by Metrovacesa.

The office sector secured the most capital (51% of the total), with investment of almost €1,200 million, followed by the retail sector, which accounted for 36% of the total investment volume.

The main operations closed during the quarter were: Invesco’s purchase of an Eroski portfolio for €358 million; and the portfolio of offices in Madrid and Barcelona, owned by BBVA, Santander and Banco Popular, which are now owned by Metrovacesa.

According to the CEO of Cushman and Wakefield, Oriol Barrachina, “the lack of available high quality office space is creating difficulties for companies to find the space that they need, which has caused the rate of new rentals to drop but, at the same time, the price of office rentals, in the best areas of Madrid and Barcelona, to rise, as the availability of the best buildings continues to decline”.

“This potential for rental growth, which we have seen now for over a year, is one of the main reasons why investors are so still so interested in taking up positions in the sector”, he explained.

Original story: Expansión

Translation: Carmel Drake

The RE Sector Attracts Overseas Investors Once More

12 April 2016 – Cinco Días

(…) Overseas capital is focusing on the property market once again. And Spain is one of the main European markets for offices, hotels and logistics. Madrid and Barcelona are leading the charge and the Socimis at the forefront of the revitalisation of the market. (…)

According to data from the Foreign Investment Register, published by the Ministry of Finance, the construction sector and real estate-related activities secured almost €7,700 million of direct foreign investment in 2015, i.e. 34.5% of the total. As such, one out of every three euros of international funds received by the Spanish economy last year was invested in the property sector.

Productive foreign investment (that which generates activity and employment) grew for the third consecutive year, to close 2015 with an increase of 11%, to €21,724 million. Of that amount, €4,706 million, i.e. 21.7%, was allocated to the construction of residential buildings and property development, compared with €1,762 million in 2014….Meanwhile, real estate-related activities (sales, purchases and rentals) accounted for 13.8% of the total, i.e. €2,992 million. (…).

In the context of this new activity, the Socimis have emerged as the main supporters of the market. The large Socimis experienced a real boom in 2015, when they flooded the MAB with their stock exchange debuts and came close to tripling their profits, which rose from €89.5 million in 2014 to €251.2 million last year, according to data from the CNMV.

Within the last year, the four largest Socimis (Merlin Properties – which has been listed on the Ibex 35 since December -, Hispania – thanks to its partnership with Barceló -, Lar España and Axiare Patrimonio) have doubled the value of the properties they own, to more than €9,200 million in total. (…).

The Socimis accounted for 41% of all funds invested in the purchase of real estate assets in 2015 – they spent €5,237 million on asset transactions. In this way, the increase in the volume of their investments amounted to 129%, in particular due to Merlin’s purchase of Testa for almost €1,800 million.

Wealthy individuals and several international funds have invested fully in these investment vehicles, attracted by the low prices in the sector and the tax advantages on offer (Socimis are exempt from paying corporation tax). The Qatar sovereign fund is trying to become the largest shareholder in Colonial; it now owns almost 30% of the Catalan real estate company.

George Soros has strengthened his commitment to Hispania, in which the millionaire John Paulson holds a stake of almost 10%. Carlos Slim controls Realia…Amancio Ortega, with his investment arm Pontegadea, now manages a very interesting and diverse asset portfolio.

The experts agree that the sector has left behind the turbulent times that it experienced following the burst of the real estate bubble. It is undergoing a period of normalisation and stabilisation – albeit a long way from its pre-crisis levels – and it is facing a new environment, with sustainable growth, in a market that is more mature and more professional.

Original story: Cinco Días (by Pablo Pico)

Translation: Carmel Drake

Foreigners Spent €463M On Canary Island Homes In H1 2015

3 November 2015 – ABC

The real estate market is being revived slowly, but surely in the Canary Islands. Most of this growth is due to foreign residents in the autonomous region, which have spent more than €460 million so far this year buying homes in the region. To put this amount into context, that figure is the highest seen in the last eight years. In fact, for example, it more than doubles the figures recorded in 2009, when the economic crisis had already taken hold in Spain.

The demand for apartments and homes is recovering but at a slow rate. According to statistics published by the Ministry of Development, in 2015, and specifically in the six months to June 2015,  9,560 homes were bought and sold in the Canary Islands: 4,909 in the province of Las Palmas and the remainder, 4,451 in the province of Santa Cruz de Tenerife. This reflects an increase compared with the fewer than 9,000 homes that were sold during the same period in 2014, the fewer than 7,600 that were sold in H1 2013 and the 7,650 that were sold in H1 2012. A positive trend for the Canary Islands’ economy, which is strengthened by the fact that the size of these real estate operations is also on the rise.

Data from the Department led by Ana Pastor reveals not only that the volume of transactions signed (by buyers of all nationalities) between April and June (almost €588 million) is the highest quarterly figure since Q3 2010, but also that the volume signed during the first half of 2015 (almost €1,100 million) represents the highest figure since H1 2010. Between January and June, house sales in the autonomous region amounted to €1,069.4 million, of which almost €545.5 million related to operations in the province of Las Palmas and around €524 million to transactions in the province of Santa Cruz de Tenerife.

The bulletin from the Ministry of Development also showed that the recovery in the real estate market in the autonomous region has reached an important segment of the market, i.e. that comprising foreigners. Overseas residents in the region were behind house purchases amounting to almost €462.3 million between January and June. These operations totalled just under €210 million during the first quarter of the year and just over €252.5 million during the second quarter. The last time this figure exceeded €252.5 million was in Q3 2007, i.e., just before the onset of the subprime mortgage crisis, when it reached €261.3 million. If we take this latest half year data as a benchmark, the €462.3 million spent represents the highest figure spent by foreign residents in the last eight years, i.e. since H1 2007, the year that marked the end of the boom and the beginning of the long years of hardship. (…).

These statistics also show that foreigners living in the autonomous region prefer to buy second-hand homes. More than €417 million of the €462.3 million spent by foreigners, i.e. more than 90%, was spent on second-hand apartments and homes. (…).

Land sales not increasing

However, another indicator clearly shows that the recovery of the real estate sector is not happening as quickly in the Canary Islands as in the rest of the country: sales of land. The latest data from Spain’s National Institute of Statistics (INE) show that whilst during the 8 months to August, 48,905 plots of land were sold in Spain, up by 10.5% compared with the same period in 2014; the comparable figure amounted to less than 1.5% in the Canary Islands, where just 1,257 plots were sold between January and August, an increase of just 19 (plots) compared with the previous year. At the height of the boom, 5,800 plots were sold in the autonomous region during the same period in 2007.

Original story: ABC

Translation: Carmel Drake