Tag: Raval

Barcino Purchases a Mixed-Use Property in Barcelona for €2.8M

7 October 2018 – Eje Prime

Barcino is fattening up its portfolio of residential assets. The Socimi has acquired a residential property in Barcelona for €2.8 million, according to a statement filed with the Alternative Investment Market (MAB). The operation has been financed using a capital increase amounting to more than €9.7 million, which the company undertook at the beginning of September.

Barcino has purchased the property at number 57 Calle Joaquín Costa, in the Raval neighbourhood of the Catalan capital. The building comprises nine homes and two commercial premises in total. The current occupancy ratio of the asset amounts to 45%.

Barcino, which made its debut on the stock market at the end of 2017, defines itself as a company whose main activity involves the “acquisition and renovation of urban assets for their rental”. The company invests primarily in central locations in the metropolitan area of Barcelona and is controlled (50%) by the Dutch fund Barcino Management.

One of the Socimi’s most recent operations, completed in the month of September, was the acquisition of two residential buildings in Barcelona for €3.9 million in total: one of the properties comprises fourteen homes and one commercial premise in the Poble Sec neighbourhood, whilst the other comprises twelve homes and is located in the heart of the Raval neighbourhood.

Original story: Eje Prime

Translation: Carmel Drake

Barcelona’s Town Hall Reserves Right of First Refusal over 47 Buildings in Raval

12 December 2017 – Eje Prime

Ada Colau’s Government may make a new move in its commitment to social housing. The Town Hall of Barcelona has reserved the right to purchase 47 buildings in the Raval neighbourhood, where the acquisition and subsequent renovation of properties for social purposes is being proposed.

The objective of the Town Hall is to protect residents from losing their homes, either due to the poor condition of the properties in the area or problem with drug dens, as well as to boost activities relating to social housing policies, according to a report from Idealista.

The streets where this right of first refusal has been granted are Sant Ramon, Espalter and Robador. The intervention by the Town Hall in this regard started at the beginning of 2017 when the Town Hall of Barcelona approved the Catalan capital’s right of first refusal over entire plots and buildings. As such, the Town Hall has priority over the purchase of these assets before the owner is allowed to sell them to a third party.

To date, the Town Hall of Barcelona owns twelve blocks in the Raval neighbourhood, containing around 150 homes in total.

Original story: Eje Prime

Translation: Carmel Drake

British Investors Buy Up Entire Residential Buildings In Barcelona

7 December 2016 – La Vanguardia

They used to own a flat in a good location in the centre of London. They sold it and with the profits they bought an entire four-storey building in Barcelona. That is the story of a British family, which has become the new owner of number 68 on Calle Hospital in the heart of the Raval neighbourhood. The property, constructed more than a century ago, needs to be completely renovated. Once that has been done, the four floors will be put on the market for rent, whereby benefitting from the current market of rising prices and within a few years, the owners will sell the property.

That is how British families with investment potential are managing to generate guaranteed returns from real estate assets. A property like the one on Calle Hospital costs around €1 million. After the renovation, the rental income is unlikely to fall below €1,000/month. Such properties can be sold subsequently for more than €1.5 million, at least.

This real estate “play” is not a unique case. The consultancy firm Aguirre Newman has closed the sale of two buildings in Eixample to a British investor group within the last few weeks. “The property is in a bad condition, but they will take care of the renovation, and then put it up for sale straight away”, explained Anna Gener, Director General of the firm in Barcelona.

Over the last year, Brits have realised that Barcelona offers them high returns, regardless of whether they buy or rent. “Brexit has meant that there are increasingly more investors who are interested in buying assets here”, said Albert Sarrias, Commercial Director at Engel&Völkers in Barcelona, although he recognised that “we will only see the real effects in the long term, for the moment, they are browsing more than they are buying”.

By contrast, for Miquel Laborde, owner of the real estate management company Laborde Marcet, the divorce between the UK and the EU is not the driver behind the latest phenomenon. “It is a simple matter of returns. British investors can earn more money here from investing and selling than they can in London”. The reason, beyond any fluctuations in the euro-sterling exchange rate, is that prices in the residential sector in the British capital are at historical highs and they seem to be peaking. The price per square metre of a new home in the centre of the British capital ranges between €10,000/m2 and €15,000/m2. (…).

17.66% of house sales to foreigners in Spain are made to Brits, according to data from the College of Registrars. They are followed, at a considerable distance, by wealthy French, German, Swedish and Belgian investors.

These types of operations in the residential sector are mainly concentrated in the centre of Barcelona Raval, Born and Eixample are the preferred locations although the real estate agents lament the limited supply of products on the market. (…).

Small investors prefer to put their money in the residential sector. Offices and buildings, measuring more than 5,000 m2, generate more rental income but only Socimis and large investment funds can afford them. (…).

Original story: La Vanguardia

Translation: Carmel Drake