Tag: real estate fund

Arcano Will Invest €200M with its Second Real Estate Fund: Ava II

19 February 2018 – El Economista

Arcano Asset Management, the asset management arm of the Arcano Group, is redoubling its commitment to the Spanish real estate market with the launch of its second fund specialising in property.

Known as AVA II, the new vehicle will have a target size of between €150 million and €200 million and will replace its first real estate fund, Asoref, by raising and investing its funds over a period of 18 months.

AVA II is going to focus on value-added operations and will complete its first close at the end of March, although it already has €40 million of funding committed, from domestic and international investors.

The fund, which is going to be open to new investors for the next 15 months, has a target net rate of return (IRR) of 15% and is going to invest in operations involving all types of real estate assets, with a clear focus on residential assets and offices in Spain’s main cities.

In addition, and in an opportunistic way, Arcano’s new fund is also going to have the option of exploring beyond Spain’s borders and investing in real estate assets in Portugal and Italy, although under no circumstances shall its investments in those countries exceed 20% of the fund’s total value.

Eduardo Fernández-Cuesta, Partner at Arcano Real Estate; José Luis del Río, CEO of Arcano Asset Management; and Pablo Gómez-Almansa, Director of Investments at Arcano Real Estate, are going to be responsible for leading this new vehicle, supported by a team of six professionals, including the recent new recruit Diego Vizcaíno, as Development Director.

Operations in Madrid

Asoref, Arcano’s first real estate fund, which has just completed its investment process, has disbursed or committed more than €170 million in total, focusing primarily on office assets and residential properties. Its most recent operation involved the purchase of Hotel La Moreleja in Madrid, for approximately €12 million, which it is going to convert into a state-of-the-art office building, designed by the architecture studio Rafael de la Hoz. The firm is going to spend around €14.5 million on the construction of that project.

That acquisition follows the purchase of another office building for corporate headquarters in Madrid at number 24 Calle Ríos Rosas, in the heart of the Chamberí neighbourhood, which has an above ground surface area of 3,517 m2.

Likewise, through this fund, Arcano has entered the residential market, closing the acquisition of a plot with a buildable surface area of 6,029 m2 in the north of Madrid, in Las Rozas, for the construction of high-end housing.

It also completed the purchase of a residential plot in the centre of Madrid, on Calle Divino Pastor 5, in the Malasaña neighbourhood, for the construction of 30 homes. Beyond Madrid, the fund closed the acquisition of a plot of land on the seafront in Benalmádena, with a buildable surface area of 12,000 m2.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Arcano Acquires Hotel La Moreleja In Madrid For €12.5M

20 November 2017 – Observatorio Inmobiliario

Arcano’s real estate fund, the Arcano Spanish Opportunity Real Estate Fund (ASOREF), has announced a new operation to purchase two assets in Madrid with a combined value of €12.15 million, which will be used as office space. With this acquisition, the fund is advancing with its strategy of investing in real estate value-added operations in the main cities in Spain.

The objective of the fund is to demolish the existing hotel and construct a state-of-the-art office building on the site, to be designed by the architecture studio Rafael de La-Hoz. The property will have an above ground gross leasable area of 8,100 m2. The new building will be very flexible in its design and will have very high efficiency ratios, as well as a Leed Gold certification to accredit its energy efficiency and construction quality.

The properties acquired in this operation, located on Avenida de Europa, in the La Moreleja Business Park, comprise an attractive real estate complex in a sub-market where several large corporations, such as Pfizer, Acciona and Telefónica have their main headquarters. It is one of the most important business centres in Madrid and one of the most sought-after for office space outside the M-30.

“This is a very significant operation within the capital’s real estate market given the scarcity of land and new build offices in Madrid and, more specifically, in the surrounding area. Meanwhile, the operation will allow us to provide new high-quality spaces at a time of intense demand”, said Pablo Gómez-Almansa, Director of Investments at ASOREF.

Arcano already has committed investments amounting to €173 million for its first real estate fund.

This operation follows the purchase of an office building for its corporate headquarters in Madrid on Calle Ríos Rosas, with an above ground buildable surface area of 3,517 m2; the acquisition of a plot of land with a buildable surface area of 6,029 m2 in Las Rozas (Madrid) for the development of high-end homes; the purchase of a residential building on Calle Divino Pastor, 5 in Madrid, for the construction of 28 new build homes; and the acquisition of a beachfront plot of land in Benalmádena, with a buildable surface area of 12,000 m² , amongst others.

The fund invests in value-added operations across all kinds of properties, with a clear focus towards residential assets in the main Spanish cities and also along the Costa del Sol, without forgetting other assets, including office buildings, logistics assets, retail premises and shopping centres, whenever they represent opportunities to generate value as part of the fund’s investment philosophy. Arcano whereby covers a gap in the real estate sector in Spain by targeting medium-sized value-added operations (between €5 million and €25 million in equity), with a clear local focus.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

BBVA Sells 9 Properties From CX RE Fund For €37M

2 June 2017 – Europa Press

BBVA Asset Management has sold nine properties from the CX Propietat real estate fund for €37 million in total. That price is 20.96% lower than the most recent appraisal value of the aforementioned assets.

According to a statement filed by the asset manager with Spain’s National Securities and Exchange Commission (CNMV), this sale represents an “important step forward” in the liquidation of the CX Propietat fund. The fund filed for liquidation in September 2013, before BBVA acquired the former Catalan savings bank Catalunya Banc (CX).

The asset manager is going to continue making “its best efforts” to facilitate the complete liquidation of this fund “as soon as possible”, said the company to the supervisor.

According to sources at BBVA, once the sales process for the fund’s entire portfolio has been completed, the definitive liquidation value will be calculated.

Original story: Europa Press

Translation: Carmel Drake

Arcano’s RE Fund Acquires 2 Assets For c. €20M

27 March 2017 – Observatorio Inmobiliario

On Tuesday (21 March), Arcano’s real estate fund, the Arcano Spanish Opportunity Real Estate Fund (ASOREF), announced the acquisition of two new assets for almost €20 million. The assets acquired comprise an office building in Barcelona’s Plaza Europa (number 22-24) and a residential building on Calle Divino Pastor, 5 in Madrid.

Following these operations, the fund has now invested 50% of its capital; it plans to complete the rest of its investments this year.

The office building on Plaza Europa, 22-24 in Barcelona (pictured above) involved an investment of around €13 million. The asset is located in one of the fastest growing areas of the city for high-quality office space. The property currently has an occupancy rate of 84% and a gross leasable area of 7,334 m2, along with 83 parking spaces and storerooms covering 452 m2. It also has 164 parking spaces as an administrative concession.

Now that Arcano has acquired the property, its objective, as part of its added-value strategy for this fund, is to invest in its refurbishment and update, to increase the value and appeal of the building. “Our strategy will involve repositioning the property through the active management of it. From our point of view, Plaza Europa is the natural area of consolidation for the office market in Barcelona – it is going to undergo significant changes over the next few years”, said Pablo Gómez-Almansa, Investment Director at ASOREF.

The asset acquired in Madrid, on Calle Divino Pastor, 5, for a price of just over €6 million, is for the construction of 28 new homes with 1 and 2 bedrooms, a commercial space and 88 parking spaces. It is an 810 m2 plot of land with a constructed residential surface area of 2,371 m2. The plot is located in the Malasaña neighbourhood, in the Centro district of the city of Madrid, between Calles Fuencarral and San Bernardo. The building is very well located and in a strategic area between Calles Princesa, Gran Vía, Fuencarral and Carranza. It will benefit from the lack of land and shortage of new residential developments in the area.

In the words of Eduardo Fernández-Cuesta, Head Partner at ASOREF, “the two acquisitions announced today underline Arcano’s commitment to forming a diversified portfolio and adding value to its properties, through renovation, new builds and better positioning of its buildings in the market, to increase the supply of high-quality assets”.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

KKR Gets Ready To Launch €525M RE Fund In Europe

3 May 2016 – El Economista

The US investment firm KKR is finalising its fundraising ahead of the launch of its new fund, which will focus on the real estate sector in Europe. To date, it has already managed to raise USD 598 million (€525 million).

The usual size of KKR’s investment vehicles ranges between USD 500 million and €1,000 million (approximately €439 million and €878 million), a range that the directors of the US firm hope to reach. The new fund’s key investors include Maine Public Employees Retirement System, which has contributed USD 50 million (€44 million) to the firm’s new vehicle.

Just like the other international investment companies, KKR decided to gradually diversify its portfolio of investments. In fact, its specialisation in the real estate sector culminated in 2011, when the US company created a team dedicated especially to that business segment. In the last year, KKR has strengthened its teams in the USA and Europe focused on the real estate sector.

Opportunities in Europe

In the words of one of the directors of KKR, Scott Nuttal, “We are seeing plenty of opportunities to invest in the real estate segment in Europe”. In fact, currently, the US investment firm owns several assets in France, the UK and Spain.

Its first foray into the property sector in France was made in September 2013, when it acquired an office building in the Paris region of River Plaza. A year later, it bought four shopping centres from Corio for €104 million.

In the UK, the US group’s first operation was the purchase of the three- and four-star hotel chain Queens Moat in 2012. During 2013 and 2014, KKR acquired a package of shopping centres located in Oxford, Glasgow, Sunderland and Birmingham.

In Spain, KKR acquired two shopping centres in September 2014: the Nassica in Madrid and Vista Alegre in Zamora. Those assets were previously owned by British Land and KKR spend €90 million on their purchase.

In the rest of the world, the US investment firm controls several assets distributed all over the world. Specifically, in the USA, it owns eight assets (three shopping centres, one residential development, offices and a portfolio of assets relating to the health sector). Moreover, it owns the World Trade Centre in Melbourne (Australia) and the K Tuin towers in Seoul (South Korea).

Original story: El Economista (by Araceli Muñoz and Rubén Esteller)

Translation: Carmel Drake

Arcano’s RE Fund Buys Office Building In Madrid For €10.6M

7 April 2016 – Expansión

Arcano’s real estate fund, Arcano Spanish Opportunity Real Estate Fund, has purchased an office building in Madrid for €10.6 million, the first operation to be closed by this real estate fund in the value-added space.

Original story: Expansión

Translation: Carmel Drake

UBS Finalises Its Purchase Of The Zielo Shopping Centre

20 March 2015 – Expansión

The Swiss bank’s real estate fund is offering €73 million for the Madrilenian shopping centre, exceeding the expectations of its current owner, Hines, which has invested more than €100 million in its construction.

Another shopping centre is expected to change hands soon. After the French company Klépierre closed its purchase of the Plenilunio shopping centre in Madrid this week, another Madrilenian property will soon have a new owner.

The property in question is the Zielo shopping centre, located in the town of Pozuelo de Alarcón, in Madrid. The building was designed by the real estate company Hines, which took out a loan of €50 million to construct the property. Conceived at the height of the boom (it was opened in October 2009), Hines invested more than €100 million in its development.

The centre, designed by the architect Alberto Martín Caballero, has a surface area of 50,000 square metres, of which 15,537 m2 is dedicated to retail over three floors. It also has more than a thousand parking spaces, the majority of which are indoors.

Five years later, Hines put the “for sale” sign up on its Madrilenian shopping centre in January. The initial asking price was set at €65 million. The Houston-based real estate company decided to sell the property through a restricted (tender) process rather than open it up to all of the interested investors in the Spanish market. Thus, its advisors reached out to the large Spanish Socimis (Merlin Properties, Axia Real Estate and Lar España), as well as the more institutional investment funds such as Deka Inmobilien and the (fund) manager Tiaa Henderson. In the end, the real estate fund owned by the Swiss bank UBS made the best offer and is now negotiating the finer details of the transaction in an exclusive process with Hines.

According to sources close to the process, UBS is offering €73 million. A price that means that the yield on the transaction amounts to less than 5%, a very low figure compared with the figure of 10% that was achieved on the first deals involving the sale and purchase of shopping centres following the burst of the bubble, in 2013.

Zielo Shopping is not the only commercial property that is currently on the market in Spain. According to Deloitte Real Estate, around 80 shopping centres will come onto the market over the next 12 months. Some transactions, such as the purchase of Puerto Venecia in Zaragoza and Plenilunio in Madrid have already been closed. In total, €3,500 million could change hands in this market alone.

Possible buyers include the British real estate company Intu Properties, which is finalising a call option on a real estate project in Málaga, as part of its €2,500 million investment program, and the fund manager CBRE Global Investors, which plans to invest €600 million in shopping centres and retail outlets in the Spanish market.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake