Tinsa Heralds A New Era For The Hotel Sector

24 February 2015 – Expansión

More specialisation will be required to combat the maturity of the market.

According to Tinsa, the number of hotels has grown by 13.7% over the last seven years. By the end of 2014, there were 7,840 establishments and 1.26 million rooms in Spain.

In its Hotel Market 2014 study, prepared on the basis of the assessment of 2,700 establishments – 35% of the total market in Spain – the appraisal company states that the construction of a five star hotel requires an average investment of €262,000 per room, compared with €135,000 per room for a four star hotel, even though the number of rooms is typically similar in both cases – around 140. For three star accommodation, the investment required is around €89,000 per room. The report shows that profitability increases in line with the category. A five star hotel generates €29,600 per room per year, compared with €14,800 for a four star establishment. Revenue per available room (RevPar) is €117 for five star hotels and €60 for four star properties.

Tinsa indicates that, over the coming years, differentiation will become increasingly important. The hotel industry will undergo a similar transformation to that experienced by the airlines with the arrival of low cost competitors; some chains are already beginning to distinguish themselves with services such as mobile check-in.

Original story: Expansión (by Y. Blanco)

Translation: Carmel Drake

Carlton Group: Spain’s Real Estate Sector Records 2nd Best Year In A Decade

16 February 2015 – Property Funds World

Spain’s commercial real estate investment sector rose to approximately EUR9 billion in 2014, exceeding the most optimistic forecasts,  according to a new report by The Carlton Group.

2014 was the second best year within the last decade in terms of volume for Spanish commercial real estate investment, (surpassed only by 2007 when the value of each asset was significantly higher), the report said.

“Spain has once again become a relevant destination for real estate investors and the positive trend is expected to continue over the next few years,” says Javier Beltran, Managing Director of Carlton Iberia (Spain and Portugal) and head of Carlton’s Madrid office.

The report cites the “unparalleled arrival” of a very large number of international institutional and “off radar” investors from Asia, Middle East, Latin America, North America and Europe, along with the new Socimi, the Spanish REITs, that have contributed to the increased volume and value of commercial real estate transactions in Spain.

In 2014, the most desired Spanish assets for investors were prime office buildings and shopping centers, (two of the largest shopping centers in Spain were transacted during 2014), along with hotel, logistic and car park sectors, the Carlton report said.

Many investors have also started to buy “well located land development sites”  in Madrid, Barcelona and Spain’s Southern coast. This has contributed to an increase in construction activity that is also expected to rise in coming years.

The report points to the increased number of international investors, the general improvement of the Spanish economy, along with the renewed interest in Spanish banks’ lending capacity as contributing factors to a revaluation of real estate assets that is expected to continue during the next few years.

It also attributes a very robust hospitality investment market to the record number of international visitors coming to Barcelona, Balearic and Canary Islands, Madrid, Marbella, Valencia and Alicante over the last two years.

Prices in the Spanish residential market are stabilising and have shown slight increases in some areas of main cities, with the trend expected to increase price and activity, the Carlton report said.

The report concludes that Spanish real estate markets are “becoming more professional and international and all that is very good news,” says Carlton’s Beltran.

Original story: Property Funds World

Edited by: Carmel Drake

Madrid: Third Favourite Investment Market In Europe

12 February 2015 – Expansión

PwC Report / The Spanish capital is the third favourite investment market after Berlin and Dublin. The commitments made by George Soros and Dalian Wanda are generating the “pull effect” (in 2015).

The financial investor George Soros, the giant Chinese corporate Dalian Wanda and the new fund manager Tiaa Henderson all have something in common: they have all invested in the Spanish real estate sector in recent months. This activity has not gone unnoticed by other investors, since not only has real estate investment in Spain returned to figures not seen since the boom years (2007), but also the phenomenon is also expected to continue in 2015.

According to the ‘Trends in the European Real Estate Market 2015’ report, prepared by PwC, Madrid is the third favourite destination for investors at the European level, behind Berlin and Dublin. “There is a mixture of 28 cities in this ranking: classic investment destinations such as Berlin and Munich, capitals that are in recovery, such as Athens – the survey was conducted in November before the Greek elections – and Dublin”, explains Rafael Pérez Guerra, the partner responsible for the real estate sector at PwC.

Of the 28 cities studied, only those in Russia have limited prospects for investment growth, even though 61% of respondents believe that the good assets (known as “the core” in the sector) are overvalued in virtually all of the European markets.

This boom has led many investors to seek out new markets. “Another important area of interest are the secondary cities, such as Birmingham, which is ranked in sixth place, above London and Munich. Investors have started to take on more risk because profitability in the large markets is scarce; as a result they are exploring secondary sites”, he adds.

Spain

The change in the Spanish real estate sector is reflected in the rise (up the ranking) of its main markets as investment destinations: Madrid has risen from 19th place to third and Barcelona from 22nd to 13th, according to PwC’s report.

“There is a very high level of interest and activity in Spain. It is not that the market is not over-heating, but rather that the dynamics of the sector are changing, with an imbalance between a scarcity of good deals in prime areas and significant demand from opportunists who remain in the market and more stable investors who are arriving”, says Enrique Used, the partner responsible for transactions in the real estate sector at PwC.

This commitment to the Spanish market will continue in 2015, according to the survey respondents, and will not be limited to the large markets. “International capital has moved towards Spain, en masse. Prices have risen considerably in Madrid, which suggests that the investors that are looking for the highest returns, should set their sights on the secondary markets in Spain during 2015 to obtain higher returns.

Although the 500 people surveyed by PwC see a clear recovery in investment in Spain, they still believe that the market for the construction of new homes should improve; Madrid and Barcelona are ranked only 14th and 23rd, respectively, although that represents an improvement with respect to 2013 when they were ranked 21st and 25th.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Lone Star Aspires To Become The Largest Property Developer In Spain

12 February 2015 – Cinco Días

The American fund plans to make the most of the land and assets it acquired last year from Kutxabank and Eurohypo

“We are working to become the leading residential developer in Spain, the largest home builder in the country”, said the European Director of the American fund Lone Star, the Argentinian Juan Pepa, on Wednesday. “We are buying land directly”, he said, explaining that although “in 2012, everyone said that land was worthless”, we are now beginning to see opportunities for obtaining profits from its development.

“We do not regard ourselves as a foreign investor, but as an industrial agent that invests its dividends in the construction of homes”, said Pepa, claiming that 50% of the group’s efforts in Spain over the next decade will focus on the creation of thousands of jobs in the sector, which suffered significant job cuts during the crisis. Pepa was speaking at the presentation of a study conducted by PricewaterhouseCoopers (PwC) about trends in the real estate sector in Europe, which show that the appetite for residential assets is growing.

To achieve its objectives, Lone Star will rely on the two large transactions that it has signed since entering the Spanish market in 2012: the mega-purchase of Eurohypo’s assets and the acquisition of Kutxabank’s real estate arm, Neinor; these were the two largest transactions in their respective fields during the crisis.

The first transaction, signed with JP Morgan last spring, enabled Lone Star to purchase Eurohypo’s mortgage portfolio from Commerzbank for €3,500 million, when the bank valued the portfolio on its own books at €4,500 million. The acquisition will allow the fund to access significant portfolios of land and property that serve as collateral for the loans.

The second transaction, which was signed last December, for €930 million, gave the fund control of Kutxabank’s property management platform, including 90 dedicated employees, as well as 50% of the entity’s real estate assets. The assets mainly comprise land, as well as some completed developments primarily located in the Pais Vasco, Madrid, Barcelona, Murcia and Andalucía.

“The cycle in Spain is just beginning” said Juan Pepa, who spoke about a promising period lasting 10 years…; it is “becoming increasingly difficult to enter the market” and exit as a winner. “We almost missed out completely in Spain” he admits, explaining that the fund arrived in the country in 2012 but did not invest until last year, even though 2013 was “a very good year to make investments”.

For PwC partner Enrique Used, Lone Star’s project is a clear example that investments made two years ago are now beginning to bear fruit,  “cranes are the best sign that activity is returning”. In this context….we are beginning to detect interest from new investors – although interest from opportunistic funds is still evident – and the appetite for residential assets is growing, in the face of the thriving office market.

Meanwhile, the vice-president and CEO of the Alternative Investment Market (Mercado Alternativo Bursátil or MAB), Jesús González, said that he expects to see six new real estate investment companies (Socimis) float their shares before the summer.

Original story: Cinco Días (by Juande Portillo)

Translation: Carmel Drake

Housing In 2015: Some Vital Statistics

10 February 2015 – Expansión

For translation of the first part of this article, refer to: Housing In 2015: More Sales And Higher Prices

Vital statistics about the housing sector in 2015

House sales: +7.5%: House sales have returned to positive growth. After seven years of decreases, in which the end of tax reliefs barely affected the market – only in an artificial way – a real increase in the number of house sales was recorded in 2014 (up 2.6%). According to the Real Estate Heart Rate Monitor (Pulsímetro Inmobiliario) from the Institute of Business Practices (Instituto de Práctica Empresarial), 7.5% more sales will be closed in 2015 than last year.

House prices: +2.5%: The key indicator for buyers is price, which, combined with necessity, is the factor that tips the balance towards the purchase of a home or not. According to the Real Estate Heart Rate Monitor, prepared by the Institute of Business Practices, house prices rose by 6.47% last year and will increase by 2.5% in 2015. The average value of homes sold in 2014 was €141,718 and this year will close with an average price of €145,261, i.e. we will see a return to 2012 levels.

Construction: +7.5%: Timidly, slowly, the cranes will return to the skyline of Spain’s major cities. In 2014, the construction of new buildings began to increase. Specifically, 37,418 new builds were started in 2014, an increase of 20% on 2013. In 2015, the upwards trend will continue, but it will be less pronounced. According to the IPE, at least the first brick will be laid on 40,225 homes, i.e. 7.5% more than last year.

Mortgages granted: +2.53%: The number of urban buildings financed through mortgages will return to positive growth after no less than eight years in decline. This year, 306,639 loans will be signed for the purchase of property, i.e. 2.53% more than the 299,064 recorded in 2014. Last year, the total volume of mortgages amounted to €39,472 million, i.e. 13.8% more than in 2013. In 2015, the figure will increase to €41,840 million, i.e. 6% more.

Average mortgage: +3.4%: The average size of the loans granted by financial institutions to cover the purchase of residential property in 2014 was €131,984, i.e. 15.8% higher than in 2013. This year the figure will continue to rise, to reach €136,477, i.e. 3.38% more than last year. The average mortgage is equivalent to 93% of the average sales price of homes (note, we should remember that mortgages are granted for all kinds of real estate property).

Construction permits: +5%: Having seen the beginning – timid but evident – of the recovery in the real estate sector, professionals in the market are starting to glimpse a more promising future. And so, permits for the construction of residential developments will grow again in 2015, after eight consecutive years of marked decreases. This year 64,591 permits will be granted. That is 5% more than last year and 24,000 more than the number of new homes started.

All properties: +1.8%: The report from the Institute of Business Practice focuses on the residential market in particular, i.e. the housing market, but the real estate sector is more broad. If we consider all urban properties – shops, shopping centres, offices, housing – 717,471 properties will change hands in 2015, i.e. 1.8% more than in 2014, the year in which the increase was similar, boosted by the arrival of vulture funds looking to purchase bargain properties with high yields.

Housing stock: -29.1%: For the fourth consecutive year, the number of surplus homes decreased in 2014, from 777,000 in 2013 to 662,761. That is, 115,000 fewer homes or 14.7% of the total. In 2015, the decrease in empty properties will be even greater. According to the IPE’s forecasts, the figure will drop to 469,708 properties this year, i.e. 29.1% fewer (193,000 homes). Valencia, Castilla-La Mancha and Andalucía account for 54% of the total stock.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Citizens Now Perceive Housing Market As Stable

10 February 2015 – El Mundo

51.5% of citizens expect prices to remain stable over the next year.

This stability in the market is driving the demand for home ownership.

8.4% of Spaniards rented properties in 2013; this figure has now increased to 13.3% and is set to continue to rise.

After institutions such as the International Monetary Fund (IMF) and the Bank of Spain (Banco de España or BdE) echoed the end of price decreases, the forecasts made by Spaniards about the real estate market indicates that they expect stability to continue in 2015.

Proof of this is that 51.5% of the 1,510 people surveyed think that house prices will remain largely unchanged over the next year. This is reflected in the Consumer Confidence Index (Índice de Confianza del Consumidor or ICC) prepared by the Centre for Sociological Research (Centro de Investigaciones Sociológicas or CIS).

On the other hand, the feeling that prices will rise is softening, with only 23.9% of those surveyed believing that prices will rise, i.e. 2.2% fewer than last month. This perception differs from the results recorded in January 2014, when up to 30.4% of those surveyed by the CIS strongly expected an adjustment. Furthermore, now only 17.8% expect prices to continue to decrease.

Once this forecast has been drawn for the real estate market, the intention of citizens to buy a home during the next year grows bit by bit, in a very calm way. 3.9% of respondents say that they are thinking about buying a house, in a period that has already been dubbed as the year of recovery in the sector by experts.

With regard to the rental of properties, the indicators reflect the growing prominence of rentals (since April 2013, when the ICC began to ask survey participants about the topic). In 2013, 8.4% Spaniards lived under this regime, whilst the latest data shows that this figure has risen to 13.3%.

It seems clear that high yields, the professionalization of the sector and a change in the mindset of society have helped the rental model to gain strength in Spain. One more sign of the equilibrium towards which the real estate sector is headed.

Original story: El Mundo (by Pablo Ramos)

Translation: Carmel Drake

Big Banks Record Losses Of €3,600m, Hit By Real Estate

9 February 2015 – El Mundo

The Ibex-listed financial institutions have doubtful balances and a portfolio of foreclosed homes amounting to €120,000 million.

During 2014, they sold more than 20,000 properties for a combined value of €11,700 million.

It will take Spanish banks two more years to “digest” the property binge that they enjoyed during the years of economic boom. The annual accounts of the listed entities – with the exception of Bankia, which has not yet published its results – show that, despite the recovery in the banking sector, the real estate sector continues to be a heavy burden – it generated losses of more than €3,600 million in 2014.

The indicators show signs of optimism, including the decrease in the default rate – which currently stands at 12.75% for the sector as a whole – and the decrease in doubtful assets by more than €20,000 million over the last year. However, the banks recognise that their exposure to the real estate sector will continue to be a hindrance throughout 2015 and 2016 at least, two years during which the market is expected to absorb most of the foreclosed assets (amounting to €60,000 million) accumulated by Santander, BBVA, Caixabank, Bankia, Sabadell, Popular and Bankinter.

The gross credit exposure to developers of these seven entities (all of which are listed on the Ibex) amounted to €103,000 million at the end of last year, although it should be noted that the figure for Bankia relates to the third quarter 2014.

From this quantity, just over €61,000 million is classified as doubtful (i.e. a non-payment of some kind has been recocorded) or sub-standard (credits that are currently being paid, but which are expected to go into arrears). According to the entities, this figure is lower than last year, due to the refinancings, recoveries and maturities that have taken place over the last year. But it is still a volume that requires a significant provision balance to cover the potential losses. Overall, the seven banks analysed recorded a total coverage against doubtful debts of €38,900 million at the end of 2014.

Last year was the first year in which the entities significantly reduced their provision coverage, following five years of crisis. “The results from the real estate sector clearly show the less negative impact that has resulted from the clean up of loans to developers and foreclosed real estate assets” says BBVA, a bank that recorded losses of €876 million in this area. Despite the size of the figure, it is 30% smaller than the €1,252 million losses recorded by the entity a year earlier.

Caixabank is the entity whose results have been hardest hit by the activity in the real estate sector. On 30 January, its CEO, Gonzalo Cortázar, predicted that the housing burden would have an impact on its financial results in 2015 and 2016 that this impact would “still be significant, although the digestion will be prolonged on a decreasing scale.

Santander has managed to reduce its loans to developers by 34% in the last year and has increased its coverage to 54%, but its annual results are still negative, with the entity led by Ana Botín recording a loss of €583 million.

Sabadell’s losses were even greater – €999 million and it has a gross exposure to the real estate market of €26,958 million, the highest in the sector, taking into account the foreclosed assets of CAM.

Fewer discounts

Bankia, Bankinter and Popular do not publish results about their respective real estate businesses. Popular is the bank that holds the greatest number of problem assets (doubtful and foreclosed assets) in proportion to the size of its balance sheet. It has loans amounting to €13,061 million in this category, with a coverage level of 44%. But the figures that really jump out are the volume of foreclosed homes, developments and land (€14,169 million) held by the entity, which closed the year with sales of €1,503 million.

Last year, some entities sold some of their house sale divisions. Altogether, these seven entities offloaded more than 20,000 units for a total value of €11,700 million. Sabadell was the most active bank in terms of house sales, generating €2,744 million. Various sources agree that 2014 was characterised by a reduction in the discounts applied, which in some cases, meant that the income received was actually higher than the recorded book value.

Some entities, such as BBVA and Sabadell, have an Asset Protection Scheme (Esquema de Protección de Activos or EPA) in place, following their acquisitions of Unnim and CAM, respectively. This insurance allows them to cover any additional deteriorations on their balance sheets over the next few years, through the Frob. Sabadell has recognised that it may start to use this financial cushion this year.

With the exception of Bankia, none of these companies has transferred assets to Sareb, the bad bank that absorbed loans to developers, and foreclosed homes and land, from entities that received public aid in the rescue of 2012.

Original story: El Mundo (by Javier G. Gallego)

Translation: Carmel Drake

Financial Institutions See 2015 As “Year Zero” Of The Recovery

9 February 2015 – El Mundo

Many banks (49%) believe that financing will return to normal between 2016 and 2018

Although many large banks are already taking positions in the real estate sector to benefit from its recovery, with transactions such as Operation Chamartín led by BBVA, or Santander’s increase of its stake in Metrovacesa, the financial sector does not believe that 2015 will be the year that marks the full recovery of the real estate sector. That is the conclusion of a study conducted by the consultancy KPMG, based on the views of more than 200 sector experts in the Spanish market.

According to the document, 2015 is going to be “year zero” in terms of the start of recovery of the Spanish real estate sector in Spain – 80% of Spanish banks and Sareb do not expect credit for housing and other real estate activities to flow normally this year, despite the fact that according to data published by the Bank of Spain, consumer loans and mortgages recorded a slight increase towards the end of 2014, for the first time since 2007.

Many financial institutions (49%) expect that financing will return to normal between 2016 and 2018, whilst 31% do not expect that it will happen for more than two years.

By that time, i.e.. from 2018 onwards, 79% of the banks surveyed (plus Sareb, the bad bank) expect that the stock of real estate assets, which is still being accumulated in Spain and which continues to weigh down on the results of the financial sector, will be absorbed.

Nevertheless and despite the high levels of unemployment, demand could increase significantly from 2016, according to 51% of the financial institutions that have participated in the study.

The sector is divided in its assessment of how this demand will behave and there is no consensus as to whether there has been a change in the mindsets of young people following this economic crisis. 50% of the banks surveyed (plus Sareb) believe that young people (aged less than 35 years) in Spain will continue to prefer to buy a home rather than rent one and most of the rest (44%) think that there will be a change in the home buying trend and that young Spaniards will chose to rent rather than buy as we learn from the past.

Nevertheless, there is complete consensus amongst respondents as to the involvement of financial institutions in supporting the recovery of the real estate market and the importance of their role as lenders, given that the other methods that are currently being used to close transactions – such as direct lending or investment by specialist funds – are necessary but not sufficient for the sector to fully recover.

There is also strong consensus (85%) that the old financing model of high leverage, which generated the property boom in Spain will not be repeated.

Construction reduces its weight over total GDP

According to estimates by the National Construction Confederation (Confederación Nacional de la Construcción or CNC), the construction sector accounted for around 23% of Spain’s GDP in 2007; by 2013, that weight had decreased by more than half (to 10%). The study, conducted by KPMG’s Real Estate team, concludes that 82% of the players involved in this business (banks, Sareb, companies, investors and the public sector) believe that construction’s contribution to national wealth will exceed 10% within five years, however it will have to reach 15% for it to really constitute a recovery. The majority of the participants in the survey agree that employment will be generated in the sector over the next five years. More than half think that the construction sector will provide work for more than 7% of the active population and more than a third believe that this figure will amount to 10%. But everyone agrees that the figure will not reach the level (14%) seen before the crisis.

Original story: El Mundo (by María Vega)

Translation: Carmel Drake

Irea: Real Estate Transactions Tripled In 2014

5 February 2015 – Cinco Días

A study conducted by Irea validates renewed interest in the sector

More than €23,000 million was invested in the real estate sector in Spain in 2014, of which 84% was dedicated to direct investment in assets and the acquisition of real estate-backed debt portfolios. The remaining 16% related to transactions involving shares in real estate companies and servicers.

At a press conference on Wednesday, the CEO of Irea, Mikel Echavarren, explained that the increase in activity in 2014 “has helped to unclog the pipes of the financial sector and bring the sector out of its coma”. It is interesting to note that most of the investors that have shown interest in the Spanish real estate sector, are foreign: on the one hand, the main players included large funds, such as Blackstone and Lone Star, and on the other hand, listed real estate investment companies (Socimis) also played an active role, in particular Merlin Properties, which have a significant percentage of foreign capital.

In the specific case of investment in assets, Irea said that shopping centres accounted for 26% of all of the capital invested in assets in 2014 (€2,501 million), followed by offices (24%) and hotels (11%), with these last two segments in full ascent. Residential assets accounted for barely 8% of total investment, including both land and finished homes. Furthermore, 85% of those transactions related to finished assets, with land representing only 4%.

With all of this, Echavarren highlighted the “merit” of this low percentage of land sold, since it is an asset that will have to be sold at a later date. In the current context, 4% seems like an achievement, since although many developers “want to purchase land, they do not have sufficient capital to do so and it is very difficult for them to obtain financing”.

Irea’s CEO repeated that international investors accounted for 53% of all investment activity in assets, followed by Socimis, which were responsible for 24%. Developers accounted for only 3%. On the vendor side, investors sold 24% of all assets, whilst financial institutions disposed of a further 22%.

The appeal of debt portfolios

Although residential assets were not sufficiently attractive for investors in 2014, that was not the case for debt portfolios linked to residential assets. Overall, the volume of debt portfolio transactions amounted to €9,683 million, of which 48% related to the residential segment. Nevertheless, the majority of this amount related to the portfolio sold by CatalunyaCaixa to Blackstone. In this segment, international investors acquired 100% of the debt portfolios sold, and 91% were purchased by investment funds. On the opposite side, 90.6% of the vendors in this case were financial institutions and 9.3% were other entities. In addition, shares in Metrovacesa and Colonial (both listed) amounting to €820 million (22%) changed hands during 2014, whilst the remaining €2,866 million of shares in real estate companies that changed hands were not listed.

Original story: Cinco Días

Translation: Carmel Drake

Sareb Sold 15,000 Assets In 2014

5 February 2015 – Expansión

The Asset Management Company for Bank Restructurings (Sareb) sold around 15,000 real estate assets in 2014, in addition to the 9,000 properties it sold in 2013, according to provisional data released by the company.

Sareb’s Secretary General, Óscar García Maceiras, provided this information on Wednesday during a conference entitled “Sareb’s role in the economic recovery” held in Valladolid, organised jointly by the Business Forum of Castilla y Leon and the Schola Foundation.

In his speech, García Maceiras highlighted the “full capacity” that society has shown to contribute to the clean up of the Spanish banking sector and the reactivation of the real estate sector.

In the two years since it was created, Sareb has generated turnover of more than €8,000 million and has sold more than 24,000 properties (homes, land, adjoining garages/store-rooms and tertiary assets), of which more than 15,000 were sold in 2014, according to provisional data released by the company.

García Maceiras said that this “dynamism” has allowed the company to fulfil “its primary mission”, namely the repayment of the debt issued by Sareb and backed by the State.

In this regard, he added that during its first 24 months, Sareb has repaid €5,000 million and has paid interest amounting to €2,400 on that debt, “and so has reduced the cost to the taxpayer of the financial restructuring by €7,400 million”.

During the conference, Sareb’s Secretary General reiterated the company’s commitment to the real estate sector and noted that in two years, Sareb has handled “more than 18,700 developer proposals, including the sale of collaterals, deeds in lieu, restructurings, disposals and other transactions”.

García Maceiras also highlighted the main challenges facing the company today, including the culmination of the change in its commercial managers, which, once the process for migrating assets has been completed, will be Altamira, Haya Real Estate, Servihabitat and Solvia.

Sareb is a private entity, created in November 2012, to help with the clean up of the Spanish financial sector and of the institutions that received state aid, explained the Company in a press release.

Sareb is committed to proceeding with the liquidation of the properties and loans it has purchased before November 2027.

Original story: Expansión

Translation: Carmel Drake