Tag: Region of Murcia

Blackstone & Santander Offer around 16.5 million m2 of Land to c. 30 Developers in Murcia

10 November 2018 – La Verdad

Land is moving in the Region of Murcia. But it is not because of an earthquake. In this case, it is due to a shake-up of the real estate business, launched by the US fund manager Blackstone and Banco Santander, which have put land up for sale, spanning around 16.5 million m2 and located in different municipalities throughout the Region.

Yesterday, around thirty property developers and executives from the sector in Murcia expressed their interest in finding about more about the offer by attending a professional meeting that the firm Aliseda, the former real estate arm of Banco Popular – absorbed by Santander – organised in Murcia, in addition to others that requested information in this regard as they were unable to attend the meeting.

Of the different lots offered, there are plots in Murcia, Cartagena, Águilas, San Pedro del Pinatar, Yecla and Torre Pacheco, amongst other locations. Sources at Aliseda highlight that more than 11 million m2 of the total portfolio comprises buildable land or land under management, which is ready to be built on. And although most of the plots are urban residential, there is also some industrial and hotel land. Similarly, the portfolio includes some buildings and unfinished urban developments due to the effects of the crisis.

The President of the Association of Property Developers from the Region of Murcia (Apirm), José Hernández, acknowledged to La Verdad that “there is interest in the market, and so companies are going to value all of the assets, although evidently, those with greater certainty are arousing the most interest, depending on the profitability involved and taking into account key factors such as location”. He also added that “long-term investments must be taken into account”.

This divestment by Blackstone and Santander (which hold stakes of 51% and 49%, respectively) follows the operation involving Project Origin, also launched last month, comprising the sale of 2.1 million m2 of land all over Spain with an estimated value of more than €500 million, of which the Murcian region accounts for the largest part, almost 290,000 m2, with a value of €43 million. Specifically, that comprises 18 assets, on which 2,651 homes could be built. The peculiarity of this initiative is that the sale process has been organised through an electronic dataroom to which thousands of investors may have access.

In terms of the meeting yesterday, Aliseda’s regional director for Levante, Vicente Brotóns, together with the regional commercial delegate for the land area of the real estate group, Joaquín Ivars, were responsible for showing the entire portfolio to the Murcian business leaders.

Now, it remains to be seen which real offers are going to be confirmed, as well as to check whether they will be formalised immediately, taking into account that the US fund manager, having teamed up with the Spanish bank and created the largest real estate empire in the country, with assets worth more than €20 billion, seems determined to divest its land as soon as possible. “It is clear that they are ruling out developing the land themselves, they are going to limit themselves to managing the plots to sell them”, concluded Hernández.

Original story: La Verdad (by Zenón Guillén)

Translation: Carmel Drake

Sacyr Claims €518.5M from Government of Murcia for its Ghost Airport

23 April 2018 – El Confidencial

Sacyr wants to take the conflict with the Region of Murcia over the private airport in Corvera to its logical conclusion. The construction company chaired by Manuel Manrique is claiming €518.5 million from the Regional (Partido Popular) government for the suspension of the concession to operate the airport infrastructure, which has ended up in the hands of the public entity Aena. The company in which the Murcian owner of El Pozo also owns a stake is demanding twice the amount that it cost it to construct the property.

According to an internal document from Sacyr, the ‘Concessionaire Company of the Airport for the Region of Murcia’ (‘Sociedad Concesionaria del Aeropuerto de la Región de Murcia’ or SCAM) filed a report on 17 January urging the autonomous government to issue a resolution to award the concessionaire a settlement of €518.5 million. That petition comes almost five years after the Government, now chaired by Fernando López Miras, terminated the contract for an alleged breach and a month after the Murican Executive agreed the management of the private airport with Aena – which is controlled by the State – for the next 25 years.

The claim is based on three concepts. The first relates to the investments and costs incurred by SCAM, in which Sacyr holds an 80% stake, for the development and execution of the concession contract. That sum amounted to €256.69 million as at 22 March 2016, the date immediately prior to when the Region of Murcia took ownership of the asset, plus an additional €1.97 million for the maintenance work carried out by the construction company until 30 September last year.

Sacyr and its shareholders, which include Banco Sabadell and Grupo Fuertes (El Pozo), the largest industrial group in Murcia, are also claiming €35.1 million in extra costs borne by the company resulting from the early termination of the concession contract, amounts that “must also be updated at the date of their reimbursement and/or settlement”. Finally, the company is demanding €224.82 million for the profit forgone or forecast loss, as assessed by an independent expert, whose identity has not been revealed by Sacyr.

The Corvera airport was awarded to Sacyr in 2007 (…). Nevertheless, after construction was completed in 2012, it could not be opened due to insurmountable differences that were so great they even led to the intervention of the Guardia Civil.

After long disputes (…) and some unsuccessful negotiations, the regional Government expropriated the airport and awarded it again at the end of last year. The winner was Aena (…), which undertook to manage the airport in exchange for closing the San Javier military airfield, closer to the Mar Menor and just 30 km from Corvera.

The new airport, which is expected to begin operation in December, is going to be called Juan de la Cierva, in honour of the Murcian man who invented the gyroplane. The infrastructure is expected to receive 800,000 international tourists during its first four years and will be able to handle 3.5 million passengers per year. Initial forecasts indicate sales of €495.8 million during the 25-year concession. Its largest competitor will continue to be the airport in Alicante, which handles more than 12 million users per year.

Original story: El Confidencial (by Agustín Marco)

Translation: Carmel Drake

Aena Submits The Only Bid To Manage ‘Ghost’ Airport In Murcia

31 October 2017 – Expansión

Yesterday, Aena came to the rescue of the international airport for the Region of Murcia with a multi-million euro offer to take over its operation, management and conservation for a period of 25 years. This ghost infrastructure was planned before the crisis by the regional government and a consortium of companies led by Sacyr, at a cost of €270 million. Nevertheless, the outbreak of the crisis submerged the installation into a tsunami of financial and legal problems, which prevented it from being opened even after the construction work had been completed, in 2012.

Five years later, in April, the regional executive opened a tender process, with a budget of €600 million. Aena, in which the Spanish State holds a 51% stake, was the only company that expressed interest in managing the infrastructure and it formalised its offer yesterday. Sources close to the bid say that the amount offered by Aena falls well below the tender price.

In all likelihood, the airport manager’s plan will involve moving operations from the San Javier military airport, 30 km away, to Corvera. The new president of Aena, Jaime García-Legaz, who has only been in the job for two weeks, has focused on the need to secure the management of the Murcian airport. “We are going to make an offer to win that is profitable for Aena”, he said last week in meetings held with the group’s personnel (…). García-Legaz is Murcian, but the offer had already been prepared by his predecessor, José Manuel Vargas.

Currently, 400 employees work at San Javier airport, of whom 72 form part of the workforce, which would be affected by the move. The managers themselves have reviewed the facilities in recent weeks to check that everything is in order so as to start the operation in the most agile way possible.

Some sources say that the first flights could begin next summer (2018). “The main objective should be to secure Iberia or another major airline to turn the airport into a key infrastructure hub”, they add.

The arrival of one or more large companies is key if the reduction in passenger numbers at the Murcian airport is to be plugged. Since 2007, traffic volumes have fallen by half, from 2 million users to 1 million in 2016, proceeding from low-cost airlines such as Easyjet, Ryanair and Norwegian. And that decrease has happened despite the recent investment of €70 million made by Aena to construct a second runway. The airport has a single domestic route, connecting with Madrid, and 19 international routes, primarily to/from the United Kingdom. 92% of users are foreigners visiting the region for tourist purposes.

By contrast, the aerodrome in Alicante – 90km away – has seen its user number increase from 9 million to 12 million during the same period. Corvera is now adding capacity to manage a visitor flow of 3.5 million each year. If Aena does end up winning the contract to manage the installation, Corvera would become the 47th airport that the group manages in the country. The company has the capacity to welcome 330 million travellers, 30% more than the 230 million that used its airports in 2016.

Sources at Aena highlight that the airport in Murcia would generate profits for the group (…).

The Region of Murcia’s Ministry of Development will convene a meeting on Friday to analyse Aena’s offer and proceed to award the contract to manage the airport “as soon as possible”.

Original story: Expansión (by Víctor Martínez)

Translation: Carmel Drake