Tag: Renta

Renta Creates Linwork Properties Socimi to Invest in Logistics and Offices

29 June 2019

Linwork Properties, a newly incorporated socimi owned by the Renta Corporación, will focus its investments on the logistics and office sectors in Barcelona and ​​Madrid. The new socimi plans to invest a total of between 600 million and 1 billion euros. The firm is seeking a return of between 10% and 11% on equity of €300-500 million.

Linwork mandated the U.S. investment bank Btig to find 20 shareholders, giving Renta, the socimis sole manager, greater control over the vehicle.

Renta is also due to create another socimi, as yet unnamed, to invest in the hospitality sector. Linwork will buy assets located mainly on Mediterranean Spain, the Balearic Islands, the Canary Islands, Madrid and Barcelona.

Original Story: EjePrime – M.C.P.

Vivenio and Aquila Capital sign asset management agreement for Spanish real estate portfolio

4 October 2018

Aquila Capital, a Hamburg-based investment manager, has signed an agreement with Vivenio, a real estate investment trust (REIT) managed by APG and Renta Corporación, for asset management services for a residential portfolio in Spain.

The agreement covers property monitoring, letting management, finance and budget controlling, business reporting, cash management and general administration for a portfolio of over EUR200M and nearly 1,100 housing units.

The units, being developed by AQ Acentor, Aquila Capital’s real estate developer in Spain, are in Madrid, Barcelona and Málaga. They include both subsidised and private housing units at various stages of construction that will be transferred progressively up to 2021.

The developments in Madrid consist of four residential complexes in the district of Villaverde and will contain more than 500 subsidised rental housing units with a 15-year lease. The Barcelona complex, located in the municipality of Sant Adrià del Besòs, will have more than 100 rental housing units. The Málaga development will consist of five complexes with a total of more than 400 rental housing units.

All the developments will have common areas and additional facilities to improve the quality of life for the residents, including co-working spaces, pools, gyms and other such amenities.

This is Vivenio’s first turnkey project and it secures an important medium- and long-term portfolio for the REIT. It also broadens Vivenio’s social and private housing proposition, underlining its leading role in the sector. Furthermore, it marks the entry of Renta Corporación and APG’s REIT to the Andalusia market, having previously performed the bulk of its operations in Madrid, Barcelona, Valencia and Palma de Mallorca.

This latest transaction means that Vivenio, which benefits from Renta Corporación’s extensive experience in the Spanish residential market, has now invested more than EUR650 million since its launch and will manage more than 2,900 housing units by 2021.

José María Cervera, Corporate General Manager of Renta Corporación, says: “This transaction will greatly expand our portfolio and signifies both our first turnkey investment and entry to new geographical areas. It also marks a major step forward in Vivenio’s growth and investment strategy, which will lead to more acquisitions that will be formalised over the coming months.”

Aquila Capital operates independently as a developer in the Spanish market through its brand AQ Acentor. The residential projects include subsidised and private housing units in the cities of Madrid, Barcelona, Málaga and Valencia. AQ Acentor is one of the largest developers of residential land in Spain and one of the few aimed at institutional investors.

“The Spanish real estate market is highly attractive to institutional investors and offers above-average profitability, especially new construction. This is further supported by a growing rent culture and stable economic growth. We are aware that there is an increasing number of investors following us into this interesting market and are convinced that our extensive experience and local presence is key to be successful in this market,” says Sven Schoel, CEO of AQ Acentor.

Property Funds World

 

Renta Corporación Considers Paying Dividend of 30% to Shareholders in 2018

26 April 2018 – Eje Prime

Renta Corporación is returning to the boom times. According to Luis Hernández de Cabanyes, President of Renta Corporación, the real estate group is evaluating the possibility of distributing a 30% dividend to its shareholders. If that decision is approved in the end, the group’s shareholders would receive almost €5 million, given that the group’s objective for this year is to achieve a net result of €16 million.

That would be the first time in ten years that Renta Corporación has distributed any of its profits. “We have the intention of distributing a dividend, however, it will all depend on the financing needs of the company”, added the President of the group. Although the dividend for 2018 is still under consideration, the company has hinted that it will almost be a commitment to its shareholders starting from next year.

This reward for Renta’s shareholders comes after the company managed to pull itself out of the economic crisis. “We find ourselves facing a favourable market for the next four years and our objective is to return to our pre-crisis levels, when the group’s net profit amounted to between €30 million and €50 million, by 2022”, says Hernández.

“A stable business model, a renewed brand (the group is going to unveil a redesign of its entire corporate image next week), solvency, a portfolio of buildings under construction, a database and external collaborators are the ingredients to achieve the results that we have set ourselves”, concluded the President of the group.

According to the group, its strategic plan for the next three years involves maintaining a portfolio mix similar to the one it has had until this year “with the aim of diversifying its exposure to the risk presented by the different segments of the real estate market”.

“Renta will continue to concentrate its portfolio in the residential sector, one of the markets that is experiencing the highest growth and where positive trends are forecast, both in terms of prices and the volume of operations” – say sources at the group – “The operations forecast in the strategic plan will continue to concentrate on the cities of Madrid and Barcelona, since they are the most dynamic of all the markets”.

In 2018, Renta expects to close numerous operations involving the acquisition of new assets and the sale of properties, whilst in 2019, the number of transactions carried out by the group will rise to 31. In 2020, Renta plans to sign 34 operations. The operating margin is expected to amount to €26.5 million in 2018; €33.9 million in 2019; and €35.6 million in 2020.

Although Renta is focusing on Spain, specifically Madrid and Barcelona, the company does not rule out returning to some of its old haunts such as Paris (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Bankia Relaunches Sale of c/Alcalá 1 With Asking Price of €20M

16 April 2018 – Eje Prime

Bankia can’t make up its mind about c/Alcalá 1, one of its star assets in the centre of Madrid. The Spanish bank has put paid to the first process that it opened at the beginning of the year and is now launching a new round with a minimum sales price of €20 million, according to sources in the sector.

In the previous bid, which several investment funds participated in, the finalists were Arcano and Renta, after both submitted offers amounting to around €18 million, as revealed by Eje Prime.

Despite the offers, Bankia has now decided to seek refuge in a clause that allows it to exit the process if none of the bids proved attractive and has opted to launch a new tender with a higher minimum asking price, whereby taking advantage of the boom in the market.

The asset, which due to its façade would interest restaurant operators more than fashion retailers, has two floors: the first spans 458 m2, whilst the basement measures 405 m2.

The building, constructed in 1880, has a total surface area of 3,209 m2 and has housed the offices of the Community of Madrid’s Ministry of Finance and the Economy. Although it currently houses offices, compatible uses also include a hotel, commercial, administrative, healthcare, education and even residential (…).

Bankia’s other prime assets

In addition to the property on Calle Alcalá, Bankia’s asset portfolio contains a second property located in a prime enclave in the centre of the Catalan capital. That building is the former headquarters of Bankia in Barcelona, located at number 9 Plaza Cataluña. The property has a surface area of 1,000 m2 and has attracted attention from a large number of operators.

Although the objective with the branch in Madrid was to sell it, the strategy with the property in Barcelona is not so clear. According to explanations provided by the entity to Eje Prime, there are several options on the table, including a sale, but also the rental of the building to an operator or even investing in the property to renovate it (…).

Original story: Eje Prime

Translation: Carmel Drake

APG & Renta Inject Another €253M into their Socimi Vivenio

17 April 2018 – La Vanguardia

The Dutch pension fund APG is going to inject €253 million into the Socimi Vivenio, created together with Renta Corporación, which will contribute another €3 million, after the company already spent around €200 million on the purchase of residential assets in Spain.

Vivenio has recently closed the purchase of three buildings in Madrid – two located in Vallecas and another one in Aravaca – for a combined amount of €76 million, which means that it now has around 1,000 homes under management.

With these operations, the Socimi (Listed Real Estate Investment Company) has invested all of the initial committed share capital, which amounted to €130 million, and is starting a second phase, with a new capital commitment amounting to €253 million, contributed by APG for the most part.

This new capital injection will allow the Socimi to acquire new residential buildings worth up to €400 million, with the focus on Barcelona and Madrid, but without ruling out other Spanish cities, according to a statement issued today.

Vivenio was created less than a year ago and aspires to become a leading Socimi in the residential market in Spain.

The Dutch group is going to continue as the majority shareholder of this vehicle, which will make its stock market debut in 2019, and in which it currently controls around 95% of the share capital.

Renta Corporación holds a 3% stake and the remaining shares are held by minority investors.

Original story: La Vanguardia

Translation: Carmel Drake

Family Office Puts Tesla’s Store on c/Serrano Up For Sale for €7M

18 April 2018 – Eje Prime

The retail sector is hotting up in Madrid. A Spanish family office has put up for sale the store at number 3 Calle Serrano, which is occupied by Tesla, the company specialising in electric cars and led by Elon Musk. Although sources close to the operation have explained to Eje Prime that the process to receive offers has already begun, the estimated price of the asset is around €7 million.

This store has been occupied by Tesla since last September after it signed a lease contract that will continue in force following the sale. The asset has a retail surface area of 247 m2 spread over two floors. There, Tesla has a showroom, a warehouse and the group’s offices in Spain. According to real estate market sources, the consultancy firm CBRE is exclusively leading the sales process.

In recent months, the retail sector has been reactivated in the Spanish capital, with both the placing of premises on the market and the renovation of assets for their subsequent rental. The latest to be added to the portfolio of establishments for sale was the branch that Bankia owns at number 1 Calle Alcalá.

Although the bank already initiated an auction, which was attended by funds such as Arcano and real estate groups such as Renta, who were offering approximately €18 million for the premises, Bankia has decided to wipe the slate clean and launch a new auction process, through which it hopes to raise at least €20 million.

The asset, which, given its façade appeals more to restaurant operators than fashion retailers, is spread over two floors: the first floor spans 458 m2, whilst the basement measures 405 m2.

And from premises for sale to premises sold. In March, the fund manager IBA Capital, together with CBRE Global Investment, finally completed the sale of number 9 Calle Preciados, in Madrid, to the real estate investment vehicle of the insurance company Generali, Generali Real Estate. The Italian group paid €100 million for the asset, which is going to house Pull&Bear’s future flagship store on this high street, one of the most expensive in Spain for opening a store (…).

Investor appetite in 2018 

After closing 2017 with a total investment of €3.5 billion, the sector started 2018 with retail assets up for sale worth €2.5 billion. Moreover, during the course of this year, the volume of retail space on the national map is forecast to increase by 500,000 m2.

At the moment, shopping centres worth €2 billion are up for sale, along with high street products worth another €500 million. This situation guarantees a high degree of product availability for the segment, which is ideal at a time when Spain is very much in the firing line of international investors.

The influence of the retail market on the tertiary sector in 2017 is evidenced by the statistic that 38% of all transactions completed in this market involved retail assets, allowing retail assets to exceed office buildings for the first time ever.

With a volume increase of 36% over the last year, several large shopping centre openings are scheduled for 2018 including Open Sky in Madrid, which will see the arrival of Compagnie de Phalsbourg in Spain, after investing €160 million in the complex.

Similarly, in the Community of Madrid, the shutters will be lifted on X-Madrid, owned by Merlin, and in Málaga, McArthurGlen and Sonae Sierra will inaugurate a new designer outlet centre in the capital of the Costa del Sol. The stock of retail surface area in Spain amounts to 16.5 million m2, up by 1.4% YoY.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Paraguayan Magnate Buys Luxury Development on c/General Oráa 9

8 April 2018 – El Confidencial

A new Latin American investor has entered Spain’s luxury residential market. The person in question is Carlos Gill Ramírez, a businessman who was born in Paraguay and who also has Venezuelan citizenship. He has just purchased the high-end development at c/General Oráa 9 in Madrid from Platinum Estates, according to sources.

This sale is the first divestment that the Asian fund has carried out in Spain and forms part of the asset rotation policy that it has launched for its first Spanish fund, to focus on raising and investing €500 million in its new vehicle.

For Gill, this acquisition represents the first step in his growth plans in the country, where he has constituted the company Sari Holdco with a view to continuing to star in operations that will allow him to create his own real estate empire. Uría has represented the Latin American businessman in the purchase of General Oráa and Garrigues has represented Platinum, whilst Engel & Volkers has acted as the advisor.

Having obtained all of the necessary authorisations from the Town Hall of Madrid, construction of this luxury development is almost 70% complete. It will allow the transformation of this building, dating back to 1926, into 10 high-end homes, measuring between 348 m2 and 409 m2 each, plus two penthouses measuring 500 m2, with 250 m2 dedicated to a solarium and private swimming pool. The sales prices range between €3.6 million and €10 million per home.

Since Platinum acquired this development from the Catalan firm Renta, four years ago, it has always been said that it would be aimed at Latin American buyers interesting in owning a home in the Salamanca neighbourhood. Nevertheless, nobody imagined that a businessman from the other side of the Atlantic would also end up taking over the entire project, with the objective of finishing the construction work and putting it on the market.

Industrial wealth

Born in Paraguay, in July 1956, aged just six, Carlos Gill moved with his family to Venezuela, where he ended up being an honorary counsel for his native country. After studying Dentistry at the Central University of Venezuela, the businessman participated in important restructurings such as those of Banco Unión, Mercedes-Benz Venezuela, Grupo Corimón, Banco Capital, Banco Canarias de Venezuela and Bancentro Banco Comercial.

He is currently the President of Grupo Corimón, a Venezuelan corporation that operates in the paint, chemical product and flexible packaging sectors. The firm claims to be the largest conglomerate of its kind on the entire sub-continent and its shares are listed on the Caracas Stock Exchange.

Moreover, four years ago, Gill purchased a controlling share of Ferroviaria Oriental, the company that operates the railways in the east of Bolivia and, months later, he did the same with the country’s western network, by acquiring Ferroviaria Andina from the Chilean firm Luksic. Recent operations include his purchase of Bridgestone Firestone Venezuela.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Vivenio Finalises Purchase of 5 Assets in Madrid for €130M

2 March 2018 – Eje Prime

Renta is pampering the Socimi that it owns jointly with APG. The Socimi Vivenio currently has committed investments worth €130 million in five residential assets in Madrid and is expecting to increase its investments to €250 million in the short term, according to explanations provided by sources at the company. Its objective for the next five years is to reach an investment volume of €1.5 billion.

Although, for the time being, the company does not want to disclose the specific location of its latest assets, they may be located on the outskirts of the Spanish capital, which is where all of the properties that Renta’s Socimi has purchased in recent months are situated.

Last week, Vivenio announced an investment of €13.5 million to purchase more than 100 residential homes in a development by the Suquía Group. The Catalan manager reached an agreement with the Guizpuzcoan property developer, which has been immersed in bankruptcy proceedings since 2015 (…).

Those purchases are in addition to the acquisition plan that Vivenio has underway. The Socimi plans to invest in assets worth €1.5 billion in Madrid and Barcelona, primarily, with a minimum investment ticket per operation of €10 million.

Originally known as Rembrandt, Vivenio has already invested almost €100 million in the purchase of 1,152 homes, exclusively in Madrid and the surrounding area. For the time being, the company, which also plans to undertake operations in Barcelona, has not entered the Catalan capital.

Before the end of 2017, Vivenio purchased three residential buildings in the Madrilenian towns of Alcorcón and Campo Real, comprising 166 apartments in total. The assets acquired are distributed across one building in Alcorcón, comprising 139 homes, and two others in Campo Real, with 27 homes, as well as 173 parking spaces and 141 storerooms.

In addition, Renta Corporación and APG are going to debut their Socimi on the stock market in 2019. The company has already made itself known in the real estate market by hiring Borja Lamana, formerly of Santander and Azora, who it appointed as the Head of Asset Management in January.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Renta Corporación’s Profits Tripled in 2017 to €12.5M

1 March 2018 – Eje Prime

Renta Corporación multiplied its profits three-fold in 2017. The Spanish real estate company earned €12.5 million last year and recorded revenues of €45.8 million, up by 71.5%, according to a report filed by the company with Spain’s National Securities and Exchange Commission (CNMV).

Last year, the company improved on the €4 million profit it recorded in 2016, due, in part, to an increase in its property sales line of business, which recorded turnover of €29.7 million, and its project management line of business, which recorded revenues of €13.1 million.

The company’s gross operating result (EBITDA) amounted to €11.4 million in 2017, which represented a three-fold increase. Moreover, Renta’s operating margin amounted to €18.3 million at year-end, double the figure recorded in 2016.

The company’s net financial debt almost doubled in 2017 to €31.1 million. In 2018, the real estate company led by David Vila expects to increase its profits by 28% to reach €16 million. Moreover, Renta’s strategic plan for the next few years forecasts that the company will earn €21.1 million in 2019 and €21.9 million in 2020.

Original story: Eje Prime

Translation: Carmel Drake

Renta’s Socimi Invests €18M Buying More Homes in Madrid

4 December 2017 – Expansión

The Socimi owned by Renta Corporación and the Dutch fund APG is continuing to focus on the residential market in Madrid. The vehicle launched in April has just closed the purchase of three more residential buildings in Alcorcón and Campo Real, comprising 166 homes in total and involving the disbursement of €18 million.

As planned, Renta recently changed the name of its Socimi, which was created with the temporary name Rembrandt; it has now been changed to Vivenio.

Since its launch, eight months ago, the vehicle has invested €93 million in the purchase of 1,152 homes, all in Madrid and its surrounding municipalities. Although the objective was to buy homes in both Madrid and Barcelona, the opportunities and larger size of the Madrilenian market have meant that until now all the purchases have been performed in the Spanish capital. As such, the Socimi has not yet made its debut in Barcelona, even though Renta Corporación still has its headquarters there.

In October, a few days after the referendum, the real estate company chaired by Luis Hernández de Cabanyes announced that it was considering moving its headquarters outside of Cataluña and that it would be “preparing to take the necessary decisions in an efficient manner”.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake