Urbas to Allocate Land to Residential Build-to-Rent Sector

16 December 2019 –

The Urbas real estate group is planning a series of new investments in the residential rental housing market. The firm is considering using some of its 18-million-square-meter portfolio of land for build-to-rent developments.

The firm is currently analysing potential opportunities, including participation in the Ministry of Development’s State Housing Plan 2018-2021, which was designed to stimulate the rental housing sector.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Investments in the Build-to-Rent Sector Skyrocket in 2019

21 November 2019 – Investment funds and socimis active in the Spanish real estate market are increasingly investing in the residential build-to-rent sector. The constrained supply of rental housing and growing prices have led to funds and socimis like Ares, Vivenio, Azora and others to pile into the growing market.

Direct investment in the year to September reached €1.8 billion and are forecast to total €2.5 billion by the end of the year. In 2018, investment for the year as a whole reached just 900 million euros.

Funds and Socimis Invest in New Developments

The of the larger operations this year include a partnership between Aedas and Ares to sell four turn-key developments, with a total of 500 homes, in Torrejón de Ardoz, Alcalá de Henares and El Cañaveral (Madrid). Ares also recently acquired a portfolio of 400 homes to the east of Madrid. Stoneweg, for its part, will transfer a 300-flat development in Tetuán, Madrid, to M&G, while Vivenio is investing in a 340-home project in the growing area of Mahou-Calderón.

At the same time, Vivenio and Azora have joined forces with Áurea to develop projects in Móstoles and Cañaveral. Acciona, meanwhile, has finalised a deal to build 135 homes with Axa in Méndez Álvaro. Lastly, TPG is investing in a 391-home development called the Sardes project.

Financing for the developments usually takes the form of either forward funding or forward purchases. The former, which is used by investors looking for higher returns, and risk, usually involves an investor acquiring land from a developer subject to a pre-let but where the development has not been carried out. The developer will construct development paid for by the fund with an additional, profit-related, payment to the developer at completion. Forward purchases, which are considered more conservative, have the developer assume all costs until delivery.

Original Story: Expansión – Rebeca Arroyo

Adaptation/Translation: Richard D. K. Turner

Spanish Government to Create Land Bank for the Development of Affordable Rental Housing

28 October 2019 – The Spanish Government announced that it was working on a plan to cede public land for the development of affordable rental housing through a series of auctions. The head of the Ministry for Development, José Luis Ábalos, stated that the ministry is working on a plan to auction the surface rights to public land for 50 years so that private developers can build and manage affordable rental housing. The government is looking to address the recent increase in prices.

The ministry is looking to create a single land bank, using land from several different ministries. The government hopes that this management model, if successful, will be replicated at a regional level.

Original Story: Cinco Dias

Adaptation/Translation: Richard D. K. Turner

Quabit Invests in New Sectors in Preparation for a Change in the Market Cycle

24 October 2019 – Félix Abánades, the head of Quabit Inmobiliaria, has been preparing his firm for a new cycle in the real estate market. The firm recently began investing in the residential rental market, acquired a construction company (Rayet Construcción), placed a portfolio of 1,300 homes currently under construction on sale and announced that it would invest in the cooperative management sector. In the latter, the firm is looking to develop a portfolio of approximately 1,000-1,500 homes, within two or three years, with a turnover of around 175 million euros, through its Style Cooperatives initiative.

Quabit’s entry into the cooperative management market comes at a time when the sector is suddenly back in vogue. Cooperatives are typically able to offer higher prices for developable land than comparable developers.  The firm is adding the new line of business to its existing operations in land and residential development, along with its foray into the rental housing market.

Increasing construction costs and the possibility of a change in the market cycle are leading Quabit and other developers to reduce their earnings forecasts along with estimates of the number of homes it will deliver in the coming years.

Original Story: El Confidencial – Elena Sanz

Adaptation/Translation: Richard D. K. Turner

Grupo Lar to Create New Investment Vehicle With €1 Billion in AUMs

24 October 2019 – The developer Grupo Lar is studying whether to incorporate a new socimi for its rental housing business. The new investment vehicle would have more than €1 billion in assets, including more than 5,000 homes. Yesterday, Grupo Lar announced that it would start work on a project to build 66 rental homes in Valladolid, in an initial investment of nine million euros.

The development is part of the firm’s initial strategic plan to build 500 rental homes. Grupo Lar also has two other projects under development in Parla and Móstoles.

The company is studying the best investment structure for the new vehicle, potentially creating a new socimi.

Original Story: Cinco Días – Alfonso Simón Ruiz

Adaptation/Translation: Richard D. K. Turner

Vivenio Partners With Áurea Homes to Build Rental Housing

24 October 2019 – Áurea Homes, the developer owned by the construction company ACR, has reached an agreement with Vivenio to build a turnkey project with 150 homes in Móstoles. Áurea had initially owned the land, but it sold it to Vivenio after having completed the first phase.

This operation will be Áurea second in the rental housing segment. The developer is also about to finalise an agreement to build another 400 rental rent homes in four new developments, including two in Madrid, one in Pamplona and one in Sabadell.

With this operation, Vivenio’s property portfolio will total nearly 5,000 homes.

Original Story: Cinco Días – Alfonso Simón Ruiz

Adaptation/Translation: Richard D. K. Turner

Blackstone Fails to Sell Portfolio of More Than 1,000 Homes

16 September 2019 – The US-based investment giant Blackstone has cancelled the sale of a portfolio of more than 1,000 un-subsidised rental flats in Barcelona and Madrid. The financial services firm had been asking for approximately 180 million euros for the asset. Market sources see the cancellation as a confirmation that the market is softening due to political uncertainty, regulatory changes and a cooling economy. Blackstone now reportedly plans to sell the properties off piecemeal, much as it did with its proposed sale of three subsidised apartment blocks to Vivenio.

Original Story: El Confidencial – Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

 

Rental Housing Suffers as Demand Swells Amidst Falling Supply

16 September 2019 – The supply of homes for rent has fallen over the last year, even as demand is increasing, placing upward pressure on prices and sparking furious debate within Spain. Arguments are raging in the media and political circles, with a rising number of people criticising socimis, investment funds and short-term rental operators like Airbnb.

According to a study by the real estate website Fotocasa, the supply of homes for rent on the market fell by 27% in the last year.  At the same time, there was a 56% increase in demand, leading to a search for the basis of the market changes.

However, the criticism leveled at investment funds and Airbnb seem to be unfounded. According to the Ministry of Development, the total stock of rental housing exceeds 2.3 million residences. The market share in the hands of large investors, however, is  just under 3% of the market, or about 115,000 homes.

Short-term real estate operators like Airbnb and its ilk also seem to be taking an unfair amount of blame.  Unlike in neighbouring Lisbon, Portugal, these operators only control about 4% of the total stock of such real estate in Barcelona, 0.8% in Madrid and 1.2% in Palma de Mallorca.

Original Story: Libre Mercado – Diego Sánchez de la Cruz

Photo: Europa Press

Adaptation/Translation: Richard D. K. Turner

AEW Invests in Residential Rental Market in Barcelona

10 July 2019

The flood of money that led to a spike in prices for rental housing in Madrid has now reached Barcelona. The German firm AEW has just purchased a building at Via Augusta 59 in Barcelona for an undisclosed amount. The company previously announced that it was looking to begin operations in Spain’s residential housing market.

The property is mixed-use, residential and commercial, and is located in the district of Sarrià-Sant Gervasi, just 500 meters from Avinguda Diagonal, Barcelona’s main thoroughfare. The building is located next to the Gràcia metro stop, in a sought-after area.

The Edificio Mercurio, as it is known, has about 11,500 square meters of surface area. Eurostone, which had acquired the asset two years before, had begun major renovations which will result in a total of 91 flats on nine floors, along with three commercial premises.

Original Story: El Confidencial – E. Sanz

Adaptation/Translation: Richard D. K. Turner

Vivenio Socimi Set to Acquire Plot of Land from Atlético Madrid

1 July 2019 – Richard D. K. Turner

Vivenio seems to have beat out Stoneweg at the last moment in the race to acquire a plot of land on sale by Atlético Madrid. For weeks, Azora has been known as the likely buyer for two other plots of land, with a total of 40,5000 m2. The plots, known as RC7 and RC8, have views of the Manzanares River.

A third plot of land, RC4, was still up for grabs and the developer Stonweg was leading the race to acquire the land. Vivenio, a socimi owned by APG and the Renta Corporación increased their offer at the last moment. Atlético expects to make a final decision this week, with closing expected shortly thereafter.

The sale of the three plots of land is expected to bring in roughly 180 million euros to Atlético’s coffers. Vivenio is likely to develop residential housing for rent on its parcel, which has a total buildable surface area of 28,481 square meters.

Original Story: El Confidencial – Ruth Ugalde