Setback For Sareb: Suspension Of “In Tempo” Foreclosure

24 October 2016 – El Mundo

The soap opera involving In Tempo, the tallest residential building in Spain, continues. And the latest episode represents a real setback for Sareb, the main creditor of Olga Urbana, the company that went bankrupt after constructing the famous skyscraper in Benidorm.

Commercial Court number 1 in Alicante, which is handling Olga Urbana’s bankruptcy, has suspended the foreclosure of the property, which, in theory, was going to be awarded to Sareb, after it submitted the only and highest bid, amounting to €58.5 million. The judge has ruled in favour of the appeals submitted by Olga Urbana’s smaller creditors against the aspirations of the bad bank, which had been hoping to take over the building after it spent the summer contending that it had submitted the only official bid.

Nevertheless, according to the ruling dated 13 October, the magistrate considers that In Tempo cannot be awarded until the bankruptcy incidents that are affecting the process have been resolved. As soon as firm rulings have been issued regarding these incidents, the foreclosure will be approved, but not before. This represents a serious setback for Sareb: it had planned to foreclose the 190m tall building and then resell it,  whereby recovering some or all of its debt, which amounts to €108 million in total.

The bad bank will now have to wait until the bankruptcy incidents have been legally resolved. The claims have been filed by Olga Urbana’s small creditors, who consider that the liquidation plan would be harmful for them, given that, in their opinion, they would not recover any of their debt; these companies maintain that Sareb should not hold preferential creditor status, which gives it the right to recover its debt first.

According to these creditors (which include the construction company Kono, the arquitect Robert Pérez Guerras and the former administrator of Olga Urbana, Isidre Boronat), Sareb was an administrator of Olga Urbana and therefore, is responsible for the creditor bankruptcy of the company, which went bust at the end of 2014 with liabilities amounting to €137 million.

The creditors argue that the bad bank should be the last party to recover its money (…). In this way, the small creditors would recover their money before Sareb.

Given that this question has not been decided yet, the judge handling the bankruptcy has opted to wait for clarification as to whether Sareb is a preferential creditor or not, because a premature foreclosure could affect the interests of the other creditors. Meanwhile, Sareb maintains that the foreclosure of the building, which has been valued at €90 million, forms part of the liquidation plan, and would not be harmful to the other creditors.

Original story: El Mundo (by F. D. G.)

Translation: Carmel Drake

Tauro Buys Building In Madrid For €9.2M

21 July 2016 – Expansión

The real estate investment fund Tauro Real Estate, managed by Josep Maria Xercavins, has purchased a building in Madrid for €9.2 million. The property is located on Calle Ciudad de Barcelona, 89 and was built recently.

The building comprises 31 homes and 50 parking spaces, which will be put up for rent. Tauro Real Estate already owns eleven buildings in Barcelona and three in Madrid, according to data from the Commercial Registry. Its portfolio currently contains 300 homes and the fund is expected to close once it has 500 homes. Tauro’s aim is to acquire properties that generate good returns (from rental income) and capital gains upon sale.

Original story: Expansión

Translation: Carmel Drake

Socimi Vitruvio Will Debut On The MAB On 8 July

7 July 2016 – Europa Press

The Socimi Vitruvio will debut on the Alternative Investment Madrid (MAB) on Friday, 8 July, at a price of €12.63 per share, which represents a market capitalisation for the company of €38.5 million, according to the BME.

The company owns a portfolio containing four residential buildings, five offices and four retail premises in Madrid, as well as one penthouse apartment in Ibiza.

Vitruvio is the nineteenth Socimi to debut on the MAB, with the ultimate aim of raising funds to finance growth.

Vitruvio’s share capital is divided between around 121 shareholders, however four of them control around 28% of the total capital. According to the prospectus for the IPO, these four shareholers are: Eva Martínez Ertl, Antonio Martínez-Cabrera, Juan Acero-Riesgo and Matías Ortiz de Saracho.

The Socimi’s Chairman and CEO is Joaquín López-Chicheri, a professional who has combined his career in private banking with academic work and who, since 2013, has also chaired the fund CorA Investment.

Vitruvio’s portfolio of real estate assets includes a residential building for rent in Calle Ayala in Madrid, in the neighbourhood of Salamanca, and another on Calle Sagasta, in Chamberí.

In addition, it owns several retail premises on Calles Goya, Bravo Murillo and López de Hoyos, an office building on Fernández de la Hoz and a restaurant in Centro Colón.

Vitruvio closed 2015 with a profit of around €433,000, 51% higher than the previous year when its results were penalised by certain tax effects. Its revenues from rental income rose by 12% to €667,000.

The Socimi will debut on the MAB under the ticker symbol YVIT and its shares will be traded under the price fixing system

Original story: Europa Press

Translation: Carmel Drake

Patrizia Acquires Claudio Coello 108 For €22M

3 February 2016 – El Confidencial

Yesterday (Tuesday), the German fund Patrizia Inmobilien completed the purchase of a residential building on Claudio Coello, 108 for €22 million, from Grupo Lar and Pimco, according to sources close to the deal.

Specifically, the property, which is currently vacant, has a surface area of 5,318 m2 and previously formed part of the operation to purchase Juan Bravo, 3. In fact, the building is located just a few metres from that plot, which houses one of the most highly anticipated luxury developments in the capital. The building acquired yesterday will be converted into 14 luxury homes, measuring 300 m2 each, with two or three parking spaces per flat.

According to the latest report prepared by TecniTasa, these homes could have a market value of around €10,900/m2. Patrizia Inmobilien will undertake a complete renovation of the property, which will require an additional investment of €7.5 million – equivalent to around €1,500 per m2 – and the company expects the building work to take 18 months.

Patrizia is one of the largest investment funds in Europe, with a presence in 14 countries and total funds under management of €18,000 million. 40% of its portfolio is invested in residential assets, equivalent to approximately €8,000 million.

The fund arrived in Spain last year, led by Borja Goday, the head of Patrizia in Spain, and the former CEO of Sotogrande, with the intention of investing €1,000 million in the Spanish market. It closed its first operation in July last year with the purchase of the H&M store in Málaga from the Nergosa group and it raised its profile further by participating in the bid for Torre Espacio.

With this operation, the fund becomes one of the new players in the luxury residential market in the capital and demonstrates its strong commitment to the real estate recovery in Spain, given its conservative profile, in comparison with the speculative capital that has entered the market in recent years.

BDO has advised the vendor, whilst the firms CMS Albiñana and MMM have advised the purchaser.

Original story: El Confidencial (by R. Ugalde and E. Sanz)

Translation: Carmel Drake

ING Grants €125M Loan To Acciona Inmobiliaria’s Subsidiary

5 January 2016 – Bolsa Manía

ING Commercial Banking has granted a 7-year syndicated loan amounting to €125 million to Compañía Urbanizadora Coto, S.L., a subsidiary of Acciona Inmobiliaria, according to a statement issued by the company.

The loan will be used to finance Acciona Inmobiliaria’s property portfolio, which comprises seven residential buildings, two office buildings and a 50% stake in a shopping centre, all of which are located in the centre of Madrid.

This financing agreement forms part of the framework of the company’s new strategy, which is being led by the new management team that joined Acciona Inmobiliaria in September 2014. Currently, the company’s plans are focused on boosting the profitability of its residential business by joining forces with a leading partner, as well as the possible IPO of its real estate business through its conversion into a Socimi.

The CEO of ING Commercial Banking, Íñigo Churruca, said that with this financing agreement, ING Real Estate Finance “is consolidating its financing strategy to focus on prime assets located in the best areas in Spain and to provide support to real estate companies in the sector, just like it has being doing for the last 20 years”.

In this sense, he confirmed that ING Real Estate Finance was one of the most active financing entities in the Core Commercial Real Estate sector in 2015.

Original story: Bolsa Manía

Translation: Carmel Drake

Lar España Evaluates €200M Capital Increase

18 June 2015 – Europa Press

Lar España is analysing the possibility of increasing its share capital this year to take advantage of the “new opportunities” for investment in the real estate sector that it has identified.

The capital increase would amount to a maximum of €200 million, since the Socimi has been authorised by its shareholders to increase its capital by up to 50% of its current level, according to reports filed with Spain’s National Securities Market Commission (CNMV).

Lar España is evaluating whether to raise further capital after its recent bond issue (€140 million) in February, which it also undertook to raise funds to invest in the real estate sector.

With this latest increase, the company will join many of the other Socimis constituted last year, such as Hispania, Merlin and Axiare, which have also resorted to capital increases to raise funds with which to purchase new real estate assets to grow their portfolios.

In the case of Lar, the company claims to have identified “new investment opportunities”, which have led its board of directors to “launch a process to analyse the possibility of undertaking a capital increase in 2015”.

Nevertheless, the Socimi says that, the final operation “will be subject to changes in market conditions”.

Since its constitution and IPO in early 2014, Lar has purchased assets worth around €550 million, including seven shopping centres in several regions, four office buildings in Madrid, eleven logistics warehouses, three medium-sized retail premises and a residential building in Madrid.

Original story: Europa Press

Translation: Carmel Drake

Renta & Kennedy To Buy & Renovate Building Nr Callao

12 June 2015 – Expansión

The US investment fund Kennedy Wilson and the Spanish real estate company Renta Corporación will invest €11 million in the purchase and renovation of a residential building in the centre of Madrid.

The property is located at number 3 on the pedestrianized street, Calle Póstigo de San Martín, in the area between Puerta del Sol, Plaza Callao and Plaza de Isabel II. It has a surface area of 4,083 m2, spread over five floors, plus an attic and a basement.

In total, the building contains 19 apartments and 2 shops (which each have a basement) and it is partially occupied. The buyers intend to try to free up as much of the property as possible, so that they can completely renovate it and then sell it as separate units.

According to the agreement signed last year between Kennedy Wilson and Renta, the US fund will contribute 90% of the capital and the real estate company, chaired by Luis Hernández de Cabanyes, will finance the rest. Moreover, Renta will also be responsible for negotiating the departure of the current tenants and for renovating and marketing the building, which has always been its traditional business.

The owner of the property on Póstigo de San Martín was a local individual. It is expected that the number of homes will be retained but their distribution will vary. The property will continue to be used for residential purposes, although it may (legally) be converted for other uses, such as for public services or as a hotel.

Renta Corporación, which overcame a corporate bankruptcy last year to return to the stock exchange, has resumed its traditional business involving the purchase, renovation and sale of residential buildings.

Last year, the real estate company generated income of €79 million, compared with €10 million a year earlier and it turned its back on the losses of €13 million it had recorded in 2013, to generate a profit of 5.2 million. Its shares are trading at around €1.50 per share.

Original story: Expansión (by Marisa Anglés)

Transaction: Carmel Drake

The Owner Of McKinsey’s HQ Puts Its RE Portfolio Up For Sale

19 May 2015 – Expansión

 More than €200 million / The Cotoner family is selling six buildings in Spain and two in Paris

A new batch of office buildings has sparked interest amongst large investment funds, Socimis and family offices. There are eight buildings in total – six in Spain and two in France – located in some of the most iconic streets of both countries. In total, they occupy a combined surface area of more than 27,000 m2 and generate more than €3 million in annual rental income.

The assets are owned by the company Marzabal S.L., created by the Cotoner family to manage its real estate assets. They include eight buildings: two in Pairs, one in Navarra, another one in Bilbao and four in Madrid. The jewel in Marzabal’s crown is located in the capital: the current headquarters of McKinsey. The consultancy firm has occupied the building, located on Calle Sagasta 31, for years, as well as several floors in the adjoining building. Both are owned by the company now for sale.

In total, the building houses 10,114 square metres of office space (fully leased) and 93 parking spaces; it generates annual rental income of €1.64 million.

Rental income

The other buildings in Madrid include a historical building (from 1923) on Avenida de Felipe II; another one on Paseo de Eduardo Dato; and a third on Francisco de Rojas, occupying more than 4,400 square metres and leased to several tenants, including the distance learning university, Uned. Currently, they generate rental income of more than €500,000 per year.

Marzabal also owns a residential building in Tudela (Navarra), built in 2013, measuring more than 2,650 square metres, which also houses several shops on its ground floor.

In Bilbao, the company owns a residential property measuring around 800 square metres, located in the old town, next to the San Francisco de Asís church.

The company for sale is the owner, in turn, of a company based in Denmark, which owns two office buildings in Paris. One of them, located in the “second district” of the French capital, houses office space measuring 2,100 square metres and is fully leased to the private equity company Partech International.

It generates rental income of almost €900,000 per year.

The second asset in Paris includes four office buildings measuring 4,200 square metres and 39 parking spaces. The property, located on Pereire Boulevard does not currently have any tenants.

Bids are expected to amount to more than €200 million for the batch of assets, although the book value of the Spanish assets amounts to €68 million, with share capital of €10.4 million and net financial debt of €34 million. The Danish company, which owns the two properties in France, is worth €62 million; its share capital amounts €37 million and has net financial debt of €24 million. The Spanish entity’s main creditors are BBVA and Santander; the Danish entity’s main creditors are Crédit Foncier and BNP.

Bids are expected to be received during the first half of June and the process will close during the following three weeks. The sale is being managed by the private banking division of Banco Santander and the firm Aiga Investment.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake