Socimi Vivenio Invests More than €30M in 3 New Operations

11 June 2018 – Europa Press

Vivenio, the Socimi created by Renta Corporación and the Dutch pension fund APG, has closed the purchase of three residential complexes, involving a combined investment of more than €31 million, according to the company.

The properties are located in Madrid, Barcelona and Valencia, thus expanding its geographic diversification, since until now the Socimi had closed operations exclusively in the Spanish capital.

The complex that Vivenio has purchased in the capital is located in Móstoles, 20km to the southeast of Madrid, in a residential and well-connected area, which also enjoys abundant industry. The building, constructed in 2011, contains 102 rental homes with parking and storage rooms, and has an occupancy rate of almost 100%.

In terms of the first operation in Barcelona, the asset comprises three residential buildings located in Teià, to the northeast of the Catalan capital. The complex has 42 homes with two parking spaces and one storeroom each, and excellent common areas with garden areas and three swimming pools.

The third purchase made by Vivenio is located in Valencia, in a building located in the Torrefiel district, to the north of the city. The property comprises 68 homes, 110 parking spaces, 25 storerooms and two commercial premises, and is located in a well-connected area with a great deal of commercial activity.

Original story: Europa Press 

Translation: Carmel Drake

Aedas Homes Unveils its Plans for Hacienda del Rosario (Sevilla)

8 January 2018 – ABC Sevilla

A new neighbourhood with more than 1,000 homes for families aged between 30 and 45 at affordable prices. That is the project that is now being built in Hacienda del Rosario, right opposite the Decathlon store and next to the Parsi Industrial Estate. The aim is to develop the city’s urban planning project and recover the demographic indices last seen a decade ago.

The Aedas Homes group is going to build 1,046 two-, three- and four-bedroom homes in seven 10-storey towers over a surface area of 93,000 m2, of which 73,000 m2 will comprise green space. And the Town Hall is going to build another 218 social housing properties on an adjacent plot, owned by the Urban Planning Department, which Emvisesa has already started to process. That means that by the start of 2019, Sevilla will have a new district with more than 2,000 homes, including not only these projects but also the one in Santa Bárbara.

On Monday, the mayor, Juan Espadas, visited the site where Aedas – which is also responsible for the Cisneo Alto project and the new Ramón y Cajal urbanisations – is starting work on land that it purchased in 2016 from Gabriel Rojas in the East of the city. Specifically, the plots are located between the A-92 and the shopping centre that houses the aforementioned Decathlon store. The access roads have already been built and the Town Hall has granted the relevant licences for the construction of the residential areas, which will include a park measuring seven hectares, a social club and common areas with a swimming pool and padel courts.

For Espadas, “this project is not simply a housing development, but rather the creation of a new neighbourhood in Sevilla, which means that we are at the beginning of the post-crisis and we have left behind the black hole in the construction sector”. The area of expansion is destined for “established families who want a more comfortable environment at a good price”, explains the mayor. The regional director of Aedas, Diego Chacón, highlight that these homes will cost between €120,000 and €150,000, and will be financed by Banco Santander and constructed by San José. The first tower, which will have 142 homes, will be handed over within a year. And from then, the area will come to life continuously in search of a clear objective that the major himself has admitted: “The registration of citizens (‘empadronamiento’) in the city will be activated again”.

Original story: ABC Sevilla (by Alberto García Reyes)

Translation: Carmel Drake

Acciona Buys a Plot of Residential Land in Malilla (Valencia) from Sareb

19 December 2017 – Valencia Plaza

Acciona Inmobiliaria is joining the property developer fever in Malilla. The firm has purchased one of the few plots of land left for sale in the Valencian neighbourhood from Sareb for more than €7 million, according to several sources in the sector speaking to Valencia Plaza.

The transaction, which was signed last week, places almost 2,000 m2 of land in Malilla Norte Residencial at the disposal of the property developer. The plot has a permitted buildable surface area of almost 15,000 m2 – equivalent to around 150 homes.

According to the same sources, Acciona, which has been advised by the consultancy firm CBRE, was awarded the plot after it submitted the best offer in a process that saw half a dozen companies compete. The marketing of the plot was carried out by Solvia.

Execution unit 1 in the Malilla Morte sector is one of the hottest spots in Valencia’s property market. It comprises a land surface area measuring 360,000 m2, of which 70,000 m2 will comprise a large garden – plus another 13,000 m2 for the same use spread throughout the neighbourhood – 68,000 m2 for the road network, 50,000 m2 for public use and 45,000 m2 for private buildable land.

It is precisely the buildable plots where a large number of property developers have taken positions, including Libra, Hábitat, ASG Iberia (Activum SG), Grupo Lobe, Urbem and Aelca.

The most talked about investment in the area was that made by the listed company Neinor Homes, which after acquiring a plot for the development of 54 flats in the neighbourhood, spent another €27 million to buy 50,000 m2 of land from the Valencia firm Urbem, where it plans to build 400 homes.

Second development underway

In terms of Acciona Inmobiliaria, the firm has at least two projects underway in the city after announcing its return to domestic property building in March, with the construction of 16 developments – 13 in Spain and the rest in Mexico and Poland.

As this newspaper reported, the infrastructure management and renewable energy company will build a development on Avenida del Puerto, 284, on the corner of Calle Barco. That residential complex will comprise 53 homes and will integrate a protected façade.

Original story: Valencia Plaza (by Dani Valero)

Translation: Carmel Drake

Civislend: A Pioneering Crowdlending Platform For RE Sector Is Born

14 November 2017 – El Mundo

Civislend is commencing operations in Spain. The Participative Financing Platform (PFP) is a pioneer in real estate crowdlending in Spain. Authorised by the National Securities and Exchange Commission (CNMV) and the Bank of Spain, its aim is to mediate between property developers and investors, streamlining the bureaucratic processes and simplifying all of the administrative procedures to raise funds quickly and safely in exchange for the payment of interest. The company aspires to become the leading portal for the financing of real estate projects.

Manuel Gandarias (pictured above), CEO of Civislend, defines the platform as “an effective meeting point between real estate developers looking for a source of financing that complements traditional bank lending and investors interested in obtaining an attractive return on their savings”. Gandarias insists that “Civislend does not substitute banking institutions, but rather provides sufficient resources to finance the land on which real estate projects are developed, whereby serving as a trampoline for the granting of property developer loans”.

The comprehensive risk analysis that Civislend carries out before publishing a project on the Marketplace is one of the best guarantees of success compared with other alternatives based on crowdfunding that already exist in Spain. “The strict control filters that we apply in Civislend reduce the risk of non-payment to the minimum, in order to ensure that investors are protected as much as possible”, says Gandarias.

First projects already underway

Civislend has just launched the fund raising phase for its first two projects, which can be viewed in the Marketplace. They are two 20-home residential complexes, located in Brunete (Madrid) and Tomares (Sevilla). Both have received a type A scoring, which means that investors may obtain an APR of 7.88% and 7.90%, respectively, over 20 months, with a minimum risk and the payment of interest every four months.

The whole process begins when a property developer requests financing. A preliminary study is carried out, which serves to check the firm’s solvency, as well as the suitability of the real estate project. Next, a feasibility study is conducted, which involves the performance of a due diligence, after which the project is granted a rating on the basis of its risk profile: minimum (A and A+), medium (B and B+) and moderate (C and C+). These guarantees are complemented by other actions such as the pledging of shares in the companies responsible for developing the project and the registration of charges (liens) over the assets, where appropriate.

Any savers looking to obtain returns from their funds, with a controlled risk, can invest in Civislend. After registering, investors may choose the project that interests them the most in the Marketplace and decide how much they want to contribute. Non-accredited investors may invest between €250 and €3,000 per project or up to €10,000 per year in all PFPs in Spain, whilst there are no limits on how much accredited investors can invest. The property developers who approach Civislend in search of financing may request up to €5 million. For projects amounting to less than €2 million, both non-accredited and accredited investors may invest; whilst for projects worth more than €2 million, only accredited investors may invest.

Gandarias points out that “depending on the scoring of the project, investors will receive an annual interest return of between 6% and 12%. (…).

Original story: El Mundo

Translation: Carmel Drake

Aedas, Neinor & Aelca Start Building New Homes in Valencia

4 November 2017 – El Confidencial

(…) A sign that a new wave is coming to the real estate sector can be seen in the Nou Campanar neighbourhood of Valencia, one of the city’s areas of expansion, which was left frozen in time by the burst of the real estate bubble. For many years, an enormous plot of land measuring 12,000 m2 was a symbol of the indulgences of one of the leaders of the Valencian real estate sector, Juan Armiñana. He used to build his spectacular ‘fallero’ monument that won the Fallas competition year after year on that site (…)

Nevertheless, Arminñana, like many other local property developers, went bankrupt. And although he has now timidly returned to the sector, almost all of his assets ended up in the hands of the financial institutions. The large plot of land described above ended up on Sareb’s balance sheet, as collateral for a portfolio of loans. In turn, the bad bank sold those loans to the US investment fund Castlelake. Meanwhile, Aedas Homes, a listed property developer created by that fund, attended the Valencian real estate fair Urbe on Friday. There, it presented its plans for the city for the next two years, revealing that its star development is going to be located on the same iconic plot that used to be owned by Armiñana.

Aedas is one of the property developers of the day. It has arrived in Valencia as demand for new build properties is heating up, in parallel to the economic recovery. Since April, the firm has put almost 300 new homes on the market in Campanar, Quatre Carreres and Dénia, with the intention of putting the cranes to work early next year and handing over the homes in a couple of years. In turn, Aedas holds a portfolio of land and it is continuing to explore acquisitions, whenever the prices fall within acceptable ranges. (…).

Two of Aedas’s rivals, Neinor and Aelca, have also started to make a controlled landing in the Valencian market. The listed company led by Juan Velayos plans to build 500 homes per year in the Community of Valencia, which it considers its third largest market after Madrid and Barcelona. (…). The real estate company in which Lone Star holds stake has just purchased a plot of land for 200 homes in the neighbourhood of Benicalp and it already owns plots for another 450 homes in the neighbourhood of Malilla.

But, the player that has launched itself into the market without any qualms is Aelca. Although traditionally it has been very focused on Madrid, Barcelona and Málaga, the property developer founded by Javier Gómez and José Juan Martín has now launched developments to build up to 1,200 homes in Valencia. Its immediate projects, which are already being marketed, are located in the neighbourhoods of Patraix and Nou Campanar, and they will be joined by another residential building in the Cabecera Park area and another in Dénia. In Alicante, on the Playa de San Juan, Aelca is also working on its first project on the Levante Coast, Residencial Arenas, a residential complex executed in collaboration with Sabadell (…).

Aedas, Neinor and Aelca are the new kids on the block. But there are other players who have been in the market for a long time. Sareb is one of them. Until a few months ago, it was focusing on divesting its land and second-hand homes. The Community of Valencia is the second most active region in terms of sales for the bad bank behind Madrid, with 488 properties and €150 million of land sold since 2013, according to the entity’s CEO, Jaime Echegoyen. Now, Sareb has rolled up its sleeves and is trying to generate some value from the projects that are underway and unfinished from the banking portfolio that it received – more than €6.4 billion in properties and loans secured by real estate assets.

The bad bank has signed agreements with local property developers and construction companies to develop some of the assets that have not ended up in the hands of investment funds (…).

Another very active agent is CBRE Richard Ellis. It has sold more than 3,000 homes in recent years and has another 400 new build homes on the market in Valencia. These properties have been launched by funds and property developers such as Iberdrola Inmobiliaria, which has built a 58 home luxury residential building in Ruzafa and Q21 Real Estate, owned by the US fund Baupost, which has a presence in the so-called PAI of Quatre Carreres (…).

The volumes of off-plan sales are unprecedented in recent years. Developments that have been on the market for just six months are already reaching pre-sales ratios of 40% or 50% in Valencia and along the coast. These percentages mean that property developers are able to secure financing and improve the trust deposited in them by financial institutions (…).

Foreign property developers are also joining the activity being undertaken by the local players that survived the economic crisis. For example, Ficsa, the real estate brand of the Noguera family, has four developments underway in Valencia and its metropolitan area, with reservation rates of 50%. In addition, Parvasal, which has projects in Patriax and on Avenida Giorgeta (Patraix Plaça and Sosa Edificio) is in a similar position.

Metrovacesa, Grupo Lar, White Real Estate and IHomes also all have developments underway (…), which will be ready in 2019 (…).

Original story: El Confidencial (by Víctor Romero)

Translation: Carmel Drake

Renta Corporación’s Socimi Rembrandt Acquires 156 Rental Homes

17 October 2017 – Cinco Días

Renta Corporación has just completed its second operation for its Socimi Rembrandt Activos Residenciales. Moreover, the deal is the entity’s largest transaction to date. Specifically, it has invested €50 million in rental homes.

The Socimi, which is managed by Renta Corporación and controlled in terms of its share capital by the Dutch pension fund APG, has completed the acquisition of a residential complex comprising three buildings, spanning a total surface area of 20,114 m2, in Aravaca (Madrid).

The vehicle, which is managed by Renta Corporación, has purchased 156 homes with an average surface area of 102 m2 each, along with 168 parking spaces. This real estate asset currently has an occupancy rate of 51.3% and the Socimi plans to make the asset fully operational over the next few months.

This is the second operation undertaken by the Socimi, which was created at the end of April. In June, it acquired two residential complexes on the outskirts of Madrid, in the municipalities of Navalcarnero and Rivas Vaciamadrid, for just over €25 million. Both properties have a combined surface area of 20,891 m2 and contain 335 rental homes.

Renta Corporación entered the Socimi segment this year (…) as the manager and minority shareholder of Rembrandt. The Socimis’ residential sector is less developed in Spain than those of offices, hotels and shopping centres, where Merlin, Hispania, Lar España, Colonial and Axiare rule the roost.

In the rental home sector, the key players are Testa Residencial, the Socimis established by the fund Blackstone, and several smaller entities such as Alquiler Seguro, VBare and Vitruvio. Rembrandt, which is under the obligation to make its debut on the stock market within two years, is a new line of business that is allowing the listed real estate company Renta Corporación to expand its market.

Whilst the management company brings its knowledge of the Spanish market to the table, APG contributes its enormous financial muscle. The experts forecast that this rental homes segment will continue to grow in Spain, where there is increasingly more demand from tenants.

Original story: Cinco Días (by A. Simón)

Translation: Carmel Drake

Renta & APG’s Socimi Buys 2 Residential Complexes For €25M

15 June 2017 – La Vanguardia

The Socimi created by Renta Corporación and the Dutch pension fund APG has closed its first operations in Spain with an investment of more than €25 million.

Specifically, the vehicle, which was launched at the end of April, has acquired two residential complexes in the Madrilenian towns of Navalcarnero and Rivas-Vaciamadrid, which together cover a surface area of 20,891 m2 and contain 335 rental homes.

In Rivas-Vaciamadrid, the Socimi, which is managed exclusively by Renta Corporación, has purchased a building located on Calle Jovellanos, with a surface area of 12,743 m2, which is divided into 200 homes, parking spaces and storerooms.

In Navalcarnero, the new company has completed the acquisition of a property located at number 5 on Calle Pino Negro, which has a surface area of 8,148 m2, spread over 135 homes with parking spaces and storerooms.

According to a statement issued yesterday by the Catalan real estate company, the homes in both buildings are leased almost in their entirety and the Socimi plans to continue this arrangement over the medium and long-term.

This operation represents the launch of the Socimi’s activity in the Spanish market, where it will focus its activity in Madrid, Barcelona and the main provincial capitals, with an investment capacity of €250 million to acquire residential rental assets.

The company, which is currently in the market analysis phase, is working to close new acquisitions over the coming months and to become “a major player in this segment”.

The Socimi’s aim is to debut on the stock exchange within the next two years and accumulate properties worth more than €1,000 million.

The Socimi allows Renta Corporación to expand its market and obtain higher recurring revenues, whilst for APG this move represents its entry into the Spanish market.

Original story: La Vanguardia

Translation: Carmel Drake

The Polanco Family Sells Ritz-Carlton Tenerife To HI Partners

21 April 2017 – El Confidencial

The Polanco family has resorted to selling the jewel in the crown of its personal wealth, the luxury Ritz-Carlton Abama resort in Tenerife, to obtain some financial breathing space in order to try and balance out its complicated economic situation.

According to real estate sources, the former majority shareholder of Grupo Prisa has reached an agreement with the hotel group HI Partners (HIP) to sell 49.99% of the listed establishment for almost €50 million, a quantity to which another €25 million of investment will have to be added to expand the hotel’s facilities with its residential complex. Sources at Timón, the holding company of the editorial giant, have acknowledged the transfer, but have not revealed details of any amounts or commitments.

As El Confidencial revealed several weeks ago, the problems of Prisa, whose shares are trading at their lowest value for a year and a half, have been transferred to the Polanco family, who has requested help from its creditor banks in light of the difficulties it is facing to meet its loan obligations. Its request has been answered by Santander and CaixaBank, its two primary lenders.

To this SOS, a new loan amounting to €60 million has just been agreed, which forms part of the sales operation to HIP. According to sources familiar with the deal, Sabadell, the owner of HIP, has granted this 18-month loan, with the aim of enabling the Polanco family to put its accounts in order.

Once that period has elapsed, and provided the loan has been repaid or transferred to another entity, HIP will acquire 49.99% of the luxury resort, an operation that, between the sales value and the money to be allocated to new investments, would mean that Prisa’s shareholders will obtain another €75 million.

In the event that the Polanco family breaches that obligation during the 18 month period, the hotel chain will not become a shareholder of Ritz-Carlton Abama and the financial problems of the giant will get worse, given that Sabadell would increase its list of creditors to include the aforementioned €60 million. (…).

With losses of €7.5 million at the end of 2015, the most recent period for which figures are available, and sales of €55.25 million, this luxury tourist resort comprises the five-star Ritz-Carlton Abama hotel, a residential development where 148 villas are planned and Abama Golf, a 72-hole golf course. (…).

HI Partners owns 31 establishments and manages €850 million of hotel debt on behalf of Banco Sabadell. Moreover, a year ago, the firm signed an alliance with the giant Starwood Capital Group, to create a joint venture aimed at investing €500 million over the next three years.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

More Than 1,000 New Homes Are Being Built In Sevilla

17 October 2017 – ABC

(…) In the last twelve months in Sevilla, the main initiatives that had been suspended following the decline of companies such as Novaindes, Navicoas and Habitat, have been reactivated. With a few exceptions, the large plots of buildable land in good locations now all have new owners. The clear sign of this trend is that between 2016 and 2019, more than 1,000 new homes will come onto the market in the most sought after areas of Sevilla.

Who is behind these projects? The most spectacular moves have been made by the Murcian property developer Monthisa, which has completed five operations in just ten months to purchase plots of land on which it plans to construct around 350 homes. In February, it signed an agreement with the company Gestión de Inmuebles Adquiridos – which belongs to the Unicaja group – to construct 150 homes in Kansas City 36; a month later it purchased the plot of land in Pagés del Corro 122 from Solvia (the real estate subsidiary of Banco Sabadell) with capacity for 52 apartments; in September, it acquired the Correos warehouses on Calle Fernando Tirado (which will house between 35 and 40 properties) and it signed an agreement with Sareb (also known as the bad bank) to develop the plot of land on Calle de la Florida, where it will build another 84 homes.

The bad bank has been one of the most active players in the real estate sector in Sevilla. Whilst in La Florida, Sareb chose Monthisa, in Carretera de Carmona 43, it appointed Solvia to regenerate the plot of land that used to be home to Tysa Ford. That alliance was signed at the end of 2015 and the construction work (of the more than 200 homes) is due to be completed in March 2019. In parallel, Solvia is also responsible for another one of the star projects in the city centre: 30 homes in the Puerta de Nervión building on Calle José Luis de Casso, opposite the Sánchez Pizjuan stadium.

These projects are different from those seen before 2007. The majority of these developments involve large apartments, with prices of less than €3,000/sqm. According to experts in the sector, the demand for housing now comes from established families in stable economic situations and so the most successful products are those with several bedrooms. According to Ricardo Pumar, Chairman of Inmobiliaria del Sur (Insur), “nowadays, only projects that are well designed, with innovative solutions, high quality finishes and very competitive prices have a chance of success”.

Insur was one of the first companies to detect this change in the cycle. At the end of 2013, it acquired the former Cuartel de Intendencia and there it has launched Pineda Parque, a residential complex that contains three twelve-storey towers and another two eight-storey towers that will house 158 homes (measuring between 140 sqm and 228 sqm, with three, four and five bedrooms). In 2014, it started the construction of Edificio Miraflores, on a plot purchased from Sareb where it is now finishing the construction of 64 homes.

And the final example of this trend is Dospuntos (a group controlled by the American investment fund Värde Partners), which is going to begin the construction of 87 homes soon on a plot of land on the corner of Calle Enramadilla and Avenida de la Buhaira. This plot originally belonged to Pontegran (a company jointly owned by Osuna and San José).

There are still a few projects pending sale, but most of the large plots of land in the city have now been bought up.

Original story: ABC (by Luis Montoto)

Translation: Carmel Drake

La Finca Goes On Market For €700M: A Chinese Fund Is Interested

22 September 2016 – Ok Diario

Procisa, the property developer behind the business and residential complex La Finca, located in the northwest of Madrid, has put the “For Sale” sign up. Its Board of Directors is now listening to offers for the purchase of 100% of the company’s share capital, which is currently controlled by the heirs of Luis García Cereceda, founder of the family empire who died in 2010. There are already several investors interested in negotiating the purchase of the group.

According to sources close to the company’s Board of Directors, the objective right now is to continue depreciating the assets and to close the sale before the crisis that the company is undergoing hinders the operation.

According to data from the Commercial Registry, the value of Procisa’s assets decreased to €890 million at the end of 2014 (the last year for which accounts are available), an figure that falls well below the more than €1,000 million recorded in 2010. In fact, according to the sources consulted, the firm is currently reported to be worth around €700 million, a figure that concerns the company’s directors.

The key behind the success of this operation is for the majority shareholder, Susana García Cereceda, to give her approval for the sale of 100% of Procisa, something which has been denied until now. In fact, in June, the General Shareholders’ Meeting approved the carve out of the company into several companies, to allow the US fund Värde, which is investing in the Spanish real estate market, to enter the business. The majority shareholder wanted Värde to acquire 40% of the office business and for the entirety of the residential business to remain in the hands of the García Cereceda family.

According to the plans designed by the main shareholder, Procisa’s assets were going to be distributed between the new company La Finca Global Assets (which was going to manage the rental of offices and retail premises), the company Finca Somosaguas Golf (which was going to focus on building a luxury residential area under the Casablanca brand) and La Finca Promociones y Conciertos Inmobiliarios (into which the other assets and debts from the current Procisa company were going to be integrated).

Nevertheless, that operation was blocked by the Commercial Court number 11 of Madrid, in light of the opposition filed by Yolanda García, the sister of Susana and owner of 49% of Procisa. It was in this context that the company’s change of strategy arose, which is now “to listen to offers” in order to complete the sale of all of the company’s share capital. (…).

According to sources, a Chinese investment fund is already willing to make an offer for Procisa, although the sources consulted preferred not to give any more clues about the deal so as not to jeopardise the potential sale. The trump card that the company’s Board of Director have to close the operation is the recovery of the Spanish real estate sector, and the fact that a number of major companies are located in La Finca, both Spanish and multinationals. In addition, the company owns a luxury residential area, which has great potential to appreciate over the medium term.

Original story: Ok Diario (by L. Ramírez and Jaime Acero)

Translation: Carmel Drake