VBare Acquires Residential Building in Central Madrid for €10.5M

4 October 2018 – Eje Prime

VBare is on a roll. The Socimi has purchased a residential property in Madrid for €10.5 million. It is the largest investment made by the company in a single asset to date, according to a statement filed with the Alternative Investment Market (MAB).

The building, located at number 20 Calle Luchana, has a surface area of 3,285 m2. VBare forecasts that the net yield will amount to 4% once the renovation work has been completed and the property has been leased.

The company has subscribed a mortgage loan amounting to €5.25 million, granted by Banca Pueyo. The rest of the purchase price was financed using own funds.

VBare is a real estate investment vehicle specialising in the acquisition and management of residential assets for their rental. The company, which has been listed on the MAB since 23 December 2016, was created in March 2015 and currently owns a portfolio containing 272 assets.

In July, the Socimi made its debut in Málaga with the acquisition of a block of residential assets for €1.35 million. That operation formed part of the company’s growth plan after it carried out a capital increase amounting to €3.2 million in June.

Original story: Eje Prime 

Translation: Carmel Drake

Optimum III Acquires Residential Building in Terrassa for €1.5M

29 January 2018 – Eje Prime

The Socimi Optimum III is starting 2018 in the same way that it finished 2017: by going shopping. The Catalan company has purchased a package of assets comprising 17 homes and 31 parking spaces in Terrassa, a town on the outskirts of Barcelona, according to a report filed by the listed company with the Alternative Investment Market (MAB).

This latest purchase follows those undertaken by the Socimi in recent weeks in both the Catalan capital and Madrid. It has acquired a residential building in Hospitalet de Llobregat, and an office building in the centre of the Spanish capital.

The Socimi’s newest asset spans 1,497 m2 and, besides the 17 homes, contains two storerooms. The company, controlled by BMB Investment Management and Bluemountain, has reported that 100% of the apartments are already occupied, mainly on a rental basis (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

MK Premium Buys 2 Residential Buildings In Barcelona

15 November 2017 – Inmodiario

MK Premium, the family-owned real estate company, has just acquired two new buildings in the city of Barcelona, on the same street. With a total investment of €1.5 million, the two buildings, located in the Sants neighbourhood, specifically on Calle Gayarre, at numbers 38 and 42, have a combined surface area of 1,082 m2.

“We were presented with the opportunity to acquire the two buildings, which are almost next door to each other, at the same time. These properties date back to the end of the 19th and beginning of the 20th centuries and are located in one of the fastest growing areas of Barcelona in terms of population. The two buildings have a combined surface area of more than 1,000 m2 and contain 9 homes, plus one retail store, with the individual surface areas ranging between 70 m2 and 88 m2. Despite the political situation in Cataluña, the real estate market is still active; the outlook for the last two months of the year is very good”, said Daniel Leiva, Founding Partner at MK Premium.

The property on Calle Gayarre, 42 dates back to 1900, and has a total surface area of 660 m2, comprising 6 homes; whilst the building located at number 38 is older, dating back to the end of the 19th century (1878), comprising 3 apartments and a retail store, with a total surface area of 424 m2 (…).

From these two buildings, located in one of the most well-connected parts of the Catalan capital, MK Premium expects to obtain a profit of 8% from the rental of each one of the homes, but not before subjecting both properties to a comprehensive renovation process, to restore the two iconic buildings to their former glory. (…).

These two latest acquisitions take MK Premium’s portfolio to 94 assets in 2017. The company expects to close one of its best years ever, at a time when it has completed its expansion plans, by opening an office in Madrid, on Paseo de la Castellana.

Original story: Inmodiario

Translation: Carmel Drake

Grosvenor Buys 2 Buildings In Madrid To Turn Them Into Homes

17 July 2017 – Expansión

The British real estate company Grosvenor has acquired two buildings in Madrid, which it will transform into new luxury apartments and commercial spaces. Specifically, Grosvenor, through its subsidiary Europe, has purchased one building, with a surface area of 3,000 m2, located between c/Modesto Lafuente and c/José Abascal. The property, which currently houses offices, will undergo a comprehensive renovation to create thirteen 3- and 4-bedroom homes, spread over ten floors.

Similarly, the British group has acquired another property, located on c/Santa Engracia, with a surface area of around 1,800 m2. There, the real estate company plans to create 18 homes, including two penthouses and some retail premises.

The two operations form part of the joint venture created by Grosvenor and the Asian firm Amcorp in July 2016, which has the aim of investing €70 million in Spain during its first phase.

In May, the alliance closed its first transaction with the purchase of a plot of land measuring 820 m2, at number 53 on Calle Jorge Juan, to promote seven exclusive apartments.

The British group, founded in 1677 by Sir Thomas Grosvenor, is currently one of the largest real estate owners in Great Britain.

Grosvenor is one of several major international investors that has taken the decision to back the residential market in Spain. Funds such as Kennedy Wilson, Lone Star, Greenoak, Grosvenor, Autonomy Capital, Invesco, as well as family offices and representatives of wealthy families such as Shaftesbury, the Capriles family, Stoneweg and Dazi are all currently working on residential projects in the Spanish market.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Optimum III Buys Residential Building In Barcelona For €6.6M

6 July 2017 – Eje Prime

Optimum III, the residential Socimi created by BMB Investment Management and the US fund Bluemountain, is continuing to grow its portfolio of assets with new purchases. In its latest deal, the company has acquired a residential building in the neighbourhood of Sarrià-Sant Gervasi, in the upper area of Barcelona. The purchase of this property has seen the group invest €6.6 million.

The property is located at number 46 on Calle Calaf, in one of the most expensive districts in the Catalan capital. Until recently, Sarrià-Sant Gervasi was the most expensive neighbourhood in the country in which to buy a home, according to data from Tinsa’s IMIE Local Markets index. During the fourth quarter of 2016, the upper area of Barcelona became the most expensive in Spain, with an average house price per square metre of €3,901/m2, up by 8.6% compared to the fourth quarter of 2015.

Nevertheless, during the first three months of this year, the boom in Madrid saw the tables turn, with the neighbourhood of Salamanca becoming the most expensive in the country, exceeding €3,800/m2 (up by 6.8% compared to a year earlier). Meanwhile, Sarrià-Sant Gervasi was ranked in second place, with an average price of €3,778/m2 during the first quarter of the year.

Optimum III is continuing to increase its portfolio of assets (…), however, its business is different in several ways to that undertaken by its predecessor Optimum Real Estate. Firstly, due to the reactivation of the real estate market, the average price of acquisitions will now be approximately €2,500/m2 in Barcelona and €2,800/m2 in Madrid, according to the group. Secondly, the capital of Spain will play a greater role in the portfolio; the city accounted 20% of the total assets owned by the previous Socimi, whereas it will now account for 30% of the total, with Barcelona accounting for the remaining 70%.

Moreover, taking advantage of the work already performed by BMB for Optimum Re Spain between December 2016 and February 2017, Optimum III has now acquired five properties in the two cities. In Barcelona, it purchased buildings located on Avenida Diagonal at the intersection with Calle Girona, and on Calle Bruc at the junction with Calle Aragó, amongst others. BMB’s intention is to invest €100 million through the new vehicle, in the form of both acquisitions and improvements. In this way, Optimum III’s portfolio will comprise more than twenty buildings.

Optimum Real Estate, the older sister  

In parallel to Optimum III, BMB and Bluemountain are continuing to fatten up their other Socimi in Spain, Optimum Real Estate. Currently, the asset portfolio of that Socimi, which was created following the success of two vehicles constituted in 2007 to purchase residential buildings in Berlin (Germany), comprises fifteen assets located in Barcelona, in central areas such as El Eixample, Gran Vía, El Born and Ramblas, as well as one in Madrid, located at number 8, Calle San Bernardino. Optimum’s portfolio is currently valued at €63.7 million (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Sareb Is Awarded The Kronos Building In Benidorm

26 April 2017 – Valencia Plaza

Sareb, also known as the “bad bank”, has taken ownership of one of the tallest skyscrapers in Benidorm (the fifth tallest to be precise), as well as in all of Spain. As such, Sareb currently has 136 homes up for sale of varying types and sizes in the Kronos building: from the 1st floor to the 38th. It is a 41-storey tower, which was conceived as a luxury residential property, where the building does not even occupy 20% of the plot. The remainder comprises common and recreation areas, including two swimming pools, one for adults and one for children, a gym, football pitch, padel and tennis court, as well as extensive green areas.

The building was constructed by the Valencian property developer Grupo García Ojeda, which dodged several bankruptcy proceedings as well as it could during the first few years of the crisis. Sareb rescued nine savings banks, including properties and loans to property developers. The second was the operation through which the “bad bank” was awarded the asset, according to Alicante Plaza, whose debt belonged to one of the companies in the Grupo García Ojeda. (…).

Construction of the property began in 2005 and although the keys were handed over three years later, most of the homes remained unsold a decade later. The asking prices are not the cheapest, according to real estate sources consulted. The apartments have 1, 2 and 3-bedrooms and the smallest properties are going for at least €97,176, according to Grupo Ferrer Albors Real State and Activium. The latter has also put up a sign on the side of the building to advertise the price of the 1-bedroom homes. Even so, the figures are well below those achieved before the crisis, despite the fact that these homes are new and have never actually been lived in.

Sareb’s interest in tall buildings in Benidorm is not unique to Kronos. It is also looking to take over In Tempo, the unfinished skyscraper, which, unless the judges make a ruling to the contrary, will be awarded to the bad bank, presumably, for its subsequent sale.

Original story: Valencia Plaza

Translation: Carmel Drake

Socimi Vitruvio Acquires 4,000 m2 Building In Madrid For €7.6M

19 April 2017 – Expansión

The Socimi Vitruvio Real Estate has completed the incorporation of a new property into its portfolio. The listed company, which is currently immersed in an integration process with CPI (the investment vehicle created by the manager of Banca March), has acquired a 4,000 m2 building at number 14 on c/Ermita del Santo, in the heart of the Madrid Río area of the capital.

The operation, signed on Friday 7 April, sees the incorporation of a unique asset into its existing real estate portfolio, which comprises residential and office buildings in the most historic areas of Madrid. For this property, which has a surface area of around 4,000 m2, spread over 38 homes and four commercial premises, Vitruvio will disburse €7.6 million, to which it will have to add a significant injection of funds to refurbish the asset. Currently, the property, which is leased in its entirety, generates annual rental income of €330,000, an amount that Vitruvio expects to increase following its upgrade or, in a worse-case scenario, it will sell the homes unit by unit.

The operation, advised by Baltex Brokers and Arcania, has a peculiar feature in that the vendor, or in this case, the vendors, have decided that almost half of the agreed price (around €3 million, to be specific) will be covered by shares in the Socimi (the rest will be financed through a loan with Banco Santander). In this way, Oliva de Borbón y Rueda, the last marquis of Villamantilla de Perales and her daughter Cristina de Figueroa de Borbón, daughter of Alfonso de Figueroa y Melgar IV, Duke of Tovar, will go from being the owners of this building, constructed in 1948 and owned by the family since then, to owning shares in the listed real estate company.

These types of operations are not new in the market or for this Socimi. Whilst the large listed real estate investment companies have become a haven for large international funds wanting to invest in Spanish real estate, the smaller real estate companies have developed a market for themselves as an efficient tool for wealthy families. In the majority of cases, families with wealth opt to build up their own vehicles, however, in some cases, they choose to transfer their family wealth to a firm managed by third parties, something that has already happened in the case of Vitruvio with families (primarily Spanish business people and private banking investors) who invested in the March’s management company.

At the end of 2016, the managers of the Socimi Vitruvio and Consulnor Patrimonio Inmobiliario (CPI) signed a merger agreement whereby CPI, a real estate investment vehicle created by Consulnor (the manager in which Banca March holds a 48% stake) would transfer its assets to the Socimi in exchange for shares in its capital. As a result of this operation, Vitruvio will become the largest Socimi on the MAB, by number of shareholders, with more than €100 million in properties.

After closing the CPI and Madrid Rio operations, Vitruvio plans to undertake new investments amounting to more than €30 million this year, taking the global figure to around €75 million. “In parallel to the fusion by absorption with CPI, which should be definitively approved between the end of May and the beginning of June, we are engaged in negotiations to acquire more assets”, said Joaquín López-Chicheri, CEO at Vitruvio.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Domo Gestora’s Socimi Acquires Its First Plot Of Land

24 March 2017 – Inmodiario

Domo Activos Socimi, the Socimi promoted by the real estate manager Domo, has acquired its first asset. The asset in question is a plot of land, located in Ensanche de Vallecas, in Madrid, where the company plans to develop a residential building comprising 80 homes for rent with the option to buy. This Socimi’s business model focuses on buying land on which to construct buildings for their subsequent rental. Once the mandatory three years during which they must lease the properties out has passed, the Socimi will then proceed to sell them, whereby benefitting from the tax benefits enjoyed by these types of companies. In this way, all of the profits generated from the date the land is acquired until the date the properties are sold is taxed at 0% for Corporation Tax purposes.

According to the company’s estimates, the returns on this project, once the divestment has been made, could reach 10% per annum. Before the sale and whilst the properties are being leased, investors will receive profits resulting from the rental income, in the form of dividend payments.

Domo Activos Socimi will debut on the Alternative Investment Market (MAB) in the recently created sub-segment, called “Socimi under development”. Socimis that allocate less than 70% of their assets for rent trade there. In this case, Domo Activos Socimi will ask to be incorporated into this sub-segment, given that initially, it will own just one plot of land.

Domo Activos Socimi’s business model allows its shareholders to participate in the advantages and returns offered by traditional Socimis, as well as in the returns offered by the development and construction of properties.

Domo Activos Socimi plans to file its request to join the MAB during the first half of 2017. This milestone will allow Domo to fulfil one of the main objectives that it set itself when it launched this Socimi, namely, to enable small and medium-sized investors to access investments with these characteristics.

Domo Activos Socimi has successfully completed its first capital increase, which has allowed it to acquire this plot of land and for the time being and until it debuts on the MAB, with the traditional “Ringing of the bell”, it may increase its share capital again, which would likely require a minimum necessary investment per shareholder of €100,000.

Original story: Inmodiario 

Translation: Carmel Drake

Catella Buys 216 Homes In Madrid For €23.5M

13 February 2017 – Eje Prime

Catella Asset Management Iberia, the real estate fund manager that the Catella Group operates in Spain and Portugal, is continuing to invest in property in our country. The company has acquired 216 homes in Madrid, in an operation worth €23.4 million, according to a statement.

This operation follows a transaction that the company completed last month, when it acquired two residential properties in the Madrilenian suburb of Pinto for €24 million. Those two buildings have a total constructed surface area of 18,092 m2, distributed over 216 homes, 216 parking spaces and 216 storerooms. Those properties have an occupancy rate of 93% of the leasable surface area.

Following these two operations, Catella has accumulated a portfolio under management worth €100 million, during its first year of activity. Just over two months ago, it completed four transactions: three operations involving the purchase of residential properties located in Madrid (in Barajas and on Calle Génova) and Barcelona (in Poblenou); plus the purchase of the Portal Mediterráneo shopping centre in Vinaroz (Castellón).

Catella specialises in the real estate investment and management sectors, as well as in fund management and banking. It has a strong presence across Europe, with 500 professionals distributed across its offices in 12 countries. In Spain, the group operates two distinct activities: Catella Asset Management Iberia (Catella AM) and Catella Property.

Original story: Eje Prime

Translation: Carmel Drake

Catella Buys 2 Housing Blocks In Pinto (Madrid) For €24M

24 January 2017 – Expansión

The Catella Group’s real estate fund manager, Catella AM, has acquired two residential properties located in the Madrilenian municipality of Pinto, for €24 million.

As well as participating in the purchase process, Catella AM will also take responsibility for managing the asset portfolio. The two buildings are twins and have a combined constructed surface area of 18,092 m2, distributed over 216 homes.

Similarly, the assets have 216 parking spaces and 216 storerooms. The properties have an occupancy rate of 93% of the gross leasable area. Catella AM is the Catella Group company that manages investments and real estate assets in Spain and Portugal on behalf of the funds managed by the company itself, as well as for Spanish and overseas institutional investors.

During its first year of activity, the manager has accumulated a portfolio under management amounting to €100 million. In recent months, Catella AM has purchased three residential properties located in Madrid, in Barajas and on Calle Génova, and in Barcelona, in Poblenou (pictured above).

In addition, the manager has completed the acquisition of the 12,400 m2 Portal Mediterráneo shopping centre in Vinaroz (Castellón).

Original story: Expansión (by R.A.)

Translation: Carmel Drake