Tag: residential use

Quonia Buys Mixed-Use Property In La Barceloneta For €7M

31 March 2017 – Eje Prime

The Socimi party in Spain is still raging. As the undisputed stars of the real estate sector over the last two years, these companies are still fattening up their asset portfolios and valuations through acquisitions. Such is the case of the Catalan firm Quonia, which after acquiring a property in one of the best area of La Barceloneta in the Catalan capital, has increased its valuation by 12% to €72 million, according to the annual accounts filed by the company.

The most recent asset acquired by Quonia, a vehicle managed externally by Rusiton XXI, a specialist real estate fund manager with extensive financial experience, is a property at number 60 on Passeig Joan de Borbó, in La Barceloneta, one of the most touristic areas in the Catalan capital, for €7 million.

The property comprises three commercial premises on the ground floor, which are currently occupied by the classic restaurant Can Manel, which has now closed its doors and which is going to be occupied by the Degus group, in an operation brokered by the real estate consultancy firm Laborde Marcet, according to sources in the sector.

The building also contains six homes on the first and second floors, and a terrace on the third floor. The gross leasable area amounts to approximately 1,658 m2, split into tertiary use (815 m2) and residential use (843 m2) which, according to sources close to the operation, will soon be subjected to a comprehensive renovation.

Following this acquisition, Quonia’s portfolio now comprises six assets, located in Barcelona, Asturias and Sevilla. The Socimi debuted on the Alternative Investment Market (MAB) in July 2016 (…).

In terms of Quonia’s management team, the role of CEO is held by Enric Pérez Más, an executive who is closely linked to the investment business in Spain. The director has held senior management positions in groups such as AMCI, Habitat and Investmex, amongst others. The Socimi’s Board of Directors also comprises Alicia Solares, Ana Marías Saucedo, José Luis Llamas, Mayra Hernández and José Luis Rodríguez.

Original story: Eje Prime

Translation: Carmel Drake

Mexican Investor Buys Residential Building In Madrid For €48M

13 March 2017 – El Mundo

A new and important real estate operation has been closed along the so-called Golden Mile, in the most exclusive area of Madrid. A Mexican investor has purchased the majestic building located on Plaza Marqués de Salamanca, 11 for €48 million, according to comments by Pierre-Célestin & García-Argüelles Partners, a firm that specialises in brokering the sale of prime assets in major international capitals and which has brokered this super-operation.

If this figure is correct, it will be the highest grossing transaction involving a residential building in the city for at least a decade. The historical property, which is used for both residential and hotel purposes, has an above ground surface area of 8,797 m2, spread over eight storeys including the ground floor (which contains storerooms, the concierge’s house and a commercial outlet) and the roof top terrace. Each floor has a surface area of 1,000 m2 and is currently divided into two homes with ceilings measuring more than 3.5 m high.

Javier García-Argüelles, one of the partners of the company that advised the sale, highlighted the great interest that this asset has sparked. He reportedly received nine expressions of interest – five from funds and four from individual investors – from two domestic and seven international buyers – two Venezuelan, one Colombian, one Brit, one Dutch and one Canadian -. “The property was awarded to the first investor who was willing to pay the non-negotiable figure of €48 million and make the 10% deposit”, he said.

Regarding the new owner, for confidentiality reasons, García-Argüelles is only able to reveal that he is Mexican, features on Forbes’ list and works in the international real estate market. (…).

Until now, Marqués de Salamanca, 11, whose homes were being operated under a lease arrangement, belonged to an aristocratic family from Oviedo.

“This operation is a clear sign that the luxury real estate sector is experiencing a real boom”, said García-Argüelles, who revealed that the new owner intends to invest heavily (“spending no less than €10 million”) on the renovation of the building to transform it into exclusive apartments.

Apparently, although the property could be converted into a five-star hotel, the new owner’s plans involve creating three 250-300m2 homes per floor and holding onto the whole of the top floor for his own personal use (the rooftop terrace will be left untouched. It has views of the entire city of Madrid as it is the highest point in the neighbourhood of Salamanca). In total, around 15 high-end apartments will come onto the market as a result. Their price? According to García-Argüelles and Pierre Célestin, and based on comments made by the buyer, the asking price for the homes will start at €14,000/m2.

Original story: El Mundo (by Jorge Salido Cobo)

Translation: Carmel Drake

Carmena Grants Partial Demolition Licence For Former MOD Building

9 December 2016 – Expansión

The Town Hall of Madrid has granted a licence for the partial demolition of the Precision Artillery Workshop, on Raimundo Fernández Villaverde, despite opposition from Ganemos.

Cooperativa Maravillas, the property developer behind the residential project that is going to be constructed on a plot of land that used to be owned by the Ministry of Defence, on Calle Raimundo Fernández Villaverde, has received some good news this week. The Town Hall of Madrid has granted the management company Domo a licence to demolish the Precision Artillery Workship, now in disuse, despite opposition from Ganemos, one of the parties that forms part of the municipal government’s coalition.

Following a favourable report from the Community of Madrid’s Local Heritage Committee, the Town Hall has authorised the partial demolition of the building. The remodelling of the property forms an essential part of the management company’s plans, which involve the construction of more than 300 homes on this street, located in the Madrilenian neighbourhood of Chamberí.

In any event, the licence for the complete demolition is pending a decision by the Heritage Committee to determine whether the building’s basement still contains any old air-raid shelters from the Civil War, in which case, they should be preserved. In addition, the cooperative is waiting for the agreement reached between the Town Hall and the management company to be ratified.

Details of the agreement

According to this agreement, the Town Hall of Madrid will receive 5,422 m2 of land for residential use, corresponding to 10% of the obligatory concession.

Similarly, the Town Hall of Madrid will receive 3,360 m2 of green space and 1,000 m2 of space on the ground floor of the building, where it plans to building a primary school. It will also receive 250 m2 of free space.

Manuela Carmena’s urban planning team has reached an agreement with the property developer to assign the property in this way, rather than monetise it, with the aim of “covering the deficiencies of these types of facilities in the district of Chamberí”, explained the Town Hall.

The agreement, which is necessary for the approval of the urban planning project and the subsequent work and construction licence, will be circulated for public information purposes and referred to the Town Hall for its ratification.

Opposition from Ganemos

The decision to demolish this building does not have the blessing of Ganemos. The municipal platform, which forms party of Ahora Madrid, considers that “there is no reason” to grant a licence to allow the demolition of the historical building, given that the management agreement required to be able to construct the new buildings has not been approved. According to the platform, several legal cases are still open with the Prosecutor’s Office and the High Court of Justice of Madrid that may still result in the cancelation of the urban planning project. (…).

Meanwhile, the cooperative pointed out that the buildings belonging to the former Workshop are not classified as being of cultural interest, nor do they have any kind of offical protection. “The General Urban Planning Plan of 1997 and its subsequent review did not foresee the need to classify buildings or land as urban land for residential use.”

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Telefónica Sells Four Properties For c. €50M

4 October 2016 – El Mundo

According to sources familiar with the operation, Telefónica has completed the sale of a portfolio containing four properties to Beach Bienes Inmuebles for around €50 million.

The last known operation involving the company was its purchase, through public auction, of a building from the Community of Madrid located at number 3 Gran Vía, in Madrid, for around €8 million in 2013.

All of the buildings are offices and facilities used by Telefónica, which has reserved the right to remain as the tenant for a mandatory period of seven years, with the option of extending for an additional five years.

Three of the properties may be used for residential purposes (those located in Madrid, Barcelona and Santander) and the other one (in Zaragoza) may be used for offices.

The building in Madrid occupies a plot measuring 749 sqm on Calle General Yagüe, 31, in the heart of the Tetuán district and just a short distance from Paseo de la Castellana. It has a constructed surface area of 3,411 sqm spread over five above ground floors and a lower ground floor, which may be used for residential purposes.

The property in Barcelona is located on a plot of land measuring 2,555 sqm on Paseo de Valldaura, 66-74, an established residential area in the Catalan capital. Its urban planning classification means that it may be converted into a residential building with common areas, with retail premises on the ground floor.

The building in Santander, located on Calle Arrabal, 23, may also be used for residential purposes, with retail premises on the ground floor.

The most unique property in the portfolio is located on Paseo de la Independencia in Zaragoza, the city’s main commercial thoroughfare. The building was constructed in 1926 and was designed by the architect Ignacio Cárdenas Pastor, who was responsible for the creation of some of Telefónica’s most important buildings during the first half of the twentieth century. Its façade and staircase is protected and the building has a total constructed surface area of 5,795 sqm.

Original story: El Mundo (by Luis M. De Ciria)

Translation: Carmel Drake

Quonia Buys Hotel Internacional In Barcelona For €11.25M

19 July 2016 – La Vanguardia

(…). The Catalan Socimi Quonia, which debuted on the Alternative Investment Market (MAB) on Monday, has acquired Hotel Internacional, located on Las Ramblas, 78-80, in Barcelona, for €11.25 million from the hotel group Husa, owned by the businessman Joan Gaspart.

In a statement, Quonia reported that the price includes the purchase of the property and its operating licence, and that the transaction has been advised by the firm Laborde Marcet. This hotel has a leasable surface area of 1,915 sqm; its upper floors are leased for hotel use, whilst its ground floor houses retail premises. The property was one of Husa’s last real estate assets in Barcelona, which is undergoing a major restructuring after emerging from complex bankruptcy proceedings.

Quonia debuted on the MAB on Monday at a price of €1.65 per share, which represents a market capitalisation for the company of €41.97 million. The Socimi holds a portfolio comprising properties leased for residential and commercial use located in Barcelona, Sevilla and Langreo (Asturias), with a total approximate gross leasable area (GLA) of 12,197 sqm, excluding one ground-level car park with 50 spaces and another underground car park with 93 spaces. (…).

Original story: La Vanguardia

Translation: Carmel Drake

Half Of Cruzcampo’s Former Site In Sevilla Goes Up For Sale

13 June 2016 – Andalucía Información

Investors and governments alike are trying to take advantage of the improvement in the economic environment to reactivate the real estate market in Sevilla. Whilst on Thursday, the Town Planning department put 19 plots of land in Sevilla, on which 1,440 homes may be built, up for forced sale through public auction, now comes the mandate for the confidential sale of half of the urban development rights over the large site of the former Cruzcampo factory, where the PGOU has authorised the construction of 1,963 homes, in addition to tertiary uses.

The site of the historical brewery on Avenida de Andalucía had gone from being a star project to a failing project. The Basque real estate company Urvasco, which acquired the plot during the golden years of the real estate boom, commissioned the design of a “high standing” neighbourhood to four of the star-architects at the time: Norman Foster, Jean Nouvel, Arata Isozaki and Guillermo Vázquez Consuegra, who…even had their photo taken together with Monteserín, the then mayor, on the balcony of the Town Hall, in 2006. At the time, sourcecs spoke about an investment of €750 million in the construction of a luxury neighbourhood that was going to boast a high category hotel with around 150 rooms.

Nevertheless, with the burst of the (real estate) bubble just two years later, the project ended up foundering, along with its developer, Urvasco, which was unable to meet its obligations with the banks that had lent it €330 million and so it had to hand over the land to a pool of financial entities and companies linked to them (around a dozen in total).

The ‘Compañía para los Desarrollos Inmobiliarios de la Ciudad de Híspalis’ is the owner of half of the urban development rights of this land (49.91% to be exact). The Company was constituted by Banco Popular, CajaSur, Caja Granada, Caja España, Caixa Catalunya, Cajastur, Caja Laboral, Bancaja and Caja de Ahorros de Extremadura.

This company, which had accumulated debt amounting to €294 million and losses of €200 million, filed for voluntary bankruptcy in January 2016 in the Commercial Court of Madrid, and its application was approved on 22 February. However, that has not represented an obstacle to the process to sell its urban development rights, entrusted to an intermediary company, which is looking for potential investors in a restricted process that will run until Friday (17 June), the deadline for the acceptance of offers.

The sales brochure highlights that the plot has a surface area of 18,286 sqm and is located just 400m from El Corte Inglés on Nervión Plaza (presented as the main shopping centre in Sevilla), as well as from Sevilla F.C.’s stadium and the Santa Justa train station.

The Interior Reform Plan definitively approved the development of 1,963 homes, of which 890 will be allocated for social housing, as part of a total constructible area for residential use of 225,823 sqm, as well as a further 29,345 sqm for tertiary use. Therefore, the gross buildable area amounts to 255,168 sqm.

All of this will be constructed on wide blocks located in the Southern area of the plot. The Northern section will be a green area covering more than 70,000 sqm. According to the sales brochure, “the proposed plans seeks to achieve a maximum liberation of space, of around 35% in total, for the enjoyment of citizens. To achieve this, the plans propose the construction of tall buildings, which in the case of the residential units will be 15-storeys high”.

Original story: Andalucía Información (by M. J. Florencino)

Translation: Carmel Drake

Sareb Puts More Than 150 Plots Of Land Up For Sale

7 October 2015 – El Boletin

Sareb has launched a land campaign for investors and property developers, which includes more than 150 plots, according to a statement issued yesterday by the so-called ‘bad bank’. The plots have a total buildable area of over 1,500,000 m2 for the development of homes, offices, shops, hotels and industrial warehouses.

Around one third of the land is located on the coast and is aimed at secondary residence developments. The campaign is being conducted online, through the microsite http://suelossareb.es, which contains information about all of the assets for sale. It also includes plots for tertiary use in the provinces of Guadalajara, Madrid, Málaga, Murcia and Valencia, intended for the development of approximately 250,000 m2 of offices and industrial warehouses. Sareb is outsourcing the marketing of these plots to its managers and servicers (Altamira, Haya, Servihabitat, Solvia).

“Sareb has identified that there is demand for developable land in several parts of Spain where it has assets, and so we think that now is the right time to launch this campaign”, explains Alfredo Guitart, General Manager at Sareb.

Almost 30% of the land included in this campaign is located in the Community of Madrid, with a buildable area of approximately 367,000 m2. Highlights include plots in Alcalá de Henares, Arroyomolinos, Madrid city, Torrelodones, Valdemoro, Leganés and San Fernando de Henares.

Sareb has also put 20 plots of land up for sale in Andalucia (with a buildable area of around 231,000 m2). These assets are mainly located in the province of Málaga, but there are also plots in Granada, Córdoba and Cadiz. All of these sites are intended for residential use, with the exception of two sites in Marbella and Vélez-Málaga, which have been allocated for hotel and retail use, respectively.

There are 39 plots in the Community of Valencia, with a combined buildability of approximately 215,000 m2, mainly residential. Two thirds of this supply is located in the towns of Moncofa (Castellón), and Gandía and Sagunto (Valencia). The latter is home to a plot of industrial land for warehouses, with a surface area of almost 16,000 m2. Meanwhile, in Cataluña, there are 17 plots with a buildability of 70,000 m2. The majority of those are located in the city of Barcelona, but the supply also includes other sites in, for example, Terrassa, Sabadell and Llinars del Vallés (Barcelona) and Ametlla de Mar and Ruidoms (Tarragona).

Finally, there are sizeable plots in Palma de Mallorca (Balearic Islands) and Zaragoza (Aragón). The first plot has been allocated for social, industrial and commercial use and is located in Estadi Balear, with a buildability of more than 10,000 m2. In the case of Zaragoza, nine plots have been selected with a combined buildability of more than 62,000 m2, both in the old town and in new developments.

Original story: El Boletin

Translation: Carmel Drake

The Auction Opens For 2 Residential Plots In Valdebebas

1 July 2015 – El Confidencial

The countdown has begun. The Valdebebas Compensation Board has approved the terms and conditions for the auction of two plots of land destined for residential use measuring 18,000 m2 in this urban development, where 190 social housing homes will be built. The Board expects to receive at least €14 million for both plots, i.e. around €700 per square metre.

The plots, which will be auctioned individually, are located next to the site that will house the future Valdebebas shopping centre. One of them, which the Compensation Board has set an asking price for of at least €5.6 million, contains 7,400 m2 of land for residential use, whilst the other measures 10,200 m2 and will have an initial auction price of €8.3 million. (…).

In order to participate in the auction, interested parties must pay a deposit of €300,000 – before the first week of September – which will be deducted from the final auction price in the case of the winning bidder and returned upon completion of the process to all other bidders.

The interested parties, expressly invited by the Compensation Board, will have access to all of the legal, economic and environmental information about the plots and must submit their bids before 12:00 (midday) on 30 September, when all of the envelopes will be opened. On 1 October, the Advisory Council of the Compensation Board will award the plots and one day later, the sale and purchase deeds will be signed. All of the auction details are available on the Valdebebas website.

The plots owned by the Compensation Board have aroused interest from the cooperative manager Ibosa, which was hoping to offer €70 million for all of the land owned by the Compensation Board – with the exception of one of the plots up for auction that has been promised to FCC -. An agreement that has not yet been finalised, although discussions are continuing with the Board for the purchase of the remaining land that will not be auctioned.

Payment options: in cash, deferred or by instalment

The terms and conditions stipulate three possible forms of payment: in cash, deferred or by instalment. Cash offers will prevail over deferred payments, unless the latter exceeds the former by 2.5%. Cash offers will also prevail over payments by instalment, except when the latter exceeds the former by 5.5%. Finally, deferred payments will prevail over payments by instalment, provided the party that chooses the latter option does not present an offer that exceeds the former by more 3%.

If any bidders choose the deferred payment option, then they must pay the total amount, i.e. 100%, five months after the plot of land is awarded, i.e. by 2 March 2016. Meanwhile, 70% of any payment by instalment must be paid by March 2016 and the remaining 30% by September 2016. (…).

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake

Cooperatives Queue Up To Buy A Plot That The Treasury Purchased 30 Years Ago

16 February 2015 – El Confidencial

All eyes are focused on one plot of land in Madrid. A plot of land, which the Treasury purchased from a group of nuns for 800 million pesetas in 1985, could now, three decades later, be sold for several million euros. It is one of the largest and rarest gems left in Madrid and many of the large housing cooperatives have already expressed interest. These same cooperatives were responsible for some of the most talked about transactions in the country last year; and this deal would allow them to offer hundreds of low cost homes in the centre of Madrid, just a few metres from the Paseo de la Castellana, something that was unthinkable a few years ago.

The plot measures just over 15,000 square metres and is located at the intersection of Calles Padre Damián and Fray Bernardino Sahagún, very close to the Castellana and ten minutes away from the Santiago Bernabeu stadium and the Torres KIO. It is owned by State Heritage (Patrimonio del Estado), which in turn reports to the Treasury (Ministerio de Hacienda). The land has its own history…it used to house a convent, which was demolished shortly after the plot was acquired by the Government. Three decades later…., the plot may come back onto the market in a perfect transaction for the public coffers, thanks to the increase in land values during the intervening period.

Nevertheless, before the plot is auctioned, some administrative hurdles will need to be overcome to change its intended use. The State Heritage department has proposed a one-off amendment to the General Urban Plan for Madrid because, for this land to be attractive in the market, and for the Treasury to obtain the maximum price for its sale, its use must be residential; currently it may only be used for the collective services of the Public Administration. (…)

This one-off amendment is awaiting provisional approval by the Town Hall of Madrid and definitive approval by the Community of Madrid, according to sources from the Treasury who say that until this happens, the plot will not be put up for sale. (…)

(…)

Under the spotlight of the management cooperatives

“The size of the plot, its location, its environment, its intended suitability for construction, its scope, the potential appeal of the project that could be developed makes this plot of land a clear target that is going to generate a lot of interest”, said Leopoldo Morena, the CEO of the Ibosa Group, the cooperative manager that was responsible for one of the most important land transactions in the capital last year, when it was awarded ownership of Metro de Madrid’s depots in Cuatro Caminos for €88 million. That project, Residencial Metropolitan, which will bring more than 400 homes onto the market, with prices upwards of €2,600 per square metre, has almost all been sold (95%).

Nevertheless, the operation of the year was, without a doubt, the sale of a plot of land on Calle Raimundo Fernández Villaverde by the Ministry of Defence in a bid that was won by the cooperative manager Domo. Its offer for €111 million exceeded those made by Ferrovial, Pryconsa and Construcciones Amenabar; all of the homes in the development have already been sold. The sales price of the 355 homes was expected to start at €3,300 per square mete.

These two transactions boosted the market in 2014. According to data from the real estate consultant Irea, transactions involving land in Spain amounted to €346 million last year, which represented just 4% of the total investment in the market. A low percentage, however, in 2013, there weren’t any transactions involving land above five million euro, the threshold that Irea uses to prepare its analysis of investment in Spain (and so the deals closed in 2014 did represent a move in the right direction).

“Transactions such as the one in Calle Raimundo Fernández Villaverde, the Metro de Madrid and more recently, Amenabar’s purchase of various plots of land from Sareb, without financing, were unthinkable a few years ago”, explains Mikel Echavarren, the CEO at Irea.

In his opinion, the main players that may sign land-related transactions in Spain this year will continue to be domestic companies, developers and cooperatives, which are capable of financing their land purchases with their own funds: “There are scarcely six companies in Spain at the moment with sufficient financial capacity to finance land purchases”….

The role of international investment funds in the direct purchase of land will be practically zero, but they will be involved in the acquisition of portfolios of debt that contain land or residential developments as underlying collateral.

The plot of land in Madrid has also attracted interest from prospective house buyers, as evidenced by the fact that some managers have received requests from more than 2,000 interested parties. And it is no wonder: if the land falls back into the hands of cooperatives, they may build homes right in the centre of Madrid at very competitive prices, especially compared with those in private developments, such as the one that will start soon in Calle Juan Bravo, 3, where the prices of the luxury homes that are going to be built on the site may reach €9,000 per square metre, significantly higher than the less than €4,000 per sqm being charged by both the Ibosa Group and Domo Gestora for their recent acquisitions in Madrid.

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake