Swedish Firm Quartiers Finalises the Opening of a Luxury Hotel in Marbella

16 April 2019 -Idealista

The Swedish property developer Quartiers Properties is developing a luxury hotel in Marbella. The company, which is listed on the Nasdaq First North stock market in Stockholm, purchased the hotel complex, which is located 200m from the beach, very close to Puerto Banús, in 2017.

Quartiers is going to invest around €8.6 million in the renovation and development of the 5-star hotel, which will be called Boho Club and which will have 50 rooms as well as a restaurant led by the Michelin-starred chef Diego del Río. The restaurant will be inaugurated this summer, whilst the hotel will open its doors at the end of the year.

This is not the only asset that Quartiers Properties owns in Spain. It also has the Hacienda del Señorío de Cifuentes, a complex located in Benahavís (also in Málaga), which comprises 99 rental apartments for vacation and residential use. Nearby it has built another 22 apartments (22 by Quartiers) and next door to that, it owns land for the development of another 60 homes. It is also working on the construction of two luxury villas, both on the Costa del Sol.

Original story: Idealista (by Ana P. Alarcos & P. Martínez-Almeida)

Translation/Summary: Carmel Drake

ECE Finalises Purchase of 3 Shopping Centres from Sonae & CBRE GI for €450M

8 June 2018 – Eje Prime

The portfolio of shopping centres jointly owned by Sonae Sierra and CBRE Global Investors could be on the verge of having a new owner. The German company ECE is reportedly finalising the purchase of three shopping centres from the two groups for between €450 million and €500 million, according to sources close to the operation speaking to Eje Prime. Sonae Sierra and CBRE GI jointly own these three assets (50% each).

With the purchase of this portfolio, ECE would begin to acquire its first assets in Spain, given that since it carried out the acquisition of Auxideico Gestión in 2010, a company specialising in the management of retail complexes and which previously belonged to ING Real Estate Development, it has not closed any transaction of this kind.

The centres that may be added to the portfolio of the German firm ECE are: Gran Casa en Zaragoza, the largest of the three; Valle Real (Cantabria); and Max Center (Barakaldo, Bizkaia). The two current owners already announced when the sales process was launched that they expected to pocket around €500 million from the sale.

If the operation with ECE goes ahead, it will represent the real estate giant’s first purchase in Spain since its arrival. Eight years ago, the group headquartered in Hamburg and the leader of the European market in urban shopping centres, acquired the Spanish firm Auxideico Gestión, which was, at the time, responsible for the management of fourteen shopping centres.

Until last year and following its acquisition by ECE, the group controlled more than 25 retail complexes in Spain, including Albufera Plaza, Montecarmelo and Moraleja Green in Madrid, Alcalá Magna in Alcalá de Henares and Parc Central in Tarragona. In 2017, Auxideico finally stopped operating in Spain due to “its small business volume”, according to sources in the sector. Across Europe, ECE has more than 195 shopping centres under management.

ECE, a giant with a healthy investor appetite

Founded in 1965 by Werner Otto, ECE now has more than half a century of experience in the sector under its belt. The family-owned company develops, plans, builds, leases and manages shopping centres and invests in real estate projects.

With a retail surface area of 7.2 million m2 and around 21,000 retail operators, the shopping centres managed by ECE generate annual sales of more than €23 billion and have a market value of €30 billion. Moreover, ECE has a stock of shopping centres under construction and being planned, with an investment volume of €3.2 billion.

ECE, in addition to specialising in the management of shopping centres, also operates in the real estate sector with other types of assets. The company owns a portfolio of logistics assets spanning 913,000 m2 and office buildings measuring 1 million m2.

Shopping centres, a good business in Spain

The fact that a group such as ECE is showing interest again in this business in Spain is due to the good outlook that the studies predict for the sector. Spanish people both visited and spent more in shopping centres in 2017, and the turnover in this types of assets increased by 1.5% last year with respect to the previous year, whilst visitor footfall grew by 1.1% YoY.

The sectors that performed the best last year with respect to 2016 in terms of sales were the household, leisure and restaurant segments, with increases of 5%, 3,7% and 2,7%, respectively, according to a report from Cushman&Wakefield (…).

Shopping centres will continue to be the most sought-after assets by investors, primarily international funds. The Spanish retail market closed 2017 with 555 active shopping centres and a stock spanning 15.8 million m2, according to the Spanish Association of Shopping Centres (AECC).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

M&G Invests €80M to Strengthen its RE Portfolio

29 May 2018 – Expansión

The real estate division of the London-based firm M&G Investment has decided to bet significantly on the Iberian market, where its exposure now exceeds €500 million. “We are partners of institutional investors looking for core properties in the best locations across Europe. We opened our office in Spain in 2016, but we completed our first operations there a year earlier”, explains Federico Bros, Director of Asset Management for Spain and Portugal.

Its first operation involved the purchase of the former headquarters of Telefónica located on Calle Ríos Rosas (Madrid) and leased to the advertising giant WPP. “It is an example of what we look for, well-located assets with long-term contracts, 17 years in this case. Between the renovation and purchase we will invest €175 million in that property”, says Bros.

After that acquisition came others, such as an office building in Barcelona’s 22@ district and, recently, five operations with a very diverse profile. On the one hand, M&G purchased three commercial assets: two in Madrid and one in Granada. “The premise in Granada, measuring 2,500 m2, is located on Reyes Católicos, the best shopping street in the city”, explains Bros. In the case of Madrid, M&G acquired two retail premises on Gran Vía 68. “We closed this operation in May but we have been negotiating it for months, given that the building was being renovated. A few months ago, a large Tony Roma’s restaurant opened there and Sabadell is going to open its flagship branch in the other premise in a matter of days”, he said.

Similarly, the firm acquired two industrial assets in Madrid, specifically a logistics platform, leased to Teka, in the Corredor del Henares, and another complex in Getafe. Those two sites span more than 55,000 m2. In total, the firm has invested €80 million on its latest operations, channelled through two funds: MEP and EuroSPIF.

More opportunities

Following these investments, the manager is still looking for opportunities in the Spanish market.

“We are involved in several processes, both official and off-market, in Madrid, Barcelona and prime locations in other cities. Spain is a priority country for us”, says Bros.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Renta & Arcano Bid for Bankia’s Former Branch on c/Alcalá (Madrid)

5 April 2018 – Eje Prime

The number of parties interested in one of Bankia’s star commercial assets in Madrid is being whittled down little by little. As Eje Prime revealed, last month, the entity opened an auction for its branch located at number 1 Calle Alcalá. After a period receiving offers, Arcano and Renta have been chosen to participate in the final round. Within the coming days, a decision will be taken as to who will end up acquiring the asset, according to sources close to the auction, who indicate that Arcano is currently best positioned in the race.

According to the same sources, a third group reached the final round but then withdrew due to the value that the asset may reach in the last round of offers. Arcano is one of the best-positioned players given the type of property up for sale; in recent months, it has acquired a handful of other assets with similar characteristics, such as the store at number 202 Calle Bravo Murillo that it purchased from Redevco for €12 million.

The highest offers submitted to Bankia for this latest asset amount to around €18 million, with those presented by Arcano and Renta Corporación proving most attractive to the banking institution (amounting to €18.3 million and €18.2 million, respectively, according to sources close to the operation). The asset, which is likely to interest restaurant operators rather than fashion firms given its (limited window) façade, comprises two floors: the first spans 458 m2, whilst the basement measures 405 m2.

In the event that Renta Corporación’s bid proves successful, something that is unlikely according to market sources, it could be the first move in a larger deal to acquire the whole building. Renta Corporación does not specialise in commercial assets but is an expert in the acquisition of entire buildings for their subsequent renovation. Moreover, the building did go up for sale in 2014.

Indeed, following the success of the sale of several assets, such as those located at numbers 18 and 3 Gran Vía for more than €26 million, and at number 8 Plaza Chamberí for more than €40 million, the Community of Madrid decided to try its luck with this property, located on Calle Alcalá, for which it was asking €10.7 million at the time.

The asset, constructed in 1880, has a total surface area of 3,209 m2 and used to house the offices of the Community of Madrid’s Ministry of Economics and Finance. Although nowadays it is used as offices, and its compatible uses include hotel, commercial, administrative, healthcare, education and even residential. Nevertheless, the Community of Madrid pulled out in the end and did not end up selling the building.

Bankia’s other prime assets

In addition to the premises on Calle Alcalá, Bankia’s portfolio of assets contains a second branch located in a prime enclave in the Catalan capital. It is the former headquarters of Bankia in Barcelona, located at number 9 Plaza Cataluña. That property has a surface area of 1,000 m2 and has received attention from a large number of operators.

Sources are Bankia have explained to Eje Prime that whilst the aim with the branch in Madrid was to sell it, the plans for the property in the Catalan capital are not as clear. According to the entity, it is considering several options, including a sale, but it may also lease the property to an operator and even invest in generating value from the asset by undertaking a renovation (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Nobu Hospitality Announces Opening Of Nobu Hotel And Restaurant In Barcelona

13 September 2017 – Hospitality Net

Globally established luxury lifestyle brand Nobu Hospitality, founded by Nobu Matsuhisa, Robert De Niro and Meir Teper, and the Selenta Group, a Spanish real estate and hotel group owned by Jordi Mestre, is delighted to announce their continued European expansion into Barcelona, Spain.

Set to open by the end of 2018, as part of a multi-million Euro refurbishment of Gran Hotel Torre Catalunya, this property will be an integrated mix of a Nobu Hotel and Restaurant reflecting the innovation and imagination that has become synonymous with the name Nobu. The property will continue to be part of the Selenta Group collection. The partnership agreement with Nobu Hospitality gives rise to the shared management of the new establishment.

Capturing the unique essence of the famous European city whilst reflecting the brand’s core aspirational lifestyle offering. The fourth European hotel and third Spanish property from the highly recognized brand, the 250 rooms and suites along with its meeting rooms, event spaces and Nobu restaurant will be under a long-term management contract with Nobu Hospitality.

Original story: Hospitality Net

Edited by: Carmel Drake

TH Real Estate Buys Hypermarket To Take Over 100% Of Islazul

19 July 2017 – Eje Prime

TH Real Estate has completed the acquisition of a hypermarket located in the Islazul shopping centre from the French chain E. Leclerc. The operation includes the refinancing of the Iszazul shopping centre, which was acquired by TH Real Estate in 2014, in such a way that the firm will now manage the whole centre. The amount of the operation has not been disclosed.

With a constructed surface area of 260,000 m2, Isazul has a gross leasable area of 90,000 m2, which makes it the largest shopping centre in the city of Madrid.

This acquisition will add 19,327 m2 of additional space for new operators, whereby increasing the offer available at the shopping centre, which already receives more than 12 million visitors per year on average.

The commercial mix, which accounts for 40% of the centre, is comprised almost in its entirety by the fashion segment, whilst the leisure and restaurant facilities occupy 27% and the hypermarket accounts for 21%. The rest of the space corresponds to other segments, such as services and equipment for the home. In addition, the shopping centre has 4,100 parking spaces.

The company, which has just acquired 50% of Madrid’s Xanadú shopping centre, will start new expansion projects for assets in its Iberian Peninsula portfolio this year. The group will invest €60 million on the expansion of its Norte Shopping retail complex, located in Portugal.

Original story: Eje Prime

Translation: Carmel Drake

HIG Acquires Malaga Residential Complex

24 January 2017 – Property Week

A client of the private equity firm HIG Capital has acquired the 430-unit Valle Romano apartment complex in Estepona, Málaga.

The property, which includes swimming pools, restaurants and a gym, has a total surface area of about 495,000 sq ft.

“This is our seventh investment in Spain in the past three years”, said Riccardo Dallolio, Managing Director at HIG in London.

“Spain represents an important part of our European strategy and we continue to seek additional small and mid-cap, value-add, investment opportunities to increase HIG’s presence in this market”.

HIG is based in the USA but has offices in 8 countries around the world, and currently manages more than €22bn of equity capital.

Original story: Property Week (by Emanuele Midolo)

Edited by: Carmel Drake

Palladium Opens 2nd Only You Hotel In Madrid

14 November 2016 – Expansión

Only You has come a long way since the end of February, when Abel Matutes Prats first introduced the future Hotel Only You Atocha and the project was still a building site. Now the scaffolding has been removed, and the second hotel owned by the brand that belongs to the Palladium Hotel Group is ready to go.

The establishment is expected to be opened within the next few days – definitely before the end of November – to join the firm’s other Only You property on Calle Barquillo in Madrid. This new hotel, located on Paseo Infanta Isabel, will have 206 rooms (192 doubles and 14 suites).

Designed by Lázaro Rosa-Violán

The interior designer Lázaro Rosa-Violán has worked with the Matutes family once again and has made the property its own. The firm has created an industrial environment, with old fashioned tiled floors, cobblestones, retro styles and multi-spaces, all under one roof.

The lobby, restaurant and reception all merge into one and are full of typical Rosa-Violán features. (…). In this vein, the hotel will house a retro American-style gym, which will offer a personal trainer service and running club.

Here, one sometimes feels that one is not in a hotel, but rather in a fashion store. A sensation sought and found. The dream of any hotel is to turn its restaurant into a pilgrimage destination, even for non-guests. Hotel Only You Atocha will have its own Trotamundos restaurant, with the gastronomy of chef Javier Mora, alongside Jon Giraldo and Jaime Liebermande (chefs from Spoonik in Barcelona), who will present a mixture of cuisine from Latin America, Asia and Spain.

The bar will also be large, and will offer a comprehensive wine list and cocktail menu. There will be a Mamá Framboise (cake and pastry) stand in the lobby of the hotel, with recipes from Alejandro Montes.

The top floor will house a Youniverse restaurant, which will serve breakfast. The space has different corners and themed trolleys with tables both inside and on the terrace. In addition, the hotel has a well-appointed treatment room managed by Caroli Natura Bissé and adaptable meeting rooms for events. (…).

Only You Hotel Atocha is located opposite the train station of the same name.

Original story: Expansión (by Nerea Serrano)

Translation: Carmel Drake

25% Of Adif’s Retail Units Are Vacant

21 December 2015 – El Economista

In total, 307 retail units at Adif’s train stations in Spain are vacant. These establishments occupy a total surface area of 38,239 m2, which represents approximately 24.8% of the more than 154,000 m2 covered by all of the areas dedicated to restaurants, retail and leisure in the network of stations owned by the railway manager. In other words, almost a quarter of the retail space at train stations is currently empty.

During 2014, Adif recorded revenues of €569.5 million, of which €134.6 million related to rental income and services. Of that amount, €61.4 million was generated by the lease of buildings, shops and other properties and €71.8 million was generated by the use of fibre optics. Therefore, the contribution of rental income from retail stores, homes and plots represented around one tenth of total revenues. On the basis of the data about the uptake of retail units at Spanish train stations, that amount could increase significantly if the occupancy rates were improved.

The 307 available stores owned by Adif are spread across 75 train stations, according to the data from the body that sits under the Ministry of Development. The station in Albacete Los Llanos has the highest number of empty units, with 29 in total, covering a combined surface area of 3,953 m2. Meanwhile, the station in Córdoba has 12 stores available, with a surface area of 3,255 m2, whilst the station in Cáceres has 13 free units, covering 2,313 m2.

After Albacete, Córdoba and Cáceres, the stations with the most available space are Pontevedra and Madrid Chamartín, with 2,160 m2 (10 stores) and 1,996 m2 (5 stores), respectively. The station in the Spanish capital has various units available, where according to the website of the state-owned company, shops, a restaurant and car rental parking could be opened.

By contrast, in Madrid’s other major train station, Atocha, there is not a single square metre available for rent. At the other main train stations in Spain, Barcelona Sans has just one store available, measuring 48 m2, whilst Sevilla Santa Justa also has just one unit without a tenant, measuring 28 m2.

By contrast, at the high speed train station Valencia Joaquín Sorolla, there are seven units without a tenant, with a total surface area of 346 m2. There are six empty shops at Zaragoza Delicias, with a total surface area of 161 m2. And at María Zambrano in Málaga, one shop is available, along with two sites for ATMs.

Empty for several years

The majority of the retail spaces are available to rent immediately. Nevertheless, some of them have been empty for several years. In certain cases, that is because they need major renovations. Others will be available from early 2016, which is why Adif has now begun to market them.

The supply from the railway manager, which launched a plan two years ago to get rid of many of the homes and land under its ownership, includes units that may be used as shops, restaurants, cafeterias, kiosks, offices, bookshops, ATMs, parking and car rental. At certain train stations, Adif prohibits any new tenants from using properties to undertake activities already in operation at existing stores.

During 2015, the prices of the retail units at Adif’s train stations have ranged between €975/month, for stores measuring up to 8 m2, and €10,500/month, for stores measuring up to 30 m2. (…).

Original story: El Economista (by Javier Mesones)

Translation: Carmel Drake