Tag: results

Spain’s RE Companies see their Share Prices Rise by 30% on Average in 2017

12 December 2017 – Expansión

Spain’s real estate companies are on a roll: the recovery in activity has given these companies more visibility on the stock market. On average their share prices have risen by 30% in 2017. Renta Corporación, Hispania and InSur are the best performers and all three are very much in favour with the experts.

The property sector is in fashion on the stock market. On average, the share prices of real estate companies rose by 30% in 2017, well above the 10% rise that the Overall Index has registered since the beginning of the year.

Within this group, three companies shine the brightest: Inmobiliaria del Sur, Hispania and Renta Corporación all saw their share prices rise by between 39% and 53%, and the experts think that the upward trend will continue.

Moreover, Urbas and Axiare also saw their share prices rise by more than 30% in 2017, but for diametrically opposite reasons. The first was suspended from trading in September after the National Court announced that it was investigating the firm’s President for “suspected fraud” following a complaint filed by the Anticorruption Prosecutor.

Meanwhile, Axiare is the target of a takeover by its counterpart Colonial, which launched its bid in the middle of November and saw it approved by the CNMV just a few days ago. The operation, which is expected to result in the creation of a real estate group with assets worth €10 billion, offered a 13% premium over the company’s share price at the time, which led to a sharp rise. Currently, the company’s shares are trading just below the offer price (€18.29 compared to €18.36 per Colonial’s latest offer).

The economic environment, improvement in activity and greater investor appetite for housing are all working in favour of these companies, said Nicolás López, from M&G Valores.

However, the expert points out that the low market capitalisation of some of them and their very low liquidity increase their volatility, which makes them options suitable only for high-risk profiles.

Renta Corporación’s share price has risen by more than 50%

In the case of Renta Corporación, which is limited in size: amounting to just €92 million. The company is the best performing real estate company of 2017, with a share price increase of 53% (…). The company has taken advantage of its knowledge of the real estate market to launch, together with the Dutch pension fund APG, a Socimi. Since its creation, eight months ago, the new listed company has invested €93 million in the purchase of more than 1,000 homes, all located in Madrid and the surrounding area (…).

Strategic diversification favours InSur

Inmobiliaria del Sur completes the podium of the most profitable real estate companies this year. Its share price has risen by 40%. The secret to its success is the new business plan that the company has launched and which has been welcomed warmly by the market.

The family business, which has more than 70 years of experience, splits its activity between the construction of homes and the rental of office buildings, which allows it to have two revenue streams. With a business plan that involves building more than 2,000 homes between now and 2020, InSur has closed alliances with partners such as Anida, the real estate arm of BBVA, to become a key player in residential development (…).

Hispania’s specialisation boosts its share price

Meanwhile, Hispania’s share price has risen by more than 39% since the beginning of the year. This year, the company (…) has initiated a new phase, specialising in hotel assets (in June, it became the largest hotel owner in Spain with 38 establishments) and divesting the rest of its properties (…).

A few weeks ago, the company published its results for the third quarter, which went down well. The Socimi recorded a profit of €179 million during the first nine months of the year, up by 31% compared to the same period in 2016 (…).

Original story: Expansión (by D. Esperanza and R. Ruiz)

Translation: Carmel Drake

Aedas Homes Exceeds its Forecasts for 2017

11 December 2017 – El Mundo

During the eleven months to November, the property developer Aedas Homes, which made its debut on the stock market in October, doubled its land purchase target for the development of housing that it had set for the entire year 2017, according to a presentation submitted to Spain’s National Securities and Exchange Commission (CNMV).

By the end of November, Aedas Homes had acquired land for the development of 865 homes, more than double (108% more) the forecast for year as a whole (416). Moreover, the property developer intends to incorporate land for an additional 130 homes before the end of the year.

In general terms, Aedas Homes has already exceeded its forecasts for 2017, and, according to the company, it expects to see some solid results, taking into account that prices have risen by 7%.

Until November, the property developer had launched 35 projects, above the forecast for the year as a whole (34). Aedas had also exceeded the planned number of homes under construction, with 758, compared to the forecast for the year as a whole of 583.

In terms of pre-sold homes, the total number at the end of the eleventh month of the year amounted to 832, very close to the planned number of 845.

Minimal impact of Catalan crisis

Meanwhile, according to the property developer, the impact of the Catalan crisis has been “minimal”. The company says that pre-sales in Cataluña “are continuing to grow” and that the projects launched in the region “already have 50% of their units pre-sold”.

Cataluña is the third largest market for Aedas Homes, after Madrid and the Costa del Sol. At the end of November, seven of the 35 developments that the company had underway in Spain were located in Cataluña. The developments in the Catalan region comprise 355 homes, a number that exceeds the forecasts for the year as a whole in the autonomous region, which amounts to 322 units.

Currently, Aedas Homes has 16% of its land portfolio in Cataluña, comprising a surface area of 1.5 million m2, with a value of €1.37 billion. In this way, it has sufficient land to build 2,245 homes in the region, out of its current portfolio capacity (for the country as a whole) of 13,044 homes.

Original story: El Mundo 

Translation: Carmel Drake

Liberbank Sells €602M RE Portfolio To Bain & Oceanwood

23 October 2017 – Expansión

Liberbank has signed a binding agreement for the constitution of a new company together with Bain Capital Credit and Oceanwood – one of Liberbank’s current shareholders with a 12.7% stake – to which it will transfer a portfolio of real estate assets worth more than €600 million.

Specifically, the entity will transfer real estate assets with aggregate gross debt of around €602 million, of which €180 million (40%) corresponds to land and work-in-progress projects; €80 million to tertiary assets; and €342 million to residential products, according to a report submitted by Liberbank to Spain’s National Securities Market Commission (CNMV).

As a result, Liberbank will hold a 9.99% stake in this portfolio of foreclosed properties, whilst Bain Capital Credit will hold 80% of the new company, and Oceanwood will hold the remaining 10.01% stake.

Bain Capital Credit will be responsible for managing the assets in the new company following the completion of the operation, scheduled for before 31 December 2017, once the terms of the agreement have been fulfilled. According to its reports, Liberbank held sufficient provisions as at September 2017 to cover the impact resulting from the sale of this portfolio.

In this way, taking into account the direct sales of gross debt relating to real estate assets amounting to €209 million that the entity undertook during the third quarter, Liberbank has “already” fulfilled its objective of reducing its exposure to real estate assets by more than €800 million during the second half of this year, which the entity revealed when it announced its capital increase.

During this year, Liberbank plans to sell more than €510 million in non-performing assets on the retail market and, whereby, reduce its exposure by more than €1,000 million. So far this year, that figure amounts to €1,045 million, excluding the direct sales forecast for the fourth quarter.

The bank led by Manuel Menéndez decreased its portfolio of non-performing assets by 29% during H1 and by December, that decrease will have increased to 43% in two years thanks to the operation signed with Bain and Oceanwood.

Through this agreement, Liberbank expects to achieve a non-performing asset coverage ratio (NPA) of 49% (…) a Texas ratio of 94% and a CET1 (fully loaded) ratio of 12.2% as at the end of September, including the transfer of assets and the capital increase approved by the General Shareholders’ Meeting on 9 October.

€500 million capital increase

A few weeks ago, Liberbank’s shareholders approved a €500 million capital increase, which the entity will launch following the presentation of its results for the third quarter, which will take place on Tuesday 24 October (…).

Original story: Expansión

Translation: Carmel Drake

Lar To Build Its 6th Spanish Logistics Park In Cheste (Valencia)

17 October 2017 – Eje Prime

Lar España is putting its foot down on the accelerator. The Socimi is finalising plans for a new logistics park in Cheste (Valencia), the sixth industrial project to be undertaken by the firm in Spain. The firm has already created a company to manage the complex, which spans a leasable surface area of 122,000 m2. Now, planning permission just needs to be granted for the site so that the construction work can begin.

The project has already been granted environmental approval, according to El Español, and will be located in one of the most important enclaves for the logistics sector in Valencia, a short distance from the major distribution centre in Ribaroja on the Ciudad Circuito industrial estate. The forecast investment in this new logistics park will amount to almost €16 million.

In addition to logistics activities, the site will also be kitted out for cross-docking and will allow the entry of mega-trucks.

The company created for this asset is called Lar España Inversión Logísitic VI, which will be led by Miguel Pereda, a proprietary director of the Socimi, whilst Jon Armentia, Corporate Director of Lar España, will perform the role of Vice-President.

The project in Cheste represents the company’s sixth logistics investment, given that it already owns one complex in Valencia, in Almussafes, and four in Guadalajara (Alovera), worth €77 million in total.

In Spain, 80,000 m2 of logistics space was leased during the third quarter of 2017, down by 29% compared to the previous quarter (112,000 m2). In terms of the cumulative figure for the half year, more than 317,000 m2 of space was leased, down by 57% compared to the same period last year.

Original story: Eje Prime

Translation: Carmel Drake

French Fund Heraclès Arrives In Spain & Acquires La Vega Shopping Centre

26 July 2017 – Eje Prime

A new fund is entering the Spanish market to achieve its objectives. Heraclès Investissement is joining the likes of Cogress, Blackstone, Shaftesbury and Thor Equities and is launching a subsidiary in the Spanish market, according to sources at the company. The acquisition of assets in Spain will help with the group’s international expansion plans, which include constructing a portfolio of assets worth €1,000 million by the end of next year.

Heraclès Investissement has opened its office at number 63 on Calle Velázquez, from where it will plot its adventures in the Spanish market. To this end, the fund has hired David Acea Lorenzo, former executive of companies such as Isolux and Tele2 Comunitel, as the Director General of the group in the country, which began its operations in the market in June.

The group, which focuses its activity on the development, investment and management of real estate assets, has created a corporate web in Spain to articulate its acquisitions. Heraclès Investissement has constituted Heracles Desarrollo, for the purpose of carrying out real estate developments, Heracles Gestión to administer real estate properties and Heracles Real Estate, through which it will articulate its purchases in the country.

In addition to these companies to manage and acquire its assets, Heraclès Investissement has also constituted a subsidiary with its first acquisition. The company has acquired the La Vega shopping centre, located in Madrid, which has a retail surface area of 9,000 m2 and an Alcampo supermarket measuring 18,000 m2. The group did not want to make public the price of that operation.

According to the group’s most recent results, Heraclès Investissement closed last year with an asset portfolio worth €353 million and its aim for this year is to almost double the value of its stock of assets to €700 million. Nevertheless, its more ambitious objective is to expand its portfolio to include assets worth €1,000 million by the end of next year.

The group owns commercial assets, offices and residential properties. Until now, Heraclès Investissement, which was founded in 2003, has invested €57 million in the acquisition of around fifteen commercial properties, which have a combined surface area of 15,569 m2 and which generate annual rental income of €5.2 million.

Heraclès Investissement’s block of residential properties comprises seven assets, most of which are located in France, and for which the group paid €60 million. Meanwhile, the group owns seven offices, according to the latest available data, and offices represent the segment in which the group has invested the most to date (€72 million) (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

BBVA Hopes To Have Digested All Of Its RE Assets By 2020

3 May 2017 – El Mundo

The CEO of BBVA, Carlos Torres, has confirmed that the bank expects to have digested all of the property on its balance sheet by 2020 and has stated that the entity is already working on accelerating the “unblocking” of those assets.

“We have been digesting them for years, but we still have two or three years of losses left before we resolve the problem completely. We are working on it”, he said at a press conference for the presentation of the entity’s results for Q1 2017.

The director clarified that the bank managed to reduce its real estate exposure by 9% during the first three months of 2017, thanks to the implementation of its strategy to accelerate the “unblocking” of its assets in a better market environment than seen in previous years.

In this sense, he pointed out that, at the moment, demand for housing is growing, construction has resumed and prices are rising, which means that the entity has a positive outlook that is encouraging it to accelerate the reduction of these assets.

Torres said that the bank has been reducing its exposure to real estate for years, to the point that it now has just half the volume left that it reached at the “peak” in terms of net exposure.

Original story: El Mundo

Translation: Carmel Drake

Inmo Acquires 4.7% Of Colonial & Buys Puig’s HQ From BBVA

25 April 2017 – El Español

Inmo, the real estate company owned by the Puig family, has acquired shares in Inmobiliaria Colonial to take its stake in the company to 4.7%. Meanwhile, it has also purchased the headquarters of the Puig perfume and fashion company that BBVA put up for sale in October.

Inmo encompasses the real estate activity and assets of the family-owned group, and Inmo’s investment in Inmobiliaria Colonial comes in response to its “willingness to diversify” its exposure in the real estate sector, according to a statement issued on Monday.

Regarding the acquisition of Puig’s headquarters in Plaza Europa de L’Hospitalet de Llobregat (Barcelona), the property has 21 storeys and covers a surface area of 14,300 m2. (…).

Inmo’s announcement on Monday comes after Colonial reported in February that it had teamed up with the real estate company owned by the Puig family to develop a new office tower in Barcelona, an “iconic” building in the Catalan capital that will involve investment amounting to €32 million.

The project forms part of the investment in new real estate assets that the real estate company announced in its three markets: Madrid, Barcelona and Paris, for €400 million in total.

In the case of the new tower in Barcelona, the project will be constructed through a joint venture, which Colonial will constitute together with the Puig family’s real estate arm (50% each). The latter will contribute the land on which the property will be built.

The new tower will be located in Plaza Europa, next door to the headquarters that the perfume group rents out. The project involves building a 60m tall, 21-storey building, which will have a surface area of 14,000 m2. (…).

Colonial announced the new tower under the framework of investing in new assets that forms another part of its growth strategy, which it launched in 2005 after completing its clean-up and restructuring process.

Since then, the firm has accumulated investments in new assets amounting to €1,760 million, according to its President, Juan José Brugera. (…).

Original story: El Español

Translation: Carmel Drake

Hospes Hotels’ Profits Rose By 18% In 2016 To €10.5M

15 February 2017 – Expansión

Hospes Hotels, the luxury hotel chain in which the Koplowitz family owns a stake, generated an operating profit of €10.5 million in 2016, up by 18%. Its revenues exceeded €30 million and its operating margin amounted to 35% for the second year in a row.

Original story: Expansión

Translation: Carmel Drake

Lar España’s Profits Soared By 77% To €47M In YTD Sept16

17 November 2016 – Expansión

Lar España generated a profit of €46.6 million during the first nine months of the year, which represents a 77% increase with respect to the same period last year, driven by the purchase of new assets, an increase in rental income and the affluence of its shopping centres.

The Socimi boosted its revenues from rental income by 80% between January and September, to €42.23 million, of which 90% was generated by its shopping centre portfolio, making Lar the third largest operator of this type of establishment in the country.

In fact, Lar España’s largest three tenants, by rental income, are Carrefour, which accounts for 7.78% of its total rental income, followed by Inditex (5.8%) and Media Markt (5.5%).

In terms of financing, at the end of September, Lar España recorded financial debt amounting to €455 million, meanwhile, on the other side of the balance sheet, its asset portfolio was worth around €1,201 million.

The fourteen shopping centres owned by the Socimi saw a 6.5% increase in visitor numbers during the first nine months of the year, well above the average in the sector (1.3%). Similarly, sales at Lar’s centres increased by 9.2%, compared with an average increase of 2.7% across all establishments.

Original story: Expansión

Translation: Carmel Drake

Merlin Records Net Profit Of €255M In YTD Sept16

15 November 2016 – Expansión

Merlin closed the first nine months of 2016 (i.e. before it completed its merger with Metrovacesa) with a net profit of €254.9 million, compared with a loss of €130.3 million during the same period last year, when its results were weighed down by the costs associated with the integration of Testa.

The Socimi’s total revenues exceeded €236.6 million during the nine months to September, which represents an increase of 65.9%. €229.5 million of its revenues corresponded to gross rental income generated by its assets, up by 64.6%.

The company, which has created a real estate giant after integrating Testa and Metrovacesa into its operations, generated EBITDA of €191 million during the first nine months of 2016, which represents an increase of 91% compared to the same period last year.

Following the merger with Metrovacesa, Santander now owns 21.95% of the new Merlin, in addition to 46.21% of Testa Residencial’s share capital.

Original story: Expansión

Translation: Carmel Drake