Pelayo Capital to Create a New Breogán Park with an Investment of >€60M

15 January 2019 – Eje Prime

Pelayo Capital is throwing itself into the Spanish retail sector during its second year of life. The Galician family office, which is currently working on the conversion of the Dolce Vita shopping centre in A Coruña into a retail park, is planning to replicate the project in other Spanish cities with an investment of more than €90 million, according to Íñigo Veiga, CEO of the company, speaking to EjePrime.

Similarly, the group wants to add high street stores to its portfolio of assets during the course of this year. In this sense, Pelayo Capital is on the hunt for properties located in Madrid, Galicia and Asturias, in particular, in which it plans to invest at least €1 million. “We are not ruling out other cities either, given that our strategy involves working hand in hand with retailers”, said the director.

Breogán Park is the company’s star project, an asset in which the company is going to invest €60 million and which will be inaugurated in the spring of 2021. It is the first project undertaken in Spain to involve the demolition and conversion of a shopping centre into a retail park. “The initiative that takes advantage of the demand for these types of assets in many cities around the country”, said the executive.

The surface area, spanning 45,000 m2, will have 2,500 parking spaces and used to house the Dolce Vita shopping complex until 2014. “It is a great opportunity to build a retail park in A Coruña; we are not going to find any others because there is no land available in the city on which to build a retail park of this size”, explained Veiga.

Pelayo Capital is looking for ways to handle the maturity of shopping centres and the boom in e-commerce in Spain by committing itself to retail parks and commercial premises located on the most prime streets. For this reason, the company has just purchased its first asset at number 103 Calle Hermosilla in Madrid, revealed the director.

“We do not have an investment objective or commitment, because we believe that pressure can lead to errors”, explained Veiga. Saddled between Galicia and Madrid, Pelayo Capital has the support of investors with different profiles and is not averse to the idea of backing the logistics or residential markets in the long term.

The company was created in 2017 hand in hand with Breogán Park, a project that launched it into the midst of the Spanish real estate sector. Although it is also working on the rehabilitation of a residential building in A Coruña, Pelayo Capital has placed its focus on retail and for that reason, it has hired Luis Íñiguez, former director of JLL’s retail division in Spain, as senior advisor to the company.

Original story: Eje Prime (by Berta Seijo)

Translation: Carmel Drake

RGA Rural Vida Acquires Office Building on c/Velázquez, 108 from Spanish Family Office

26 April 2018 – Press Release

The real estate consultancy firm Lassen Global has advised both the sale and rental of an office building in Madrid, on c/Velázquez, 108.

The property in question is very emblematic, located in the heart of the Salamanca neighbourhood. It comprises a surface area of 3,700 m2 and has 50 parking spaces in total. The consultancy firm has advised the vendor, a Spanish family office, throughout the sales process. The buyer is the insurance company RGA Rural Vida.

Following the acquisition of this asset by RGA Rural Vida, Lassen Global has also advised that firm regarding the rental of the building’s total available surface area, comprising approximately 3,000 m2 plus 39 parking spaces, which has been leased to the law firm Andersen&Tax Legal.

Lassen Global

Lassen Global is a boutique consultancy founded by Luis Cocero and Pablo de Luque Moreno-Luque. “It was created with the aim of providing a more transparent, personal and professional service to the real estate market”, explain its founding partners, both of whom have extensive experience in the provision of real estate services in the domestic market and who have carried out operations and provided consultancy services in various segments of the market, such as offices, retail and residential (…).

The company’s core business centres on the office and retail markets in Madrid and Barcelona (…).

Original story: Press Release

Translation: Carmel Drake

Blackstone & Santander Will Transfer 21,000 Of Popular’s Homes To Various Socimis

30 October 2017 – Cinco Días

The sale of the real estate assets proceeding from Popular to Blackstone is not over yet, but the strategy behind the operation is already very clear and will reinforce the US fund’s position as the largest homeowner in Spain. The American firm’s plan involves replicating its previous purchase of banking portfolios linked to real estate on a grand scale. Specifically, the fund will transfer a large part of these homes to several Socimis with the aim of renting them out. A small proportion, the lowest quality properties, will be put up for sale.

In August, Santander sold 51% of Popular’s real estate to Blackstone, together with the real estate management platform Aliseda, which it had previously repurchased from Värde and Kennedy Wilson. These assets (comprising homes, land, office and doubtful debt) were worth around €10,000 million, and so Blackstone will pay almost €5,100 million when the operation is finally closed at the beginning of 2018.

Of that transaction, Blackstone and Santander will manage around 80,000 assets through Aliseda. Of those, 30,000 correspond to homes from property developer loans, according to market sources. Now, it has been revealed that the strategy of the two partners involves transferring approximately 70%, in other words, almost 21,000 homes, to several of the US fund’s Socimis with the aim of putting them up for rent, explain sources in the sector (…).

Blackstone has already followed this strategy in the past. Its first major operation in Spain was the purchase of 40,000 mortgages from the now extinct Catalunya Caixa for €4,123 million in 2015. Next, it created the platform Anticipa Real Estate to manage those assets. Prior to the purchase of Popular’s real estate, it had already acquired around €7,000 million in these types of assets, of which 12,000 were homes.

To create the residential giant, the US firm began to create Socimis to which to transfer its properties for rent. The first of these companies was Albirana Properties, which made its debut on the Alternative Investment Market in March, with a market capitalisation of €170 million and 5,000 rental homes under management.

But that was just the beginning. Since then, Blackstone has created several more Socimis, such as Tourmalet, Torbel, Albirana II and Pegarena, according to the tool Insight View from Iberinform. Now, Blackstone will identify the best homes, put them up for rent and package them into several different Socimis.

Currently, Blackstone is involved in a detailed assessment process of the properties in order to proceed with their appraisal, according to sources in the sector, which will conclude with the completion of the operation during the first quarter next year. The other homes, those that will not be transferred to the Socimis, comprise around 9,000 units. They are the worst quality properties and will likely be put up for sale on the retail market.

Blackstone first entered the rental market with the purchase of homes from Madrid’s Municipal Housing Company in 2013, which it subsequently grouped into the Socimi Fidere, whose shares are also traded on the MAB and which has a market capitalisation of €268 million.

Blackstone, which is led by Claudio Boada as the CEO in Spain, is particularly active in the real estate sector in the country. Last week, it purchased the company HI Partners, the owner of 14 holiday hotels, from Sabadell for €630 million.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Sareb Sold 5,000 Assets In H1 2015, A Decrease Of 38%

3 July 2015 – El Economista

Sareb’s Chairman, Jaime Echegoyen (pictured above) has revealed that the entity sold 5,000 properties during the first half of 2015, which represents a sales rate of 28 units per day, with the majority of its activity concentrated in the retail market.

These figures show that the so-called ‘bad bank’ reduced its sales rate by 38.27%, with respect to the same period last year, when it sold 8,100 properties during the 6 months to June, i.e. 45 properties per day. Sareb has set a sales target of 15,000 properties for 2015.

According to Echegoyen…60% of the 5,000 properties sold during the first half of the year came from the balance sheet of property developers, as a result of agreements to facilitate the sale of homes that had been held as collateral for loans. (…).

The head of the ‘bad bank’ highlighted that the majority of the company’s debtors are small and medium-sized companies “which, in many cases, need support to settle the debtor position that they hold”. In this sense, he reiterated that Sareb “is not a bank” and therefore it cannot offer new financing, but it can collaborate by affording borrowers time and flexibility. Thus, during the first few months of the year, the company has evaluated more than 2,500 proposals from debtor companies to arrive at sale, restructuring and refinancing agreements.

Sale of land

Although the volume of property sales decreased during the first six months of the year, the volume of land sales increased, by 43% with respect to the same period last year, to reach 23, whilst the income from these transactions grew four-fold.

Moreover, Sareb closed 14 transactions in the tertiary sector, i.e. double the number recorded during the same period last year, with growth in income of almost 50%.

Echegoyen acknowledged that Sareb’s activity in the institutional market during the first half of the year “has been moderate” and he announced that the company intends to continue its divestment initiative during the second half of the year, with the launch of several loan portfolios, linked to different kinds of collateral, such as land, work in progress properties and logistical assets.

The Chairman of the ‘bad bank’ indicated that the current environment in the real estate sector “is very different” from that seen in 2012 and 2013, since the volume of transactions is beginning to grow, and prices are stabilising and have even started to recover in certain parts of the country, both for new and second-hand homes.

Social purposes

“Moreover, the recovery is not limited to the market for homes, but rather it is affecting other segments as well, such as land and tertiary assets, which is positive for us given the large range of real estate assets in our portfolio”, he added. In this sense, Echegoyen revealed that the bank plans to exploit this ‘stock’ of assets to deepen its commitment to society and he indicated that they are working to expand their social initiatives through other types of assets, beyond housing. (…)

Original story: El Economista

Translation: Carmel Drake