Tag: retail premises

Renta & Kennedy To Buy & Renovate Building Nr Callao

12 June 2015 – Expansión

The US investment fund Kennedy Wilson and the Spanish real estate company Renta Corporación will invest €11 million in the purchase and renovation of a residential building in the centre of Madrid.

The property is located at number 3 on the pedestrianized street, Calle Póstigo de San Martín, in the area between Puerta del Sol, Plaza Callao and Plaza de Isabel II. It has a surface area of 4,083 m2, spread over five floors, plus an attic and a basement.

In total, the building contains 19 apartments and 2 shops (which each have a basement) and it is partially occupied. The buyers intend to try to free up as much of the property as possible, so that they can completely renovate it and then sell it as separate units.

According to the agreement signed last year between Kennedy Wilson and Renta, the US fund will contribute 90% of the capital and the real estate company, chaired by Luis Hernández de Cabanyes, will finance the rest. Moreover, Renta will also be responsible for negotiating the departure of the current tenants and for renovating and marketing the building, which has always been its traditional business.

The owner of the property on Póstigo de San Martín was a local individual. It is expected that the number of homes will be retained but their distribution will vary. The property will continue to be used for residential purposes, although it may (legally) be converted for other uses, such as for public services or as a hotel.

Renta Corporación, which overcame a corporate bankruptcy last year to return to the stock exchange, has resumed its traditional business involving the purchase, renovation and sale of residential buildings.

Last year, the real estate company generated income of €79 million, compared with €10 million a year earlier and it turned its back on the losses of €13 million it had recorded in 2013, to generate a profit of 5.2 million. Its shares are trading at around €1.50 per share.

Original story: Expansión (by Marisa Anglés)

Transaction: Carmel Drake

Investment In “Locales” Reached €1,330M In 2014

14 May 2015 – Expansión

It is not just shopping centres that are attracting interest from investors. High street shops (or “locales”) are also in demand. This is evidenced by the investment made in such premises last year, which amounted to €1,330 million, i.e. €330 million more than in 2013, according to Aguirre Newman.

The main investors were family offices, followed by investment funds. This year, new purchasers such as Socimis and funds specialising in retail premises are expected to enter the market. “There will be a change in terms of demand towards locations outside of the large cities and main high streets”, say sources at the consultancy firm.

Original story: Expansión

Translation: Carmel Drake

Merlin Generates Profit Of €19.6M In Q1 2015

14 May 2015 – Expansión

The Socimi Merlin Properties, which commenced its activity on 30 June last year, generated a profit of €19.6 million during the first quarter of this year.

The company recorded a gross operating profit (EBITDA) of €29.7 million and achieved turnover of €32.5 million, according to accounts filed with Spain’s National Securities Market Commission (CNMV).

At 31 March 2015, the company’s real estate portfolio contained 902 assets, which had a combined gross leasable area of 716,826 square metres.

The average occupancy rate of these real estate assets was 96.5%, with an average return of 5.8%.

During the first three months of the year, Merlin Properties completed the purchase of an office block in Madrid and a logistics warehouse in Coslada (Madrid) for a total price of €57.9 million.

Looking ahead to the next few months, Merlin plans to intensify its strategy to acquire real estate assets in the office, retail and logistics segments, now that it has closed its capital increase, which contributed €613.8 million of own funds to the company; the new shares began trading on Wednesday.

In fact, on 17 April, the company acquired a logistics warehouse in Meco (Madrid), from the real estate management company Kefren Capital Real Estate (KCRE) for €22 million. The warehouse measures 35,285 square metres and is leased to Azkar (a subsidiary of Dachser).

The listed real estate investment company (Socimi) Merlin Properties expects to purchase assets amounting to between €50 million and €150 million during the second quarter of the year.

Original story: Expansión

Translation: Carmel Drake