Sales at Shopping Centres Up By 1.3% in 2018, Driven by Cosmetics and Sporting Goods

6 February 2019

The turnover at fashion and accessories stores fell by 0.5% last year due to climate changes and the companies’ commitment to online fashion.

The turnover of shopping centres is increasing. Sales at large stores increased by 1.3% in 2018, boosted by a rebound in cosmetics and sporting goods. On the other hand, sales of fashion and accessories retreated last year, posting a 0.5% drop in turnover.

Turnover at cosmetics and sporting goods stores increased by 5.6% and 4.4%, respectively. Growth in the two sectors allowed shopping centres to offset the 0.5% decrease in sales by fashion and accessories stores, according to Cushman & Wakefield’s index of comparable sales at shopping centres.

2018 brought an end to a series of positive results for the fashion and accessories sector over the last few years, despite an increase of 5.3% in the fourth quarter. Climate changes and increasing investments in online sales largely account for the declines.

Sporting goods stores posted a 4.4% increase in sales in 2018

On the other hand, sporting goods stores posted a 4.4% rise in turnover in a year marked by alterations to store concepts and operators’ strategies, with an increased focus on the footwear and casual fashion segments. Also, the increase in 2018 exceeded those of 2017 and 2016 (1.1% and 1.4%, respectively).

Meanwhile, cosmetics and perfumes saw a breakthrough in 2018, with a 5.6% rise in turnover. Also, these stores combined participation in total turnover at shopping centres managed or marketed by Cushman & Wakefield has grown 1.5 points since 2014.

Original Story: EjePrime

Translation: Richard Turner

 

BBVA, CaixaBank & Sabadell Recorded Revenues of €5bn from House Sales in 2017

2 April 2018 – Expansión

Last year, BBVA, CaixaBank and Sabadell recorded revenues of more than €5,065 million from the sale of homes that came onto their balance sheets due to non-payment during the years of the crisis. Santander obtained €1,295 million in this regard, and Bankia and Bankinter received €457 million and €138 million, respectively. In total, the banks in the Ibex 35 recorded sales of €6,955 million from the sale of homes, which represented a YoY increase of 6%.

In parallel to the signing of agreements to launch the transfer of the bulk of their portfolios of toxic assets to specialist funds, year after year, the banks are marketing properties through their own distribution platforms to clean up their balance sheets and return them to the figures that they registered before the outbreak of the crisis.

BBVA recorded the highest revenue figure, of €2,121 million, which represents an increase of 7.5% YoY, from the sale of 25,816 properties. Its subsidiary Anida is responsible for distributing its products in the market.

By the end of last year, BBVA’s exposure to the real estate sector had decreased by 37.2%, to €6,416 million, due, primarily, to the wholesale operations undertaken.

Last year, the bank chaired by Francisco González made a turn in its real estate strategy by agreeing to create a joint entity with Cerberus to which it will transfer some of its properties, worth around €13 billion. The bank will hold a 20% stake in that entity and the fund the remaining 80%. The operation is expected to be closed during the second half of 2018.

Last quarter

The largest increase in the sale of homes was achieved by CaixaBank, which saw its revenues rise by 20.4% YoY to €1,610 million. Most of those operations were concentrated in the final quarter of the year when proceeds of €561 million were received.

Through Servihabitat, CaixaBank markets the properties of the group’s subsidiary BuildingCenter online, as well as through the branch network and API. The bank has €5,878 million in foreclosed assets up for sale and €3,030 million allocated for rent.

The bank has engaged KPMG, Oliver Wyman and McKinsey to redefine its strategy and gain efficiencies in the divestment of the foreclosed real estate assets.

As part of that roadmap, last week, CaixaBank sold 1,458 homes to Testa for €228 million.

Meanwhile, Sabadell cut its property sales by 14% to €1,334 million due to fewer sales to institutional investors, which fell from €233 million in 2016 to €57 million a year later. Last year, Sabadell divested 14,924 properties, up by 2.6% compared to the previous year. Its subsidiary Solvia is its main distribution channel.

In parallel, Sabadell has placed two toxic real estate portfolios up for sale, proceeding in part from the former CAM, under advice from KPMG.

Last year, Santander recorded revenues of €1,295 million from the sale of foreclosed assets, which represented a YoY increase of 19.5%. The gross value of the assets sold by that bank last year was €2,168 million, up by 33% compared to the previous year. Santander obtained profits of €95 million from its sales, up by 64%.

Altamira is Santander’s distribution platform, which held €11,661 million in foreclosed assets at the end of 2017, of which €5,943 million proceeded from Popular. To that figure, we have to add €3,619 million in assets from Popular included in the operation agreed with Blackstone, which will allow the clean up of the group’s toxic assets (…).

Finally, Bankia sold 8,430 properties in 2017, which represents 20.2% of the stock it had held at the beginning of the year, for which it recorded revenues of €457 million, down by 2.9%. Bankinker, one of the banks with the lightest real estate load obtained €138 million, up by 2.2%.

Original story: Expansión (by Elisa del Pozo)

Translation: Carmel Drake

Thor Equities Buys Store In Puerta del Sol For €43M

13 March 2017 – Expansión

Madrid’s high streets and specifically, those with the greatest numbers of tourist visitors, are starring in some of the largest investment operations in the retail sector.

The latest example is the purchase completed by the US fund Thor Equities. The firm, which specialises in the management and development of all kinds of real estate assets, has completed the purchase of a 520m2 store at number 5, Puerta del Sol, in Madrid. It has paid €43 million for the property, which is leased to the tenant Futbolmanía.

The fund Thor arrived in Spain in September 2015, when it acquired another store in La Puerta del Sol, worth €9.5 million, which used to be owned by Kutxabank.

Several months later, it spent around €65 million on a building owned by El Corte Inglés. The property, which used to house a bookstore, has a surface area of 1,344 m2 spread over three floors. A search is currently underway for a tenant for that property, following the departure of El Corte Inglés, which remained as a tenant for a year following the sale.

The US fund has also acquired the building at number 16 on Calle Fuencarral. In these operations, Thor has been advised by the real estate consultancy Knight Frank.

“We still firmly believe in the Madrilenian market – and in particular, in the area of high footfall around La Puerta del Sol – due to the continuous growth of the Spanish economy and the increase in consumer confidence, as well as the persistent increase in the number of overseas visitors to the city, all of which are leading to increases in retail sales”, said Jared Hart, CEO at Thor Equities.

Internationally, Thor Equities owns high-profile properties in London, including 1 Dover Street, 145 Oxford Street, 105-109 Oxford Street and Bond Street House on 14 Clifford Street, as well as the Burlington Arcade, as well as buildings on the Champs Elysees in Paris.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake