Bankinter’s Socimis Manage Assets in Spain Worth €850M

23 April 2019 – Idealista

Bankinter currently has two Socimis operating in the Spanish market, Ores Socimi and Atom Hoteles Socimi. Between them, they manage a real estate portfolio worth more than €850 million, according to the latest reports filed by the entities with the Alternative Investment Market (MAB).

The hotel Socimi, controlled by Bankinter and GMA, has the largest portfolio, comprising 21 assets located all over Spain and worth €489.2 million at the end of 2018.

Almost 60% (12) of the hotels are vacation properties and the rest (9) are urban establishments. For the time being, the hotels are mainly concentrated in the Balearic Islands, Canary Islands and Andalucía, but the company is preparing to expand overseas, where it seeks to acquire establishments in the USA, France, Italy, Germany and Greece.

Meanwhile, Ores, which is jointly controlled by Bankinter and the Portuguese giant Sonae Sierra, owns a portfolio of 35 retail assets worth €362.5 million as at 31 March 2019.

Ores’s portfolio is well diversified by asset type, size and location, with occupancy rates of almost 100%. The properties include hypermarkets, supermarkets, retail parks and high street stores leased to chains such as Continente, Mercadona, Inditex, Media Markt and Mango.

Original story: Idealista (by Custodio Pareja)

Translation/Summary: Carmel Drake

E&V: Co-working, e-commerce – New Niches Boom in the Spanish RE Market

2 April 2019 – El Confidencial

The Spanish tertiary sector is consolidating its position as one of the most attractive in the world. Investment rose by more than 10% in 2018 to €12.3 billion, boosted by overseas investors, who accounted for 65% of all operations, according to a report published by Engel & Völkers.

Moreover, this interest is set to maintain its momentum over the coming years. In 2019, logistics is expected to continue its upward trend in light of the unstoppable growth of e-commerce. In the office sector, experts forecast on-going diversification, with demand growing for regular offices on the outskirts of cities, as well as for co-working spaces in the centre of large capitals.

In the alternative asset segment, interest is also expected to continue, especially in nursing homes for the elderly and halls of residence for students. In the retail sector, multi-channel offerings are forecast to grow, with the most important brands concentrating their retail businesses into flagship stores in very central locations. Also, in the retail sector, the move by traditional out-of-town operators, such as Ikea and Media Markt, into downtown locations is expected to become more widespread.

In terms of rental prices for commercial premises, in Madrid, in the most sought-after areas of Salamanca, Chamberí, Sol, Chueca- Justicia and Malasaña, maximum prices amount to €90/m2/month, dropping to €55/m2/month in secondary areas and to €45/m2/month elsewhere.

Meanwhile, in Barcelona, prices are highest on the most sought-after streets, located in Ciutat Vella, Tapinería and Eixample. There, average prices range between €30/m2/month and €40/m2/month.

Original story: El Confidencial (by E.C.)

Translation/Summary: Carmel Drake

Ten Brinke Acquires a Commercial Plot in Tarragona for €14M

13 March 2019 – Eje Prime

Ten Brinke has purchased a plot of land in the future neighbourhood of Ponent, in Tarragona for €14 million, where it plans to build a retail park.

The Dutch company, which specialises in the promotion of retail parks and residential complexes, fought off competition from the Andalucían firm Bogaris to acquire the site, which has a buildability of 68,000 m2. The vendors were a group of entities including Banco Sabadell and the Town Hall of Tarragona.

Last month Ten Brinke acquired a 50,000 m2 plot in Ciempozuelos (Madrid) for the development of a new retail park. The firm has been present in Spain for ten years.

Original story: Eje Prime

Translation: Carmel Drake

CBRE: Real Estate Investment in Cataluña Amounted to €2.25bn in 2018

4 March 2019 – Finanzas

Investment in the Catalan real estate sector registered a new record of €2.25 billion in 2018, up by 3.3% compared to 2017, boosted by the office sector, according to data from CBRE.

In fact, offices accounted for 42% (€947 million) of the region’s total investment volume in 2018, up by 25% YoY, as 388,000 m2 of office space was leased. It was followed by the hotel sector, where €422 million was invested, despite a YoY reduction of 39%.

The logistics, retail and residential sectors accounted for the rest of the investment figure, amounting to €289 million, €252 million and €113 million, respectively.

59% of Cataluña’s real estate investment came from overseas, in line with previous years, primarily from the USA (40%), UK (17%), the Middle East-Asia Pacific (16%) and France (14%).

Star operations included Blackstone’s purchase of Edificio Planeta for more than €200 million; Tritax Big Box’s acquisition of the VGP Park Mango for €150 million; and the purchase of the NH Collection Gran Hotel Calderón for €96.9 million.

Original story: Finanzas

Summary/Translation: Carmel Drake

Lar España to Invest €14M in the Renovation of Anèc Blau

29 January 2019 – Eje Prime

Lar España is pushing ahead with its plan to reign in the Spanish retail sector. The Socimi, which launched a €500 million investment project last year, to run until 2021, is continuing with its roadmap with three new projects in 2019. The company is planning to build one new complex this year, renovate one of the jewels in its crown, Anèc Blau, and open its new centre in Sevilla, Lagoh, at the end of the year.

Specifically, the company is going to dedicate €13.8 million to the renovation of Anèc Blau, a shopping centre located in Castelldefels (Barcelona) and which is one of the company’s best assets. The objective is to start to renovate it this year without closing the centre’s doors.

On the other hand, Lar España is preparing a new development for this year, although its location has not yet been revealed, according to Hernán San Pedro, the Socimi’s Director of Investor Relations, speaking to Eje Prime.

The third workstream of Lar’s plan for this year is the announced opening of its new complex in Sevilla, Lagoh (previously called Palmas Altas), which is going to have a surface area of 25,000 m2 and which has already reached an occupancy rate of 70%. “Experiences are going to form the centre of the complex, with a golf course, a climbing wall, a lake and a garden on the roof”, says the executive.

Lar España is planning to disburse almost €500 million between now and 2021, of which €265 million will be dedicated to building new complexes and improving existing centres and another €250 million will be for new acquisitions (…).

Original story: Eje Prime (by I.P.G.)

Translation: Carmel Drake

Castellana to Merge the Kinépolis & Alameda Shopping Centres in Granada

2 November 2018 – Eje Prime

Castellana is making changes in Granada. The Socimi owned by the South African fund Vukile is going to merge the Alameda Retail Park and the Kinépolis shopping centre into a new brand, called Granaita, according to explanations provided in a corporate presentation that the firm has distributed to potential investors.

The company, which has been listed on the Alternative Investment Market (MAB) since July, will invest €5 million in the process to reposition and integrate its two shopping centres in Granada.

Castellana is one of the emerging players in the current retail market in Spain, in which it specialises. The objective of the company is to be “the leading Socimi in the retail sector”, adds the company, whose objectives include the optimisation of its asset portfolio. The operation that it is going to carry out in Granada sits firmly within that framework.

The real estate manager acquired Kinépolis in June 2017, through the company Junction Parque Granada. The asset, inaugurated in 2004, comprises eight stores with a gross leasable area of 18,508 m2 and is worth €32.5 million.

Meanwhile, Alameda Retail Park was incorporated into Castellana’s portfolio in December last year. Located in the municipality of Pulianas, in Granada, the park began operating in 2014 and comprises four stores with a gross leasable area (GLA) of 27,256 m2. The monthly rent at Alameda amounts to €10.71 and its market value stands at €55.3 million.

The fund that sustains the Socimi financially, Vukile, is going to inject up to €200 million over the next few years to continue with its plan to conquer the commercial sector in Spain, where it hopes to form a portfolio worth €1.2 billion. Castellana is going to look for new shareholders to inject the resources necessary to carry out this plan, which seeks to enable the Socimi to make the leap from the MAB to the main stock exchange within the next three years.

In pursuit of this goal, Vukile acquired four shopping centres from Unibail-Rodamco for €489 million last summer, which were placed in Castellana’s portfolio, as reported by Eje Prime.

Castellana Properties closed 2017 with revenues of €9.31 million, whilst it registered turnover of €5.15 million during the first three months of 2018. The net result for 2017 amounted to €18.61 million, and the firm earned €6.65 million during the first quarter of 2018. The group’s debt at the end of 2017 amounted to €146 million.

Original story: Eje Prime (By Jabier Izquierdo)

Translation: Carmel Drake

Ores Socimi Acquires 3 Commercial Assets for €19.7M

25 October 2018 – Idealista

Ores Socimi has circumvented some of the operations that it was studying and has leapt into action. The Socimi owned by Bankinter and the Portuguese real estate company Sonae Sierra has acquired three commercial assets, occupied by the supermarkets Mercadona and Día, and the home decor store Conforama, for €19.7 million. The purchases have been carried out in Madrid and Santander.

In Madrid, Ores has purchased an asset occupied by Mercadona, located in the town of Humanes, which has a retail surface area of 2,334 m2. That transaction was carried out for €4.1 million.

Ores has also purchased a supermarket in Getafe, which is leased to and operated by the company Día. That asset has a total surface area of 1,956 m2 and the amount of the operation was €3 million. In Santander, meanwhile, the company has invested €12.6 million in an asset operated by Conforama and with a surface area of 8,000 m2.

These acquisitions form part of a new period of purchases by Ores, which has set itself the objective of investing €30 million, as revealed by Idealista News.

In this way, Ores is continuing to grow its portfolio, which comprises 30 assets and has a combined market value of more than €328 million and a gross annual income of €19.4 million.

Ores is aimed at private banking clients. Although its portfolio of assets is small, for the time being, the Socimi made its debut on the stock market with the objective of investing €400 million in retail premises on high streets, as well as supermarkets, retail parks (up by 20,000 m2), bank branches and singular assets with long-lasting leases and solvent tenants.

Bankinter and Sonae Sierra launched their real estate vehicle in record time. On 15 December last year, the two groups constituted the company and, within just two months, they carried out the process to create the vehicle, raised sufficient capital to get it going and completed its stock market debut.

Original story: Idealista (by Custodio Pareja)

Translation: Carmel Drake

Investors Unleash a Buying Frenzy on Madrid & Barcelona’s High Streets

28 August 2018 – Cinco Días

E-commerce is having an unexpected effect in that it is boosting the main high streets of Madrid and Barcelona. A number of operators are opening flagship stores to compete with online sales, whilst at the same time, there is a great deal of interest from investors wanting to acquire these types of properties since they represent assets with high returns.

During the first six months of the year, the main high streets of Madrid and Barcelona sparked a buying frenzy amongst real estate investors. They spent €700 million on the purchase of stores during H1 – that figure was 44% higher than they spent during the whole of 2017, according to the High Street report published by the consultancy firm Savills Aguirre Newman.

In an environment of low returns on other investment alternatives, given the context of low interest rates and enormous liquidity in the market, significant capital flows are being channelled towards property. Within the sector, the high street segment (stores on the most commercial streets) of Madrid and Barcelona are attracting investors.

The yield or return in the best commercial neighbourhoods of Madrid and Barcelona amounts to 3.25%, and in secondary areas, that figure rises to between 4.5% and 4.75% (the better the area, the higher the cost of operations and so the lower the returns). In large towns, the yield on prime stores reaches 4%.

Institutional investors (large real estate and pension funds) have been the most active players, accounting for 76% of all operations, according to Savills Aguirre Newman, with the remaining 24% involving insurance companies, private firms, family offices and Socimis (…).

“Institutional investors continue to focus on the best commercial thoroughfares of the large cities, where the purchase tickets typically exceed €20 million”, says the study. Meanwhile, private investors are more active in opportunities in the cities in which they reside, where they are local experts.

Madrid has accounted for a large number of the operations seen in recent months, with the acquisition by the fund Hines of Preciados 13 (..) and Redevco’s purchase of the Mercado de San Miguel. Meanwhile, AEW bought the Mercado de Fuencarral; Generali acquired Preciados 9; Thor Equities snapped up Gran Vía 30, and M&G Real Estate purchased 68 on the same street. Nevertheless, a lot of the investment this year has been due to one transaction involving a portfolio of Inditex stores, which were acquired by the German fund Deka for €400 million.

For investors, another attractive feature of the Spanish market is the improvement in the rents that tenants are paying, which have clearly risen in recent years since the crisis. Prices on Calle Preciados, for example, have risen from €270/sqm/month two years ago to €277/sqm/month in 2018. Gran Vía has also seen a €10/sqm/month increase to €240/sqm/month, according to data from the consultancy firm.

In Barcelona, prices on the most expensive street in Spain, Portal de L’Angel, have grown by 5.5% during the same period to €285/sqm/month. Nevertheless, prices on Paseo de Gracia are rising the fastest, by 15%, to reach €260/sqm/month (…).

One of the major changes that is being seen is the concentration and opening of large flagship stores in the centre of the two cities through which the operators are seeking to counter the strength of online shopping, by offering what they call a shopping experience (…).

In this vein, as Cinco Días revealed last week, the Chinese technology firm Huawei is going to open a flagship store on Gran Vía 48 in Madrid, in the former C&A store. On the other hand, the Sfera brand, owned by El Corte Inglés, is leaving Gran Vía 30, given that it has recently reorganised its business in the centre of the city to focus on its larger and recently renovated megastore on Calle Preciados.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Blackstone Buys Lar’s Logistics Portfolio for €120M

18 July 2018 – Expansión

Blackstone has purchased the Socimi Lar España’s logistics portfolio, comprising five warehouses and a plot of land for development, for €119.7 million. That sum represents an appreciation of 83% with respect to the purchase price of €65.6 million.

Specifically, four of the warehouses acquired are located in Alovera (Guadalajara), one is located on the Juan Carlos I Industrial Park in Almussafes (Valencia), whilst the land to be developed for logistics use is located in Cheste (Valencia).

The five logistics warehouses span a combined surface area of 162,000 m2 and have an occupancy rate of 100% – all of them have stable rental contracts. Meanwhile, the surface area in Cheste spans 182,000 m2.

The warehouses in Alovera were acquired between August 2014 and May 2015 and the property in Almussafes was purchased in May 2015. The advisors to Lar España on the operation have been CBRE, Pérez Llorca and Hill International.

Asset rotation

This operation forms part of the asset rotation process that the company launched last year. Specifically, the Socimi’s first divestment came in September 2017, with the sale of an office building in Arturo Soria, and since then, it has carried out two other sales.

Together, the divestments carried out by Lar España to date amount to €265 million, more than half the €470 million in divestments forecast in the business plan to 2021.

The President of Lar España, José Luis del Valle, said that the company’s plan involves selling those assets that are not strategic to focus on the retail portfolio.

In addition to the asset sales, the company’s business plan involves investing €220 million in shopping centres and retail parks. Within the context of that plan, Lar purchased the Rivas Futura shopping centre for €62 million and the Abadía shopping arcade for €14 million.

In parallel, the Socimi plans to invest €247 million in commercial developments and €49 million to improve its retail assets.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Catella Acquires 3 Residential Assets in Pamplona for €26M

7 June 2018 – Eje Prime

Catella Asset Management Iberia (Cami) is on a roll in Spain. The Swedish fund has taken another step forward in its strategy to grow its residential business in Spain with the purchase of three buildings in Pamplona for €26 million, according to explanations provided by sources at the company speaking to Eje Prime.

The latest operation signed by the fund in Spain is the acquisition from a local property developer of three residential buildings for their operation as long-term rental properties. “The vendor is going to continue to take care of the day-to-day management of the buildings”, explain the sources.

Two of the three assets are located in Plaza Puerta de Badostain, in the town of Sarrigueren, located to the west of Pamplona. Those two assets contain 168 homes, 187 parking spaces and 173 storerooms, covering a total constructed surface area of 15,080 m2.

The third building is located on Calle Paseo de los Donantes de Sangre, in the neighbourhood of Ezcaba, in the north of Pamplona. This residence has 67 homes, 69 parking spaces and 67 storerooms, which together span a constructed surface area of 7,100 m2.  The operation has been brokered by the real estate consultancy JLL.

Moreover, Catella has recently signed agreements with developers for the construction of two developments in Madrid containing 362 homes and which will form part of its portfolio in operation in the next 18 months.

The first development, whose delivery is scheduled for December 2018, is located in the expansion area of Villaverde in Madrid. It is a development with 171 homes, garages and storerooms, with a combined constructed surface area of 13,035 m2.

Meanwhile, the second development comprises 191 homes, garages and storerooms, spanning a constructed surface area of 13,800 m2 and located in the south of Madrid, which will be handed over at the beginning of 2020. With these acquisitions, Catella Asset Management Iberia has four residential assets: four in Madrid, one in Barcelona and three in Pamplona.

Roadmap in Spain

This operation forms part of the new roadmap that Catella is going to follow in the Spanish market. The Swedish manager, which is going to focus on its objective of growing its asset portfolio in the residential and office sectors, plans to own up to 1,000 flats for rental by the end of this year, doubling its current figure, which stands at around 400 homes.

Present in Spain since 2015, Catella has signed five purchases in recent years in the residential segment, where it has spent around €85 million. The group has €300 million more to spend to continue growing through purchases in the country.

In addition to the residential business, Catella is also very present in the retail sector, where it has recently undertaken operations, such as the purchase from Axiare of the Planetocio shopping centre in Madrid, alongside AEW. The company closed 2017 with a portfolio of assets under management in Spain worth €200 million.

In addition, through its fund specialising in student housing, Catella European Student Housing Fund, the investment company is backing the star alternative asset in the real estate at the moment.

In 2017, it purchased the La Campana hall of residence in Pamplona and, this year, it is analysing possible new acquisitions in the large capitals such as Madrid, Barcelona, Valencia and Sevilla, but also in another city with a notable presence of university students: Granada.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake