Aldara Building Three New Student Residences in Oviedo, Salamanca and Barcelona

14 October 2019 Aldara, a Spanish developer, is building three new student residences in Oviedo, Salamanca and Barcelona. The three new developments will add a total of 983 new beds to the company’s portfolio in a combined investment of sixty million euros.

The development in Oviedo is in the early stages of construction, with plans for 317 beds to be ready by May 2021. The complex consists of three buildings, with an area of 2,739 square meters and parking for 77 vehicles.

The project in Salamanca will have 270 rooms (July 2021), while the one in Barcelona will have room for 400 students (July 2022).

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Corestate to Invest €25 Million to Build New Student Residence in Salamanca

20 July 2019 – Richard D. K. Turner

Corestate Capital Holding, an investment fund based in Luxembourg, will invest 25 million euros to develop a student residence on Calle Santiago Diego Madrazo, next to the University of Salamanca.

The property will have a net leasable area of 4,000 square meters, including 258 flats and 301 beds. The building will also have several common areas such as a TV room, gym and terrace, along with 74 parking spaces.

Original Story: Eje Prime – Marta Casado Pla

Global Geopolitics Fuels Demand for Luxury Homes in Madrid

12 May 2019 – El Confidencial

Wealthy investors and families from China, Russia, Venezuela and Mexico are particularly active in the luxury home segment in Madrid, in particular in the districts of Salamanca, Chamberí, Retiro and Moncloa-Aravaca.

According to the College of Property Registrars, foreigners accounted for 6.7% of all residential purchases over €500,000 in the Community of Madrid in 2017, a figure that rose to 8.4% in 2018.

There are several pull-factors motivating these buyers including tax exemptions, golden visas (thanks to Law 14/2013), (relative) legal certainty, low rates of crime and affordable prices, compared to Miami and other European capitals. The language, climate and excellent transport infrastructure also play their role, as do the world-class universities and business schools in the Spanish capital.

A number of push-factors are also evident, which is where the geopolitical developments come into play. The political and economic crisis in Venezuela, the election of Andrés Manuel López Obrador as the President of Mexico in December, the political uncertainty in Cataluña and even the on-going Brexit saga, are all important reasons for wealthy buyers to turn their backs on their home countries in favour of Madrid when it comes to buying a property.

To date, since they were introduced in 2014, 2,948 golden visas have been granted for the purchase of luxury homes, with half going to Chinese citizens (1,476) and a fifth going to Russians (621).

Moreover, according to official statistics from Spain’s National Institute for Statistics, the number of Mexican residents in Spain has risen from just over 20,000 in 2014 to more than 25,200 by the end of 2018, of whom one third live in Madrid.

Meanwhile, the number of Venezuelan residents has increased from just over 32,000 five years ago to 57,120 in 2018. Nevertheless, in both cases, the real number of arrivals is higher since many move to Spain through family links making them entitled to Spanish passports.

Original story: El Confidencial (by Marcos García)

Translation/Summary: Carmel Drake

The Luksic Family will Reopen Hotel Adler in Madrid at the End of 2019

18 March 2019 – Preferente

The Luksic family is going to reopen the Hotel Adler in Madrid with BBVA as its main tenant, after the bank closed a rental agreement to occupy three floors of the property, spanning almost 1,600 m2.

The wealthy Chilean family purchased the iconic property, which is located on the corner of Calles Velázquez and Goya, in the heart of the Salamanca neighbourhood, from the Vázquez family for €27 million.

The new tenant is expected to move in during Q4 2019 since the building work is still in a very initial phase. BBVA is going to open a new multi-functional office/branch in the property.

Original story: Preferente (by R.P.)

Translation/Summary: Carmel Drake

CBRE: Law Firms Conquer the Prime Business Districts of Madrid & Barcelona

5 March 2019 – Expansión

According to a new report from CBRE about work spaces in the legal sector, law firms are, in many ways, the perfect tenants. They seek iconic buildings, lease more space per employee than companies in other sectors and although they drive a hard bargain in terms of price, they are willing to pay a premium for the right property. What’s more, their businesses are stable, they seek long-term contracts and they pay their rent on time.

In this context, there has been a great deal of activity in the segment in recent years. In 2017, records were set in terms of transaction volumes and numbers, with Baker McKenzie and Allen & Overy leading the charge to move offices in Madrid. Last year was quieter, but several international firms leased new space, including Andersen, Latham & Watkins and Pinsent Masons). Moreover, international firms lease twice as much space as their Spanish counterparts, on average, although local firms account for most transactions in Madrid (6 out of every 10).

On average, over the last decade, law firms have leased 11,000 m2 of office space per year on average in Madrid, more than twice as much as in Barcelona (where 4,500 m2 per year is leased, on average), the second most active market.

In the Spanish capital, the neighbourhood of Salamanca is the most sought-after area, accounting for 43% of interest in the market, followed by the Cuatro Torres area, with 17%. In Barcelona, 9 out of 10 operations involve domestic firms and the most sought-after areas are Paseo de Gracia and Avenida Diagonal.

Average rental prices in Madrid have soared by 60% in the last six years from a low of €17/m2/month in 2012 to €27/m2/month last year, with highs of €35/m2/month in the most prime areas. In Barcelona, average prices have risen by 50% since their lows of 2013, with prime rates reaching €24/m2/month in 2018.

Original story: Expansión (by Sergio Saiz)

Translation/Summary: Carmel Drake

Healthcare Activos Adds Nursing Home in Salamanca to Portfolio

8 February 2019

The investment fund, which specialises in real estate assets in the health and dependency sector, recently finalised the acquisition of the Sauvia residence.

Healthcare Activos, a Spanish investment fund specialising in real estate assets in the health and dependence sector, has just started 2019 with a  new acquisition in Salamanca. The asset is the group’s fourth in the region, according to a report today by PlantaDoce.

The company, led by the former CEO of Sarquavitae, Jorge Guarner, has finalised the acquisition of the Sauvia residence in the town of Villares de la Reina, six kilometres from Salamanca. The geriatric centre has 219 beds and an area of ​​11,646 square meters, according to sources at the company, which, however, declined to reveal the amount it paid for the asset.

Healthcare Activos takes over ownership of such residences and subsequently leases the properties to one of the principal nursing home operators in Spain, such as La Saleta Care, DomusVi, Amavir and Orpea, among others.

Healthcare Activos has a network of 23 nursing homes in Spain

The current tenant of the Sauvia centre is the La Saleta Care group, which acquired eight nursing homes in Salamanca last September from another operator, Esgra. One of those residences is Villares de la Reina, which opened in mid-2017.

The nursing home has private and public spaces (the latter arranged with the Regional Government of Castilla y León), for indefinite and temporary (holidays, weekends, specific stays) stays, including patient recoveries (postoperative, convalescence and injury).

Since its creation at the end of 2016, Guarner’s firm has already acquired 23 assets, 19 of which are currently operational and four are under construction or rehabilitation, with a total committed investment of 205 million euros.

Original Story: EjePrime – A. Escobar

Translation: Richard Turner

Vitalia Buys 2 Plots for the Construction of Private Nursing Homes

5 February 2019 – Alimarket

The nursing home management group Vitalia Plus has confirmed to Alimarket its intention to continue incorporating new projects and acquiring residences in operation in Spain. In recent days, Vitalia has signed agreements for the purchase of two plots of land in Valencia and Salamanca, cities where the firm has not had a presence until now. In the case of Salamanca, Vitalia is planning to build a private nursing home in the city with 130 beds and 30 day spaces. Meanwhile, in Valencia capital, the group will build 128 residential spaces and 30 day spaces. Two other plots are expected to be added to those two new projects, whose purchase the group is currently negotiating in two other Spanish cities.

The new projects form part of a second phase of investments planned by Vitalia, worth more than €100 million, which the group will finance with own funds (more than €50 million) and a €50 million loan, requested recently from the European Investment Bank (….).

Currently, besides the new homes announced in Valencia and Salamanca, Vitalia has 22 other nursing homes in different phases of completion – including the Vitalia Expo in Zaragoza, Vitalia Toledo and the expansion of one of its centres in Teruel (…) – which contain 3,443 beds in total (3,701 beds including the new projects in Valencia and Salamanca). These centres will be added to the 44 nursing homes that the group manages in Spain, with 6,461 beds (…).

Since March 2017, the group Vitalia Plus has been controlled by the investor CVC Capital Partners (which owns an 80% stake), whilst the investor Portobello Capital owns 10% and the executive President and founder José María Cosculluela Salina holds the remaining 10%. In 2017 – the most recent data available – Vitalia recorded a consolidated turnover of €91.05M with 2,850 workers.

Original story: Alimarket (by Eva de Frutos)

Translation: Carmel Drake

Anticipa: House Prices in Madrid & Barcelona Return to their Peaks of the Real Estate Boom

11 November 2018 – El Confidencial

The (real estate) recovery is really heating up. House prices in Madrid are on the verge of returning to their peaks of 2007. What seemed impossible, is now becoming a reality. That is according to a report from Anticipa Real Estate, which forecasts two-digit increases in house prices in the Spanish capital this year and next. Specifically, it predicts that homes will become more expensive by 10.2% in 2018 and by 11.5% in 2019, rises that are twice as high as the percentages that experts consider to be sustainable.

House prices have already been growing at rates of 10% during the last two quarters, according to the Repeated Sales House Price Index, prepared in accordance with the Case & Shiller methodology from the United States applied to Spain, which analyses repeat sales of the same homes. In other words, they are rising at double-digit percentages reminiscent of those recorded at the height of the real estate boom a decade ago.

Despite that, both property developers and banks are insisting that the market is very different to the one seen more than ten years ago and they categorically rule out that we are facing a similar situation to then. On the one hand, access to financing remains very restricted for solvent clients, whilst the recovery in prices is very uneven across the country. Whilst in the cities (and in certain neighbourhoods), prices are skyrocketing, in others, prices are still decreasing.

Although on average, by the end of 2019, house prices in Spain will be 15% below the peaks recorded in 2007, according to the report from Anticipa Real Estate, there are some hot spot areas where those prices have already been exceeded. In Cataluña, another of the hot spots in the Spanish market, increases of around 9% are expected next year and that despite the delicate political situation in Cataluña, which has had a direct negative impact on the real estate market – in Barcelona -, which, until a year ago, was performing extremely well in terms of transactions and prices.

Madrid stands out from the rest of Spain, with an evolution in terms of residential prices that has caused the first alarm bells to start sounding. In certain neighbourhoods, such as Chamartín, Chamberí and Salamanca, second-hand homes now cost the same as they did ten or twelve years ago, whilst in others such as Arganzuela, Centro, Moncloa and Tetúan, prices are close to exceeding those levels. In others, where prices are still well below their peaks of the bubble, the market is rising at rates of 20%, rapidly reducing the gap with respect to 2008.

They are peripheral areas of the city towards which price rises are moving like an oil slick. And that is because prices, both to the purchase and rental markets in the centre of the city have reached such prohibitive levels that much of the demand is moving en masse to more affordable areas, resulting in significant upward pressure on prices.

According to the latest data from Tinsa, in Vicálvaro, Ciudad Lineal and Villaverde, house prices have risen by more than 20% in the last year, compared with rises of 8.5% in Chamartín and 13% in the district of Salamanca. Meanwhile, the municipalities of Barcelona, such as L’Hospitalet de Llobregat, Castelldefels, Esplugues de Llobregat and Sabadell, are experiencing a similar phenonemon with increases of more than 15% (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Tinsa: House Prices Rose by 15.6% YoY in Madrid in Q3

9 October 2018 – ABC

Whilst most Spanish provincial capitals have reached what the experts define as “a turning point” with the stabilisation of house prices, Madrid is still the most dynamic city in the whole country. It is leading the house price rises once again with increases of 15.6% in Q3 with respect to the third quarter of last year. That rise in value reflects the tensions that demand for homes in the Spanish capital is exerting on certain areas. The scarce supply of new build homes is not helping to balance a panorama where the pressure on house prices is now moving towards the peripheral neighbourhoods. Some areas are recording price increases of more than 20%, well above those seen even in the traditionally most sought-after districts. All of the districts, without exception, have seen an increase in their price per square metre. Of the 21, only three saw price rises in the single-digits – Usera, Chamartín and Villa de Vallecas-. In this context, the average price in the Spanish capital now amounts to €2,876/m2.

That is according to the latest local market report on finished housing – new and second hand – published by the appraisal company Tinsa at the end of the third quarter. In it, Madrid ranks as the third most expensive provincial capital to buy a home after Barcelona (€3,383/m2) and San Sebastián (€3,151/m2), both with more discrete YoY growth rates. Despite the warning that the consecutive increases generate, a priori, the capital is still a long way from the maximums that it reached in the third quarter of 2007 (27.6% lower), which marked the start of the crisis. The real estate situation has changed little since the middle of the year, although the trends that some experts, such as Pedro Soria, Commercial Director at Tinsa, were indicating in June have been confirmed: high prices in the city centre are pushing buyers to focus outside of the M-30.

The furore to purchase properties is still defined by a striking fact: it only takes 2.6 months to sell a property in Madrid at the moment. That period is still the lowest in Spain, even though it increased by one tenth with respect to the second quarter. Even with property developer activity below what the sector considers healthy for the real estate sector, demand for second-hand products is extremely high. And it is not exactly a favourable scenario for buyers. One piece of evidence that a major problem is starting to emerge in terms of access to housing in the capital is in the financial effort that families are having to make to live in Madrid. This has exceeded what is considered to be the “sustainable” limit. Those that have purchased a home in the last quarter are having to spend 26.1% of their gross household income (before taxes and other deductions) to service the first year of their mortgages. The national average stands at 17.2%. The experts consider that the red line, which has always recommended spending no more than one quarter of a household’s income on the mortgage, is now being passed. In districts such as Arganzuela, which has become one of the most attractive areas of the capital, household’s financial efforts now amount to 27.6% and the figure reaches 41.5% in the case of Salamanca neighbourhood. Once again, house prices in that area are the most expensive in Spain, at €4,762/m2. Chamberi is ranked in third place, after the Barcelona neighbourhood of Sarrià-Sant Gervasi, with €4,521/m2 (…).

The most expensive municipalities

The municipalities that generate the most interest include Pozuelo de Alarcón, which registers the highest price of €3,017/m2, followed by Alcobendas, at €2,847/m2 and Majadahonda, at €2,537/m2. By contrast, the municipalities of Arroyomolinos and Aranjuez registered the lowest prices: €1,337/m2 and €1,446/m2, respectively, of those analysed by the appraisal company (…).

Original story: ABC (by Adrián Delgado)

Translation: Carmel Drake

La Saleta Care Buys 8 Nursing Homes in the Province of Salamanca

7 September 2018 – Eje Prime

La Saleta Care is expanding its activity in Spain. The management group responsible for nursing homes and services for the elderly, a subsidiary of the Belgian firm Armonea, has closed the acquisition of Esgra Residencias, comprising eight nursing homes in the province of Salamanca.

Esgra, which until now formed part of the Limcasa services group, owns nursing homes in the capital of Salamanca, as well as in Alaraz, Guijuelo, Macotera, Mozárbez, Santa Marta de Tormes and Villares de la Reina.

With these purchases, which follow other operations carried out earlier in the year in Castilla y León, Asturias, Valencia and País Vasco, La Saleta Care incorporates 1,170 operational beds. Its current network includes 38 residential centres and a total of 4,512 beds. In 2017, the group recorded revenues of €56.46 million and employed a workforce of 2,317 people.

Fernando Ruiz Castillo, CEO of La Saleta Care, highlighted that “before the end of this year we are going to communicate new acquisitions both of operating resources as well as of land for the development of new centres in more autonomous communities”, in statements to Salamanca24horas.

Original story: Eje Prime

Translation: Carmel Drake