Tag: Salamanca

Excem Socimi Residencial Launches Homiii, a Brand Specialising in Shared Rental Homes for Millennials

17 April 2018 – La Vanguardia

Excem Socimi Residencial, which, in less than two years of life, has accumulated an asset value of €30 million, with share capital of €12 million, has launched the brand Homiii for the professional rental of shared homes to millennial students and young professionals.

Excem’s Socimi estimates a (stock market) debut value of €1.40 per share, which would represent an appreciation of 40% for current shareholders. Its latest capital increase, in March, amounting to €4.1 million was backed by 40 investors in total.

Homiii (www.homiii.com) purchases properties for residential use, in particular, those that are characterised by their location – in the most central areas of cities -, their quality – they must be renovated, decorated and furnished – and their design – the firm prizes comfort and functionality -.

This professional rental management company has concentrated its efforts in Madrid during the first phase. After just 20 months, it has acquired 40 flats, with a combined surface area of more than 7,000 m2 and 252 rooms under management for the academic year 2018-2019, located in the neighbourhoods of Moncloa, Chamberí, Centro and Salamanca.

The CEO of Homiii and Head of Excem Socimi Residencial, Antonio Mochón, explains that they are “very satisfied” with the results achieved so far. “We have created a business from nothing, and, to date, we have incorporated 40 highly qualified investors who have contributed funding worth more than €12 million”, he said.

Moreover, he highlighted that the firm has dealt with “more than 400 clients and earned a satisfaction rate of 80% for the quality of the homes and the value added”. “Young people feel part of the Homiii community because we offer them a lot more than they are initially looking for. We specialise in adding value to investors and clients, in a market where there is more demand than qualified and professional supply”, he said.

The objective is to exceed 3,000 rooms in some of the main cities in Spain such as Madrid, Barcelona, Sevilla, Valencia, Bilbao, Málaga and Santiago de Compostela. The strategic plan for the business model is to close 2019 with investment of €70 million and to reach €300 million over the coming years through expansion across Spain.

Monchón indicates that one of his challenges has been to achieve security for investors: “a gross yield of 6%, a share price increase of 40%, a default rate of 0% and a commercial occupancy rate of 100%”.

“We understand our business project as a very specialist business model, and for that reason, we are managing to add value to our shareholders and offer professionalised management to our clients. We have achieved great stability in terms of the generation of rents and security for investors”, he explained.

Original story: La Vanguardia

Translation: Carmel Drake

ASG to Invest €30M+ in Luxury Residential Project in Salamanca

9 April 2018 – Inmodiario

ASG Homes has started to build Residencial España, an exclusive residential development containing 24 luxury homes located in the heart of Salamanca, in whose construction it is going to invest more than €30 million.

Following the demolition of the iconic Edificio España, ASG Homes is breathing new life into the plot overlooking the central Plaza de España to build what is going to be the most exclusive residential complex in Salamanca. A total of 24 luxury homes, all with a storeroom and 2 parking spaces included, will comprise 2-, 3- or 4-bedrooms with surface areas ranging from 100 m2 to 260 m2 for the largest penthouses, which will also have terraces spanning up to 75m2.

The development, which has been designed by the Architecture Studio owned by Chus Manzanares, will be equipped with the highest quality finishes and the latest home automation technology. Thus, it will offer owners the possibility of controlling their homes from a distance using their smartphones (…).

Homes supplied by 100% renewable energy

Residential España is also going to be the first development in the city to be supplied with 100% renewable energy through vertical geothermal energy, with heat pumps and PEX tubes to supply water and heating, obtaining high energy yields from its energy sources through a new system that uses the heat from the earth to warm homes. The system will use the heat source that is generated below the surface of the Earth and direct it to the building, whereby resolving 100% of the heating and hot water needs.

Similarly, Residential España will be revered for its high-quality common areas, which will include a 150 m2 spa-gym with a heated indoor pool on the ground floor, as well as a sensory shower, sauna and steam room and a fully-equipped gym (…).

Original story: Inmodiario 

Translation: Carmel Drake

ActivumSG Launches New €500M Fund with Projects in Marbella & Salamanca

22 January 2018 – Eje Prime

The international group ActivumSG is continuing to back its business in the Spanish market. The company, which operates under the brand ASG in Spain, is launching a new €500 million fund to make real estate investments across Europe, according to explanations provided by the company to Eje Prime. Some of the first projects that have already been financed thanks to this fund, the fifth to be promoted by ActivumSG, include three projects in Berlin and three in Spain, located in Marbella, Salamanca and Estepona.

This new fund promoted by ActivumSG is one of the group’s most important in terms of investment, with funds raised mostly from investors that have already participated in the group. Of the €500 million, the fund has already committed more than €200 million in Spain and Germany.

In the Spanish market, ActivumSG has already launched Project España, located in Salamanca. Initially baptised as Project Victoria, the fund has now started construction on this luxury residential development in the centre of the city. “The project involves the demolition of an office building located at number 5 Plaza España to convert it into a high-end residential property, comprising 27 apartments”, say sources at the German company.

The second project that ActivumSG is going to promote with this new fund is Parque Central, in the centre of Estepona. The German fund is already finalising the details to start work on the construction of this residential development, which will span 12,600 m2 and which is already being marketed.

Finally, the fund is working on Project Sierra Blanca, in Marbella. That project, which is in its preliminary phase, will be located in the neighbourhood of Sierra Blanca, in Marbella, and will involve the development of 40 luxury homes, with gardens and parking.

The latter two projects are located in the province of Málaga, one of the main tourist destinations in the south of Spain. ActivumSG has been advised in the acquisition by the group’s Spanish subsidiary, ActivumSG Iberia, which is currently being led by Brian Betel, former Director of Cerberus Iberia Advisor and Citibank.

ActivumSG’s team in Spain is completed by Víctor Pérez Arias, former Director of CBRE; Juan Alonso Bartolomé, a director who has worked for companies such as GE Capital Real Estate and ING Real Estate; Alejandro Adan Manes, who joined the firm from Axa Real Estate; Carlos Molero Sánchez, formerly of PwC and KPMG, and Ignacio Gaytan, who previously held the position of maximum responsibility at Grupo Lar, amongst others.

ActivumSG in Spain

Currently, ActivumSG’s portfolio in Spain comprises a dozen assets, with the exception of two that have been divested in recent months, located in Manuel de Falla and Santa Leonor, both in Madrid (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

JLL: RE Inv’t in Student Halls Soared to €560M in 2017

4 January 2018 – El Mundo

The volume of real estate investment in student halls soared in 2017 to reach €560 million by year-end, compared to €50 million in 2016, according to data from the real estate consultancy JLL.

That figure of almost €600 million was driven primarily by the sale of two large portfolios, known as Erasmus and Rio. The first related to the sale of Grupo Resa, the largest operator of student halls in Spain, whilst Project Rio corresponded to the sale of a portfolio of student halls that the fund Oaktree owned in Spain, which was acquired by funds managed by GSA in an operation advised by JLL.

Similarly, the investment volume recorded in 2017 also included other operations involving individual assets, such as the recent purchase by the European fund “Catella European Student Housing Fund” of the La Campana student hall, located in the centre of Pamplona (Navarra), as well as the acquisition in March by The Student Hotel of the former print house on Cuesta de San Vicente 28, in Madrid, to convert it into a hall of residence.

In terms of whether this trend will continue, according to Nick Wride, Director of Alternative Assets at JLL, “in 2018, we will not see the sale of large portfolios like in 2017, but we expect the market to continue to be very active, especially with respect to the purchase of land for the development of new student halls and also rehabilitation and change of use projects”.

“Moreover” – he adds – “although interest will continue in Madrid and Barcelona as the large cities, there will also be an increase in investment towards the main university cities outside of those two locations, above all in Valencia, Granada, Salamanca and Bilbao”.

Original story: El Mundo

Translation: Carmel Drake

Lennar’s Socimi Al Breck Sells its first 4 Assets for €3.5M

5 January 2018 – Eje Prime

One of the largest real estate companies in the United States of America is doing business in Spain. Lennar Corporation has sold four properties through one of its Spanish Socimis, Al Breck, for €3.49 million, according to a statement issued by the company. The firm has carried out the transaction through the company Rialto Capital Management, an investment vehicle, headquartered in Luxembourg that Lennar uses to carry out real estate operations in Europe and the only one that has a stable structure in Spain.

The company disposed of the properties in December, whereby generating a profit of €1.79 million. The firm, which has a loan linked to the assets, will have to assume a financial cost of approximately €1.2 million in this regard.

Lennar Corporation debuted on the Alternative Investment Market (MAB) with Al Breck at the end of November 2016 (although it began its activity in Spain in December 2014), with a stock of almost 639 rental homes located in the centre of Madrid. The Socimi formed its asset portfolio by purchasing a batch of properties from Segurfondo Inversión in December 2014.

Specifically, the Socimi’s assets are located throughout the centre of the Spanish capital (in the following districts: Centro, Salamanca, Chamberí and Chueca), as well as in La Moreleja and areas close to Alcobendas and Torrejón de Ardoz. It also owns retail premises and offices. According to its IPO brochure, the market value of its asset portfolio amounted to €110.52 million (in November 2016).

The Socimi made its stock market debut with a business plan that seeks to generate value from its portfolio, in other words, by selling all of its homes within a five-year period, which ends in December 2020. The company has now started this divestment process with the sale of these four assets.

Al Breck’s strategy

Specifically, the company’s business plan involves investing in improvements to its homes, “to increase returns and improve their occupancy rates to stable levels, implementing an aggressive rental strategy that includes, where necessary, decreasing rents and making concessions to tenants to improve cash flow conditions”.

Subsequently, according to the group’s IPO brochure, “having improved the occupancy rates, the aim is to keep them stable and initiate a progressive increase in rental prices, to reflect the improvements made to the properties and market rates”.

Finally, the Socimi plans “to optimise the value of the portfolio, selling assets either individually or in batches, when demand and prices so favour it and having completed the minimum ownership period of three years”, according to details provided in the brochure.

At the end of last year, the company also launched a second Socimi, Ceres Real Estate Socimi. Although for the time being, the activity of that entity is very limited (it does not have any assets in its portfolio), the sole administrator of the company is Rialto Capital (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

OHL Pre-Sells Half of the Luxury Apartments in Canalejas

28 December 2017 – El Independiente

The pre-sales of luxury apartments in the Madrilenian Canalejas complex, the only one in Spain – and one of just a few in Europe – to be serviced by the hotel chain Four Seasons, is going from strength to strength. Knight Frank and Colliers, the two firms that have been exclusively appointed to manage their sale, have already placed almost half of the homes with their contacts and clients during the private launch, in other words, before the For Sale sign has been officially put up, according to sources speaking to El Independiente.

Even the penthouse, the jewel in the crown of the building promoted by Juan Miguel Villar Mir, together with his construction firm OHL, has an owner: a European millionaire, who is going to pay more than €9 million for a 500 m2  home in one of the most iconic areas of Madrid.

To date, most of the homes on this block of prime Madrilenian real estate in Canalejas – next to the Puerta del Sol – have been sold to wealthy Spanish families even though, initially, they were expected to attract interest from foreign millionaires, specifically, Latin Americans. “Wealthy families from Latin America prefer the traditional and exclusive Salamanca neighbourhood, whilst Spaniards are more interested this concept, which is going to revolutionise the centre of Madrid”, explain sources in the real estate sector.

The 22 most expensive new build homes currently available in Madrid have a minimum surface area of 130 m2 and a minimum asking price of €2.5 million, which means that buyers paying more than €13,000/m2. The combined value of all of the homes amounts to around €90 million.

The apartments are located on the 5th, 6th, 7th and 8th floors of the Canalejas Complex, have between one and three bedrooms each, have independent access (as well as through the Four Seasons hotel) and will be handed over completely finished and equipped, with the exception of furniture.

The homes form part of a complex that comprises seven historical buildings, which in recent decades housed the former headquarters of Banesto, Central Hispano and Zaragozano.

For the time being, most of the homes have been reserved by Spanish millionaires.

The complex spans a surface area of 50,000 m2 in total and in addition to the twenty homes, is going to house a five-star Four Seasons hotel with 200 rooms, an underground parking lot with 400 spaces, a retail outlet for bank use and a 15,000 m2 shopping arcade.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

eBay Moves Its Headquarters To One Of Axiare’s Offices

26 October 2017 – Expansión

The e-commerce and online payments specialist eBay has a new home in Spain. The Spanish subsidiary of the US group is packing the final boxes ahead of the move of its Madrid headquarters to c/Don Ramón de la Cruz 84, in the Salamanca neighbourhood.

Until now, the company’s employees have been split between its offices in Paseo de la Castellana, 95, in the skyscraper known as Torre Europa, where most of the workforce was based, and 67 Don Ramón de la Cruz, just a stone’s throw from the new headquarters.

As a result of this move, eBay will become one of Axiare’s new tenants and will share its new office space with the strategic consultancy firm Boston Consulting Group, the other major company that has chosen to move its workforce to this property, which used to house Telefónica’s headquarters.

Specifically, Boston Consulting Group will occupy 3,624 m2, whilst eBay will lease 5,471 m2 of the property.

The office building, located at number 84 Don Ramón de la Cruz, is a clear example of the modus operandi of the Spanish Socimi. In just two years, the company has completed the purchase of the building, modernised it by renovating the property’s interior and leased it out in its entirety. Specifically, eBay and Boston Consulting Group will together occupy the whole building, including 300 m2 of space on the ground floor, which was originally intended for retail but will end up being used as office space.

Revaluation

The firm led by Luis López Herrera-Oria purchased this building from Telefónica in October 2015 for almost €33 million and, following its renovation, which has involved an investment of €4.35 million, the building has seen its value rise by 70%. The property, constructed in 2001, has a surface area of 9,340 m2, spread over five floors, and 90 parking spaces.

To adapt the offices to the needs of the new tenants, the Socimi has renovated the reception and modified the common areas. Moreover, it has replaced the old air conditioning and lighting systems with state-of-the-art technology (including LEDs).

In addition, Axiare has boosted the brightness of the property by placing a skylight in the internal courtyard and installing floor-to-ceiling windows that provide plenty of natural light (…).

Of the Socimi’s total asset portfolio, almost 42% has now been repositioned, whilst the remaining 58% is in the process of being transformed to create value.

The company’s portfolio, which had a valuation of €1,710 million at the end of September, offices account for 70% of the total; logistics assets for 20%; and retail for the remaining 10%.

So far this year, Axiare has acquired six office buildings and logistics assets in Madrid and Barcelona, in strategic locations, for €215 million in total. Moreover, the real estate company is currently analysing operations worth almost €1,000 million, of which €100 million are now in an advanced stage of analysis.

Original story: Expansión (by Rebecca Arroyo)

Translation: Carmel Drake

Miu Miu Moves Into Store On C/Serrano 54

20 October 2017 – Eje Prime

Change of tenants on Madrid’s most luxurious street. The luxury firm Miu Miu, owned by the Prada group, is finalising the opening of a new establishment on Calle Serrano, a store that was occupied until now by the historical shoe shop Lurueña.

Prada will thus become the tenant of the Lurueña family, which owns the property. The establishment, measuring more than 250 m2 over two floors, is located at number 54 Calle Serrano. According to sources in the sector, the operation has been brokered by Cushman & Wakefield.

As well as the chain of shoe shops and the management of its premises (many of which it owns outright), the Lurueña family also operates another business line, franchising restaurants. Until 2006, Lurca, a company owned by the Lurueña family, was the second largest franchisee in Spain of the chain Burger King. One branch of the family is still linked to the restaurant sector as franchisees of the 100 Montaditos breweries and the pizza chain Papizza.

The family’s decision to generate returns from its premises by leasing them out instead of operating them commercially is not unique. In Barcelona, the owners of the also historical Mercería Santa Ana (haberdashery) have done the same thing in Portal de l’Àngel in Barcelona, the most expensive street in Spain for opening a store. The owners have moved their business to a neighbouring street and have leased the premises to Oysho, Inditex’s underwear chain.

Until now, Miu Miu operated in the Salamanca neighbourhood in a smaller store at number 72 Claudio Coello. Meanwhile, Prada has its flagship store on Calle Serrano, at number 25.

So far in 2017, the luxury thoroughfare in the capital has seen numerous changes of tenants. At the beginning of the year, the jewellery firm Carrera and Carrera launched a flagship store at number 27, measuring 150 m2.

In recent months, it has been joined on Calle Serrano by two other luxury firms: Salvatore Ferragamo, which took over from Lladró at number 68 and Kenzo, which chose number 17 to open its first establishment in Madrid.

Original story: Eje Prime (by I. P. Gestal and C. Pareja)

Translation: Carmel Drake

Latin American Investors Bought One Third Of Madrid’s Luxury Homes In H1

6 October 2017 – Expansión

Yesterday morning in Madrid, the luxury real estate agency Lucas Fox presented its “Real Estate Market Report”, which analyses the behaviour of the property sector during the first half of the year, and more specifically, the profile of purchases in the premium segment in Madrid during the period.

Undoubtedly, the most significant finding is that, according to the agency, buyers from Latin America accounted for almost one third (31%) of all the transactions undertaken, compared to 11% in 2016. In terms of the reason for their purchases, 62% of the buyers at Lucas Fox Madrid acquired a home for investment purposes, whilst the remaining 38% were looking to purchase a second home.

We have seen sales increase by almost one third compared to the volume of transactions last year and we expect them to multiply five-fold by the end of this year. Increasingly more international buyers are choosing the Spanish capital as the best option for investing, thanks to the high medium and long-term yields, the strong rental income and the excellent lifestyle that Madrid offers”, said Rod Jamieson, Partner at Lucas Fox Madrid.

In its recent report, Spain’s National Institute of Statistics (INE) indicated a 15% increase in the volume of property sales in Madrid during the first half of 2017, with respect to the same period in 2016. The number of transactions completed during this period was just 9% lower than the peak levels recorded at the height of the market. Meanwhile, according to data from the Ministry of Development, the volume of sales in the luxury residential market (homes worth more than €900,000) increased significantly, by 27%, due primarily to the increase in international demand.

Prices at the end of June 2017 in the Community of Madrid had increased by 6% with respect to the same period in 2016. Nevertheless, according to data from the real estate portal Idealista, prices rose by even more in the most prime areas of the city, such as Salamanca and Chamberí (by 10% and 14%, respectively), where demand is greatest. For this reason, Lucas Fox inaugurated its second Property Lounge in Madrid yesterday, located on Calle Bárbara de Braganza, 8; it is designed to respond to the growing demand for luxury properties in the capital.

Original story: Expansión (by L. Ruiz-Ocaña)

Translation: Carmel Drake

Spain’s First Student Hall Socimi Prepares Its MAB Debut

13 September 2017 – El Confidencial

Student Properties Spain Socimi will be the first listed real estate investment company specialising in student halls of residence to debut on the stock market. And it will do so with an asset that could mark a before and after in this market in the Spanish capital.

It acquired the building at the end of 2016 from the insurance company Mapfre for €13 million. The property is located on Calle Don Ramón de la Cruz, in the heart of the Salamanca neighbourhood, just opposite Nuestra Señora del Pilar school, 200m from the Deusto Business School (the Universidad de Deusto’s business and economics school) and 500m from the IE Business School.

With a total surface area of 5,420 m2, spread over eight floors, of which 3,500 m2 are above ground, the asset used to house one of Mapfre’s private clinics. But its new owner is committed to converting it into a hall of residence for wealthy students. In fact, the property is currently being renovated by the construction company Vialterra Infraestructuras, which was awarded the building contract, with a budget of around €3 million (…) plus indirect costs of €1 million (…).

With those figures on the table, all indications are that the building will end up housing a luxury hall of residence for students, in line with The Lofttown project in Barcelona. The price of rooms is likely to reach €1,800/month. Having said that, all kinds of services will be included: an outdoor gym, a solarium, a co-working room, a private kitchen, weekly cleaning, use of a 3D printer, laundry, a Play Station, a chill-out terrace and a parking area for bikes, amongst other services.

“Projects such as The Lofttown in Barcelona are hard to replicate in many cities in Spain, and above all, they are hard to scale up. That does not mean that they cannot be attractive and even very profitable real estate investments than more standard products, but it does mean that they always have to be marketed and managed by very specialist teams. Moreover, institutional capital will always consider them to be niche products”, says Patricio Palomar, Senior Investment Consultant at AIRE Partners.

Name change and upcoming stock market debut

Don Ramón de la Cruz 37 was acquired by Collie Investment, a joint-stock company that was subsequently transformed into a Socimi. A week ago, that entity changed its corporate name to Student Properties Spain Socimi (…).

The managers behind the company are Altamar Capital Partners, whose President and founding partner is Claudio Aguirre (Goldman Sachs España), Amira Real Estate Asset Management and Orienta Capital, which is chaired by Emilio Soroa, former Director at Seguros Bilbao.

Indeed, one of the directors of Altamar, Miguel Zurita, joined the Socimi just two weeks ago to replace Fabrizio Agrimi, CEO of the firm until 28 August (…).

“In markets such as the USA, Australia, the United Kingdom, the Netherlands and Germany, student halls have gone from being considered as alternative real estate assets to being products that have as much demand and liquidity as hotels and logistics platforms. To the extent that our market converges towards that trend and becomes more mature, we are going to see products of a different quality appearing, designed for a different type of consumer, in the same way that three-star hotels exist in cities alongside super-luxury hotels”, says Palomar (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake