Savills Aguirre Newman: Logistics Leasing in Cataluña Fell by 11% to 600,000 m2 in 2019

13 January 2020 – Cadena de Suministro

The volume of logistics space leased in Cataluña decreased by 10.7% in 2019 to 594,172 m2, compared with 665,952 m2 in the previous year, according to data compiled by Savills Aguirre Newman.

In total, 60 operations were closed, with notable transactions closed by Decathlon in ZAL, Districenter in Llisá de Munt and DSV in Molins de Rei.

The YoY decrease was driven by fewer large operations (those over 20,000 m2) in 2019, which broke records in 2018 and a mismatch between supply and demand in terms of surface area and location.

Nevertheless, turnkey operations continued to rise, which typically involve longer rental periods and high rental prices.

The outlook for 2020 is optimistic.

Original story: Cadena de Suministro

Translation/Summary: Carmel Drake

Gazeley Acquires 42,200 sqm Site in Pinto (Madrid)

7 January 2020 – Gazeley.com

Gazeley, a leading investor and developer of logistics warehouses and distribution parks, today announces that it has acquired a 42,200 sqm site near Madrid, with plans to build a 19,000 sqm warehouse, G-Park Pinto.

The acquisition represents Gazeley’s fourth investment in Spain since re-opening its office in Madrid last year, and will target logistics, distribution and e-commerce companies in need of a last-mile logistics hub. Construction is expected to begin in 2020.

The warehouse will be built with a highly flexible design, allowing it to be adapted to the specific needs of a future customer. It will also have a BREEAM Very Good certification, reflecting Gazeley’s commitment to developing sustainable spaces across Europe, and smart LED lighting.

The area is a well-known logistics hub located around 20 minutes from Madrid. It has access to the A-4 (Madrid-Córdoba) and A-42 (Madrid-Toledo) highways, the M-50 and M-45 Madrid ring roads and has direct access to R-4 (Madrid-Ocaña Toll).

Savills Aguirre Newman is advising Gazeley on leasing.

Original story: Gazeley.com 

Translation/Summary: Carmel Drake

Real Estate Investment Reached €12 Billion in 2020

3 January 2020 Real estate investment in Spain ended the year of 2019 with a total investment volume of approximately €12 billion, a drop of 35% year-on-year, according to a study by Savills Aguirre Newman.

Despite the seemingly steep fall in investment, the firm noted that demand remains robust, with prices forecast to increase by 3% to 4% in the coming year.

Jaime Pascual-Sanchiz, the CEO of Savills Aguirre Newman, averred that the decline was largely concentrated in the market for existing homes. The executive expects the continued growth of new developments, though at a reduced pace. Construction has declined in some specific markets, such as Madrid, Valencia, Malaga and some of the islands, which had seen extraordinary levels of growth last year.

Original Story: Expansión / Europa Press

Translation/Summary: Richard D. Turner

Investment in Barcelona’s Office Market Reaches 20-Year High

17 December 2019 – Barcelona’s real estate office market is amid an investment boom and is projected to end the year with record investments of 1.7 billion euros. That figure is the highest of the last twenty years, according to a study by Savills Aguirre Newman.

In the year to date, investments in offices in Barcelona have hit 1.4 billion euros. Market sources also expect that another €300-€400 million in deals will be finalised before 2020. Investors, 75% of whom are from outside Spain, have concluded acquisitions of more than sixty buildings, totalling more than 400,000 square meters of surface area, in 2019.

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Sire Acquires Portfolio of Logistics Assets in Zaragoza

5 December 2019 – Strategic Industrial Real Estate (Sire), a joint venture managed by Arrow Capital Partners, has acquired a portfolio of logistics assets in Zaragoza. The deal, in conjunction with Cerberus, includes 38,536 square meters of gross leasable area worth 20 million euros. Savills Aguirre Newman and Latham & Watkins advised on the acquisition.

Sire has €2 billion to invest in European logistics and industrial assets.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Villar Mir Group Puts Inmobiliaria Espacio Up For Sale

18 September 2019 – El Confidencial

According to financial sources, the Villar Mir Group has put its land and property developer subsidiary Inmobiliaria Espacio up for sale. The objective is to raise funds to repay the group’s creditor, the Monaco-based fund Tyrus Capital, and it follows the divestment of two other non-real estate entities, Fertiberia and Ferratlántica, in August.

Savills Aguirre Newman has been engaged to coordinate the sale after valuing the entity’s land and plots at €256.88 million as at 31 December 2017. The assets may be sold as a set or piecemeal. Moreover, the company has tax credits worth between €100 million and €200 million, which is where the real value of Inmobiliaria Espacio lies.

According to the latest available data, the company reported an EBITDA of €1.61 million in 2017 and sales of €46.77 million, up by 23.2% YoY. Moreover, it has an excellent and sizeable portfolio of land for development in good locations, for which planning permission has been granted, and therefore an improvement in sales is forecast over the next few years.

Last year, Tyrus Capital lent the Villar Mir Group €360 million to refinance the debt that the traditional banks did not want to extend. The conditions of that loan are onerous – it has a two-year term (of which one year has already passed) and it carries an interest rate of between 10% and 12%. As such, the group wants to sell off its assets in an orderly fashion to repay and reduce its financing, and so time is of the essence.

Original story: El Confidencial (by Agustín Marco)

Translated by: Aura Ree

Savills Aguirre Newman Suggests that Málaga Must Double Its Supply of Student Housing

29 August 2019

Málaga currently has 1,200 places for non-residential students, according to Savills Aguirre Newman. The consultancy believes that the city needs to double that figure. At the moment, developers are working on six new projects, with a total of 900 new places, to be ready by 2022.

The University of Malaga has around 35,000 students, including full-time and part-time, and many of them come from other parts of Spain or even abroad. The recent long-term increase in residential rates is beginning to deter some people from carrying out their studies in the city.

Original Story: La Opinión de Málaga – José Antonio Sau

Adaptation/Translation: Richard D. K. Turner

The Grifols Family Buys a Sought-After Property on c/Velázquez in Madrid

7 June 2019 – El Confidencial

The Grifols family, the main shareholder of the pharmaceutical group of the same name, has purchased a sought-after building on Calle Velázquez, 21 in Madrid through its Socimi Centurion Real Estate.

Until now, the property had been jointly owned by the Gancedo family, which has occupied the commercial space on the ground and first floors for more than 70 years, and another family, comprising around 20 interested members, who owned the upper four residential floors.

According to various sources, last year, the Grifols family reached an agreement with the Gancedo family to purchase its share of the property for €20 million, in a deal brokered by Savills Aguirre Newman. The sale of the residential floors of the building is now being brokered by CBRE and is expected to close in September for €32 million, taking the total purchase price to €52 million, equivalent to €8,000/m2.

Created in 2014, Centurion has been famous until now as the landlord of the pharmaceutical company, given that it owns the four buildings that house the company’s offices in Barcelona, on Calle Jesús y María, and in Sant Cugat del Vallès. This represents the Socimi’s first major purchase in Madrid and sees its entry into the luxury home market in the heart of the Spanish capital.

Original story: El Confidencial (by R. Ugalde & E. Sanz)

Translation/Summary: Carmel Drake

Savills: Spain willl have 260,524 m2 of New Innovative Commercial Space in 2019

3 June 2019 – La Vanguardia

According to the latest edition of the Retail Report Spain, compiled by Savills Aguirre Newman, Spain will see the addition of new innovative commercial space spanning 260,524 m2 this year, where 10 new shopping centres are going to be developed.

In addition, the real estate consultancy forecasts that shopping centres worth up to €2.5 billion could be put up for sale, including Intu’s portfolio comprising four shopping centres, which are worth c. €1 billion. The pipeline also includes other non-prime shopping centres and portfolios of supermarkets and hypermarkets.

Nevertheless, the report forecasts that investment levels in 2019 will be lower than in the previous two years, as many overseas investors, particularly those from the UK and USA, adopt a ‘wait and see’ approach to the Spanish market in light of the slow-down in the world economy and the boom in e-commerce.

In this way, demand is expected to focus on small convenience centres, particularly those linked to supermarkets, and prime and secondary retail parks that are not so affected by e-commerce.

Original story: La Vanguardia

Translation/Summary: Carmel Drake

Sabadell Revises Down its Price Expectations for the Sale of its Property Developer SDin

21 May 2019 – Cinco Días

Banco Sabadell put its property development arm Solvia Desarrollos Inmobiliarios (Sdin) up for sale several months ago. Initially, the bank was expecting to receive proceeds of around €1 billion for the company, its employees and land. However, in light of the current climate, it is now revising down its expectations.

Investment funds are starting to face problems when it comes to generating returns from their investments in land and property what with many of the large property developers, such as Neinor Homes, slashing their short-term forecasts, the political uncertainty following the recent general election and the general nervousness that the current boom cycle is coming to an end.

As a result, the bank chaired by Josep Oliu (pictured above) is now hoping to receive binding offers amounting to around €900 million, which would considerably reduce the entity’s expected gains from the sale. Nevertheless, SDin owns around 300 prime plots and 130 promotions under development, whose combined valuation amounts to €1.3 billion, according Savills Aguirre Newman.

For the time being, Sabadell has four offers on the table from investment funds, including from Cerberus and Oaktree. The fund Kronos is also still in the running although it is less likely to prove victorious.

Sabadell had initially planned to close this operation by the end of June, but may now wait a little longer.

Original story: Cinco Días (by Ángeles Gonzalo Alconada)

Translation/Summary: Carmel Drake