Tag: Savills

Savills & Aguirre Newman Complete Their Merger

3 January 2018 – Eje Prime

Without any fuss whatsoever, Savills and Aguirre Newman ended the year by completing their merger. On the last working day of the year, the British company announced to the London Stock Exchange that it had finally signed the agreement to buy the Spanish real estate consultancy. The company, which announced its intention to acquire the Madrid-headquartered business through the same channel on 28 July 2017, will pay €67 million by way of consideration.

According to the document that proves the purchase of Aguirre Newman, the British consultancy firm paid €42 million at the time of the signing and will pay the remaining balance in instalments of €5 million over the next five years, to reach the €25 million agreed between the two parties.

In theory, Savills had planned to complete the purchase before 30 November, however, administrative setbacks delayed the signing. Nevertheless, the company said that all of the paperwork was completed before the end of 2017 (…).

The need of both groups to sign their merger before the end of the year was also an administrative priority, given that they wanted to start the new year afresh to operate under the brand, Savills Aguirre Newman, from the beginning of 2018. Moreover, this change will result in a significant number of changes to its operations in Spain. The first will see it move to a new headquarters in the financial heart of Madrid.

The Spanish subsidiary of Savills has set the wheels in motion to move its offices to one of the capital’s main skyscrapers. After lots of negotiations, the new consultancy firm will move into the Castellana 81 building, better known as the Torre BBVA. The company will lease 8,000 m2 of space after reserving six floors in the building from the Socimi GMP, which owns the asset.

Built in 1981, Torre BBVA is one of the symbols of the Azca financial district in the Spanish capital. GMP renovated the asset after buying it and, coincidently, Aguirre Newman, along with CBRE, were appointed to look for new tenants for the building. The consultancy firm plans to move into its new offices as soon as the integration of the two companies has been formalised.

In terms of the business of the two consultancy firms in Barcelona, sources in the Catalan capital indicate that it is very likely (although not definite) that the Savills staff located in the Catalan capital will move to the offices that Aguirre Newman has on La Diagonal in Barcelona, given their location and capacity.

Another matter still up in the air is the duplication of the entire organisational structure of both companies. Savills’ intention is to maintain the entire workforce, although it is more than certain that many of the directors will leave the company voluntarily, according to sources consulted by Eje Prime.

The Presidents of Aguirre Newman, Santiago Aguirre and Stephen Newman, and the President of Savills España, Rafael Merry del Val, will be appointed to the Board of Directors of the combined company, in the following roles: Santiago Aguirre, Chairman of the Board; Stephen Newman and Rafael Merry del Val, Executive Co-Vice-presidents.

The senior management team of Aguirre Newman and Savills España will retain and include José Navarro, current CEO of Savills España; Javier Echeverría, CEO of Aguirre Newman; Jaime Pascual-Sanchiz, Executive Director General of Aguirre Newman, and Ángel Serrano, Director General of the Business at Aguirre Newman. The office in Barcelona is going to be led by Anna Gener and Arturo Díaz, as the CEO of Savills Aguirre Newman and President of the group in Barcelona, respectively. The real headache for Savills Aguirre Newman will come with the next level of management, although those roles will not be assigned for several weeks yet (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Real IS Returns to Spain With Purchase of Terrassa Plaça

12 December 2017 – Eje Prime

Real IS is returning to Spain with the acquisition of an asset that has only just opened. The German investment fund has reached an agreement with the property developer Citygrove to purchase Terrassa Plaça, a retail complex on the outskirts of Barcelona that was opened just over a month ago. It is the first property that the German company has acquired on its return to the country, where it used to invest before the crisis. To this end, the company has recently opened an office in Madrid, with the aim of expanding its asset portfolio in the country, according to a statement issued by the company.

The operation, whose amount has not been disclosed, involves a complex with a gross leasable area (GLA) of 29,466 m2. Inside, Terrassa Plaça is home to brands such as Sprinter, Gifi, Globo and the restaurant chain La Tagliatella, amongst others.

Real IS has a presence in five European countries. For this deal, it has been advised by Savills on the real estate side and by the law firm Monereo Meyer Marinel-Lo, on the legal side.

Original story: Eje Prime 

Translation: Carmel Drake

Savills: Spain Leads RE Inv’t in Southern Europe

12 December 2017 – Expansión

Real estate investment in Spain is on the verge of setting a new record and positioning the country as the leader of the sector’s boom amongst its counterparts in Southern Europe. Specifically, investment in the tertiary market (offices, retail, hotels and logistics assets) in Spain looks set to amount to €8.9 billion in 2017, which represents an increase of 5% compared to the previous year and the highest figure in a decade, according to a report from the consultancy firm Savills.

The report reveals the strong performance detected in the retail and hotel sectors and also highlights that the growth in e-commerce in Spain is expected to result in greater demand for logistics and storage space, a segment that has lagged behind the main markets in Europe until now.

Luis Espadas, Director of Capital Markets at Savills España, also points out that, to the extent that demand in the more traditional sectors grows, so investors are starting to focus on alternative products, such as student halls and nursing homes. “That market may be small still but it has the potential to develop more attractive returns and price differentials”.

Other countries

The recovery of the sector in Spain has been followed by an upturn in other countries such as Italy, Portugal and, more recently, Greece and Cyprus. In this way, after a few years of weak investor activity, the volume of investment in Southern Europe increased by 277% in 2017, compared to the minimum of €5.2 billion recorded in 2012.

Overall, total investment volumes increased by 8% YoY. The markets in Southern Europe now account for 10% of the total investment in the European Union, compared to the 5% that they represented in 2012. “Economic growth, the decrease in unemployment rates and renewed consumer confidence are attracting investors back to Southern Europe”, says Alice Marwick from the Europe Research department at Savills.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Savills: Inv’t In Student Hall Market Will Far Exceed €600M In 2017

31 October 2017 – Eje Prime

Between €500 million and €600 million. That was the price paid by a group of international investors to acquire Grupo Resa, the largest platform of student residences in Spain, with 9,309 beds in 19 cities, including in Madrid, Barcelona and Salamanca. AXA Real Assets, CBRE Global Investment Partners and Greystar backed the company, a significant investment that goes hand in hand with the rise of this alternative market in Europe. This operation is a clear example of the boost that this alternative asset is enjoying in the real estate sector in Spain and across Europe.

In neighbouring France, investment in the sector rose by 245% and the forecast is that €250 million will be invested in transactions in 2017. But if there is a country whose student hall market has grown beyond all doubt, it is Germany. The German market has seen a five-fold increase in investment in student residences (380%) and expects to exceed the €1,000 million threshold by the end of this year.

These results all indicate that the whole European continent is now taking this market seriously, although there are still countries where the student hall business is much larger. In 2016, the main players in this sector, the USA and UK, saw a record-breaking volume of transactions involving the purchase of assets of this kind, amounting to €14,100 million, up by 5.4% compared to 2015 (…).

Data from the World Student Housing study, prepared by the real estate consultancy Savills, shows that migration is increasing in the world each year. Almost five million students studied overseas during 2015, which represents an increase of 130% since the beginning of the 21st century. The forecasts indicate that 8 million students will study abroad in 2025.

The Spanish case: great influx and new projects

As a Spanish-speaking country, Spain receives a large volume of Latin American students each year. Of the more than 100,000 international students that it welcomed last year, 10% were from Colombia or Peru. They are, together with the Italians, the overseas nationalities that flock in the greatest numbers to Spanish universities.

This international influx, which accounts for 7% of the total number of students on the state university map, has sparked interest amongst different funds looking to build and buy student halls in the country. The Swiss fund Corestate entered this market last year, with the purchase of a hall of residence in Madrid, for which it paid €13.5 million, whilst Temprano Capital is going to build a 10,000 m2 student residence in Esplugues de Llobregat (Barcelona). Moreover, the multi-national The Student Hotel is now active in Barcelona; and ThreeSixty Developments, a fund managed by Oaktree, sold the Nexo student halls to GSA.

In total, the student hall market in Spain expected to see investment of €600 million in 2017, with a yield on prime residences of 5.75%, above those in countries such as the UK and Germany (5% in both). With the sale of Resa alone, that target has already been fulfilled (…).

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Europa Capital Buys Gran Vía de Alicante For €52M

2 October 2017 – Expansión

Spanish shopping centres continue to be objects of desire for international investors and, specifically, for private equity funds. One of the latest to back this segment is the British fund Europa Capital, which has just closed an agreement with the real estate subsidiary of Deutsche Bank, Rreef, to acquire Gran Vía de Alicante, one of the largest shopping centres in the area.

Market sources have explained to Expansión that the operation has been closed for €52 million. The real estate consultancy JLL has advised the vendor in the process, whilst LyC and Savills have advised Europa Capital.

According to the same sources, the sales process, which opened in March, sparked interest amongst numerous investors, including Eurofund Capital Partners and Patron Capital, as well as Carmila, the subsidiary of Carrefour.

This shopping centre first opened its doors in 1998 and was renovated in 2012. The asset has a gross leasable area of 37,314 m2, spread over three floors, and includes a hypermarket occupied by Carrefour, which does not form part of the perimeter of this operation. The asset also includes a car park with 1,600 parking spaces.

Specifically, more than 70% of the asset’s surface area is leased to fashion brands such as Primark, Lefties, Pull&Bear, H&M, Bershka, Massimo Dutti and Deichmann. Moreover, the shopping centre’s other tenants include restaurant brands such as Foster’s Hollywood and Lizarrán.

Visitors

Last year, the shopping centre received 5.3 million visitors, up by 2.7% compared to the previous year. Gran Vía Alicante has increased the number of visitors almost continuously since Primark opened a store in the centre five years ago. That also resulted in a rise in sales, which exceeded €32 million last year, representing a YoY increase of 5.3%.

The asset, located at number two Calle José García Sellés, competes with Plaza Mar 2 – the largest shopping centre in the municipality – with a gross leasable area of 43,684 m2.

Other shopping centres located close to Gran Vía Alicante include Parque Vistahermosa, measuring 34,000 m2; San Vicente Outlet Park, measuring 36,500 m2; and Puerta de Alicante, measuring 34,500 m2.

Other operations

The purchase of Gran Vía Alicante by Europa Capital follows other operations closed recently in the region.

In this way, last year, TPG purchased the L’Aljub de Elche centre for €100 million for TH Real Estate. Meanwhile, Lar España acquired the Portal de la Marina shopping centre in Ondara (Alicante) for €14.5 million, and the Socimi in which Pimco holds a stake bought the Vistahermosa retail complex, which is located very close to the centre in Alicante, for €42.5 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

MDSR Buys A Portfolio Of Hypermarkets For €150M

21 September 2017 – Expansión

The fund MDSR Investments has completed another purchase in Spain. The firm has acquired a portfolio of hypermarkets leased to Carrefour and Eroski, which were owned until now by Tristan Capital. The operation, which has been closed for a value of approximately €150 million, represents the largest transaction in Spain involving hypermarkets and shopping arcades so far this year.

The portfolio has a gross leasable area of 86,836 m2. Located in Segovia, Jaca, Fuengirola, San Javier, Tomelloso, San Sebastián and Ribadeo, the first four operate buildings under the Carrefour brand. Moreover, the operation also includes shopping arcades in Segovia, Jaca and Tomelloso.

This is the seventh operation to be undertaken by the firm, which is managed by an Israeli group and financed by US investors, since it arrived in Spain a year and a half ago. Moreover, it is the firm’s second transaction in recent months, given that, in March, it acquired a portfolio of five Eroski hypermarkets, owned until then by Joparny, for around €30 million.

In October 2016, MDSR Investments acquired the Travesía de Vigo shopping centre for €49 million.

In this operation, MDSR has been advised by Savills on the real estate side and Dentons for legal aspects; whilst Linklaters has advised the seller on the legal side.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Savills & Aguirre Newman Will Sign Their Merger In November

5 September 2017 – Eje Prime

A month after closing the most important corporate transaction in the real estate sector so far this year, the details of Savills Aguirre Newman are starting to be revealed. Sources close to both companies have explained that the merger will be definitively sealed in November, which is also when the organisational chart of the newly created company will be redrawn.

Whilst to date, Savills and Aguirre Newman have continued to operate independently, “they will start to manage their businesses in Spain together from 2018 onwards”, according to both companies. “For the time being, there is a willingness on the part of Savills to buy and on the part of Aguirre Newman to sell, however, the formal signing of the sale and purchase has not been carried out yet”, explain sources at both groups. The formal agreements will be signed in November, at the latest.

Moreover, the new company’s plans include looking for new offices for its teams in Madrid and Barcelona. Whilst sources in the Catalan capital indicate that it is very likely (albeit not definitive) that the Savills employees located there will move to Aguirre Newman’s offices on La Diagonal in Barcelona; in Madrid, it is almost certain that a new office will be leased to house the employees of both companies. “All of the options are being considered, including the existing headquarters of Aguirre Newman and Savills in Madrid and Barcelona”, say sources close to the operation.

Another issue that has been left up in the air with Savills’ purchase of Aguirre Newman is the duplication of the entire workforce of both companies. For the time being, according to the same sources, “Savills’ intention is to hold onto all of the employees, although it is already clear that many of the directors will leave the company voluntarily”.

The Presidents of Aguirre Newman, Santiago Aguirre and Stephen Newman, and the President of Savills España, Rafael Merry del Val, will be appointed to the merged company’s Board of Directors, with the following roles: Santiago Aguirre, President of the Board; Stephen Newman and Rafael Merry del Val, Executive Co-Vice-presidents (…).

At the end of July, Savills and Aguirre Newman announced that the purchase would be carried out for approximately €67 million. With this acquisition, the British company will multiply its size in Spain seven-fold, increasing its workforce from 70 professionals to around 500 (…).

International plans

Another issue on the table is the internationalisation of Aguirre Newman following its purchase by Savills. Until now, the international presence of Aguirre Newman has been sustained thanks to an agreement with the network of consultancy firms GVA. However, that partnership may well be cancelled once the purchase of the Spanish real estate consultancy by the British stalwart has materialised (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Savills Completes Purchase Of Aguirre Newman For €67M

31 July 2017 – El Confidencial

Savills has confirmed the news revealed on Friday morning by El Confidencial that it has formally agreed to purchase Aguirre Newman. This operation that puts an end to the sales process that was opened by the Spanish real estate company in February.

As a result of the acquisition, the British company has multiplied its size in Spain seven-fold, increasing its workforce from 70 people to almost 500 professionals. Moreover, it has completed the second most important international purchase in its history following its acquisition of Studley in the USA in 2014.

The transaction price has been agreed at €67 million, which will be paid in instalments over five years. The transaction is expected to be completed on 30 November, once all of the standard regulatory conditions have been fulfilled.

Although the exact terms of the agreement are unknown, the selection of Savills as the winning candidate has been based both on that firm’s economic proposal, as well as its commitment to continue to employ the workforce and to respect the roles of Aguirre Newman’s senior management.

In fact, the resulting company will initially operate in Spain under the brand Savills Aguirre Newman. Santiago Aguirre will be the CEO, whilst Stephen Newman and Rafael Merry del Val will occupy the two executive co-vice-president roles.

The senior management team will also include José Navarro, Javier Echeverría, Jaime Pascual-Sanchiz and Ángel Serrano; whilst the office in Barcelona will be led by Anna Gener and Arturo Díaz, as the CEO and President, respectively.

In addition to Savills, other firms that expressed interest in this operation included Colliers and Cushman & Wakefield. Moreover, the latter managed to hold very advanced conversations with a view to closing an agreement, but in the end, it never materialised, which left the path open for Savills to exclusively negotiate its purchase (…).

With its integration into Savills, Aguirre Newman will achieve its long-time goal of forming part of a large international network, a leap in size that it considers critical in the context of the growing weight of multinationals in the real estate market and its desire to work within a network that has operations around the world.

Meanwhile, Savills has managed to grow to a size that corresponds to its status as one of the large global real estate consultants, listed on the London Stock Exchange, with a market capitalisation of GBP 1,300 million (€1,450 million). By contrast, in Spain until now, it has operated as a specialist boutique. One of its most recent major achievements was the sale of Torre Agbar to Merlin, in a deal that was designed and executed by Savills.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Royal Metropolitan Buys Bancoval’s HQ In Madrid For c. €20M

25 July 2017 – Expansión

The headquarters of Bancoval in Madrid has a new owner. The fund manager Royal Metropolitan has closed an agreement with Inversis to purchase the building, located at number 20 on the Madrilenian street Calle Fernando El Santo.

The operation has been closed for a price of just over €20 million, which is equivalent to around €7,400/m2, according to market sources.

Last year, Inversis – owner of Grupo Banca March – acquired the subsidiary of Royal Bank of Canada (RBC) – later renamed Bancoval – and inherited this asset.

A year later, the financial institution decided to put the building up for sale to take advantage of the good times in the real estate sector and the interest from investors in assets in the best locations. Savills has participated in the transaction, which has been closed in record time, advising the buyer, and Deloitte has advised the vendor.

The building has a gross leasable area of almost 2,700 m2, distributed over seven floors, as well as two basement floors for parking with more than 700 m2 of additional space. The building, constructed in 1967, was renovated in 1998 and received a special mention from the Town Hall of Madrid in 1999 for the urban planning, architecture and public work awards, within the renovated building category.

This property is located in the Almagro district – one of the most-sought after in Madrid for investors due to the scarcity of prime products there -. The location, its renovation potential and the possibility of using it for offices (for one or more tenants) or for residential purposes, since it has licences for both uses, constitute some of the main advantages of the asset.

Investor interest

The office market is still one of the star segments in the real estate sector. In the first half of the year alone, the volume of investment in the office market in Madrid and Barcelona exceeded €1,100 million. Although the growth in rents is still in its infancy, an improvement is starting to be felt in buildings located in the business district and in the best-located areas, and upwards movements are forecast for the second half of the year.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Savills Finalises Purchase Of Aguirre Newman

14 June 2016 – Cinco Días

The large Spanish real estate consultancy firm par excellence, Aguirre Newman, is going to be acquired by its British rival Savills. The two companies are finalising a purchase agreement, according to sources in the market, which could be closed before the summer. The acquisition price amounts to around €80 million.

The Spanish consultancy firm launched a sale process two months ago, in search of an alliance with an international partner. The company, which was founded in 1988 by Santiago Aguirre (pictured above) and Stephen Newman, the current Presidents, employs around 460 people and recorded revenues of €96 million last year.

If the sale is completed, the co-Presidents Aguirre and Newman will remain at the helm for between four and five years. The rest of the management team will also continue to lead the business, according to sources familiar with the process. The Spanish company operates a real estate broker business in the office, hotel and residential segments; it also performs appraisals, town planning activities and corporate operations.

Besides Savills, the owners of Aguirre Newman have received offers from Cushman & Wakefield and Colliers, in a process that has been advised by the financial group Atlas Capital. But only the British consultancy firm has passed through to the final stage, where the finishing touches still need to be agreed.

Savills, which has declined to comment on the operation, is a real estate broker that recorded turnover of €1,645 million last year, up by 13% YoY. It has a market capitalisation of €1,400 million. Despite being one of the largest consultancy firms in the world, it only has limited operations in Spain, falling behind JLL, CBRE and Aguirre Newman itself. Its business in Spain, where Rafael Merry del Val is President, is strong in operations known as off-market deals.

With this acquisition, Savills will become one of the leading players in the domestic market. The company records revenues of around €11 million in Spain, almost nine times less than the Spanish company. Moreover, it is likely that the British consultancy will retain both brands for a period of time, so as to be more recognisable to its customers.

Experts familiar with the operation indicate that Aguirre Newman brings a strong presence and knowledge of the domestic market, compared to Savills, located in London, which will provide its Spanish subsidiary with strong international links.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake