Basque Family Office Invivas Sells Prime Retail Store in Bilbao

12 December 2017 – Eje Prime

A new operation has been signed in the heart of Bilbao. The Basque family office Invivas, which is backed by the family of Sabino Arrieta Heras, has sold a shop in the heart of the Basque city to Grupo Arenal. The purchaser is a family office specialising in investment in real estate assets and the owner of the Arenal perfume chain, according to explanations provided by the company to Eje Prime. The operation has been brokered by the real estate consultancy firm Catella.

Grupo Arenal, which did not want to disclose the amount of the operation, could have paid around €6 million for the asset. The property is located at number 3 Calle Navarra and its façade is more than 70m long. The store is located between the retail thoroughfares of Gran Vía, Rodríguez Arias and Ercilla.

It is a strategic location, which, as well as being home to the country’s major fashion retailers, such as El Corte Inglés, Inditex and Mango, is expecting to welcome a new Primark store soon; moreover, a high-speed train station is being built in the vicinity.

The space was the former main branch of Banesto in Bilbao and has a total surface area of 2,500 m2, spread over three floors. The first floor measures 777 m2, the ground floor spans 841 m2 and the basement has a surface area of 881 m2.

With this sale, Grupo Invivas, led by the former number two of the Basque Government’s Home Office (…) is divesting in the heart of Bilbao. This family office has been starring in real estate operations for several years, especially in the País Vasco, but also in the international market.

Its most recent purchases include a retail store in Miami, through Invivas Miami Real Estate, for €5.2 million (…). Four years ago, in the summer of 2013, it launched its operations in Germany with the purchase of a 1,000 m2 building in Frankfurt, used as offices and retail space, for €7 million (…).

The retail sector is thriving in the País Vasco  

One of the most active segments in Bilbao in recent months has been retail, as a result of the improvement in consumption. The activity in terms of new arrivals in the city has been led by domestic fashion brands, which have accounted for 44% of the new movements, followed by accessories firms (23%) and specialist brands (19%), according to a study compiled by the real estate consultancy firm CBRE (…).

The situation is similar in San Sebastián, where major groups such as Fnac and Zara have now arrived in the Mercado de San Martín; moreover, Pull&Bear, Mango and Violeta have set up shop in the former Kutxabank building (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Hispavima Buys The Puma Store On c/Fuencarral For €13M

27 September 2017 – Eje Prime

Retail premises are continuing to attract the attention of both international and local investment funds. That is the case of the Murcian firm Hispavima, which has recently acquired the premises at number 33 on Calle Fuencarral, occupied by the sports fashion distribution group Puma, for approximately €13 million. Over the last few years, the company has expanded its portfolio of commercial assets in the capital, with the purchase of stores on coveted streets such as Preciados, Callao and Claudio Coello, amongst others.

The premises that Hispavima has acquired have a retail surface area of 196 m2. According to market sources, Puma pays a monthly rent of €40,000, and the return on the asset is 3.5%. The operation was closed in July, and was brokered by the real estate consultancy CBRE.

Hispavima is led by Jorge Tuchado, who is responsible for the expansion department at the group. Hispavima is the real estate division of Tefim Grupo Financiero, a holding company founded in 2001, which comprises several business lines (…).

The group currently owns 15 million m2 of land in total for tertiary, residential and logistics activity. “Of that, we have more than 1 million m2 of buildable land ready to develop”, says the director (…).

Although the company did not want to provide details about the value of its portfolio of retail premises, it did explain that it now owns more than a dozen assets. Its portfolio includes the Swatch store on c/Preciados; the Banco Santander branch on Callao, 1; and the Cos and Mango stores on c/Claudio Coello and c/Princesa, respectively.

“Over the last few years, we have not been able to purchase everything we have wanted to, given that the competition is much greater and the Spanish market is gaining a lot of interest”, says the director, indicating that the Socimis and international funds are direct competitors when it comes to buying a retail premise (…).

The hype of Fuencarral

The fact that the sports equipment distribution group Decathlon recently announced that it is going to open a macro-store measuring 2,400 m2 in the former Mercado de Fuencarral, on Calle Fuencarral, has served to put the Madrilenian retail thoroughfare on everyone’s radar in the real estate sector.

Fuencarral is one of the main shopping streets in Madrid. A large number of high-medium end fashion brands have stores on the street: from familiar brands such as El Ganso, Scalpers, Superdry, Pepe Jeans, Guess and Tommy Hilfiger to other, more high-end names such as Michael Kors, Maje, G-Star and Diesel.

On its busiest stretch, tenants pay an average rent of €151 per month per square metre. And although that figure has fluctuated somewhat over the last ten years, it is now at its peak, having grown by almost 32% since 2008. This makes Fuencarral a target location for many investment funds who see the retail premises as good assets for investment.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Massimo Dutti, H&M & Uniqlo Seek Premises On Passeig De Gracia

22 June 2015 – Expansión

Rental prices are soaring on Barcelona’s Golden Mile / The three fashion chains have been negotiating with the owners of premises on the street for months to open mega-stores.

Barcelona’s Passeig de Gracia is one Spain’s most important retail streets, and store rental prices there have increased significantly in recent years. The luxury boulevard of the Catalan capital was the Spanish street where prices rose the most in 2014 (by 6.4%) to €215/m2/month, according to data from the retail-specialist consulting firm Ascana.

The tourism boom in Barcelona is continuing to drive demand in this street, and it is still one of the areas where international brands “must” have a presence. And the shortage of available stores means that prices are continuing to rise. All of this, despite the fact that the retail surface area on Passeig de Gracia has increased in recent years, since the first floors of many buildings have been incorporated into the stores. “And despite the fact that large premises mean lower average rental prices”, explains Eduardo Rivero, Managing Partner at Ascana.

Negotiations

As a result, rental agreements are taking longer to finalise. That is the case of the three mega-deals that have been under negotiation for months and which have not yet been agreed. The Japanese firm Uniqlo has been trying to lease premises on Passeig de Gracia for several years and has been negotiating with the owners of number 18 for months.

Massimo Dutti’s negotiations to lease the store that Vinçon will vacate, at number 96, have also been going on for months. And the other mega-store, created by sacrificing office space at number 11, is where H&M has been trying to open its flagship store since last year.

The volume of transactions on Passeig de Gracia, both in terms of investment and rental, has slowed down in recent months. According to Rivero, the number of retail property purchases has decreased for two reasons: the fall in profitability for the purchaser and, above all, the shortage of assets for sale. (…). The same is happening in the rental market. (…).

New brands are still arriving on the street, although to a lesser extent than a few years ago. In 2014, a total of 23 transactions were signed and 15 new brands arrived, most of them fashion industry names.

New stores

The upper end of the Paseo de Gracia is the real golden mile of the city. There, twelve deals were closed last year, all of them involving luxury brands such as Dior, Versace, Rabat, Frey Wille, Carmina Shoemaker and Wolford.

The extension of the time to close operations has driven the proliferation of temporary shops, known as pop-up stores, such as those run by Brandy Melville, Levi’s and Twin-Set. According to Ascana, these temporary incursions allow companies to verify the degree of consumer interest in a brand and evaluate the success of any possible permanent facilities. And whilst they all continue to look for space, rental prices continue to rise.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

Versace Returns To Madrid’s Golden Mile

8 June 2015 – Expansión

Opening on Serrano / The luxury brand returns to the capital’s most exclusive shopping district, after closing its first store there a decade ago.

One of the leaders in the luxury fashion industry is returning to Madrid. The Italian firm Versace has just signed the lease for a store on Madrid’s exclusive Calle Serrano. The opening of the shop means the return of the firm, which closed its first stores in Madrid and Barcelona in 2005.

The company led by Donatella Versace has already taken the first steps in its return to the Spanish market with the opening of a store in Puerto Banús (Marbella) and on Paseo de Gracia, 85 in Barcelona.

Now, it has just signed the lease for a shop located on Calle Serrano, 16, where its neighbours will include other luxury brands such as Longchamp, Michael Kors, Louis Vuitton and Loewe. (…)

The store is currently being refurbished following the departure of its previous tenant, the Catalan firm Custo. Prior to that, it was occupied by another Spanish fashion group, Hoss Intropia. Following the refurbishment, which has been commissioned by the family office that owns the building, Versace will have a store with more than 500 m2 of space in the most exclusive shopping district of Madrid. As such, experts forecast that the firm will pay a rent of around €1 million per year.

The arrival of Versace is not the only big move happening on the city’s Golden Mile over the next few months. The firm Macson, which specialises in menswear, will take over from Massimo Dutti at Serrano, 17. Macson, which is headquartered in Madrid, will become the tenant of the store measuring 550 m2, after Inditex’s high-end brand moved to number 46. The change at that address (Serrano, 46) will be from one brand of Amancio Ortega’s group to another, since Zara used to lease the property, until it opened its flagship store at number 23, Calle Serrano. The opening of that property, a year ago, marked the launch of Zara’s first flagship store in Spain, following the opening of several flagship stores around the world, including in New York, Milan and Shanghai. Another Spanish firm, Mango, is also preparing to open its own flagship store on one of Spain’s most expensive retail streets.

Availability

“The completion of the refurbishment work has given way to frenetic change, with 24 new store openings in 2014 alone, and with very limited levels of availability, which has caused rents to increase, to reach €220/m2/month”, explain sources at Ascana.

There are currently three stores in the same building (Calle Serrano, 7) that are awaiting tenants. In total, the three premises have a surface area of 10,000 m2, which will undoubtedly be snapped up soon given the furore currently surrounding Madrid’s Golden Mile.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

A Peak Inside The Luxury Homes On Juan Bravo, 3

12 March 2015 – Expansión

The Socimi and the North American management company are investing €120 million to rescue the most exclusive residential project in the city. Designed by Rafael de La-Hoz, its 50 apartments will cost around €4 million (each).

Three months ago, the Socimi Lar España and the North American management company Pimco agreed to purchase the company Juan Bravo, 3. The agreement will result in the revival of one of the most exclusive residential projects in Madrid, which has suffered from the full force of the real estate crisis.

“It was a transaction that was in the market and we were not the only interested party. Nevertheless, many funds dropped out when they saw the complexity of the project. There were lots of stakeholders: from the judge overseeing the bankruptcy process to the former owners of the company and its creditors”, explains Jorge Pérez de Leza, who heads up Lar España.

The Socimi proposed that the company be brought out of bankruptcy, rather than be liquidated, through the purchase of the remaining loans from its main creditor (Santander). In total, both partners invested €120 million in the land and (associated) loans, as well as in a residential building adjacent to the plot, which used to belong to the former owners of Juan Bravo 3. “The existing creditors are going to be paid, which is the innovative part (of the transaction), and we hope that the bankruptcy proceedings will be lifted within the next few days”, said Pérez de Leza.

The investment has been made through a company whose share capital is owned split 50:50 between Lar and Pimco, one of the largest fund managers in the world. “When Pimco joined the Socimi as an ‘anchor investor’, it suggested that we make a number of joint ventures in the Spanish market. Pimco wants to continue investing in Spain and we think that the next wave of investment will be in the residential market”, predicts the director. With this project, Lar does not exceed the threshold set for Socimis (that no more than 20% of the assets in their portfolio may not generate returns) and therefore it does not rule out continued investment in the premium residential sector.

After closing the acquisition of this land, Lar España hired the architectural firm Rafael de La-Hoz, which had also been appointed by the former managers to design the project. “Juan Bravo 3 offers the opportunity to construct a new building concept with four façades. The homes, from the garages to the bedrooms, will be completely new. As such, we will have almost total freedom in terms of the form (it takes) and we will be able to do without elements such as common areas and patios”, says Rafael de La-Hoz.

This architect will be responsible for designing the block of homes, which will contain between 50 and 55 units, on a plot of land measuring 26,203 square metres. “Last summer, we conducted a study in the market to see what type of project would fit best and we identified that there is room for luxury (properties) in this area. Therefore, each home will measure at least 250 square metres and on average, will measure between 400 and 450 square metres, as well as having three parking spaces”, says Jorge Pérez de Leza.

The homes will have an average price of €10,000/m2 (prices will range from €8,000/m2 to €12,000/m2 depending on the floor). “It will be different to anything else that exists in the area. There will be common areas with a gym, spa and a space for events. We are going to customise the product and for that reason, we have created a specific team of technical architects to advise clients in their choice of materials and the distribution of their homes, as well as on implementation costs and timings”.

Buyers

The sale of these homes will begin this summer, although the developers have already received a number of requests. “We expect 60% of the homes to be sold to foreigners; and the remainder to be sold to people who live in the area and want a new home, or who have a home in La Moreleja or Somosaguas and now want to move to the centre”. The construction work will begin at the start of 2016 and will be completed in mid-2018. “Some of the below-ground work has already been completed, but we will have to improve it because it is somewhat dilapidated”.

In addition to fifty homes, the property will also have a shop space measuring around 1,000 square metres, which will be rented out.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake