Tomás Olivo Acquires the Dos Mares Shopping Centre for €28.5MM

5 July 2019 – Richard D. K. Turner

Tomás Olivo, the owner of  the socimi General de Galerías Comerciales, acquired 100% of the Dos Mares Shopping Centre in San Javier for 28.5 million euros. The Portuguese Group Sonae Sierra, which put the asset up for sale, had originally asked for €42 million but subsequently reduced that figure, due to a lack of investor interest, to €35 million.

Sonae Sierra and the Eroski group built the shopping centre in 2003, in a €36.5-million investment. One year later, Sonae took sole control of the asset.

Dos Mares has a gross leasable area of ​​almost 25,000 square meters, along with 1,250 parking spaces.

Original Story: Murcia Economía – Fernando Abad

 

Bankinter’s Socimis Manage Assets in Spain Worth €850M

23 April 2019 – Idealista

Bankinter currently has two Socimis operating in the Spanish market, Ores Socimi and Atom Hoteles Socimi. Between them, they manage a real estate portfolio worth more than €850 million, according to the latest reports filed by the entities with the Alternative Investment Market (MAB).

The hotel Socimi, controlled by Bankinter and GMA, has the largest portfolio, comprising 21 assets located all over Spain and worth €489.2 million at the end of 2018.

Almost 60% (12) of the hotels are vacation properties and the rest (9) are urban establishments. For the time being, the hotels are mainly concentrated in the Balearic Islands, Canary Islands and Andalucía, but the company is preparing to expand overseas, where it seeks to acquire establishments in the USA, France, Italy, Germany and Greece.

Meanwhile, Ores, which is jointly controlled by Bankinter and the Portuguese giant Sonae Sierra, owns a portfolio of 35 retail assets worth €362.5 million as at 31 March 2019.

Ores’s portfolio is well diversified by asset type, size and location, with occupancy rates of almost 100%. The properties include hypermarkets, supermarkets, retail parks and high street stores leased to chains such as Continente, Mercadona, Inditex, Media Markt and Mango.

Original story: Idealista (by Custodio Pareja)

Translation/Summary: Carmel Drake

Ores has Invested €362.5M in 35 Assets Across the Iberian Peninsula

16 April 2019 – Eje Prime

Ores, the Socimi owned by Bankinter and Sonae Sierra, has invested €362.5 million in 35 assets across the Iberian Peninsula since its creation, according to a report filed by the company with the Alternative Investment Market (MAB) at the end of Q1 2019.

During the first quarter of this year, the company purchased a retail store in Burgos with a gross leasable area of 724 m2 for €5.2 million.

The company’s portfolio comprises hypermarkets (28.1%), mini-hypermarkets (17.8%) and retail parks (15%), amongst others. Its assets are located mainly in Madrid and Barcelona, as well as in prime areas of provincial capitals.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Ores Doubles its Portfolio in a Year & Closes 2018 with Assets Worth €357.4M

11 February 2019 – Eje Prime

Olimpo Real Estate (Ores) is establishing itself in the market. The Socimi owned by Bankinter and Sonae Sierra closed last year with a portfolio comprising 34 assets worth €357.4 million. In this way, the company has doubled the valuation of its assets since the end of October 2017, a few months after it made its debut on the stock market. At that time, the firm held a total of 16 investments worth €172.6 million.

At the end of 2018, the value of the Socimi’s portfolio amounted to €357.4 million across 34 assets, comprising mainly hypermarkets (28.5%) and supermarkets (14.7%), retail parks (15.2%) and out-of-town stores (14.4%), as well as premises (8%) located on the main streets of large cities.

During the last four months of 2018, four investment operations were undertaken for a total value of €27.5 million. Specifically, the firm completed the purchase of two supermarkets, an out-of-town store in Santander and a commercial premise in Vigo.

“These operations are in line with Ores’ investment strategy, in urban locations in Spain’s main cities, and with first-class operators as tenants and long-term and stable lease contracts”, said the company in a statement sent to the Alternative Investment Market (MAB).

Ores is a company whose main activity is the acquisition and management of commercial real estate assets, both in Spain and Portugal. The company was created in December 2016 by Bankinter and Sonae Sierra, made its stock market debut at the end of February 2017 and has been increasing its investments and assets ever since.

Original story: Eje Prime

Translation: Carmel Drake

Knight Frank: High Street Investment Soared by 84% to €1.3bn in 2018

31 January 2019 – Eje Prime

The real estate sector has closed another year with a strong performance in the Spanish market. As we approach the end of the real estate cycle in the country, the tertiary sector is continuing to maintain high levels of investment, with growing rents and sustainable yields.

In the retail sector, the investment volume amounted to around €3.7 billion in 2018, according to data from Knight Frank. The main driver of that investment was the high street, where spending soared by 84% to €1.3 billion.

Despite that, the bulk of retail investment in Spain continued to be directed towards shopping centres, which accounted for 54% of the total last year with major operations such as the sale of the Summit portfolio, owned by Sonae Sierra in conjunction with CBRE GI, and of which 87% is now controlled by JT Real Estate.

Moreover, the consultancy firm highlights that interest has increased from investors in shopping centres and isolated retail warehouses in good locations “which allow them to manage last mile delivery points”, said the consultancy firm.

Returns have remained stable across the three segments with yields of 5.25% for retail parks, 4.25% for shopping centres and 3% for high street assets.

Despite the strong performance of the retail sector in 2018, the jewel in the Spanish real estate crown is still the logistics segment. In 2018, investment in logistics assets amounted to €1.255 billion, close to the record set in 2017 of €1.28 billion.

In the last quarter, several large operations were closed, such as Blackstone’s purchase of a portfolio of 55 assets from Neinver for €300 million.

Interest in the segment continues to generate expectations regarding the compression of yields, and so Knight Frank forecasts returns of around 5% this year.

Finally, the office sector has also maintained a robust rate of activity, after the maximums recorded in 2017 thanks to operations undertaken by the Administration. Specifically, Knight Frank estimates that 2018 closed with a gross absorption of 493,000 m2.

Following the trend set in 2017, 52% of the surface area leased was located outside of the M-30, although during the final quarter, it was the secondary centre that accounted for the bulk of the space rented, around 35%.

Prime office rents remained stable at around €30.5/m2/month, and reached maximums of €38.5/m2/month in the most sought-after areas of the business district.

Original story: Eje Prime

Translation: Carmel Drake

BNP Paribas: RE Investment Rose by 8% in 2018 to €11.6bn

9 January 2019 – El Periódico

The volume of annual investment in the Spanish real estate sector amounted to €11.63 billion in 2018, which represented an increase of 8% compared to 2017. If we add the corporate operations with underlying real estate to that volume, then the figure increases to €19 billion, which represents an investment record since the end of the crisis, according to the latest report from BNP Paribas Real Estate in Spain. The report highlights that interest from investors in the Spanish real estate sector in 2018 was at its highest level for a decade.

During the fourth quarter of the year, the volume of direct investment in real estate assets – offices, logistics warehouses, hotels, retail and residential – amounted to €3.7 billion in total, which represented an increase of 58% YoY. The evolution of investor activity, therefore, exceeded the expectations of the sector at the beginning of the year.

“The good times that the fundamentals of the market are enjoying, with occupancy levels at maximums and rents that are stable or expanding in the most consolidated markets, together with the surplus capital and the limited alternatives offered by other financial products, have fostered a frenetic pace of activity in the investment market”, explains the report.

By type of asset, the commercial sector (retail) was the star of the year. The volume invested in commercial assets during 2018 amounted to €4.28 billion, which represents an increase of 23% compared to 2017. During the fourth quarter, investment reached €1.26 billion, and so the sector achieved a quarterly market share of 35%. The largest operation during the final quarter of the year was the purchase of a portfolio of three shopping centres – Max Center, Gran Casa and Valle Real – by Sonae Sierra and Perter Varbacka for €485 million.

Commercial yields

Demand from investors for high street retail assets was high, given that they consider them to be a very stable product. Similarly, there was a high interest in land for the development of retail parks, in light of the scarce supply of this type of asset. The yields continued at 3.00% for prime premises; between 5.00% and 5.25% for prime shopping centres; and at 5.75% for prime retail parks.

In terms of the office market, the investment volume recorded during the fourth quarter was €986 million taking the total figure for the year to €2.228 billion. That represented a slight YoY decrease of 4%. The shortage of products for sale meant that fewer operations materialised in 2018 than in 2017. The prime yield in the office market remained at 3.25% in Madrid and 3.50% in Barcelona.

The logistics market continues to rise. The increase in e-commerce and the strong performance of the consumer sector and the economy, in general, have encouraged investment in this type of asset. The investment volume registered during the fourth quarter of the year amounted to €400 million, whilst the total figure for the year (€1.3 billion) represented a new investment record, and an increase of 30% compared to 2017. The shortage of products, combined with the high investment pressure resulted in a considerable adjustment in yields, which amounted to 5.30% in the prime logistics market in the fourth quarter of 2018.

Investors

Investment funds were the great stars of the market, representing 61% of the total volume transacted in 2018. Socimis have been very present in the investment market, both on the buy and sell sides in the main land transactions to develop new products. Finally, the presence of family offices (private investors) stood out, with acquisitions, in general, for volumes of less than €50 million.

Alternative investments remained in the spotlight of investors, who were mainly attracted by student residences, clinics and nursing homes for the elderly. The cumulative volume invested in those types of assets amounted to €600 million in 2018.

Original story: El Periódico (by Max Jiménez Botías)

Translation: Carmel Drake

Sonae Sierra & JT Purchase 3 Shopping Centres in Spain for €485M

19 December 2018 – Eje Prime

Sonae Sierra and the Slovak fund JT have closed the purchase of three Spanish shopping centres that had been put on the market by the Portuguese group itself and CBRE GI. The two companies have created a joint venture to acquire Gran Casa (Zaragoza), Max Center (Vizcaya) and Valle Real (Cantabria) for €485 million, as Eje Prime revealed in August.

Boosted by the property developer Peter Korbačka, JT Real Estate is going to control 87% of the joint venture, and Sonae will be the owner of the remaining 12%, as well as the manager of the three centres. To date, the assets had been owned 50/50 by the Portuguese group and CBRE GI.

The three commercial complexes are currently immersed in projects to renovate and improve their commercial mixes “to provide experiences to our visitors and generate value for our stakeholders” explained sources at Sonae Sierra.

The operation that has been signed is in line with the Portuguese group’s current strategy of “reaching agreements with large international investors who are looking for an operating partner with the aim of increasing the value of the assets acquired and generating value for investors”, say sources at the company.

Pedro Caupers, Investment Director at Sonae Sierra, believes that this agreement with JT “will be the start of a long-term relationship that may extend to include new projects, both in Spain and in other European countries”. Meanwhile, Peter Korbačka has said that “Spain is one of the most robust markets within the real estate sector in Europe”.

With its headquarters in Bratislava, JT Real Estate is one of the main real estate groups in Slovakia. The company, which started life in 1996, currently employs around 300 people and operates in various segments. This will be its first transaction in the Spanish market.

Meanwhile, Sonae Sierra administers and controls 46 shopping centres in Europe and Latin America, with a gross leasable area (GLA) of 1.9 million m2 and a market value of €7 billion. The company operates in twelve countries around the world and, in 2017, 438 million people visited its complexes.

Original story: Eje Prime

Translation: Carmel Drake

Ores Socimi Acquires 3 Commercial Assets for €19.7M

25 October 2018 – Idealista

Ores Socimi has circumvented some of the operations that it was studying and has leapt into action. The Socimi owned by Bankinter and the Portuguese real estate company Sonae Sierra has acquired three commercial assets, occupied by the supermarkets Mercadona and Día, and the home decor store Conforama, for €19.7 million. The purchases have been carried out in Madrid and Santander.

In Madrid, Ores has purchased an asset occupied by Mercadona, located in the town of Humanes, which has a retail surface area of 2,334 m2. That transaction was carried out for €4.1 million.

Ores has also purchased a supermarket in Getafe, which is leased to and operated by the company Día. That asset has a total surface area of 1,956 m2 and the amount of the operation was €3 million. In Santander, meanwhile, the company has invested €12.6 million in an asset operated by Conforama and with a surface area of 8,000 m2.

These acquisitions form part of a new period of purchases by Ores, which has set itself the objective of investing €30 million, as revealed by Idealista News.

In this way, Ores is continuing to grow its portfolio, which comprises 30 assets and has a combined market value of more than €328 million and a gross annual income of €19.4 million.

Ores is aimed at private banking clients. Although its portfolio of assets is small, for the time being, the Socimi made its debut on the stock market with the objective of investing €400 million in retail premises on high streets, as well as supermarkets, retail parks (up by 20,000 m2), bank branches and singular assets with long-lasting leases and solvent tenants.

Bankinter and Sonae Sierra launched their real estate vehicle in record time. On 15 December last year, the two groups constituted the company and, within just two months, they carried out the process to create the vehicle, raised sufficient capital to get it going and completed its stock market debut.

Original story: Idealista (by Custodio Pareja)

Translation: Carmel Drake

Ores Signs a €35M Loan to Finance New Purchases

11 October 2018 – Eje Prime

Ores is obtaining more fuel to continuing buying Spanish real estate. The Socimi, controlled by Bankinter, has signed a mortgage loan amounting to €35 million, which will facilitate “the execution of the company’s business plan with respect to future acquisitions”, according to a statement filed by the real estate manager with the Alternative Investment Market (MAB).

The company has formalised with a loan with a Spanish bank, whose identity the company declined to disclose. The loan term expires on 11 October 2023 and the principal will be returned with a single bullet payment. The loan has been structured in the following way: €28.1 million at a fixed rate of 1.79% and €6.9 million at a rate of 3-month Euribor with a floor of 0%, plus a spread of 1.35%.

The capital inflow to Ores arrives just in time. At the end of the first half of the year, the Socimi had already achieved more than 90% of its total investment target and it only had €30 million left for purchases.

Between January and June 2018, Bankinter’s Socimi obtained net income of €8 million and a gross operating profit (EBITDA) of €6.3 million. Nevertheless, the company saw its net profit fall during the first six months of the year, with losses amounting to €3.9 million.

During the first half of the year alone, Ores completed the acquisition of thirteen new assets in Spain and Portugal. The company disbursed €117.5 million for those properties, exceeding its forecast investment target by 10%. Similarly, the group, together with Sonae Sierra, purchased the Millenium de Madrid retail park for €31 million in July.

Ores currently has thirty assets in its portfolio, worth €328 million, which generates a gross annual income of €19.4 million. With these latest operations, the Socimi is on track towards the target established when it was created in December 2017 of investing €400 million in high street retail premises, supermarkets, retail parks (up to 20,000 m2), bank branches and unique assets with long-lasting rental contracts and solvent tenants.

Original story: Eje Prime

Translation: Carmel Drake

Bogaris to Place Torrecárdenas on Market for More than €160 Million Just Before Opening

13 August 2018

The shopping centre in Almeria has more than 60,000 square meters of GLA. Potential candidates for the acquisition must consider the lack of a track record for the new complex and a lawsuit filed by executive Tomás Olivo.

A new operation is targeting the shopping centre sector. Torrecárdenas, a new centre that will open its doors at the end of October in Almería, will go on sale in coming weeks with an estimated valuation of 160 million euros. Bogaris, the owner of the project, has decided to put it on the market before its opening and the resolution of a lawsuit filed by the executive Tomás Olivo, who is challenging the construction license granted for the complex.

Torrecárdenas will have a gross leasable area of more than 60,000 square meters and, just over two months before its inauguration, already has an 85% occupancy, from operators such as Primark, Inditex, Media Markt, Sfera, Mercadona and Yelmo. The centre will have about 20,000 square meters of retail park and about 42,000 meters of shopping gallery.

The complex, with several elements inspired by film production, was designed by the architectural studios of Chapman Taylor and Arapiles Arquitectos. Along with the stores, the centre will have more than 3,000 parking spaces.

Sector sources note that, with a purchase price of 160 million euros, the centre will offer a return of between 6% and 6.5%, considering a net income of around 2.5 million euros per year. Savills-Aguirre Newman will be exclusively in charge of the sale and is confident that it can be concluded before the end of the year.

Specializing in the development of large commercial, logistics and industrial areas, Bogaris has developed more than 700,000 square meters of GLA in 94 projects in Spain, Portugal, Bulgaria and Romania. The Seville-based company, controlled by the Charlo family, has developed other shopping centres such as the Aleste Plaza, in Seville, and the Loures shopping mall, in Portugal.

Possible buyers

Sources close to the sales process cite operators such as Castellana Properties, ECE and the alliance between Sonae Sierra and JT Real Estate as potential buyers of the new centre. However, not too many potential buyers are expected to appear.

While the high occupancy is one of the centre’s advantages, the disadvantages include the lack of track record for the new centre in Almeria, since it is being put on sale before its opening, and the litigation surrounded the construction license granted by the Almería city council.

Last November, the city council paid 2.6 million euros to Bogaris complying with a ruling that determined that a new reparcelling project had to be carried out on the centre’s land. The lawsuit, filed by Mr Olivo, is now with the Superior Court of Justice of Andalusia.

Original Story: EjePrime – P. Riaño

Translation: Richard Turner