Neinor To Build 20-Storey Residential Tower Next To Manzanares River

23 January 2017 – El Mundo

A new and unique tower is about to appear on the Madrid skyline. The property developer Neinor Homes is going to build it and it will be located on the banks of the Manzanares River, in an area that, following the transformation resulting from the Madrid Río initiative, has become one of the most attractive and dynamic in the capital.

Since June 2015, when we found out that the property developer, whose main shareholder is the US investment fund Lone Star, had closed an operation to purchase three plots of land, including this one, located at number 33, Calle Maestro Arbós, and that it had planning permission to construct a 20-storey residential tower, everyone has been very interested in finding out more about the plans. (…).

Now, two weeks before the properties in the development go up for sale (on 8 February), El Mundo has had access to the Riverside Homes dossier, the development that Neinor plans to build in Madrid Rio and for which it requested a construction permit at the end of November (…).

It is a unique residential complex, designed by the architect Julio Touza Rodríguez, and will be distributed over two buildings. The undisputed protagonist will be the 20-storey 72m tall tower, which will be accompanied by another 3-storey block measuring 12m tall. In total, the properties will have a combined above ground surface area of 6,400 m2 and another 3,870 m2 of space underground. They will house 51 two-, three- and four-bedroom homes (with surface areas of between 107 m2 and 160 m2), many storage rooms and 102 parking spaces. (…).

The homes

The price of the homes, which will be equipped with the highest quality materials and the latest innovations, will start at €370,000 for the two bedroom homes, increasing to €445,000 for the three-bedroom properties and up to €600,000 for the four-bedrooms apartments. Those amounts, which exclude VAT (10%), include two parking spaces per property and a storeroom.

In addition to these standard flats, the plans includes three penthouses, with 50 m2 terraces, located on the 16th, 18th and 19th floors, whose prices will range between €900,000 and just over €1,000,000. Given the characteristics of the development, its location and the views that these homes are going to enjoy thanks to their dual north-south orientation, the properties look set to become some of the most unique and exclusive in the capital. (…).

The tower will have a large communal garden terrace on the 11th floor, known as the Mirador del Río. (…). At street level, it will have a large garden with a swimming pool and space for urban allotments, whilst the top three floors will house a gym and other communal spaces. (…).

A lot of demand

Even though the features of the development have not been revealed yet (….), Neinor has a list of more than 750 people who are interested in acquiring the homes at Riverside Homes. “Most of the interested parties (70%) are people from the area, but we have also received a lot of interest from other people in the capital (…)”, said Ignacio Llona, Director of the Central Territory at Neinor Homes.

Original story: El Mundo (by Luis M. De Ciria)

Translation: Carmel Drake

Bankia Puts Property Worth €4,800M Up For Sale

6 May 2015 – Expansión

Project Big Bang / The financial entity has put a batch of homes, land and commercial buildings up for sale, with the objective of disposing of all of the foreclosed assets left on its balance sheet.

Bankia has decided to accelerate the process to divest its real estate assets with a ‘macro-transaction’ involving a large block sale. The financial institution has launched so-called Project Big Bang, which includes a portfolio of residential and commercial assets (including offices and shops), as well as land, worth €4,800 million.

The transaction is still in its very early stages, involving initial meetings with investors, but it will represent the largest asset sale process seen to date (excluding transfers of debt with real estate collateral).

The properties up for sale include assets that Bankia did not transfer to Sareb following its nationalisation, as well as foreclosed assets resulting from subsequent defaulted payments. Most of the portfolio corresponds to residential assets. Thus, of the €4,800 million assets that Bankia has included in the batch, €3,300 million related to residential properties at 31 March 2015. In total, the bank will transfer 38,545 residential units (flats, chalets, parking spaces and storage rooms), with a total constructed surface area of 3.6 million square metres.

Along with the €3,300 million of residential assets, Bankia is selling 4,938 commercial units worth €1,100 million.

Land at zero cost

The portfolio also includes 2,589 plots of land with a total surface area of 4.6 million square metres. This land has a value of zero, according to Bankia, having been fully provisioned.

The sale is being coordinated by Credit Suisse and KPMG. The transaction may be closed as a single deal or through the sale of several blocks. The sale value may also decrease from €4,800 million to a smaller amount, say sources close to the process.

Many of the large funds, including Blackstone, Lone Star and Apollo, have already expressed their interest in the portfolio. These investors will have to compete with Cerberus, which has a preferential right to examine Bankia’s real estate portfolio. This “preferential” arrangement forms part of the negotiations that the US fund has held with the Spanish entity in recent years. In 2014, Bankia transferred its Bankia Habitat business unit to Cerberus for a consideration of between €40 million and €90 million, together with the 400 professionals who work for the platform.

Last September, Cerberus joined forces with the Norwegian fund Lindorff to acquire some of the doubtful and substandard loans, plus those that had doubtful or substandard outlooks, worth €900 million, which the entity chaired by José Ignacio Goirigolzarri (pictured above) was selling, as part of the Somo transaction. In February, Bankia launched a campaign to accelerate the sale of its remaining properties.

The clean up

Project Big Bang represents the largest divestment initiated by Bankia to date in the foreclosed asset and doubtful debt segment. The entity chaired by José Ignacio Goirigolzarri has been one of the most active in this market, having transferred almost 80 portfolios containing problematic loans since 2013, with a nominal value of €10,000 million.

Initially, Bankia undertook these types of transactions due to necessity, since the restructuring plan agreed with Brussels compelled it to divest non-strategic assets amounting to €50,000 million.

Although it has now almost completed this plan, the entity has decided to ‘step on the divestment accelerator’ in 2015 in order to reduce its default rate and focus its resources on new productive assets that improve its financial results. As well as the foreclosed assets, Bankia is also currently negotiating the sale of problematic mortgages, property developer loans and hotel debt.

If it closes all of these transactions, the nationalised group would become the first entity to withdraw from the segments considered by the market as a burden to the sector.

Original story: Expansión (by R. Ruiz and J. Zuloaga)

Translation: Carmel Drake