The Government Extends the Deadline for Requesting a Rental Moratorium

The new decree-law to fight the coronavirus has extended the deadline for requesting the deferral or waiver of rental payments from 2 May to 2 July.

On 31 March, the Government chaired by Pedro Sánchez approved a series of housing measures to protect those affected by the Covid-19 coronavirus crisis, such as aid for rental payments.

Under the terms of this legislation, tenants can request the temporary and extraordinary deferral of their rental payments when their landlord is a company, public housing entity or large holder. And when the tenant is in an economically vulnerable situation, in other words, if they are unemployed, form part of an ERTE, have had their working hours reduced due to care commitments or find themselves in any other similar circumstance that involves a “substantial loss of income”.

How and Where to Request Rental Loans until 30 September

Loans to pay the rent may be requested retroactively from 1 April and will be granted up to €900 per month, provided that the borrower is in an economically vulnerable situation.

Loans to pay the rent may be requested retroactively from 1 April and will be granted up to €900 per month, provided that the borrower is in an economically vulnerable situation.

How and where to request loans

With the coronavirus crisis, many tenants have seen their ability to pay the rent compromised. The Order issued by the Ministry of Transport published in the BOE on 1 May, establishes the characteristics of the €1.2 billion line of interest-free loans backed by the State, which have been enabled to help tenants, and the requirements that they must fulfil to obtain them.

Tenants Request a 50% Discount in their Rents After the Reopening of Shopping Centres

Small and medium-sized operators are asking shopping centre owners to share the impact of coronavirus through a 50% reduction in their rents until the first quarter of 2021.

More than six weeks after the State of Emergency was decreed in Spain, activity in shopping centres is still practically at a minimum, following an unprecedented decrease in footfall and sales.

To alleviate this situation, most of the owners of these establishments have agreed with their tenants to postpone rental payments for the duration of the lockdown period. They are relying on the Royal Decree that the Government approved to apply a moratorium on the rental payment for those businesses affected by the Covid-19 crisis. Such is the case of the large owners of shopping centres in the country such as Merlin Properties and Temprano Capital. Meanwhile, Castellana Properties has chosen to waive the rent for April.

The Government Activates Loans for Tenants of Rental Properties, which will be Backdated to 1 April

This week, the Executive will activate the €1.2 billion line of credit for tenants who are struggling to pay the rent, which is expected to benefit around 450,000 people.

This week, the Ministry of Transport, Mobility and the Urban Agenda will activate a line of credit guaranteed by the State amounting to €1.2 billion for tenants who are struggling to afford the monthly rental payments on their homes due to the current health crisis and State of Emergency.

This measure has been announced by José Luis Ábalos, who has assured that the loans will be granted to citizens retrospectively, in other words, to cover their rent from 1 April. “This week we will be signing the agreement for the measure to apply retrospectively from 1 April,” said the minister during his appearance in Congress to discuss these loans to pay the rent, which are expected to benefit around 450,000 tenants.

The Government Sets Aside €1.2 Billion for Tenants who Cannot Afford to Pay the Rent

The aid plan for tenants designed by the Ministry for Transport, Mobility and the Urban Agenda will support 450,000 tenants with €1.2 billion.

The Government will enable a line of credits up to a maximum of €1.2 billion, guaranteed by the State, for those tenants who cannot afford to pay the rent on their homes due to economic difficulties resulting from the current health crisis and State of Emergency, according to reports by Europa Press.

That is the spending increase that the Council of Ministers approved for the Ministry of Transport, Mobility and the Urban Agenda on 14 April. That Department will guarantee loans through the ICO in a scheme that is estimated may benefit around 450,000 tenants.

Invesco Sells a Logistics Warehouse to M&G Investments for €32M

21 June 2019 – Expansión

The global investment manager Invesco has completed the sale of a logistics warehouse in Getafe (Madrid) to the British firm M&G Investments for €32 million.

The warehouse, which was constructed in 2018, has a surface area of 29,536 m2 and 36 loading docks. It is located on the Los Gavilanes industrial estate, by the junction of the A4 with the M-50.

The property has an occupancy rate of 85% and is leased to a number of tenants including the supermarket chain Mercadona and the specialist transport company Acer. It is certified as a sustainable building with a LEED Silver rating.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Aberdeen Buys Torre Auditori from Iberdrola for €98M

14 June 2019 – Expansión

The real estate division of Iberdrola has sold the Torre Auditori office building located in the BcnFira District of Barcelona to the fund Aberdeen Balanced European Property Fund for €98 million.

The property has a surface area of 22,899 m2, distributed over 10 floors, and more than 300 parking spaces. It was constructed in 2013 and is currently home to more than twenty tenants.

This operation represents Aberdeen Balanced European Property Fund’s first in Spain. The fund, which is managed by Aberdeen Standard Investments, now has more than €1 billion under management and is seeking to diversify its portfolio by asset type and geography.

Original story: Expansión (by Rocío Ruiz)

Translation/Summary: Carmel Drake

Blackstone Finalises the Purchase of Torre Tarragona from UBS

5 June 2019 – Cinco Días

The US fund Blackstone is negotiating the purchase of Torre Tarragona in Barcelona from UBS, according to several sources in the sector. The deal looks set to become the third major operation in the city’s office market this year after Naturgy sold its headquarters to Colonial and Telefónica sold its Diagonal 00 property to Emperador.

UBS Global Asset Management acquired Torre Tarragona in 2015 for €72 million from Omega Capital, the family office owed by Alicia Koplowitz. Now, having invested €10 million in a comprehensive renovation, the Swiss bank is hoping to sell the property for between €100 million and €110 million.

Torre Tarragona is located close to the Sants train station in the Catalan capital and spans a surface area of 18,150m2 spread over 19 floors. It has 250 parking spaces and its main tenant is Pepsico, together with other companies, such as the technological firm Acens (a subsidiary of Telefónica), Quercus and the laboratory Gentic.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation/Summary: Carmel Drake

Starwood Finalises the Purchase of 5 Buildings from Oaktree for €150M

4 June 2019 – Eje Prime

Starwood is finalising the purchase of four office buildings in Madrid and one in Barcelona from Oaktree and the German company Freo for €150 million in total.

Together the five buildings span a surface area of 78,428 m2 and have 1,323 parking spaces. They are currently leased to a number of companies, such as Indra, BBVA, Air France KLM and Hoist Finances, amongst others.

Specifically, the properties are located on Calle Julián Camarillo, numbers 4 and 6, Avenida de Manoteras, 44 and Valportillo Primera, 13 in Madrid; and on Calle Samontà in Sant Joan Despí in Barcelona.

The US fund is teaming up with the Spanish real estate company Drago Capital, as it continues to strengthen its position in Spain. In recent months, the alliance has purchased assets worth €400 million.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Ibosa Bids for the DGT’s Former HQ in Madrid to Build Luxury Flats

22 May 2019 – Idealista

The cooperative manager Ibosa is one of the parties interested in acquiring the former headquarters of the Traffic Department (DGT) in Madrid, located at number 125 Calle Arturo Soria, where 43 luxury flats are going to be built.

The Socimi Jaba I Inversiones Inmobiliarias put the building up for sale recently after acquiring it in 2014 for €19.2 million. The property is currently vacant having been previously leased to the DGT and Vodafone.

The office building has a gross leasable area of 5,526 m2 and comprises a ground floor plus 4 upper floors. It has 148 underground parking spaces and is located in one of the most sought-after neighbourhoods of Madrid. The asking price reportedly amounts to less than €25 million and the sale is expected to close next month.

If it is successful, Ibosa plans to build 43 high-end homes with 2-, 3- or 4-bedrooms. Each property will have a garage and storeroom and the sales prices will start at €554,000, with an average price per m2 of €5,900. The urbanisation, known as Residencial Capella, will have common areas such as a swimming pool and gym.

Original story: Idealista (by P. Martínez-Almeida)

Translation/Summary: Carmel Drake