Tag: tertiary assets

Sareb Sells 14,400m2 Plot Of Land In Madrid To Insur

12 December 2016 – La Opinión De Málaga

Sareb has sold a plot of land in Madrid measuring 14,400 m2 to the Andalucian real estate company Grupo Insur for the construction of a business park. The land is located on Paseo de los Melancólicos, close to the Manzanares River and inside the M-30 ring-road. With a buildable surface area of almost 27,000 m2, the plot has the capacity to house nine above ground floors, plus several underground parking floors, according to Sareb.

The operation, which has been conducted through Solvia, one of Sareb’s property managers, generates value from an asset located in an sought-after area, following the renovation of the Manzanares riverbank thanks to the Madrid Río operation.

“This asset is located next to the plots of land that form part of the Mahou-Calderón operation and is close to the Palacio de Oriente. It is well connected and is surrounded by an established urban network, which offers a wide variety of shops and services. The current sale comes in the context of the reactivation of the office segment, driven by a notable decrease in the availability of such assets, in particular in the primary markets of Madrid and Barcelona”, said the company. During the first six months of 2016, Sareb sold 625 plots of land across Spain, from both its own portfolio as well as from the balance sheets of its debtors. Most of these operations were closed in: Community of Valencia, Cataluña, Murcia and Andalucía.

Overall, during the first six months of the year, Sareb sold 5,590 properties (residential assets, land and tertiary properties) and recorded revenues of almost €1,400 million. 52.4% of those revenues were generated from the management of its loans and the remainder from the sale of both properties (26%) and loans (almost 20%).

Original story: La Opinión De Málaga

Translation: Carmel Drake

Drago Capital Buys 75% Of The Company Foujita 16

17 November 2016 – Cinco Días

Drago Capital has acquired 75% of the company Foujita 16, which owns three plots of urban land in Estepona (Málaga). The fund will construct its second housing development on the Costa del Sol on the plots. This project comes after Drago Capital made its first move into the construction sector with the Ocean Hills residential development.

The company has launched itself into the residential market on the Spanish coast. Until recently, funds of this kind invested almost exclusively in tertiary assets (offices, shopping centres and logistics platforms), but the economic recovery and the slight improvement in the property sector has led domestic and international investors alike to search for high returns in the construction of homes. In the case of the Spanish firm, it is firmly committed to the Costa del Sol.

The real estate fund has acquired 75% of Foujita, a Málaga based company that owns three plots of urban land in Estepona. These plots are adjacent to the existing urbanisation that Drago has already built in the area (Ocean Hills), near the Selwo adventure park, where 62 homes have already been built.

Drago will construct 136 apartments on the three new plots, which will be followed by two new developments containing 28 and 33 additional homes. In total, it will build around 260 homes on the Málagan coast, on a plot of land that has a buildable surface area of 30,000 m2.

The fund is making its investment through its subsidiary Esvernia Investments, the same company that developed Ocean Hills. The firm plans to spend between €30 million and €35 million on the development of the site. Several individual investors will join Drago in the project.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

CNMC Approves Merger Between Merlin & Metrovacesa

30 August 2016 – Expansión

Authorisation from the CNMC / The merger will result in the creation of the largest real estate company in Spain, with assets worth almost €10,300 million. The group will compete with the large European Socimis.

On Friday, Spain’s National Commission for Markets and Competition (CNMC) approved the merger between the Socimi Merlin Properties (owner of Torre PwC in Madrid, pictured above, amongst other assets) and Metrovacesa, the real estate company controlled by Banco Santander, in an operation announced on 21 June. With the green light from the supervisory body, the door has been opened for the creation of a giant that will become the largest real estate company in Spain and one of the largest in Europe. The group will own assets worth €10,297 million in total.

The CNMC approved the deal on the basis that the barriers to entry into the tertiary real estate business (shopping centres, offices, logistics warehouses, retail premises and hotels) are not instrumental. And on the basis that this business, which comprises domestic and international companies, is quite fragmented in Spain, according to the body.

The analysis performed by the Commission focused on the relationship of control between Merlin, Testa – the real estate company that the Socimi purchased from Sacyr and in which it owns a 99.93% stake, and for which it plans to complete the integration of the remaining 0.07% within the next few months – and Testa Residencial, which is fully owned by Testa and therefore controlled indirectly by Merlin.

Three carve-outs

The operation will involve the carve-out of Metrovacesa into three lines of business, as revealed by Expansión on 22 June. One real estate line, one residential line and one line for assets under development and land.

The new Merlin will group together all of the real estate business and will acquire Metrovacesa’s tertiary assets, worth €1,672 million. To execute the operation, the Socimi will increase its share capital by 146.7 million shares, at a price of €11.40 per share.

The residential arm of Metrovacesa will carve out its assets from its rental housing business and move them into the newly created company Testa Residencial. The gross value of that company’s assets will amount to €980 million and it will also take over debt amounting to €250 million not transferred to Merlin as part of the tertiary business.

In terms of the third line of business, a newly created public company will take ownership of Metrovacesa’s remaining assets, in other words, the set of land and work in progress in the tertiary sector whose characteristics “do not fit with the profile defined by Merlin for its investments”. The total value of the assets of this third company will amount to €326.49 million.

The Boards of Directors of both companies will meet on 15 September to give their final approval of the operation.

In terms of the shareholder structure of the new Merlin and Testa Residencial companies, Banco Santander will be the largest individual shareholder of both, with stakes of 21.95% and 46.21%, respectively. Merlin will be left with a 68.76% stake in the tertiary business and Metrovacesa will have a 31.24% stake.

In the case of Testa Residencial, Metrovacesa’s shareholders will acquire 65.76% of the share capital.

Original story: Expansión (by María Sánchez)

Translation: Carmel Drake

Bain Capital Raises €2,770M & Sets Its Sights On Spain

8 August 2016 – Expansión

Bain Capital wants to become one of the largest buyers of real estate in Spain. On Thursday, the US fund announced that it has completed the acquisition of three asset portfolios from Spanish banks, worth €1,146 million, over the last few months. The sellers are Cajamar, Sabadell and Bankia in three separate deals.

The acquisitions have been made through the fund’s Bain Capital Credit business unit, known until now as Sankaty.

And as if that weren’t enough, in the last few days, the US investor has completed the creation of a new fund in the USA worth $3,100 million (€2,769 million) for distressed investments (assets close to bankruptcy) and assets in special situations, according to Bloomberg.

“We see potential for making new investments in the Iberian Peninsula, especially in the real estate and overdue loan markets”, said Fabio Longo, CEO and Head of the real estate and overdue loan business in Europe at Bain Capital Credit. “We are excited about the opportunity to consolidate our position in the market for non-performing real estate assets in Spain through these investments”, added Alon Avner, CEO and Head of Bain Capital Credit’s European business.

Individual transactions

Of the three portfolios purchased, the largest was bought from Cajamar, containing €511 million of overdue syndicated and bilateral loans, granted primarily to real estate developers in different phases of bankruptcy. This deal, known as Project Baracoa, was the first major competitive sale of loans by a Spanish entity.

In addition, Bain Capital Credit acquired a portfolio of loans with a nominal value of €415 million from Sabadell, comprising overdue loans to property developers, mainly secured by residential and tertiary assets. This operation was known in the market as Project Pirene.

The most recent purchase by the US fund in Spain involved the Project Lane portfolio, comprising €220 million of foreclosed assets sold by Bankia. This was the first operation of its kind carried out by the nationalised group after the failed sale of Project Big Bang at the end of last year, through which it had wanted to sell all of the homes, developments and land on its balance sheet. In the end, Bankia was unable to reach an agreement with the investor who had expressed the most interest, Cerberus.

For all of these operations, Bain Capital has been advised by the asset managers Copernicus, HipoGes and Altamira; the consultancy firms Aura REE and CBRE; and the lawyers J&A Garrigues and Cuatrecasas.

Original story: Expansión (by J. Zuloaga)

Translation: Carmel Drake

Socimi Trajano Buys Building In Bilbao For €40M

6 October 2015 – Expansión

The Socimi Trajano Iberia, managed and promoted by a division of Deutsche Bank, has purchased the Echevarría building, in the centre of Bilbao, for €40 million and has set itself the objective of investing €190 million in assets located in Spain and Portugal.

The property is located on Calle Alameda de Urquijo, 4, in the main shopping and business district of the city, according to a statement from the company, which debuted on the Alternative Investment Market (‘Mercado Alternativo Bursátil’ or MAB) on 30 June this year.

The mixed-use property has a leasable area of 8,927 m2 and is rented out in its entirety. Specifically, a retail store occupies the ground and first floors (3,846 m2) and the remaining 5,081 m2, distributed over 6 floors, are leased as offices.

As part of its strategy, Trajano Iberia is planning to make investments amounting to approximately €190 million in real estate assets in the tertiary sector in Spain and Portugal.

The primary focus of its investments will be offices in semi prime areas of Madrid and Barcelona and prime areas of secondary cities, as well as shopping centres and retail parks, where those assets have a leadership position. It will also analyse investments in logistics assets, mainly along the Madrid-Barcelona and País Vasco-Valencia corridors.

The company is managed by the real estate division of Deutsche Asset & Wealth Management and has secured funding amounting to €94.8 million since it was created.

Original story: Expansión

Translation: Carmel Drake

Sareb Sells Madrid Office Block To Axiare For €51M

17 June 2015 – Cinco Días

Sareb has sold six of the seven floors of an office building in Madrid to the Socimi Axiare Patrimonio, which thereby takes ownership of the majority of the building, located on the corner of Padilla and Velázquez.

The transaction has been closed for €51 million and represents Axiare’s first investment since it finalised its recent capital increase for €395 million. The purchase of this office block increases the Socimi’s total asset portfolio to €613 million, of which 73% is invested in office buildings.

According to Sareb, the building “has a surface area of 10,700 m2, spread over seven floors (above ground) and 85 parking spaces”. The profitability of the building is underpinned by its high occupancy rate.

Specifically, the office building has an occupancy rate of 92%; it houses tenants such as the Spanish consultancy N+1 and the US firm Westinghouse.

“The transaction represents a significant milestone for Sareb in the divestment of tertiary assets”, said the bad bank, which highlights that it comes after the sale of properties by the FAB Corona at the end of last year.

In recent months, the company has sold more than 50,000 m2 of office space in the capital, worth more than €130 million.

Original story: Cinco Días (by J. P. C.)

Translation: Carmel Drake