Tag: tertiary land

The Bidding Opens for the Largest Plot of Tertiary Land in Madrid

20 March 2019 – Expansión

Savills Aguirre Newman is marketing more than 180,000 m2 of land for the development of retail, hotel and office properties in the Valdebebas area of Madrid. It is the largest undeveloped tertiary use plot in the capital and the surface area for sale has been divided into three zones, all of which are being managed by the Valdebebas Compensation Board. The owners of the land include Monthisa, Bisbel, Vivienda Económica, Celteo, Coindeco and Inmobiliaria Espacio.

The plan is for the sale of the land to be completed by the beginning of the summer, which means that a large number of investors will be able to participate. Retail, hotel and office property developers have already expressed interest in the site, although no firm offers have been received yet.

The development of this new area was unblocked in February, after five years on the backburner, when the Town Hall of Madrid dismissed all of the appeals against the approval of the economic reparcelation project of the Valdebebas land.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Atlético de Madrid Expects to Close the Sale of the Calderón Plots in Early 2019

20 November 2018 – Eje Prime

Atlético de Madrid is proof of the importance that property can have when it comes to financing activity. The football club has decided to take out a mortgage backed by the Wanda Metropolitano stadium to secure its €200 million refinancing with Inbursa, the financial entity controlled by Carlos Slim, according to reports from Palco 23. The intention of the Board of Directors is to convert that debt into a long-term liability and obtain better conditions than those signed when the financing plan for the new stadium was modified. In parallel, the club is preparing the sale of the plots of land on the site of the Vicente Calderón, scheduled for the beginning of 2019.

The €200 million refinancing plan and the sale of the plots alongside the Manzanares River are closely linked. Two years ago, the Mexican bank offered the financing necessary to finish the building work at the Wanda Metropolitano, after FCC, the construction group that it also controls, refused to charge for its service through the delivery of units for urban development at the Vicente Calderón.

The contract allowed the parties to cancel the loan with the sale of the plot or with the payment of annual instalments for four seasons, which made the repayment of the loan very short term, in the middle of the expansion of the sports area. In the end, the club has committed to extend the term and so the liquidity injection that will result from the sale of the Calderón will not be used to repay the debt, but rather to make more resources available for the club’s daily operations, as well as for new projects and to access to the transfer market,  if necessary.

Sources at the club indicate that the second real estate operation will probably not be signed until next year, after the municipal government of Madrid failed to provide its definitive approval of the urban planning project until last week. “We think that the uses will be converted into plots and registered in the name of the club at the beginning of 2019, which is when we will proceed with the sale”, they said.

Obtaining all of the permits is the guarantee that the property developers will be able to undertake their projects without any problems. The definitive plan establishes 33,339 m2 for residential use, with a buildability of 132,344 m2; of that capacity, 13,234 m2 in total will be reserved for social housing properties. Tertiary use land will span 14,705 m2, with 13,893 m2 for public amenities and just over 73,000 m2 for green space and others.

The new owners will have to assume the urbanisation costs of €42.22 million, including the €22 million required for the demolition of the former Atléti stadium, without affecting the M-30 road, which passes under one of the stands. It is unknown whether the football club and the Mahou brewery or the future owners will assume that price, and what impact that will have on the final sales price (…).

Original story: Eje Prime (by M. Menchen)

Translation: Carmel Drake

Hermes Properties Buys 2 Plots in Madrid from Sareb for €4M

5 June 2018 – Eje Prime

Hermes Properties is making its debut in Madrid. The company has purchased two plots of tertiary land with a surface area of 4,000 m2 in Madrid from Sareb for €4 million. The operation has been carried out through its second real estate investment vehicle, called Hermes II.

Specifically, the plots are located next to the Islazul Shopping Centre in Madrid, located in the Ensanche de Carabanchel, between the districts of Carabanchel, Latina, the Toledo motorway and the M40 motorway, on the border of Madrid and Leganés.

The plots have been previously leased to two operators, namely, Burger King and Carl’s Jr, who will undertake construction work imminently to open two restaurants in free-standing and unique buildings with drive-thru services.

Original story: Eje Prime

Translation: Carmel Drake

Prologis & Goodman Bid for 24,700 m2 Logistics Plot in Valencia

26 April 2018 – Eje Prime

Giants in the logistics sector are looking to expand their domains in Valencia. Prologis and Goodman have entered the auction for a plot of land spanning 24,700 m2 in the Valencia Logistics Park, also known as PLV. The space is currently owned by the Generalitat Valenciana, which has also put a second industrial plot up for auction, on the same industrial estate and spanning 8,600 m2, for which it has received just one offer.

In total, three other groups have also bid for the largest plot of land up for sale, besides the two international operators, namely: Inversiones y Terrenos Rústicos, VGP Naves Industriales Península and Servicio y Calidad, according to Valencia Plaza.

The five companies are bidding for a plot that the administration has placed on the market offering the option of the purchase and surface area rights, although the Generalitat is going to prioritise offers that express an interest in carrying out an operation over the second point.

After this operation, the Valencian administration will still need to sell 44,600 m2 of logistics land and 16,900 m2 of tertiary land. Moreover, the Generalitat is planning to place another 46,800 m2 of space on the market this year for a concession for a heavy vehicle parking lot on the M2 plot of the logistics park.

Original story: Eje Prime

Translation: Carmel Drake

Junta de Andalucía Awards 6,627m2 of Industrial Land in Jaén

23 March 2018 – 20 Minutos

Specifically, the Junta de Andalucía has sold nine plots of industrial land located on several industrial estates in Alcalá la Real, Arjona, Martos and Torredonjimeno for a total amount of around €0.5 million, according to a statement issued by the Andalucían Government on Friday.

Most of the sales have been recorded in Alcalá la Real, where four plots spanning a surface area of 2,800 m2 on the Llanos del Mazuelo industrial estate have been awarded, which will whereby continue its development with the upcoming installation of new companies and the expansion of existing firms that already operate there.

In Torredonjimeno, three other plots have been awarded, spanning a total surface area of 2,184 m2, whilst in Arjona, one plot measuring 700 m2 has been sold and in Martos, another plot has been sold for the expansion of the Cañada de la Fuente Industrial Estate, spanning 941 m2.

The Minister for Development and Housing, Felipe López, explained that the land sales by the autonomous community were reactivated at the beginning of this legislature, “a decision that aims to place public assets at the disposal of business initiatives for the generation of economic activity and employment”.

According to López, the proceeds that the government has been receiving since the beginning of 2015 for these sales “are allowing the autonomous Administration to look for and generate new plots for future industrial and business uses with the aim of boosting economic development and responding to the growth needs of the production fabric” in the province of Jaén.

Moreover, he highlighted that Jaén leads the ranking for the sale of industrial land in Andalucía to date during this legislature. In total, including the plots that have just been awarded, 96,655 m2 of land has been awarded in the province since 2015 for almost €8 million.

Meanwhile, he added that the first offer for land owned by AVRA this year has resulted in the award of 28,376 m2 in residential and industrial plots right across Andalucía, for a total amount of €5.6 million.

In addition to the plots of industrial land sold in Jaén, the award of land for social housing in Córdoba is also noteworthy, where a plot measuring 4,656 m2, with capacity for 88 homes, has been divested for €1.7 million.

Moreover, a free residential plot, spanning 15,450 m2 and with capacity for 86 homes in the Malagan municipality of Rincón de la Victoria, was sold for a price of €3.1 million. In addition, another free residential plot for 10 homes was also sold in the Cordoban municipality of Obejo, for €103,500.

The sale that has just been completed was opened on 26 January and remained open for the presentation of offers until 1 March. The offer, the first in 2018 involving the sale of industrial, tertiary and non-residential land, as well as residential plots and other real estate assets, contained almost 900,000 m2 spread over 772 plots across all of Andalucía’s provinces.

The residential plots that were included in this sale have capacity for 3,060 homes, of which 1,437 are social housing in nature and the remainder are for free/private development.

Original story: 20 Minutos

Translation: Carmel Drake

Metrovacesa Starts Building Offices Again

2 December 2017 – Expansión

Metrovacesa, which is controlled by Santander and BBVA, is looking to generate value from its tertiary (non-residential) portfolio of land and resume the development of offices. The real estate company plans to start construction of 37,000 m2 of space on tertiary land in Madrid and Barcelona.

The company, which has been focused on house building until now, owns more than 1,317,000 m2 of tertiary land, with an approximate value of €684 million. Of the total, it plans to allocate approximately 83% to offices and 10% to hotels.

In this way, in November, Metrovacesa completed the sale of an office under construction to the Socimi Axiare for €29.7 million. That property, located at number 40 Calle Josefa Valcárcel in Madrid, has a leasable area of 8,652m2, spread over seven floors and 261 parking spaces. The firm plans to hand over the asset during the last quarter of 2018.

Metrovacesa’s land does not require any urban planning permissions, and so the plots are very liquid and ready for construction to begin, allowing a quick response to the most important demands that may arise in the market.

“Our team has more than 20 years of experience in these assets, and so we are in a privileged position to maximise value through a sustainable proposal that follows the latest trends and that knows how to take advantage of the current potential in that market”, explained María Ruiz Gallardo, Director of Tertiary Assets at Metrovacesa.

Metrovacesa’s portfolio of tertiary land accounts for 25% of the total value of its assets, which amount to €2.6 billion.

These plots proceed from both the former Metrovacesa, as well as from the contributions made by the shareholder banks.

In this way, the new Metrovacesa emerged following the carve out of the land business from the 100-year old real estate company, which integrated the rest of its activities with Merlin. Metrovacesa’s shareholders decided to give the company a significant boost, with the contribution of new land worth €1.108 billion in June. Santander owns a 70% stake in Metrovacesa, having taken over the 9.21% held by Popular, whilst BBVA controls 29.6%.

Following this injection, which was articulated through a non-monetary capital increase, Metrovacesa now owns a portfolio of buildable land spanning 6 million m2 for the construction of more than 40,000 homes. Its main rivals, Neionr and Aedas, own land with the capacity to build 12,000 and 13,000 homes, respectively.

Metrovacesa, which plans to return to the stock market in February, has convened an extraordinary shareholders meeting for 19 December, when it plans to give the green light to the request for admission to the stock market of the company’s shares.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Spain’s Newest RE Companies Have Assets Worth €4,900M+

24 April 2017 – Expansión

The Spanish real estate sector is enjoying a new phase of growth following its unprecedented crisis. Whilst over the last two years, we saw the boom of the Socimis, specialising in rental properties, 2017 looks set to become the year that the property developers bounce back.

Or at least that is according to the ambitious business plans that the six large companies –Neinor Homes, Aelca, Vía Célere, Aedas, Kronos and Metrovacesa Promoción y Suelo – have put in place, with the aim of benefitting from the growing increase in house sales, and the significant demand from buyers.

To that end, the companies have not hesitated to invest several thousands of millions of euros to create portfolios of land on which to begin their developments. These six developers alone now own assets worth €4,924 million, mostly buildable land, ripe for development. In total, these companies own 6.9 million m2 of land.

Leadership

The entity Metrovacesa Promoción y Suelo stands out on this list of new property developers. The real estate company is looking to recover its sceptre as the Spanish real estate king, after selling its property portfolio to the Socimi Merlin Properties. Owned by Banco Santander, BBVA and Popular, the company currently has 472 homes under construction across 17 developments. Nevertheless, its greatest strength lies in its portfolio of land, which, spanning 2.3 million m2, makes it the largest owner of that type of asset in Spain. Moreover, sources at the company state that its portfolio may increase “considerably this year”, following the contribution of “high-quality land” by the shareholders.

Currently, the land allocated for residential use only is worth €1,050 million. Moreover, it has a portfolio of tertiary land (for offices and shopping centres) worth €325 million and it is already developing a 10,000 m2 office building in Madrid.

Meanwhile, Neinor Homes stands out for its asset value and because it has the largest volume of development activity. Last month, the company, led by the investment fund Lone Star, became the first real estate developer to debut on the stock market in a decade. It did so with a portfolio of assets worth €1,120 million, including land with a surface area of more than 1 million m2. The bell first rang on 29 March, with 4,002 homes under construction across 60 developments.

Vía Célere is following a similar strategy to Neinor. The Madrilenian real estate company is set to become one of the large property developers after it was acquired by five funds, led by Värde Partners, and following its merger with its counterpart Dos Puntos. The new Vía Célere has a portfolio of land spanning more than 1 million m2, with 2,494 homes under construction.

Meanwhile, Aedas Homes, with 1.35 million m2 of land and assets worth €1,100 million, has positioned itself as one of the leading players in the sector after just a few months of life. Led by the fund Castlelake and advised by the team at Merlin, Aedas is currently building 1,510 homes. This year, Aedas has set itself the objective of launching 28 developments and continuing to invest in land purchases. (…).

Another one of the new companies aspiring to the throne of the large property developers is Aelca. Created in 2012, the fund Värde owns a 75% stake in this property developer, which, in turn, owns a portfolio of land measuring between 700,000 m2 and 800,000 m2. Aelca currently has 2,200 homes under construction across 43 developments.

Finally, Kronos Homes is, currently, the company with the smallest portfolio of land. Nevertheless, its shareholders (a group of overseas investors) plan to invest €1,000 million before the end of the year purchasing land on which to build 4,000 homes.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake