Tag: tertiary use

Axiare Acquires 12,000 m2 Office Building In Barcelona For €19.5M

27 March 2017 – Observatorio Inmobiliario

Axiare Patrimonio has closed its first purchase following the capital increase announced in March. The Socimi has invested €19.5 million in the acquisition of an office building that has a GLA of 12,000 m2 and more than 400 parking spaces. The building, which was constructed recently, comprises several floors measuring 2,500 m2 each, as well as an auditorium with capacity for 200 people. According to the Socimi, the building will generate annual rental income of €1.25 million over the next two years.

The asset is located on Avenida Can Fatjó dels Aurons in Sant Cugat, Barcelona. Sant Cugat is a strategic area for offices in Barcelona, with direct connections to the C-16 and AP-7 motorways and a 5-minute walk from the Sant Joan train station. The area is home to many institutional owners including Mapfre, Axa, Catalana Occidente, Banco Sabadell and Merlin and tenants of the calibre of Hewlett-Packard, TVE, Deutsche Bank, Banco Sabadell, Mapfre, Nespresso and Gas Natural. Sant Cugat has been extremely sought after by tenants is recent times and currently has one of the highest occupancy rates in Barcelona.

The CEO of Axiare Patrimonio, Luis López de Herrera Oria states that “we have purchased a magnificent office building for a price that is 27% below its repositioning cost and with a great potential to increase in value”.

Following this operation, during the first three months of 2017, Axiare Patrimonio has invested €157.9 million on the purchase of four tertiary-use properties, with a combined surface area of 46,354 m2 and almost 1,300 parking spaces. This property formed part of the pipeline announced by the Socimi when it presented its annual results for 2016 on 27 February.

For this operation, Axiare Patrimonio has been advised by EY, BNP Paribas Real Estate and Estrada & Partners.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

 

MoD Sells A Plot Of Land In Mallorca For €5.5M

27 May 2015 – Expansión

The Ministry of Defence is continuing its real estate divestment plan to generate revenue. To this end, the body chaired by Pedro Morenés has closed the sale of a plot of land measuring 14,429 square metres, with more than 25,000 square metres of buildable area, in Cas Capiscol (Mallorca).

Given that the building is owned by the Administration, the Ministry of Defence organised a public auction, through the real estate portal addmeet. The plot of land that is up for sale houses former (army) barracks, spread over several buildings, which have been in disuse since the 1990s.

The Ministry of Defence put this land on the market for €5.318 million. In the end, it has been sold for a slightly higher price: €5.55 million. The winning bid was submitted by a subsidiary of the Catalan real estate company La Llave de Oro. The buildable plot measuring 25,131 square metres may be used for tertiary purposes, i.e. to build offices, hotels and retail buildings. Nevertheless, the general urban development plan where this land is located is currently in the process of being modified.

The Ministry of Defence also own other plots of land in Mallorca, including in Son Busquets, where it has a plot measuring more than 110,000 square metres.

Original story: Expansión (by R. Ruiz)

Madrid Gov’t Wants To Sell Its Land Next To The Cuatro Torres

24 March 2015 – Expansión

Plans / Tomorrow (Wednesday) is the deadline for bidders to submit alternative plans to the Town Hall for the land where a convention centre was initially proposed.

The Town Hall of Madrid has decided to take advantage of the momentum in the Spanish real estate sector and make a profit from the plot of land it owns next to the Cuatro Torres, land that was severely hit by the crisis.

The site, located just behind the four skyscrapers owned by Bankia, Sacyr, Mutua Madrileña and Grupo Villar Mir, was designed to house Madrid’s International Convention Centre. However, in 2010, once construction work had already begun, Madrid’s Government got into financial difficulties, which put a stop to the project that was going to cost €300 million.

Five years later, the Town Hall of Madrid has launched a tender for the development of this plot and the transfer of the right to use this land for a 75-year period. The deadline for the receipt of offers ends tomorrow, according to the initial plan. However, sources in the real estate sector believe that this date may be extended, since interested parties have barely had a month to evaluate the land’s characteristics and its possible uses.

The land measures 33,325 square metres, with a maximum buildable area of 70,000 square metres. Around 53,000 m2 of this space must be devoted to public use. The remainder, around 17,500 square metres, may be used as a commercial area, but not a large shopping centre. “The special plan classifies the land as a single premises and, as an alternative use, it includes the possibility of devoting the land to the public administrations. Moreover, it establishes a regime of compatible uses, such as recreation and leisure, small and medium sized shops and other tertiary uses besides offices”, say sources at the Town Hall.

The possibilities include the construction of a large educational centre or a hospital. To this end, several investment funds have made contact with companies, Spanish and international, to offer them a turn-key project. That is, they buy the land and construct a building for a company, which then commits to rent it under a long-term contract.

In its award of the land, the Town Hall will take into account not only the financial offer, but also the requirement for the buildings be energy efficient, both during their construction and their subsequent use, and that the architectural appearance contributes “a singular piece to the urban landscape”. The successful bidder will pay an annual fee of €1.935 million.

KPMG

KPMG’s recent move to the Cuatro Torres makes it the latest tenant to occupy offices in the complex. Opened between 2008 and 2009, the Madrid skyscrapers suffered when the (real estate) bubble burst, as its rate of uptake slowed down. Following KPMG’s move, Mutua’s property (Torre de Cristal), which until now had the most space available, will reach an occupancy rate of 70%. Torre Foster, owned by Bankia, is mostly occupied by Cepsa, although the bank itself also uses several floors. Sacyr’s skyscraper is entirely rented out to PwC and the Eurostars hotel, whilst the Torre Espacio has an occupancy rate of close to 90%.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake