Tag: Torre Titania

ECI Sells 2 Assets in Madrid & Bilbao to Corpfin for €100M

3 August 2018 – Eje Prime

El Corte Inglés is continuing to divest property. The department store group, the largest in its sector in Europe, has closed the sale of two more properties, on prime streets in Madrid and Bilbao, to Corpfin Capital. The sale & leaseback operation has been closed with a gain of 40% with respect to the market value of the properties, at around €100 million.

Specifically, the group has divested its property at number 41 Calle Princesa in Madrid, which spans 11,400 m2 and whose market value is estimated to be around €18 million.

The company has also sold the building located at number 20 Gran Vía in Bilbao to the Spanish fund. That store has a surface area of 5,500 m2 and a market value of around €38 million.

Both properties have been on the market for two years, although the operation was closed off market. El Corte Inglés has signed a long-term lease contract with the new owner that, according to sources familiar with the operation, will charge rents that are 20% higher than the market average on both streets.

The Madrid-based group, chaired since June by Jesús Nuño de la Rosa, has framed this operation within its asset divestment plan to reduce the debt that has been weighing it down for several years. The company owns 92 centres in Spain.

El Corte Inglés has received offers for the purchase of some of its most profitable establishments, including those in Madrid, Barcelona and Marbella. One of those is Torre Titania, formerly the Windsor Building, in Madrid. At the other end of the spectrum, the department store giant owns several stores opened during the first few years of the crisis: almost 24 points of sale, most of which generate significant losses.

One of its most recent operations was closed in October, when the company sold a building in Sevilla to Stoneweg for €10 million, as reported by Eje Prime. The objective of the new owner is to convert that property into a hotel.

Original story: Eje Prime (by P. Riaño & I. P. Gestal)

Translation: Carmel Drake

Merlin Invests €55M to Reposition its Assets in Azca (Madrid)

24 May 2018 – Expansión

Merlin has launched an ambitious renovation plan for two of its buildings located in the heart of Madrid’s financial district, the Azca complex, one of the capital’s most important commercial and business areas.

Specifically, the Socimi led by Ismael Clemente is going to invest €55 million to refurbish the building located at number 83 and 85 Paseo de la Castellana and another property located in Plaza Ruiz Picasso. The company plans to start the renovation work in 2020.

In the property located at numbers 83 and 85 Paseo de la Castellana, the company is planning a complete renovation of the façade and entrance lobby, which will have a triple height ceiling. Similarly, the refurbishment of the building will include the common areas and other installations.

This building, the current headquarters of Sacyr, has a surface area of 15,254 m2 spread over the ground floor, 11 above ground floors and two underground floors. The aim of the Socimi is to strengthen the space dedicated to retail.

Comprehensive renovation

The Socimi will invest €25 million in that renovation project, which will require almost the entire building to be vacated. “It is one of the best buildings in Madrid and we hope that it will be the doorway to the future reconfigured Azca that we are working on”, said Ismael Clemente, CEO of Merlin, speaking a few days ago at the General Shareholders’ Meeting. In addition, Merlin will invest €30 million to reposition the property in Plaza Ruiz Picasso and to create a building with “the most extensive and best-equipped floor space in all of Azca”.

That asset, which has a surface area of 31,576 m2, will have dual access, from Calle Trías Bertrán and Plaza Ruíz Picasso, and will contain various retail spaces. “This building is almost invisible at the moment but that situation will change after the renovation. The location is crying out for it”, said Clemente.

The director explained that the property has an “exceptional” parking provision for an office building, given that, initially, it was conceived as a shopping centre. Merlin is working with the Spanish architecture studio Fenwick Iribarren to renovate this building (…)

These two buildings owned by Merlin live alongside Torre Titania, the skyscraper owner by El Corte Inglés (…). Meanwhile, Castellana 81 and Torre Ederra, located at number 77 Paseo de la Castellana, are owned by the Socimi GMP; Torre Europe is controlled by Infinorsa; whilst Torre Picasso belongs to Pontegadea, the investment vehicle owned by Amancio Ortega (…).

The Landmark I Plan

The renovation of these two properties forms part of a larger project, the Landmark I Plan, which comprises a total investment of €250 million in office buildings over the next four years.

Within the framework of the Landmark I Plan, Merlin is going to handover Torre Glòries in Barcelona and Torre Chamartín. Over the next few years, the Socimi is also going to renovate the properties located at numbers 38 and 40 Calle Alcalá, Castellana 93, Alfonso XI and Princesa 5-7 in Madrid;  as well as Diagonal 605 in Barcelona; and Monumental and Marqués de Pombal 3 in Lisbon.

“Over the next 12 to 18 months, there is going to be more demand than supply in the market due to the volume of obsolete products. At that point, rents will enjoy a sweet moment, and will move significantly upwards”, say sources at the Socimi.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Rents In Azca’s Towers Exceed Those In The Cuatro Torres

12 September 2017 – El Economista

The Cuatro Torres skyscrapers, to the north of Madrid, are no longer casting a shadow over Azca, which is establishing itself as the iconic business district in the city. With views overlooking the Paseo de la Castellana and just a stone’s throw from the Santiago Bernabéu Stadium and the Nuevos Ministerios transport hub, this business centre has managed to renew itself, to avoid being left behind compared with other areas of Madrid. So much so, that the rents for its recently renovated skyscrapers are 16.6% higher per square metre than the most expensive space in the Cuatro Torres, to the north of the city.

Castellana 81, the historical headquarters of BBVA, leads the ranking in terms of rental prices in Madrid, given that its empty space is being marketed for between €27 and €35 per square metre per month. This tower, designed by the prestigious architect Sáenz de Oiza, has been subjected to a comprehensive renovation by its owner, the Socimi GMP, which spent €30 million renovating one of its most iconic properties in Azca and on Madrid’s skyline.

The asset, which became a multi-tenant property when it first came onto the market, has already managed to conquer new companies following the departure of the banking entity, which moved to its own financial city, in Las Tablas, to the north of Madrid. Thus, in the last few months, rental contracts have been signed with Teka and Hays.

At the forefront of design

Castellana 77, which is also owned by the Montoro family’s real estate company and the Singapore sovereign fund, GIC, has been the subject of another of the major renovation projects that has been carried out in Azca and which has positioned the business district at the forefront of design. Its façade is covered with slats that protect it from direct sunlight and which are lit up at night in a diverse range of colours.

The tenant that decides to lease the office space in this building, which spans 16,200 m2 over 18 floors, will be able to choose the colour of the tower, which has more than 200 parking spaces as well as charging points for electric cars. With these features, this property has the second highest rents in Azca, which range between €28 and €33 per square metre per month.

And it is followed closely by Torre Europa, which housed the headquarters of the professional services firm KPMG for many years. Following the move of that consultancy firm to the Cuatro Torres, the tower has been renovated to turn it into the first intelligent and connected office building in Spain. Infinorsa, the majority owner of this skyscraper, which overlooks the Santiago Bernabéu, has invested €20 million on a facelift of the façade, which had not been changed for 30 years, and above all, on the renovation of the interior, which has given a radical about-turn to the essence of this 121m-tall tower (…).

Rents in this tower now range between €27 and €32 per square metre per month. Its renovation has already captivated one of the large international law firms, Freshfields (…). The US firm AOL has also decided to move its Spanish corporate headquarters to Torre Europa, as well as a pharmaceutical company (…).

Torre Picasso, the tallest skyscraper in Azca, at 156m, has not undergone such a comprehensive renovation as its neighbours, but following the departure of the consultancy firm EY to Torre Titania, 15,000 m2 of space there was left vacant. Some of that space in the tower owned by Pontegadea – the investment arm of Amancio Ortega – will be leased to Deloitte, which will thereby become its largest tenant. After several improvements to the property, the highest floors are now being marketed for €31/m2/month (…).

Rents in the Cuatro Torres barely reach €30/m2/month

Nevertheless, in the new financial district located in the north of Madrid and known as Las Cuatro Torres, only one of the towers manages to charge a rent of €30/m2/month, even though the buildings are much younger, given that they were inaugurated between the years 2008 and 2009.

Office space in Torre Espacio ranges between €29 and €30 per square metre per month. The Philippine group Emperador, which owns this skyscraper (…) renewed the image of the tower at the end of last year and launched a new marketing plan with the aim of finding tenants for the 8,800 m2 that were vacant in the building at that time.

Next in the ranking is Torre Cepsa, for which Amancio Ortega (…) paid €490 million last year. It is occupied almost in its entirety by the oil and gas company whose name it bears; the cost of the 15,000 m2 of space that is available ranges between €23 and €28 per square metre per month.

Meanwhile, Torre de Cristal, the tallest skyscraper in Spain, at 210m, is the most affordable of its neighbours, since its available space is being marketed for between €25 and €27 per square metre per month. Last year, KPMG left the Azca area and moved to this property, where it leases around 23,000 m2 (…).

Next door is Torre PwC, leased to the consultancy firm whose name it bears and the five-star hotel Eurostars. Its owner is the Socimi Merlin Properties (…) and PwC reportedly pays €19/m2/month.

The Cuatro Torres complex is now getting ready to receive a fifth tower, Torre Caleido. That property, which is currently being constructed (…), will be leased to IE Business School and Grupo Quirón-Salud (…), who will reportedly pay between €15 and €18 per square metre per month (…).

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

EY Gets Ready To Move 2,500 Professionals To Torre Azca

1 December 2016 – Expansión

EY is preparing to move into Torre Azca, previously known as Torre Titania, and is completing the final details of its move, which will be completed next March. The professional services firm will occupy 22,000 m2 of this 100-m tall building, which is owned by El Corte Inglés.

EY will occupy eleven office floors in this property, whose lower floors are occupied by the distribution group’s department store. EY’s employees will have direct access from the street. Specifically, 2,500 professionals will be located on floors 10 to 18, and the 19th floor will be used for external client meeting rooms, with more than 15 meeting rooms and an auditorium. Meanwhile, the 9th floor will house a canteen and a space for events and training. EY will also have a room with panoramic views of Madrid where it will hold presentations and events.

The firm will place is logo at the top of the tower, which will include more than 28 LED modules and will be visible from the Paseo de la Castellana and from Paseo del Prado. EY has been advised by the real estate consultancy CBRE regarding the design of the new offices and the logo, which is currently being installed.

Besides Torre Azca, EY will also lease 2,000 m2 of additional space in Torre de Mahou for its reprographic team. The President of EY España, José Luis Perelli, explained to Expansión that the move to the tower will be completed in several phases. “Two floors have already been occupied by employees from the finance team, who moved in in October. They are busy resolving questions and ensuring that everything is working property, in an effort to minimise problems when most of the staff move in”.

Perelli explains that the move to the new headquarters responds to a change, not only in the building needs, but also in the culture. “We need collaborative spaces that allow us to prioritise the resolution of clients’ needs with multidisciplinary teams”.

The Director of Human Resources at EY in Spain, José Luis Risco, explained that EY’s staff will be able to work on “any floor in the building because the technological means will allow it”. The company is committed to “paperless, open spaces, without any offices”, which promote flexibility and interaction between workers.

Nevertheless, to facilitate the need for so-called Chinese walls, workers will be able to use soundproof rooms on every floor so that they can work with their teams and have confidential conversations.

In line with current intelligent buildings, EY’s new offices will be equipped with the latest technological solutions. For example, there will be a wifi connection throughout the tower, and the building will have 25 video-conference rooms as well as a centralised system for booking meeting rooms, which will allow users to reserve a meeting room from anywhere in the world using an app.

The new offices are located in the heart of the financial district, just a stone’s throw from Torre Picasso – EY’s headquarters until now – and are well connected in terms of public transport. The property also has a car park.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Hays Is Set To Become Castellana 81’s First Tenant

16 September 2016 – Expansión

Azca, the financial heart of Madrid, is set to have a new tenant soon. The firm in question is the recruitment firm Hays, which has announced that it is going to transfer its Madrid offices to the building on Castellana 81, popularly known as Torre BBVA, due to its former tenant. The real estate consultancy Cushman & Wakefield has advised the deal.

The firm will make the move in January once the current renovation work on the building has been completed. In addition to Hays, at least one other firm has expressed interest in moving into the building. “For reasons of confidentiality, we cannot comment about the rest of the space leased, only that the marketing of C81 is receiving a good response in the market”, said a spokesman from the real estate company.

Castellana 81 has been owned by the Socimi GMP since 2007, when the real estate company purchased the building, together with three others, from BBVA in exchange for a plot of land in Las Tablas, where the financial entity has constructed its new corporate headquarters. Following BBVA’s move at the end of last year (the bank still occupies five floors of the tower that carries its name), GMP decided to completely renovate the property, which was designed in 1971 by the architect Sáenz de Oiza.

Renovation of Azca

Castellana 81 measures 38,800 sqm and is 107m tall. It is not the only building being renovated in the Azca area. Castellana 77, also owned by GMP, is currently being updated to turn its 16,000 sqm surface area into offices.

In the case of Torre Titania, work has just been completed on the skyscraper owned by El Corte Inglés next to its store in Nuevos Ministerios, to accommodate its tenant, the professional services firm EY.

Another historical building in the area that is being completely renovated is Torre Europa. The property, owned by the real estate group Infinorsa, has taken advantage of KPMG’s departure (which has moved to Torre de Cristal in the Cuatro Torres) to renovate the building, with an estimated investment of €20 million.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Rental Prices Will Rise On La Castellana After The Summer

6 July 2016 – Expansión

Madrid’s financial district is refreshing its image and prices are set to rise in the area after the summer. The Spanish capital’s La Castellana thoroughfare is aiming to attract tenants who are willing to prioritise the quality of space over rental costs.

Whilst investors remain attentive to the course of events unfolding in the City (London), following Brexit’s victory in the EU referendum held on 23 June, and the formation of a new Government in Spain after the election on 26 June, business is continuing as usual and the capital’s financial district is getting ready to open its doors to some new tenants. Some of the countries in the Eurozone may, over time, attract some of the activity that has been performed in the United Kingdom until now, and if this becomes a reality, Madrid’s financial district could represent a good option for companies currently headquartered in London.

Torre Europa is preparing itself to this end. Grupo Infinorsa has launched a process to renovate the property following KPMG’s departure and will allocate €20 million to the modernisation of its facilities. In the same way, GMP is in the middle of renovating the Castellana 77 skyscraper, known as Torre Ederra – the former headquarters of Saint Gobain – as well as Castellana 81 – Torre BBVA – to adapt them both to the new demands of the market. Another building that is looking for new tenants is Torre Picasso following EY’s move to Torre Titania. (…).

Sources at Cushman & Wakefield explain that demand is not growing in Madrid at the moment. “GDP levels are similar to during the years before the crisis, and so around 200,000 sqm of space is being leased out per year. The main explanation is uncertainty”. Moreover, it seems like the slowdown is more acute in the financial district, due to the quality of available stock and the cost. (…).

José Miguel Setién, Director of the Office Business at JLL, explains that renting in Madrid has been cheap until now and the price ratio is still very attractive when compared with other major European cities; this means that there is still a lot of potential in the Spanish capital. “Provided there are no political or structural macroeconomic problems, the figure trend is that the market will continue to rise”, he added.

The CEO of Aguirre Newman, Jaime Pascual-Sanchiz de la Serna, explained that offices in prime areas, as well as in the market in general, have been very static in terms of renovations and new projects. Pascual-Sanchiz says that several projects launched within the last 12 months will come onto the market within the next year. In his opinion, they will be a good indicator for measuring the evolution of offices. “The owners of those properties, including Pontegadea, Mutua Madrileña and the Consorcio de Compensación de Seguros do not have financial problems, and are not desperate to lease their properties at any price”. For the expert, although we are seeing small and medium-sized operations in the area, the large moves, which are more dependent on the domestic and international political situation, will have to be unblocked after the summer.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

ECI Puts 200 Properties Up For Sale For €1,000M

1 March 2016 – Expansión

Launch of Operation Batman / At the end of March, the retail giant will start to sell off dozens of logistics assets, supermarkets, offices and plots of land, in an effort to reduce its level of debt.

El Corte Inglés is making progress with its plan to divest its non-strategic real estate assets, in an effort to reduce its debt, with the launch of a huge real estate asset sales process. The retail giant is planning to put the For Sale sign up over a batch of 200 properties with an approximate value of €1,000 million.

This batch of assets includes up to 102 supermarkets – some of which are operational, whilst others are closed – , 32 logistics assets, which cover a surface area of 500,000 m2 and several plots of land. It also includes 50 high street retail outlets, with a combined surface area of 180,000 m2, and 20 office properties located in Madrid and Barcelona.

The process, dubbed internally as Operation Batman, is being coordinated by Morgan Stanley, which has collaborated with the El Corte Inglés in other operations. Meanwhile, Clifford Chance is responsible for providing legal advice.

According to sources close to the operation, the company intends to put this portfolio of assets up for sale at the end of this month. For the time being, the company has commissioned the valuation of the properties, with a view to receiving the first non-binding offers on 16 May and the definitive offers by the middle of July. The objective of Dimas Gimeno, the President of the El Corte Inglés, is to complete the asset sales before August.

The upcoming operation is attracting growing interest in the market. Most of the large funds, insurance companies and even some of the larger Socimis have expressed their interest in participating in the auction.

The company will accept offers for all of the properties, as well as for separate lots, if the potential purchaser is interested in buying, for example, only those assets linked to the logistics operations, the supermarkets or the offices. El Corte Inglés is not including the joy of its logistics crown in the lot: its megacentre in the south of Madrid. Nor is it willing to divest Torre Titania, or its historical headquarters in Hermosilla. (…).

Original story: Expansión (by R. Ruiz/A. Antón)

Translation: Carmel Drake

Knight Frank: Demand For Offices Soared By 30% In 2015

11 January 2016 – Cinco Días

The city of Madrid exceeded the real estate sector’s expectations with respect to the leasing of office space in 2015, as the volume of office space rented by companies grew by almost 30%, representing the best figure since 2008. In Barcelona, on the basis of data as at Q3, the increase was even greater, at 91%.

The real estate market is recovering at the same time as companies are starting to forecast their own growth. Unlike in recent years, during which time many companies have been delaying the decision to move offices or lease more space – because many of them have been involved in processes to reduce their workforces – last year there was a recovery, showing confidence in the future.

In Madrid, office rental agreements were signed for a total surface area of 480,000 m2 in 2015, the highest figure since the start of the crisis in 2007. The data was published last week by the real estate consultancy Knight Frank, which compiles industry information. The most optimistic forecasts predicted that the year would close with a figure of around 420,000 m2. The actual volume represents an increase of 27% with respect to the previous year. In 2014, 358,000 m2 of office space was leased out.

The minimum in the historic series was recorded in 2012, when 261,000 m2 of office space was leased out, at the height of the storm over sovereign debt in the countries in Southern Europe and when doubts over the economy were at their peak. By contrast, the best year was recorded in 2007, when 828,000 m2 of office space was leased.

This shows the positive behaviour of the market in recent months, which, in turn, has resulted from the strong macroeconomic outlook. At the end of the year, BNP Paribas Real Estate forecast that the volume of office rental operations would increase by 100,000 m2 in 2015 and by a further 84,000 m2 in the case of Barcelona.

In the Catalan capital, where full year data for 2015 is still pending, the volume of office space leased almost doubled during the first three quarters. During the 9 months to September, operations relating to 297,000 m2 of office space were closed, an increase of 91% according to the data provided by the consultancy firm CBRE.

The second half of the year has performed even more strongly in terms of new demand in Madrid. During the six months to June, office space measuring 198,000 m2 was leased; and from June to December, that figure amounted to 282,000 m2, i.e. 42% higher.

The most sought-after areas in Madrid are located inside the M-30, where there is a shortage of high quality buildings. In the case of Barcelona, demand is highest on Avenida Diagonal, el Paseo Gracia, the 22@ district and Plaza Europa. (…).

Moreover, the lack of high quality space, combined with the greater volume of demand, drove rental prices up by 6% in the best buildings in Madrid in 2015, to reach €27/m2/month. Even so, that rental figure is still one of the lowest in the historic series, well below the figure of €45/m2/month that tenants paid in 2008.

The main operations

One of the most important office rental operations in the capital involved the agency WPP, which took over a 36,000 m2 building on Calle Ríos Rosas. Another highlight was KPMG’s expected move to the 20,000 m2 Torre de Cristal, owned by Mutua Madrileña. Meanwhile, the bank BNP Paribas leased offices measuring 19,100 m2 in a building owned by Torre Rioja. Also, the consultancy EY signed an agreement to move into Torre Titania, owned by El Corte Inglés.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

El Corte Inglés Leases Iconic Titania Building To EY

27 November 2015 – Expansión

El Corte Inglés has signed a lease contract with the consultancy firm EY, which will occupy the eleven floors of office space in its iconic building, Torre Titania. The property is located in the centre of Madrid on the site of the former Torre Windsor, which burnt down in 2005.

The tower, which forms part of the El Corte Inglés commercial complex on the Castellana, is 111m tall and has 27 floors, five of which are dedicated to underground parking, with another four used for technical aspects (lift machinery, air treatment units, fans, etc..).

The first seven floors above ground were opened in 2011 as the retail area of El Corte Inglés on the Castellana, whilst the remaining eleven floors are reserved for office use and were put on the market for both lease and sale.

According to a statement by EY on Wednesday, the new offices will house its 2,000 employees in Madrid. It added that Titania is one of the most modern and efficient buildings in the capital from an energy perspective.

The property, also known as Torre Azca, is located in the financial district of the same name, says EY, which expects the relocation of its headquarters in Spain to be completed during the first few months of 2017.

It was vital for José Luis Perelli, the President of EY in Spain, to find new headquarters for the company given the growth of its workforce, which will amount to almost 3,000 employees by the end of the year, compared with 2,300 at the end of 2014.

Original story: Expansión

Translation: Carmel Drake

EY Negotiates Move From Torre Picasso To Torre Titania

6 October 2015 – Cinco Días

El Corte Inglés completed the construction of the building more than two years ago, but until now, nobody knew who the tenant might be. But now, Torre Titania, one of the most futuristic and newly-constructed buildings in Madrid, has a clear candidate for its tenancy. The leading contender is the consultancy firm EY (formerly known as Ernst & Young), which is now negotiating the terms of its potential move with the retail giant, according to sources in the sector.

The Spanish headquarters of the consultancy firm is currently located in Torre Picasso, owned by Pontegadea, the investment vehicle controlled by Amancio Ortega, the founder of Inditex. EY occupies 10 floors in that building, covering around 15,000 m2, for its c. 2,000 employees based in Madrid (of the 3,000 people it employs in Spain). The British firm is looking for a larger space for its team based in the capital, as the company is hoping to continue to grow in response to the high demand for professional services.

JLL is acting as the RE advisor

The chosen destination for the move is the space owned by El Corte Inglés, although according to sources in the sector, the company is also evaluating other options. The move to Torre Titania is the most advanced of all the negotiations, but no contract has yet been signed. EY has engaged the consultancy JLL to coordinate its search process, but JLL refused to comment on the recent speculation.

Torre Titania has a surface area of 18,744 m2 for office use. EY is expected to fill the 22-floor tower, which is more than 100m tall and stands next to El Corte Inglés’ flagship store at Nuevos Ministerios.

The retail company, led by Dimas Gimeno, began construction of the property on the plot of the former Torre Windsor, which suffered irreparable fire damage in 2005 and was demolished. Six years later, the expanded shopping centre was inaugurated on this site and in 2013, the façade of the new skyscraper was finished completely.

Rents of more than €25/m2/month

El Corte Inglés itself has been marketing this new office space in the heart of Azca for the last few years. Only a few players in the real estate sector have had the opportunity to see inside Titania, and they say that the building is very modern, energy efficient and has a spectacular terraza on the roof of the building.

The rent charge for the building is expected to exceed €25/m2/month, according to market sources, somewhat higher than the average for the area, given that it is a brand new property.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake