Tag: tourism

JLL: Hotel Inv’t Amounted To €1,030M In First 7M 2016

3 August 2016 – Expansión

(…). Hotel investment in Spain amounted to €1,030 million during the 7 months to July 2016, which represents a 41% decrease compared with the same period last year. Nevertheless, it also represents the second highest figure recorded since 2007, according to a report prepared by JLL.

Specifically, as at 31 July this year, 81 (hotel) assets had been sold, for a combined investment volume of €1,030 million through 68 operations, compared with 92 assets sold as at July last year, with a combined investment volume of €1,752 million through 55 operations.

The most noteworthy operations so far this year have featured: Hotel Villa Magna, which was acquired by the Turkish group Dogus for an estimated €180 million; and Hotel Pullman Barcelona Skipper, which was purchased by the Saudí Royal Family for €90 million.

Excluding those two operations, Spanish investors accounted for 80% of the total volume invested in Spain.

In this vein, the most active investors in the hotel market have been the investment fund HI Partners (a subsidiary of Sabadell) and Hispania, which have completed transactions amounting to €110 million and €71 million, respectively.

Meanwhile, on the sell side, hotel groups have accounted for 41% of all hotel assets sold, followed by real estate companies (26%) and private investors (13%).

For Manuel Climent, Vice-President of JLL Hotels & Hospitality Group, the decrease in investment this year reflects, in part, the lower number of hotel portfolio transactions sold this year, after they soared in Spain in 2015.

Specifically, last year, up to eleven portfolios were sold, containing 74 hotels in total, for a combined investment volume of €1,450 million. So far this year, seven portfolios have been sold, containing 21 hotels and a combined investment of €174 million.

Climent forecasts that activity will intensify in terms of hotel portfolio transactions during the second half of the year, with HI Partners and Hispania leading the way.

For Climent, the moratorium in Barcelona has caused lots of investors who had purchased assets with a view to converting them into hotels, to become more cautious again. By contrast, some owners have put their hotel assets up for sale as they think that now is a good time to sell, given the lack of supply, which is raising prices in a space that is still very attractive for tourism.

The Vice-President of JLL Hotels & Hospitality Group considers that, although some important transactions are expected to be closed before year end, total investment volumes will fall below last year’s record of €2,740 million.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Spanish Hoteliers See No ST Threat From Brexit

3 August 2016 – Hotel News Now

Spanish hoteliers said they have yet to see any immediate negative impact on tourism from the U.K. since that country voted to leave the European Union.

“Spain has long been, and should remain for the foreseeable future, the favored vacation destination for British visitors despite Brexit, and all indications are that bookings well into next year are still healthy,” said Juan Molas, President of the Spanish Confederation of Hotels and Tourist Accommodations (CEHAT), during a 28 July news conference.

The U.K. is Spain’s largest source market for foreign visitors. Last year, 68 million foreign visitors traveled to Spain, which was an increase of 5% over the previous year. Approximately 16 million Britons accounted for 21% of those visitors.

Following the victory for the “leave” vote in the 23 June Brexit referendum and the resulting drop in the value of the pound against the euro, there was concern in the Spanish hotel sector that the subsequent higher prices would keep Britons away.

But hoteliers noted that British travelers traditionally reserve their holidays months in advance, so there appears to be no immediate negative impact on peak business this summer.

Molas said that momentum should extend into the 2016-2017 winter season and next summer. He added that Spain’s tour operators and travel agencies that sell package vacations—which are used by 70% of British tourists when booking their Spanish holidays—have noticed steady booking trends well into 2017.

“Spain continues to be the most popular vacation spot for the British, who don’t tend to travel for leisure to some of our competitors like Egypt or Turkey, which are more popular among the Germans and French,” he said. “Spanish hotels and destinations offer the British what they want on a holiday: safety and good value for money. We’ve seen the pound-euro exchange rate fluctuate often in the past, and there was no lasting major effect on us.”

But Molas cautioned the weaker pound could curtail daily spending by British visitors in Spain and London will now be a cheaper alternative for event booking than Spanish cities.

“London is our biggest competitor in Europe for the convention trade, and Paris, where hotel prices have fallen because of the recent unfortunate events in France, is also a rival,” he said. “But our biggest competitor in all of this would be for the British to decide not to travel and just stay home.”

Long-term effects of Brexit are still unknown, said CEHAT Secretary General Ramón Estalella.

“We don’t have a crystal ball to see into the future, but there are three important unknowns to consider,” he said. “One is when Britain will finally leave the EU and what further effects that might have. Two, no one knows where the pound will be in value (in) six months or there could be a crisis in Europe dragging down the value of the euro and so making the pound stronger. And three, what might happen in our competitor countries that could affect the British source market.”

The CEHAT executives also presented the findings of a survey of its members—which include 54 local and regional hotel associations and 1.5 million beds—on the sector’s performance through the end of the summer. A majority of the respondents are looking forward to a positive high season thanks largely to a rise in room rates and longer average stays by guests, which will result in higher profits.

Molas said hoteliers are confident that the continuing demand from both Spanish and foreign guests will increase.

“What’s important now is to use the occupancy rates to maximize earnings and promote Spain through advertising and marketing so we can cement its position as one of the leading tourism destinations in the world,” Molas said.

Original story: Hotel News Now (by Benjamin Jones)

Edited by: Carmel Drake

Hotel Revenues Soar Thanks To Tourism Boom

17 May 2016 – Expansión

Spain’s large hotel groups are preparing for another record year after figures for the start of 2016 have confirmed that the tourism boom is continuing across the peninsula. The volume of international tourists grew by 4.4% between January and April, to 16 million, which together with the successful Easter period and the continuation of the recovery in domestic demand, means that experts are forecasting a better summer season than in 2015 and another record year.

Last year, Spain received 68.1 million international tourists, up by 4.9%, which boosted the business of the main Spanish hotel chains. Barceló, RIU, Melià and Iberostar took advantage of the situation, favoured by instability in rival countries such as Turkey and Egypt, and closed 2015 with double-digit revenue growth. In 2016, profitability will continue to rise thanks to the continuation of the favourable environment and the fact that the chains are accelerating their entry into new markets, as well as remodelling their hotels.

Iberostar’s revenues soared by 29% to €1,847 million and it was the hotel chain that improved the most. The company owned by the Fluxá family will open six new properties in 2016 and will spend €90 million renovating its hotels.

Meliá’s turnover grew by 16.3% to €1,738 million, whilst Barceló generated revenues of €2,480 million in 2015, representing growth of 20.6%, and a net profit of €100.2 million, up by 116%. It was the most profitable Spanish hotel chain. This year the group expects to see improvements across all of the regions in which it operates. Specifically, its objective for 2016 includes generating EBITDA of around €326 million and a net profit of €125 million.

In the case of RIU, its revenues grew by 14% to €1,848 million. The company has announced its intention to invest €390 million in 2016 with the opening of four hotels and the complete refurbishment of another eight.

Meanwhile, last year Palladium recorded revenues of more than €500 million for the first time in its history, up by 20% compared with 2014. The chain owned by the former minister Abel Matutes plans to create 1,300 jobs in Spain and 300 in America. The group is undergoing an expansion process in Latin America, which includes opening new hotels in Jamaica and Mexico, with a committed investment of between €800 million and €900 million over five years.

According to the Chairman of Cehat, Juan Molas, who confirmed the current trend, 2016 is going to be a “very good year”, thanks to traditional markets, such as the UK, German and French and the recovery of the Russian Market, which had declined somewhat in recent years. In addition, new routes to Asian countries may boost alternative tourism besides the traditional sun and beach segment.

Meanwhile, the Chairman of Ceav, Rafael Gallego, said that some destinations, such as the Balearic Islands, Costa del Sol and Levante, are already close to overbooking. Instability in countries that compete with Spain, such as Turkey, is contributing to this record; as is the parity of the dollar with the euro, which makes Caribbean destinations less attractive; and the price of oil.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Pozuelo Consolidates Its Position As The Richest City In Spain

2 March 2016 – Expansión

Families living in Pozuelo have the highest incomes in Spain (€70,298) and Parla has the highest active population rate, at 70.5%. The cities with the highest average incomes in Spain are the Madrilenian suburbs of Pozuelo and Majadahonda – €56,164 – and Sant Cugat del Vallès, in Barcelona – €52,881 – which quintuple the average income in Torreviaje (Alicante) – €13,977 – the lowest.

The figures relate to 2013 and have been extracted from the Urban Indicators study published yesterday by the National Institute of Statistics (INE) for the European Urban Audit project, which compiles information about the living conditions in European cities and in the case of Spain, includes information about the 109 largest towns, on the basis of population density and the size of the urban centre.

After Torrevieja, the lowest average incomes are found in Sanlúcar de Barrameda and La Línea de la Concepción, both in Cádiz, with averages of just over €17,000.

The four cities with the highest active population rate in Spain are located in Madrid. Behind Parla, the ranking includes Fuenlabrada (69.4%), Torrejón de Ardoz (67.7%) and San Sebastián de los Reyes (67%). By contrast, the towns with the lowest active population rates are located in the North of the country. The lowest rate is in León (50.6%), followed by Ferrol (51.4%), Gijón (51.5%) and Avilés (52.1%).

The study also shows that the richest city in Spain, i.e. Pozuelo, is the one where unemployment is lowest, at 9%, followed by Las Rozas (10.2%), San Cugat de Vallès (10.4%) and Majadahonda (10.7%). These figures come in stark contrast to the rates of 42.3%, 40.1% and 39.4% registered in the towns with the most unemployment, namely Sanlúcar de Barrameda, La Línea de la Concepción and Jerez de la Frontera, all in Cádiz. (…).

If we consider employment by sector, then Elda (Alicante), Rubí (Barcelona) and Torrejón de Ardoz are the towns with the highest proportion of jobs in the industrial sector, whilst Pozuelo de Alarcón, Benidorm (Alicante) and Girona are the employment leaders in the services sector.

Barcelona is the city with the highest number of overnight tourists, with more than 18 million, followed by Madrid, with just over 17.5 million, Benidorm with 13 million and Palma de Mallorca with 8 million. Finally, the cities with the largest average household size were Pozuelo, Melilla and Ceuta, and those with the lowest were Huelva, Salamanca and Torrevieja.

Original story: Expansión (Mercedes Serraller).

Translation: Carmel Drake

The sale of the Hotel Villa Magna suspended

3 September 2015 – El Confidencial

The recovery of tourism, the progressive improvement of the Spanish economy and the desire of  big luxury chains to land in Madrid complicate the sale for Colombian businessman Jaime Gilinsky

In the midst of summer heat, the largest current hotel operation has been cooled. In August, the negotiations Colombian businessman Jaime Gilinski maintained for months with the owners of the Hotel Villa Magna, the Portuguese family Queiroz Pereira, have strained  to the point that they hang by a thread.

As El Confidencial wrote earlier, the main shareholder of Banco Sabadell was in exclusive talks with the Portuguese family regarding acquisition of  the property for an amount close to 190 million euros. However, in recent weeks, the negotiations have run aground, among other reasons, because of disagreement over the final closing figure.

The strong recovery of tourism, the steady improvement of Spanish economy and the appetite of the big luxury hotel chains for expansion in Madrid have changed the rules right at the end of the game.

This disagreement also suspends the landing of a major international operator in the Villa Magna, since Gilinski has been discussing in parallel with the purchasing process of the hotel an alliance with some of the most important hotel chains in the world, with the elite St. Regis as the main candidate to operate the hotel.

Despite the turbulent waters for the operation, being directed by JLL, the selling process is still open, as has been confirmed by the medium market sources, since all of the parties involved have refused to comment .

Other contenders

Aside from Gilinski, US and Arab investors have also shown interest in acquiring the hotel, potential buyers who would also go hand in hand with a major international luxury operator, according to the same sources.

With the purchase of 7.5% of Sabadell, Jaime Gilinski wants to increase his portfolio of real estate investments, a strategy of which this hotel operation is part.

With an estimated by Forbes fortune of 3 billion dollars, Jaime Gilinski has set his eyes on Spain determined to perform major operations. With the purchase of 7.5% of Sabadell, the businessman wants to increase a portfolio of property investments, strategy of which the operation Villa Magna was part.

The Queiroz Pereira family, for their part, bought the hotel in 2001 from the Japanese Shirayama for about 80 million euros. Six years later, and after seeing Hyatt leaving them, the Portuguese embarked on an ambitious project of remodeling the hotel, which has allowed them to establish it as one of the country’s top hotels, as well as profitable business, capable of yielding benefits amid the economic crisis.

Original story: El Confidencial

Translation: Lee La

Barceló Will Acquire 100% Of Occidental

17 June 2015 – Cinco Días

Barceló Corporación Empresarial has signed an agreement with BBVA to acquire the remaining 57.5% stake in Occidental Hoteles Management, which would turn the Mallorcan hotel group, the current holder of 42.5% of the hotel chain, into the sole owner of the company.

In a statement, Barceló reported that the operation is subject to the necessary authorisation being granted by the competition authorities in Mexico. It also said that the addition of Occidential to its portfolio represented “a very significant step” in its growth strategy in Latin America.

As soon as this procedure has been completed, which is expected to take around three months, Barceló will acquire 100% of Occidental’s shares and will begin to manage the properties.

On 4 May, Barceló purchased a 42.5% stake in Occidental Hoteles, from the company’s minority shareholders….The option of acquiring 100% of Occidental’s capital was something the Mallorcan hotel group had in mind at the time. (…)

Through the acquisition of Occidental Hoteles, the Mallorcan tourism group would strengthen its position in the Caribbean with new properties in Mexico and the Dominican Republic. It would also gain a foothold in new countries such as Aruba, Colombia and Haití. (…)

Original story: Cinco Días

Translation: Carmel Drake

Rothschild Launches Fund To Invest €400M In EU Hotel Sector

13 April 2015 – Expansión

The wealth management specialist creates a real estate (investment) vehicle.

Edmund de Rothschild, the group that specialises in the management of large fortunes, is breaking into the hotel sector. Aina is the name of the real estate fund that Rothschild has launched with the aim of purchasing four- and five-star hotels, (of between 90 and 150 rooms and between 150 and 450 rooms) in Europe.

Managed by Jaume Tapies, the former Chairman of the international network Relais & Chateaux, Aina is seeking to raise more than €400 million, and more than half of that amount will relate to debt. The roadmap predicts the signing of around 20 transactions with an average value of around €20 million to €25 million.

Aina has identified 29 cities of interest, due to their potential for tourism and business, where there is no excess supply or barriers to entry. The list includes two Spanish cities, Madrid and Barcelona, and two others may join them, namely Sevilla and Bilbao. “Spain is a priority country and now is a good time to invest there, as well as in Italy and Portugal, and in the major capital cities such as London, Paris and Amsterdam”, says Tapies.

Aina, whose investment plan will take two years to complete, has a process open with institutional investors to secure €200 million in funding, which is about to close. Edmund de Rothschild will be responsible for the administration and custody of the funds. The minimum investment required to participate is €1 million. The fund will have a life of seven years and the investment period will be three years. The gearing ratio will range between 40% and 50% of the total portfolio value, and on an exceptional basis, may reach up to 60% for a single asset.

Profitability

The strategy also centres on risk diversification. One single hotel may account for 25% of the investment, at most, and no single country may account for more than 40%. On the other side of the scale, profitability will also be high, at 15% p.a., based on the profitability of the rental income and the potential for the increase in the value of the assets.

The fund will focus on finding properties with discounts of between 25% and 40% of their market value. Subsequently, it will increase their values by between 25% and 30% by redesigning their operating models and will obtain a similar percentage from the sale of these properties to investors that have lower long-term profitability requirements.

So far, investors from Spain, South America, Australia and Asia have all expressed their interest in participating in Aina.

In addition to the management team led by Tapies, Aina has an advisory board, which includes, amongst others, Charles Petrucelli, former Chairman of the travel division of American Express; Antoine Corinthios, former Chairman of Four Seasons in EMEA; and Jean-Jacques Gauer, for Chairman of Leading Hotels of the World.

Gabriel García is also advising the fund; he owns the Hotel Orfila in Madrid and is the Chairman of Relais & Chateaux in Spain.

Original story: Expansión (by Yovanna Blanco)

Translation: Carmel Drake

Hispania And Barceló Create A Resort Hotel Socimi

25 February 2015 – Hispania Press Release

Hispania and Barceló create a resort hotel Socimi (REIT) with 16 hotels and an initial targeted investment of 421 million euro.

The first investment will be the acquisition of 3,946 keys (11 hotels and 1 shopping centre) plus the option to acquire additional assets reaching more than 6,000 keys (16 hotels) and 2 shopping centres currently owned by Grupo Barceló

Hispania will invest 339 million euro for an 80.5% stake in the new company, which will become a subsidiary of Hispania

The new REIT will be the first hotel REIT exclusively focused on holiday resort, targeting a minimum of 12,000 keys in Spain

Hispania Activos Inmobiliarios, S.A. has communicated to the Spanish Stock Market Regulator, CNMV, that its subsidiary Hispania Real SOCIMI, S.A.U, (hereinafter “Hispania”) has signed an agreement with Grupo Barceló (hereinafter, Barceló) for the creation of the first hotel REIT focused on the holiday resort segment; an industry in which Spain is one of the leaders worldwide.

Part of this agreement includes the acquisition by Hispania in an initial phase of 11 hotels (3,946 keys) and 1 shopping centre. Later on, Hispania will have the option to acquire 5 additional hotels (2,151 keys) along with a second shopping centre. The agreement is subject to the successful completion of the due diligence process.

Once the transaction is completed and the option on the 5 additional hotels executed, Hispania will have invested 339 million euro, obtaining an 80.5% stake in the new REIT. Grupo Barceló will maintain 19.5% with the option to reach up to 49% through future capital increases.

Barceló will remain as the operator of the acquired hotels through lease contracts with an initial term of 15 years.

The valuation of the 16 hotels and 2 shopping centres amounts to 421 million euro. It is expected that the REIT, following the execution of the option, will have an initial equity of 187 million euro and a syndicated loan amounting to 234 million euro. Hispania’s capital contribution will amount to a maximum amount of 151 million euro (total attributable investment of 339 million euro).

The initial asset portfolio will have pro forma rental income of approximately 45 million euro (40 million euro pro forma 2014).

The Barceló assets included in this agreement comprise most of its resort portfolio in Spain, located in the Canary Islands, Andalusia and the Balearic Islands; touristic destinations which have had a strong performance during the last few years and are expected to continue consolidating their position in the future. Out of the 16 hotels, more than 90% of the rooms available are 4* category and are leaders in their respective influence areas.

Hispania and Barceló have agreed to invest together an additional 35 million euro in the short term in order to complete the repositioning and updating of some of the properties.

“Spain is the third most important touristic destination in the world, preceded only by France and the United States”, commented Concha Osácar, Board Member of Hispania. “Spain has almost twice the number of resort keys than the United States, as well as a well-diversified tourist base, with British, German and French visitors representing more than 50% of the total. This illustrates the opportunities which the industry offers in Spain”.

The agreement signed between Hispania and Barceló will allow them to start an ambitious plan focused on increasing the portfolio of the new REIT, through hotel acquisitions or incorporations of existing hotels. The purpose is at least, to duplicate the size of the initial portfolio, creating a Spanish resort portfolio managed by different leading hotel operators.

According to Concha Osácar, “our objective and that of our partner Barceló, is that the new entity becomes the first listed REIT focused solely on hotel resorts, with a diversified portfolio in terms of hotel operators, and a steady income base, through lease contracts with a strong fixed income component and enough exposure to the future increase of the Spanish tourism market. The objective of the new REIT for Hispania and Barceló, is to become an instrument with which to attract institutional capital for the Spanish hotel industry, creating new sources of capital for the hotel industry”.

From Barceló’s perspective, “as a result of this transaction, we are creating a solid alliance with one of the most active investors in the industry”. According to Barceló’s CEO, Raúl González, “after this transaction we will be in leading position to benefit from the concentration process that should take place in the Spanish hotel industry”.

Hispania has invested a total of 112 million euros, including capex for 2015, in 6 hotels (5 acquired in 2014 and 1 in 2015) managed by different hotel operators (Meliá, NH and Vincci), which could be included into the new REIT; this decision will be made by the partners during the second half of 2015.

Hispania will have invested 100% of the net proceeds raised

With this agreement, Hispania will have committed a total investment of c. 800 million euros in a total of 44 assets since its IPO on 14 March 2014.

Original press release: Hispania

Edited by: Carmel Drake

Recovery Has Investors Stocking Up On Spanish Malls

11 February 2015 – WSJ

The Spanish shopping experience is getting a multibillion-dollar makeover as the nation’s economy improves and foreign investment flows in.

After a year of tepid recovery from recession, consumer spending is picking up. Retail sales rose 1.9% in November from the same month in 2013, the fourth consecutive monthly increase, after six years of decline. Although nearly a quarter of the workforce remains unemployed, the economy is expected to expand by 1.7% this year, compared with 1.1% in the euro area as a whole, according to the Organization for Economic Cooperation and Development.

That, in turn, is helping to fuel investment in the retail property sector. In all, investment in retail real estate totalled €3.34 billion ($3.78 billion) in 2014, nearly triple the amount of the previous year and topping the record of €3.1 billion in 2006, according to property consultant JLL, formerly known as Jones Lang LaSalle. At least 67% of investments came from outside Spain. There was more investment in retail than in any other class of commercial real estate over the past year, according to JLL.

International investors are expected to pump more money into retail properties this year, including new construction, according to Adolfo Ramirez Escudero, president of property consultant CBRE Group Inc. in Spain.

Much of the money will go toward large-scale projects that mix shopping and entertainment, known as retail resorts, as well as outdoor outlet malls that resemble small cities where shoppers can find discounted designer brands.

Developers see opportunities for strong returns because prices of land and buildings are still depressed six years after the financial crisis. With the prices of many commodities at relatively lower levels and Spain’s unemployment so high, builders can also construct projects at a reduced cost. Meanwhile, the number of tourists to Spain is at a record, bringing with them money to spend.

The entrance of big global investors is a sign that the Spanish market is stabilizing, said Pedro de Churruca, general director of JLL in Spain.

“People are clearly coming back to shopping centers as a consequence of higher disposable income,” said Ismael Clemente of Merlin Properties Socimi SA, Spain’s largest real-estate investment trust, which in July purchased Marineda City shopping center in La Coruña from a local developer for €260 million. The three-year-old retail complex is the second-largest in the country.

The shopping center opened “in probably the worst possible moment in Spain,” said Mr. Clemente, referring to Spain’s economic doldrums. “We saw that there was a clear upward movement expected in rent, so we thought it was an interesting bet.”

The U.K.’s Intu Properties PLC purchased Spain’s largest shopping center, Puerto Venecia in Zaragoza, for €451 million in December. The British real-estate investment trust also announced a partnership with Spanish developer Eurofund to build four more retail resorts in Spanish cities as part of a plan to invest £1.2 billion ($1.8 billion) over 10 years.

Construction on the first of these projects, Intu Costa del Sol in the Malaga suburb of Torremolinos, —is scheduled to begin in the second half of 2015 and be completed by 2018. The 1.9-million-square-foot development will include amenities Intu is known for: a minitheme park, a surf lake, artificial ski slopes and a gourmet market, as well as shops and restaurants of high-end chains.

Intu owns 18 U.K. shopping centers, but Spain is the company’s first international market, which it entered in 2013 with the purchase of Parque Principado shopping center in Oviedo.

“We’re keen to keep growing, and if we focus on the prime, best shopping centers in the market, there are few opportunities in the U.K.,” said Martin Breeden, regional director of Intu. “Spain is a market that seemed open to international investment and where, frankly, there are not a lot of good shopping resorts in existence.”

Intu has purchase options on land for similar developments in Valencia, Vigo and Palma de Mallorca.

The Intu Costa del Sol site is about 3 miles from Malaga’s most-visited shopping center, Plaza Mayor, which opened in 2002. Sonae Sierra of Portugal, which owns and manages Plaza Mayor, has joined with U.K.-based McArthurGlen Group and U.S.-based Simon Property Group Inc. to expand the 572,400-square-foot shopping area to include a designer outlet mall. The €115 million development will add 324,000 square feet of leasable area and be the first large-scale outlet mall in Andalusia. Construction is scheduled to begin in the second half of this year, and the first phase is set to open in 2017.

Joan Jove, McArthurGlen’s regional development director, said Plaza Mayor is a “very strong, established retail scheme” and the planned adjacent outlet mall will be one-of-a-kind in the region. Mr. Jove said the project is mainly targeted at the 10 million tourists who visit Costa del Sol each year.

Intu’s Mr. Breeden said he wasn’t concerned about competition. “We’re very confident that there will be fantastic demand for our project.”

Sonae Sierra said it also plans to spend €55 million to update four of its other shopping centers around Spain within the next five years.

Elsewhere, TIAA-CREF, a U.S. money manager, has formed a joint venture with Neinver, a Spanish outlet-mall developer, to create TH Real Estate, which will own properties in Spain and other countries. Among their projects is the €80 million Viladecans The Style Outlets in Barcelona, which is scheduled to open in 2016.

“There is still plenty of money chasing product, and plenty of people with big debt who want to sell product,” said CBRE’s Mr. Ramirez. “I expect big volume this year.” He said large transactions could start to level off by next year as prices increase.

Original story: WSJ (by Shaheen Samavati)

Edited by: Carmel Drake

Paradores To Launch Its First Franchise

26 January 2015 – Expansión

Paradores will open its first franchise during the first half of 2015, according to the Secretary of State for Tourism, Isabel Borrego. It is hoped that this new line of business, together with the upcoming international expansion, will create a favourable scenario for profit generation.

Original story: Expansión

Translation: Carmel Drake