Tag: tourist destinations

Fotocasa: Rental Prices Reach Historical Peaks in 2018 in the Balearic Islands, Las Palmas, Salamanca, Barcelona & Madrid

3 July 2018 – El Economista

Rental prices in five Spanish provinces (the Balearic Islands, Las Palmas, Salamanca, Barcelona and Madrid) have reached their historical maximums in 2018, according to data provided by Fotocasa. The situation extends to nearby municipalities in the provincial capitals.

Barcelona, with a maximum price of €13.90/m2 in January 2018, is the province with the most expensive rental prices, following by Madrid, with an average of €12.36/m2, recorded in April this year. Those two provinces are followed by the Balearic Islands, with a price of €10.60/m2; Las Palmas (€7.65/m2); and Salamanca (€7.34/m2).

According to the Head of Research at Fotocasa, Beatriz Toribio, “the average price of rental housing in Spain has been growing uninterruptedly for three years, but in 2017, it did so at a very intense rate, above all in the large provincial capitals and in tourist destinations such as Madrid and Barcelona”.

Moreover, 65 other towns have also recorded their maximum prices at some point during 2018, in particular, those in the autonomous regions of Andalucía, the Community of Valencia, Madrid and Cataluña.

In this way, in Andalucía, 11 municipalities have recorded maximum prices in 2018, including Málaga, Torremolinos and Rincón de la Victoria. In the Community of Valencia, rental prices in 10 municipalities have reached their historical peaks, whilst in the Community of Madrid, 7 municipalities have seen maximum prices, such as Madrid capital, Las Rozas and Boadilla del Monte. Finally, in Cataluña, 9 municipalities have reached their maximum rental prices.

Original story: El Economista

Translation: Carmel Drake

M&G European Property Fund Expands Portfolio in Spain

29 May 2018 – Real Assets

M&G European Property Fund has expanded its portfolio with the acquisition of industrial and retail assets in Spain.

The €3bn core European property fund, managed by M&G Investments’ real estate arm, said it bought two industrial and two retail assets for €80m.

The two retail acquisitions are H&M Reyes Catolicos in Granada and Gran Via 68 in Madrid.  Both sites, which total 3,668sqm, are leased.

The industrial sites Teka Logistics Platform and a further asset in the Getafe logistics corridor are both in Madrid. The sites have a combined size of 55,092 sqm.

Fund manager David Jackson, said: “Our latest research suggests the Spanish economy will continue to perform well, with its recovery having accelerated in 2017.

“This extends to the commercial real estate market, where we predict average rental growth in both industrial and retail will range between 3% and 4% per year for the next three years in Madrid.”

Jackson said these new acquisitions fit perfectly with our strategy to increase our exposure to Continental Europe by investing in core assets in strong growth markets.

“We see a strong correlation between the level of rental growth and tourist spend in major tourist destinations across Europe; Madrid and Granada are very good examples of this trend.”

Federico Bros, a director of asset management for Spain and Portugal, said: “We have seen strong demand for high street retail in prime locations across Spain. Both of the retail sites we have purchased are in established locations and offer great rental growth prospects.

“The industrial sector in Spain also offers strong rental growth prospects as online activity accelerates and these acquisitions help us diversify our portfolio in key sectors.”

M&G European Property Fund was launched in 2006, with a mandate to invest in a globally diversified portfolio of assets in mature European markets outside the UK.

Original story: IPE Real Assets

Translation: Carmel Drake

Benidorm Fever: TM Sells 15 Apartments in Just One Day

10 May 2018 – El Confidencial

More than 40 homes have been reserved in just two weeks. And fifteen of them in the first 24 hours. TM Grupo Inmobiliario, the owner of the largest batch of land located one street from the beach in Benidorm, one of the most sought-after markets along the coast at the moment, has put the first units up for sale of what is going to be its most ambitious project ever.

In January, the Alicante-based company acquired 165,000 m2 of land in Benidorm, which will initially, in its first phase, be home to two buildings comprising 132 homes each, containing two-, three- and four-bedrooms. The appetite for buying homes in the city has been so great that in just two weeks, 15% of the units that are going to be built in this first phase have already been reserved.

The prices of the two-bedroom homes range between €275,000 and €325,000, whilst the prices of the three-bedroom homes range from €325,000 to €400,000. To give us an idea, on the market at the moment, you can find properties ranging from small apartments costing just €20,000, to detached homes costing as much as €4 million. The reality is that, since its origins as a tourist destination, Benidorm has always been suitable for all kinds of budgets.

In fact, the town boasts the most expensive property prices per square metre in the region, with an average of €1,585/m2 – for new build and second-hand homes – above the prices paid in neighbouring Altea, Calpe and l’Alfàs del Pi, according to data from Tinsa. Although prices have fallen by almost 44% since their peak, it is one of the places in Spain that is enjoying a fair wind. In the last year, prices have risen by 11%, according to the latest report from the appraisal company about the coastal market.

The land, acquired in January this year, is located one street back from Playa de Poniente in Benidorm – right opposite the In Tempo skyscraper, marketing of which will also begin shortly – and around 1,200 homes are planned for the site. In addition to the residential area, the overall project will also include commercial and social use plots. Moreover, the land is located next to the Sunset Drive development, another one of TM’s projects in Benidorm, which has been completely sold.

The project was chosen in accordance with the bases of an ideas tender held for that purpose, to provide an avant-garde serene and long-lasting image, characteristic of the environment in Benidorm. The winning studio was Gea Arquitectos, which has already collaborated with TM on other developments (…).

The buildings are going to be located on the highest part of the plot and their layout is going to be designed to maximise the sea views as you go up (…).

Given its design, TM’s project is reminiscent of Promora’s Delfín Tower, which is going to occupy the last available plot on the beachfront in Benidorm. The main difference between the two stems from the fact that the latter is a luxury housing project, comprising 44 homes containing two-, three- and four-bedrooms, spread over 22 floors. Almost 50% of the properties have been sold and the project holds the record for the most expensive home ever sold in Benidorm. According to different sources, the home is located on the 16th floor and the buyer, a foreigner, paid just over €2 million for it.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

HI Partners Invested €136M In 4 Hotels In July

8 August 2016 – Expansión

In addition to its two purchases in the Canary Islands (IFA Catarina and Hotel Jardín Tropical), it also acquired the luxury Hilton Sa Torre resort in Mallorca (pictured above) and the Hotel Abba Acteon in Valencia.

Four acquisitions in four weeks. That was the result of HI Partners’ activity in July, a month in which the company owned by Banco Sabadell, closed several deals that allowed it to incorporate 1,119 new rooms into its hotel portfolio in one fell swoop. It paid €136 million in total for the four operations, which allowed HI Partners to extend its presence to the Canary Islands and Mallorca for the first time, two of Spain’s main tourist destinations.

The company led by Alejandro Hernández-Puértolas has just completed the purchase of two establishments in Mallorca and Valencia, to add to the two acquired in the Canary Islands half way through the month. With these purchases, the investment and hotel management company’s portfolio of hotel assets now contains 28 properties and 3,352 rooms.

In Mallorca, HI Partners has purchased Hotel Hilton Sa Torre, a luxury resort located in Llucmajor, on a traditional Mallorcan estate that includes buildings dating back to the 14th century. The five-star property has ninety rooms and a spa, as well as several swimming pools, a tennis court and extensive gardens.

In parallel, at the end of July, the firm also acquired Hotel Abba Acteon, a four-star urban property located in the centre of Valencia, with 150 rooms.

These two purchases followed its acquisition of IFA Catarina, located in Maspalomas (Gran Canaria) and Hotel Jardín Tropical, located in Adeja (Tenerife).

Investment in renovation

The four hotels have increased the size of the HI Partners Value Added vehicle, which contains the jewels of the investor group’s crown. The division now owns eight assets. Alongside the two hotels in the Canary Islands and the new properties in Mallorca and Valencia, the fund also includes Hotel Silken in Málaga, the Terramar in Sitges (Barcelona), the Prestige Coral Plajta de Roses (Girona) and the future Hotel Axel in Madrid, which is currently under construction on Calle Atocha.

HI Partners plans to allocate an addition €20 million to the renovation and improvement of the properties it has acquired. All of them have received financing from Banco Sabadell, in other words, they form part of the €850 million hotel debt portfolio managed by HI Partners.

Original story: Expansión (by Sergi Saborit)

Translation: Carmel Drake

Starwood Joins Forces With HI Partners To Invest €500M

14 March 2016 – Expansión

International investors are becoming increasingly interested in the Spanish hotel sector. The US investor group Starwood Capital has joined forces with HI Partners, the subsidiary of Banco Sabadell, to invest €500 million in the purchase of hotels in Spain, over the next three years.

According to market sources, Starwood and HI Partners will create a joint venture that will specialise in the acquisition of hotel assets located in the main tourist areas, such as the Costa del Sol, the Canary Islands, the Balearic Islands, the Costa Brava and the Costa Dorada. The aim is to acquire 3-star and 4-star hotels that have more than 200 rooms. The vendors may be individual investors, as well as hotel chains interested in divesting their real estate assets.

Starwood Capital Group will control 70% of the joint venture, which will be implemented through the creation of a limited company. The US group – which already teamed up with Meliá in Spain in 2015 – will contribute funds through its Starwood Global Opportunity Fund.

Local partners

HI Partners will control the remaining 30% of the shares and will also take care of the management of the company, under the leadership of its CEO, Alejandro Hernández-Puértolas. Banco Sabadell owns a 99% stake in HI Partners and the remaining stake belongs to Hernández-Puértolas and two other founding partners of the hotel management and investment company: Sergio Carrascosa and Santiago Fisas. The three have extensive experience in the hotel sector, as they used to be involved with Reig Capital – the company that owns the Mandarin hotel in Barcelona – and other companies such as MedGroup and Stein Group.

The alliance is the result of numerous investment opportunities that currently exist in the hotel sector in Spain, which broke a historical record in 2015 with the sale of 143 hotels worth €2,650 million, more than double the investment volume recorded the year before. Listed Socimis, hotel chains and Spanish family offices accounted for 74% of the investment, but this year overseas investors are expected to gain in weight and the alliance between HI Partners and Starwood is a good example.

“The Spanish hotel market is very attractive for us due to the growing demand from domestic and international clients and the on-going recovery of the economy”, said Keith Evans, Vice-President of Starwood Capital. According to the executive, the firm has chosen HI “because it is a reputable manager with local experience”, which will allow us to fulfil the objective “of creating a portfolio of high quality hotels in which all of Spain’s main tourist destinations are represented”.

In June 2015, Starwood reached an agreement with Meliá to acquire a chain of holiday hotels, which included seven assets and 2,933 beachfront rooms. These hotels were transferred to a company in which the fund owns an 80% stake and the hotel chain the remaining 20% stake. Meliá’s idea is to re-launch its Sol brand as part of this initiative.

According to sources at Starwood, the two alliances signed in Spain to date will have different investment strategies. Since its creation, the private equity firm has invested more than €77,000 million in real estate assets all over the world; its portfolio contains 2,600 hotels.

Original story: Expansión (by Sergi Saborit)

Translation: Carmel Drake