Tag: tower

BBVA Finalises Sale Of Torre Puig To Grupo Puig

22 May 2017 – BBVA

BBVA has finalised the sale of Torre Puig to Grupo Puig, one of the largest real estate operations in Barcelona. The sales prices is reportedly in line with pre-crisis levels.

The property is a tower located in Hospitalet de Llobregat, one of the largest real estate expansion areas. The building has 21 floors and covers a surface area of 14,300 m2. The Grupo Puig has occupied the property to date.

The building was constructed by the former Catalunya Caixa (CX) for the perfume group Puig. The building was designed by architect Rafael Monea and GCA Arquitectos. The headquarters was completed three years ago, coinciding with BBVA’s purchase of CX.

BBVA’s real estate strategy

The sale of these types of portfolios is one of the channels established by the bank to reduce its real estate exposure, a strategic objective for BBVA’s Strategy and M&A area. In line with this strategy, in March, BBVA completed its second sale of a wholesale portfolio in 2017 (Project Boston), following the divestment of 3,400 properties (Project Buffalo) in February.

Original story: BBVA

Translation: Carmel Drake

Inmo Acquires 4.7% Of Colonial & Buys Puig’s HQ From BBVA

25 April 2017 – El Español

Inmo, the real estate company owned by the Puig family, has acquired shares in Inmobiliaria Colonial to take its stake in the company to 4.7%. Meanwhile, it has also purchased the headquarters of the Puig perfume and fashion company that BBVA put up for sale in October.

Inmo encompasses the real estate activity and assets of the family-owned group, and Inmo’s investment in Inmobiliaria Colonial comes in response to its “willingness to diversify” its exposure in the real estate sector, according to a statement issued on Monday.

Regarding the acquisition of Puig’s headquarters in Plaza Europa de L’Hospitalet de Llobregat (Barcelona), the property has 21 storeys and covers a surface area of 14,300 m2. (…).

Inmo’s announcement on Monday comes after Colonial reported in February that it had teamed up with the real estate company owned by the Puig family to develop a new office tower in Barcelona, an “iconic” building in the Catalan capital that will involve investment amounting to €32 million.

The project forms part of the investment in new real estate assets that the real estate company announced in its three markets: Madrid, Barcelona and Paris, for €400 million in total.

In the case of the new tower in Barcelona, the project will be constructed through a joint venture, which Colonial will constitute together with the Puig family’s real estate arm (50% each). The latter will contribute the land on which the property will be built.

The new tower will be located in Plaza Europa, next door to the headquarters that the perfume group rents out. The project involves building a 60m tall, 21-storey building, which will have a surface area of 14,000 m2. (…).

Colonial announced the new tower under the framework of investing in new assets that forms another part of its growth strategy, which it launched in 2005 after completing its clean-up and restructuring process.

Since then, the firm has accumulated investments in new assets amounting to €1,760 million, according to its President, Juan José Brugera. (…).

Original story: El Español

Translation: Carmel Drake

Ortega Acquires Torre Cepsa For €490M

3 October 2016 – La Opinión A Coruña

On Friday, the founder of Inditex, Amancio Ortega, completed the acquisition of Torre Cepsa in Madrid, for around €490 million, according to sources close to the operation. Ortega submitted his offer through his real estate company Pontegadea to IPIC, the Abu Dhabi state fund, owner of the oil and gas company Cepsa, which has leased the property, owned until now by Bankia, since 2013.

The building, one of the four towers in the north of Paseo de la Castellana, has a surface area measuring more than 109,000 sqm, including offices covering a gross leasable area of 56,250 sqm and a five-storey car park measuring 37,500 sqm.

The operation was completed in two phases. In the first phase, Khadem Al Qubaisi, the former director general of IPIC, exercised his purchase option, worth around €400 million to acquire the building. He then immediately sold the property onto Pontegadea for €490 million.

In October 2013, Bankia signed an agreement to lease the tower, designed by Norman Foster, which houses the corporate headquarters of Cepsa. The contract had an eight-year term, extendable for another seven years on a year by year basis. But it included a future purchase option, which the tenant had the right to exercise for a price to be determined at the time of the operation, on the basis of objective criteria agreed in advance.

As such, Amancio Ortega has acquired his second skyscraper on La Castellana, following his purchase of Torre Picasso, in 2011, for €400 million. The richest man in Spain and the second wealthiest man in the world also owns number 32 on Madrid’s Gran Vía, which makes him the landlord of some of Zara’s key rival brands such as Mango, H&M and Primark.

This purchase expands Ortega’s property portfolio, which used to be worth around €6,000 million – and is now worth more, if only because of the significant income that will result in terms of rental payments -. And the buildings that Pontegadea buys have a clear profile: iconic, historical buildings, dedicated to commercial and office use that can be rented to companies and institutions that are significant because of their size or solvency. The firm has a genuine real estate empire in Madrid, Barcelona and the main capital cities of Europe and the USA, but in recent months, it has also started to set its sights on Asia. (…).

Pontegadea’s bid was most favoured by IPIC even though it was not the highest – it had received others for €530 million – but the fund ruled those out because it preferred the liquidity and seriousness of Ortega’s offer.

Original story: La Opinión A Coruña

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