Grupo Baraka Sells a Logistics Warehouse in Murcia to Corum for €14M

11 June 2018 – Expansión

The Baraka Group, controlled by the businessman Trinitario Casanova, has closed an agreement to sell one of the logistics assets owned by its construction company Trabis.

Specifically, Baraka has sold a logistics warehouse, called Trabis II, located in the Murcian town of Yecla, the region where Casanova’s companies are headquartered. The property, which has a constructed surface area of 14,000 m2, has been sold for €14 million through a sale and leaseback contract.

“The advantage is that the buyer is guaranteed an asset in which the tenant will continue to undertake its activity”, explained Pablo Carvajal, Director of Capital Markets at Catella, the consultancy firm that has advised the new owner in the transaction.

The buyer is the French fund manager Corum Asset Management. Created in 2011 and with offices in Paris and Amsterdam, the firm set itself the objective last year of investing €500 million in real estate assets across Europe, with a special focus on Spain. For its investments, whose yields exceed 6%, Corum works with two funds Corum Origin and Corum XL, the latter was launched last year.

This is not the first time that Baraka and Corum have closed an operation together. In July 2016, the French firm paid more than €24.8 million for another logistics building also leased to Trabis.

Corum is one of the international investors that has opted to purchase logistics assets in Spain, a booming market due to its high returns and the increase in the e-commerce business. “The logistics investment market is proving attractive for domestic and international investors alike and increasingly more are investing in this type of asset. Between January and May, €250 million has been invested in these types of properties”, say sources at Catella.

At the overall level, investment during the first half of the year is expected to reach €5 billion. “During 2018, €3 billion has been invested in tertiary (non-residential) assets. Taking into account certain transactions pending completion, we expect to see investment of close to €5 billion during the first half of the year, around €1 billion less than during the same period in 2017”, he predicts.

Casanova

The divestment of this logistics warehouse comes just weeks after Trinitario Casanova entered the Madrid Nuevo Norte real estate project (known as Operación Chamartín). The businessman has committed to pay €400 million to the initial owners for the rights to 1.2 million m2 of land (now in the hands of the Ministry of Development) where the company DCN, controlled by BBVA and SanJosé, is planning to build an urban development with more than 10,500 homes.

In addition, Casanova is working on the marketing of the future shopping arcade in Edificio España, the property that he purchased from Wanda for €172 million to immediately sell it on to the RIU hotel group.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Trinitario Casanova Sells Large Plot In North Madrid To Gestilar-Morgan

13 November 2017 – El Confidencial

It has taken Trinitario Casanova more than a year to make his move since he became a landowner in Valdebebas, one of the main areas of development in the north of Madrid. But in the end, he has acted and he has done so with one of the new stars in the market, the joint venture created by Gestilar and Morgan Stanley. The parties are currently finalising an agreement, which, if nothing goes wrong, will be signed this week and which will result in the sale of all Casanova’s residential plots.

It was in the spring of 2016 when the owner of the Baraka Group purchased Parque Empresarial El Olivar, a company owned by the Cort Lagos family. With it, he acquired 114,000 m2 of land, spread over eight residential plots, plus one for industrial and commercial use that by itself measured 46,000 m2.

Since then, Casanova has been focused on removing the company from the bankruptcy situation that it fell into four years ago and which had reached the liquidation phase when Baraka appeared. This objective was achieved on 27 September, when the Mercantile Court number 5 of Madrid resolved “to declare the reactivation of the dissolved company Parque Empresarial del Olivar”, according to the ruling to which El Confidencial has had access.

With this sentence in his hand, Trinitario has been able to sit down and negotiate, with ease, to sell the three residential plots that he still owns in Valdebebas, given that the other five were auctioned off before Baraka managed to purchase Parque Empresarial and were pre-awarded to Grupo Amenábar and Premier. The party chosen by the businessman as the new owner of his land is the joint venture that Gestilar and Morgan Stanley have created.

The property developer owned by the García-Valcárcel family has been analysing these plots in Valdebebas for a while, and other giants, such as Castlelake, the fund behind Aedas Homes, had also expressed their interest in the past. The negotiations accelerated following Parque Empresarial’s exit from bankruptcy and last week, they managed to reach the point of agreement, according to the sources consulted.

As El Confidencial revealed, Gestilar and Morgan Stanley have constituted a joint venture, which they plan to endow with €100 million, whose vocation is to acquire plots of land over the next four or five years. They plan to build around 1,000 new homes thereon, a figure that equals the entire portfolio that Gestilar currently has under development.

An important portion of this plan may be achieved only with the success of the operation in Valdebebas, one of the most sought-after areas in Madrid, and therefore in all of Spain, but also one of the areas most affected by legal uncertainty. For years now, the courts have been ruling against the way in which this development has been carried out, which has forced licence granting processes to be suspended on several occasions.

Trinitario Casanova, who took on the debt of Parque Empresarial when he acquired the entity, will continue to be present in the development, as he will retain control of the 46,000 m2 industrial and commercial plot, where he wants to boost the activity of his construction company Trabis, an aim that is always behind the real estate movements of the Baraka Group.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Baraka To Build Nursing Home In Barcelona For €300M

18 July 2017 – Eje Prime

Baraka is setting its sights on the healthcare market. At the beginning of July, the real estate investment company completed the purchase of 600,000 m2 of land and a roof spanning 300,000 m2 for €300 million in Montcada i Reixac (Barcelona), where it will build a complex for the elderly.

The area acquired is located in Can Cabanyes, a zone that borders Barberà and Santa Perpètua de Mogoda. According to Manuel Abadía (pictured above, right), the representative in Cataluña of Trabis (the group’s construction company) (…) once the sale has been signed, work will begin to define the project in more detail.

The company does not have any experience managing these kinds of facilities, and so it will have to team up with a partner specialising in hospital care and management, according to Expansión.

“We intend to create a complex for the elderly, with villa-type homes and garden areas, which will be accompanied by personal care and also, one or two hospitals”, explained Manual Abadía. The representative for Trabis in Cataluña said that the construction phase alone will provide work for 400 people and that when the complex begins operating, “we think that it will sustain at least 200 permanent jobs”, he added. For the time being, no dates have been set for the opening of the facilities.

Baraka set up shop in Cataluña a year and a half ago with the intention of becoming a leading company in the real estate market, especially in the industrial and logistics sector. One of its most recent operations was the purchase, in June, of Edificio España from Wanda. The firm wants to grow its residential projects, amongst other initiatives.

Original story: Eje Prime

Translation: Carmel Drake

French Fund Corum Will Invest €450M-€500M In Europe In 2017

8 March 2017 – Expansión

The real estate fund manager Corum Asset Management has placed its focus on Spain. The firm, created in 2011 and with offices in Paris and Amsterdam, has closed 2016 with a record investment figure of €328 million.

In the case of Spain, the manager chose the market to carry out its first operation outside of France, acquiring its first asset in 2013: a retail property in Tarragona, which is leased to MediaMarkt.

Three years later, in May last year, Corum sold that asset to a fund managed by Ciloger for €9.43 million. “2016 was a record year in terms of transactions, with a deal volume amounting to €360 million, of which €328 million involved acquisitions. In addition, we made our first sale in an overseas market in 2016, in this case in Spain, where we achieved a significant return”, explained Philipp Cervesa, Head of Investments at Corum AM.

Besides that sale, the French manager closed three purchases amounting to €41.4 million in Spain, involving logistics assets, during the year. Specifically, in April, it acquired two platforms in Gerona and Guadalajara, with a combined surface area of 35,670 m2. Three months later, Corum AM paid more than €24.8 million for a logistics building leased to the company Trabis. “Our strategy is to bet on real estate cycles. We are investing in Spain because it offers good diversification and is a very dynamic market”, said Cervesi.

Both operations achieved a return of around 7.6%. “We invested heavily between 2013 and 2014, when the market fell, and thanks to that, we have undertaken some good deals, such as the sale of the property leased to MediaMarkt, which we sold last year for a hefty profit”. A high return that the manager forecasts it will maintain in 2017. “We are looking for assets with long-term lease contracts and high returns, of around 7%, he added.

This year, the manager, which invests directly through an Asset Management fund, has set itself the objective of increasing its portfolio to €500 million. “Our strategy for 2017 is to invest between €450 million and €500 million in the Eurozone. We have not set ourselves any country limits, which means that we could buy an unlimited amount in Spain”, explained the Head of the fund.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake