Stoneweg Finalises the Sale of a Tower Containing 300 Rental Homes for €130M

20 May 2019 – Eje Prime

Stoneweg is joining the rental home development market. The fund is going to build a 300-home tower block on the land that it purchased from Dragados, the subsidiary of ACS, on Paseo de la Dirección in Madrid. The operation will amount to €130 million.

The company is holding advanced negotiations with the manager Ares and the US group Greystar, which specialises in student halls, regarding the development. Ares had been the favourite to acquire the tower but now Greystar is gaining ground.

Ares is on a mission to buy up rental homes. In the last few months, the company has agreed to buy 500 rental homes from Aedas Homes, 121 homes from Metrovacesa and 223 homes from Momentum.

Stoneweg purchased the plots from Dragados with the aim of building two residential blocks containing 600 homes in total. The first block will be handed over as a turnkey operation containing rental homes, whilst the second will contain homes with asking prices of €4,500/m2.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Telefónica Finalises the Sale of its Catalan Headquarters

4 May 2019 – Expansión

Telefónica is on the verge of selling its headquarters in Barcelona for more than €150 million in a sale and leaseback operation that will see the group continue to occupy 8 floors of the property, but on a rental basis.

The 16-storey skyscraper, known as Diagonal 00, has a surface area of 34,000 m2 and is located next to the Fòrum on the edge of the 22@ district. The property was constructed by the Consortium of the Zona Franca in Barcelona (CZF) as a turnkey project for Telefónica, which moved in in 2011.

The telecommunications giant went on to purchase the property from CZF in 2014 for €107 million plus VAT (€129.4 million) and is now selling it as part of its debt reduction process, which has already seen it divest businesses in Central America and the insurance company Antares.

Original story: Expansión (by M. Anglés & I. del Castillo)

Translation/Summary: Carmel Drake

Colau Halts Investments in Barcelona’s 22@ District

10 December 2018 – Catalunya Press

Colau’s municipal government has halted several investments in the 22@ district of Barcelona, which affects companies such as Acciona, Värde Partners and Metrovacesa.

According to sources in the real estate sector, several multinationals will also end up missing out, including the French company Bouygues, the family business Espais and private funds, such as Semillas Fito.

The histories of each firm are very varied. Shaftesbury purchased an abandoned factory in 2017, where it wants to build an office building spanning 16,000 m2, a turnkey project where the multinational technology firm Cisco is going to open a research centre for intelligent cities. The land purchase involved an investment of around €10 million, according to El Confidencial.

The US firm Värde spent €50 million in total during 2017 buying land in the area affected by the revised plans of Colau, who now wants to modify the urban planning arrangements, which will mean the suspension of all projects. It was one of the largest land operations of last year in Barcelona, involving 52,000 m2 of buildable office space. At stake, a €70 million investment, which is now under threat.

Acciona has been in the area since 2001 and is the owner of an entire block between Calles Perú, Bolivia, Fluvia and Selva de Mar, which spans a surface area of 53,380 m2 and where it wants to build 33,200 m2 of office space.

Sources in the real estate sector indicate that the suspension of all of these projects, involving approximately 2 million m2 of office space, is only going to serve to put more pressure on prices in the consolidated 22@ area, which has now been completed south of La Diagonal, where Torre Glòries and the other offices are now occupied. In other words, prices will rise.

Original story: Catalunya Press

Translation: Carmel Drake

Eurofund Logistic Capital Partners Acquires a 130,000 m2 Plot in Corredor de Henares

15 October 2018 – Eje Prime

Eurofund and Logistic are continuing to push ahead together in the Spanish logistics sector. The joint venture, created by the two groups in 2017, Eurofund Logistic Capital Partners (Elcp), has purchased a plot of land measuring 130,000 m2 in the Corredor de Henares for the development of a new logistics project on the site, according to explanations provided by the company to Eje Prime.

The plot is located in the third ring of Madrid, on a large industrial estate in Torija (Guadalajara), with direct access to the A2 motorway, one of the main logistics axes in Spain that links Madrid and Barcelona.

Elcp is going to develop a Class A logistics project spanning 80,000 m2 on the site. Located 30 minutes from Barajas airport and 45 minutes from the centre of the Spanish capital, the land is “one of the few available buildable sites with the capacity to house a new building of this size”, said the Director-General of LCP, James Markby.

Marketing of the project, which is going to be a turnkey development, will begin immediately. On the same industrial estate in Torija where it has purchased this land, Eurofund Logistic already owns logistics centres leased to large multinationals such as Primark, Leroy Merlin and Bridgestone, amongst others.

During the nine months to September, logistics leasing in Spain amounted to 1.38 million m2, up by 17% with respect to the same period in 2017. In parallel, investment exceeded the €1.1 billion threshold during the first nine months of the year, up by 43%, according to data from the consultancy firm CBRE.

In Madrid, 632,000 m2 of logistics space was leased, almost equalling the figure recorded during the same period in 2017. Of that amount, more than 50% of the assets corresponded to operations involving warehouses with a surface area of more than 20,000 m2.

Eurofund Logistic: almost 1 million m2 under management

The latest purchase by Eurofund Logistic forms part of the growth plan that the company has underway in Spain and Portugal. Created in February 2017, the joint venture currently has 775,000 m2 of logistics assets under management.

Moreover, the joint venture is planning to start work on 650,000 m2 of logistics properties. One of the parties, Eurofund Capital Partners is a subsidiary of the Spanish group Eurofund, which, in addition to the logistics sector, also develops and manages assets, primarily in the retail segment.

Last week, Eurofund was given the green light for its new commercial macro-project in Lleida, as reported by Eje Prime. That project is known as the Torre Salses retail complex; it has a surface area of 56,000 m2 and construction of it will begin in the autumn of 2019.

Original story: Eje Prime

Translation: Carmel Drake

Merlin to Spend €250M Developing New Logistics Assets

8 May 2018 – Expansión 

The Socimi Merlin plans to spend €250 million launching new logistics assets over the next four years. “We are continuing with our ambitious expansion plan, primarily through the development of land and the construction of turnkey projects”, said Merlin’s CEO, Ismael Clemente (pictured below), speaking yesterday at the company’s General Shareholders’ Meeting.

The director explained that Merlin is going to add another 500,000 m2 of space to its existing portfolio to exceed “by far and in record time” the 2 million m2 of logistics space that it currently manages. “That will place us in a clear position of leadership with respect to our competitors”, he said.

This investment will be made in addition to the €370 million that the real estate company is going to use to reform and reposition its portfolio of offices and shopping centres.

Clemente explained that the intense investment activity in which Merlin has been immersed since its creation was obeying a “strategic vision”. “We were living through the start of the upward trend of a new real estate cycle and there was a window of opportunity open to buy some very high-quality assets and companies at very attractive prices. That quality and those prices will not be seen again until the next cycle comes around”, he said.

The director reiterated the “outstanding” return to shareholders of 21.6% in 2017. In this sense, yesterday, the shareholders approved a 9% increase in the dividend, to be charged against the results for 2018, to reach €235 million.

Clemente also revealed that his firm will be looking carefully at the real estate plans designed by Aena for the airports in Barajas and El Prat. Aena is planning to market 2.7 million m2 of buildable space for logistics, hotel and office use on land that it owns at the Adolfo Suárez Madrid-Barajas airport and another 1.85 million m2 of land at Barcelona-El Prat airport.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Palm Capital Acquires 3 Logistics Projects in Getafe from BCM

26 February 2018 – Observatorio Inmobiliario

Palm Capital has become a protagonist in the Spanish logistics market with the acquisition of three projects in the Los Gavilanes Business Area in Getafe from the property developer BCM (MCA Group). The operation, advised by the real estate consultancy Proequity, involves the acquisition, under the forward funding method, of three turnkey logistics projects with constructed surface areas of approximately 33,000 m2, 25,000 m2 and 27,000 m2, respectively.

The price for which the agreement has been closed has not been disclosed by the parties, but the value of the three completed projects is estimated to amount to around €100 million.

The first project that is going to be constructed will comprise two platforms measuring 22,000 m2 and 11,000 m2, which may house up to four different operators. It is expected to be ready for delivery by the first half of 2019.

With this acquisition, Palm Capital is going to become the main owner in the Los Gavilanes Business Area, with more than 85,000 m2 of leasable logistics space under ownership. Gavilanes represents the first acquisition that Palm Capital made in the Spanish logistics market and marks the beginning of an ambitious expansion plan through which it intends to acquire and build more logistics assets in the short term.

The Los Gavilanes Business Area is positioned in a strategic location in the south of Madrid, 16km from the centre of the Spanish capital. It has quick access to the A-4 highway between Madrid and Andalucía and 1,500 m2 of its façade overlooks the M-50 ring road. For this reason, first-class companies such as Amazon and Decathlon have already chosen the location for their distribution centres.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

‘Area Industrial & Logistics’ to Build New Industrial Warehouse for Endutex Ibérica

12 December 2017 – Cadena de Suministro

Area Industrial & Logistics will be the property developer responsible for constructing the new headquarters of the Portuguese company Endutex Ibérica under the “turnkey” modality. The building is going to be constructed on a land with a surface area of 6,410 m2 in the SUP I-3 Sector “Puerta de Madrid” located in the town of San Fernando de Henares.

This plot is the result of the segregation that the property developer carried out of a larger block measuring 26,387 m2, on which Area has already successfully built one turnkey project involving a 7,500 m2 cross docking warehouse for XPO Logistics. With this operation, the property developer company Area Industrial & Logistics will manage to complete the total development of the aforementioned block, which has a combined land surface area of 26,378 m2 and a total constructed surface area of 11,622 m2.

The future headquarters of the company Endutex Ibérica will comprise a total warehouse surface area of 3,507 m2, used for storing supports for digital printing and the manufacturing of tarpaulins, the Portuguese company’s main activity. Similarly, it will have an office measuring 615 m2, spread over 3 floors, which will feature a ground floor space measuring 115 m2 that Endutex will use as a showroom for the display and sale of its products to customers.

The total approximate investment in this new turnkey project contracted by Area Industrial & Logistics is €3.4 million and construction is expected to be completed by the first quarter of 2019.

Original story: Cadena de Suministro

Translation: Carmel Drake

Aguirre Newman: Almost 1 million m2 of Logistics Space Leased in Madrid & Barcelona YTD

21 November 2017 – El Inmobiliario Mes a Mes

In total, 929,698 m2 of logistics space was leased in Madrid and Barcelona during the first three quarters of 2017, up by 22.6% compared to the same period in 2016, whilst the volume of investment in logistics assets reached €600 million. That figure represents 76% of the total recorded last year, which marked a historical maximum investment volume in Spain, according to Aguirre Newman.

During the third quarter of 2017, the high level of investor interest in logistics assets, which started four years ago, continued to flourish. It was boosted by factors such as the consolidation of economic growth, the gradual improvement in household consumption, rising rental prices in the main markets and improvements in financing conditions.

The initial rate of return for the most prime assets in the best locations amounted to around 6%, and rates of around 5.5% were seen for certain one-off operations. According to the report from Aguirre Newman, the scarce supply in the main logistics markets in Madrid and Barcelona is affecting the market in two ways. On the one hand, interest in secondary markets is continuing to rise, most notably in Zaragoza, Valencia and Sevilla. On the other hand, there is a high degree of interest in buying land, either to develop speculative projects or to build turnkey projects, under forward funding or forward purchasing formats.

Demand for logistics space in Madrid during the third quarter of the year reached 226,757 m2, compared to the total cumulative space leased in 2017 of 614,070 m2. That figure represents an increase of 52% with respect to the same period last year. Both the activity recorded during the third quarter – which is closely related to e-commerce – as well as that registered during the year to date represent record levels never seen before, and so the report forecasts that the end of 2017 will also be very positive in light of the operations currently underway.

The most significant operation in terms of the volume of surface area leased in the third quarter was completed in Illescas (Toledo), where an operation involving a turnkey project with a surface area of 103,000 m2 was signed. That was followed by another operation closed by Leroy Merlin in Meco with a surface area of 59,914 m2. In terms of rental income, the maximum recorded was €4.85/m2/month, as a result of an operation closed in the Corredor del Henares, specifically in San Fernando de Henares.

According to Aguirre Newman’s research, activity in the market for land dedicated to logistics/industrial use has grown considerably with respect to previous quarters, with the completion of seven operations spanning a combined surface area of 379,096 m2, destined for both turnkey and at-risk projects. The most significant land operation was the purchase of a plot measuring 242,000 m2 in Illescas (Toledo) for the development of the aforementioned logistics platform (103,000 m2).

On the other hand, the leasing of logistics space in Barcelona amounted to 91,406 m2 during the third quarter, which represents a slight decrease of 9% compared to the same period in 2016. Meanwhile, the total surface area leased during the first nine months of 2017 amounted to 315,628 m2.

Vallès Oriental and Barcelonès were the most active regions in terms of the number of operations, where three and two operations were closed, respectively. In terms of the largest operations closed, a contract was signed in Alt Penedès for a space spanning 20,000 m2 and in Vallès Oriental, another contract was signed for a space measuring 14,000 m2. Prime rents continued at their levels of between €5.75/m2/month and €6.75/m2/month. Nevertheless, the report from Aguirre Newman highlights that one operation was closed in the Zona Franca Consortium with a rental price above the prime rate indicated.

Leasing of logistics space soars in Valencia

Moreover, during the first nine months of the year in the Valencia metropolitan area, 135,250 m2 of logistics space was leased. That figure represents an increase of 35% with respect to the same period a year earlier, according to BNP Paribas Real Estate.

In that region, demand focused primarily on the town of Ribarroja, which accounts for 80% of the surface area leased (…).

Original story: El Inmobiliario Mes a Mes

Translation: Carmel Drake

Aguirre Newman: Logistics Demand Soars By 23% In Madrid & Barcelona

17 October 2017 – Eje Prime

Demand for logistics space in Madrid and Barcelona is on the rise. During the first three quarters of 2017, 929,698 m2 of logistics space was leased, which represented an increase of 22.6% compared to the volume leased during the same period in 2016, according to data released by the Logistics Market Monitor for Madrid and Barcelona 2017, compiled by the real estate consultancy firm Aguirre Newman.

The volume of investment reached €600 million (during the 9 months to September 2017), which accounts for 76% of the total recorded during the whole of last year. That figure, in turn, represented a historical maximum in terms of investment volumes in Spain.

“The high level of investment activity in logistics assets that began four years ago continued during the third quarter of 2017. It was boosted by factors such as the consolidation of economic growth, the gradual improvement in consumption by households, rising rental prices in the main markets and an improvement in financing conditions”, say sources at the consultancy firm.

By market, demand for logistics space in Madrid during the third quarter of 2017 amounted to 226,757 m2, which took the total cumulative volume of space leased so far in 2017 to 614,070 m2, up by 52% compared to the same period last year.

The most significant operation, in terms of the volume of space leased during the third quarter, was closed in Illescas (Toledo), where a turnkey operation was signed involving a space measuring 103,000m2. It was followed by another operation in Meco involving a logistics space measuring 59,914 m2.

In terms of rental prices, the maximum reached has been €4.85/m2/month, as a result of an operation closed in the Corredor del Henares, specifically, in San Fernando.

“Activity in the market for land with logistics and industrial use has grown considerably with respect to previous quarters, given that seven operations have been signed, involving a combined surface area of 379,096 m2 (…)”, say sources at the consultancy firm.

In Barcelona, 91,406 m2 of logistics space was leased during the third quarter, which represented a slight decrease (of 9%) compared to the same period in 2016. Meanwhile, the total cumulative space leased during the first nine months of the year amounted to 315,628 m2.

Prime rental prices in the Catalan capital continue to range between €5.75/m2/month and €6.75/m2/month. Nevertheless, Aguirre Newman’s report highlights that one operation was closed in the Zona Franca Consortium for a rental price that exceeds the prime rent.

Original story: Eje Prime

Translation: Carmel Drake

CBRE: 57% More Logistics Space Leased In Madrid During First 9 Months Of 2017

9 October 2017 – Eje Prime

Demand for logistics space in Madrid is soaring. During the first nine months of the year, 633,000 m2 of logistics space was leased, which represented an increase in demand of 57% with respect to the same period last year, according to data from CBRE. This rise in the volume leased was due not only to an increase in the number of transactions closed but also due to a rise in the number of transactions involving large surface areas.

233,000 m2 of logistics space was leased between July and September this year, of which 173,000 m2 (or 74%) related to the e-commerce sector. The most important operations carried out during the third quarter included the turnkey project in Illescas, with a surface area of 103,000 m2; the Leroy Merlin operation in Meco, spanning 59,814 m2; and the CEVA deal in Seseña, with a total surface area of 12,000 m2. In terms of the prime rent in the local distribution area, it remained at €5.25/m2/month.

In Barcelona, demand also remained very high and the lack of available spaces in the first and second ring alone, where the vacancy rate is just 0.5% and 1.6%, respectively, prevented the volume of new space leased from continuing at record levels, in line with the last two years.

In this sense, 80,000 m2 of logistics space was leased during the third quarter of 2017, down by 29% compared to the previous quarter (112,000 m2). In terms of the cumulative figure for the half year, more than 317,000 m2 of space was leased, 57% less than during the same period in 2016. The most important operation during the quarter was the rental by Naeko of a logistics warehouse with a surface area of 20,000 m2 in La Bisbal del Penedès.

In terms of prices, prime rent continued at €6,50/m2/month in the Catalan capital, although that figure is expected to rise over the next few months, due to the stark lack of available space.

Original story: Eje Prime

Translation: Carmel Drake