Merlin to Invest €60MM in Logistics Platform for Carrefour

10 July 2019 – Richard D. K. Turner

Merlin Properties, a socimi listed on the Ibex 35, is finalising an agreement with the French retail giant Carrefour to develop a 100,000-square-meter logistics platform in Azuqueca de Henares, Guadalajara. The socimi will invest approximately 60 million euros in the turnkey project, which will be finished by the end of 2020.

Many of the details of the operation are not yet known, as the two firms are still finalising their agreement. However, the eventual rental contract is likely to be a long-term one, at least ten years. This is because the logistics platform’s location is a part of Carrefour’s strategic plans. The site will be Carrefour’s largest in Spain. A long-term contract would also be of interest to Merlin, locking in a guaranteed income flow for a longer period. This is because the current average contract period is just three years.

Merlin will invest 50 to 60 million euros to build the warehouses. The project already has all the necessary permits, so construction is likely to wrap up before the end of 2020. Carrefour would then concentrate its Madrid-based logistics operations at that one site.

The good news for Merlin Properties comes at a time when the allocation of logistics assets fell by over 50% in Madrid compared to last year due to a lack of major operations.

Original Story: Merca2 – Carlos Lospitao

 

CBRE: Logistics Investment in Valencia Soared by 90% in 2018 to €80M

10 April 2019 – Las Provincias

According to the real estate consultancy CBRE, logistics investment in the province of Valencia rose by 90% YoY in 2018 to €80 million. Nevertheless, it warned that speculative projects have also increased, namely those that are built without a prior contract or guarantee in place for their subsequent sale or rental. Having said that, the market has been readily absorbing the new properties, so far at least, given the rise in demand for logistics warehouses.

According to Javier Muñoz (pictured above, left), Head of Industrial and Logistics at CBRE in Valencia, more high-quality products need to be constructed, given that only 27% of the warehouses in the province currently comply with logistics requirements.

In terms of the type of operations completed last year, the largest deals involved turnkey projects, whilst the number of speculative projects increased. In total 22 transactions of both types were completed in 2018 compared with 10 turnkey projects in 2017. The total stock increased by 24% as a result to reach 2,832,850 m2, and the availability rate at the end of Q1 2019 was 5.9%.

Rental prices continued to rise, with prime rents reaching €4.50/m2/month, in line with those observed in other European cities such as Rome, Amsterdam and Milan. Yields on logistics assets in Valencia currently amount to 6.7% thanks to the strong performance of the sector and interest from large international and smaller local players alike.

Original story: Las Provincias (by Elísabeth Rodríguez)

Translation/Summary: Carmel Drake

CBRE: 100,000 m2 of Logistics Space was Leased in Zaragoza in 2018

12 March 2019 – Eje Prime

According to data from CBRE, 100,000 m2 of logistics space was leased in Zaragoza in 2018, up by 10,000 m2 compared to 2017. Most of the space was  absorbed by turnkey projects, and the majority of the new contracts were signed for spaces released by companies relocating to new sites.

The largest operation of the year involved the sale of two plots spanning 40,000 m2 on the Plaza industrial estate.

Demand is expected to remain active this year, right across Spain, boosted, in particular, by the emergence of e-commerce, which will continue to drive demand for urban hubs spanning between 3,000 m2 and 5,000 m2.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Aedas Negotiates the Construction of 500 Rental Homes in Madrid

1 March 2019 – Expansión

Aedas wants to benefit from the investor appetite for residential rental assets as an alternative source of income and cash generation. The property developer is negotiating the construction and delivery of four turnkey developments comprising 500 homes for an institutional investor.

The homes, which are going to be constructed in Madrid and two adjoining municipalities will be dedicated to rental housing. “We are assessing the possibility of doing the same in Barcelona, Sevilla and Alicante”, explained David Martínez, CEO of Aedas Homes (pictured above), speaking to Expansión (…).

In 2018, the company invested €112 million in land on which to build 2,600 homes; and it also has options to purchase more land for an additional 400 units.

“The plan for this year involves buying land for at least 1,000 homes (an investment of around €50 million), but we do not rule out increasing that target if opportunities present themselves”, he said (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

BNP Paribas: Valencia’s Logistics Stock Set to Rise by 100,000 m2

12 February 2019 – Valencia Plaza

The logistics capacity in the province of Valencia is going to increase by 99,457 m2 this year with the launch of five new platforms located in Riba-roja, Torrent, Paterna and Loriguilla, according to the latest report from BNP Paribas Real Estate.

Moreover, there are locations that will offer the possibility of “turnkey” constructions with a total constructed surface area of more than 200,000 m2.

The purchase price of logistics space has risen to €200/m2-€220/m2 in the most sought-after locations due to the interest in the purchase of land from property developers and investment funds, in an area where available logistics space currently accounts for just 2.8% of the total, and 77% of that surface area is located in Riba-roja.

Due to the lack of availability, maximum rental prices have increased slightly to reach €4.5/m2/month in Riba-roja.

In 2018, demand for logistics space remained high and 24 operations were signed, three more than during the previous year. The most sought-after area was Riba-roja, which accounted for 30% of the space leased.

Nevertheless, last year closed with 127,502 m2 of logistics space leased, a very similar figure to the average for the last four years although somewhat lower than in 2017 (by 30,000 m2).

The fourth quarter of 2018 saw high leasing activity and accounted for 43% of all of the surface area leased during the year.

Original story: Valencia Plaza 

Translation: Carmel Drake

Catella Invests €200M in Housing in Spain & Enters the Nursing Home Segment

4 February 2019 – Eje Prime

Catella is growing its portfolio in the Spanish market. The Iberian subsidiary of the company’s fund manager, Catella Asset Management Iberia, is starting the year with plans to strengthen its position in all areas of the residential segment: from the traditional market, where it now has a portfolio comprising 1,000 homes, to alternative assets such as student halls and nursing homes for the elderly, a segment that it is planning to enter in Spain.

In Spain, the German manager owns a portfolio worth €250 million in assets under management distributed across Madrid, Barcelona and Pamplona. Most of its portfolio comprises residential rental assets, according to explanations provided by Eduardo Guardiola, Director and Partner of Catella Asset Management Iberia, speaking to Eje Prime.

The company currently has 1,000 homes under management in the Spanish market and its objective for this year is to add another 1,000 units, with an investment of around €200 million.

Catella also wants to strengthen its position in one of the fashionable residential segments: that of student halls. The manager has a fund that specialises in that market, through which it first entered Spain in 2017 with the purchase of an asset in Pamplona (…).

The company is planning to invest between €30 million and €60 million in such assets this year, with the aim of adding three or four new residences in the Spanish market.

The latest asset that Catella is backing are nursing homes for the elderly. The manager has just entered that segment in France, where it purchased six homes for €130 million two weeks ago.

“It is a very fragmented sector that is tending towards consolidation”, said Guardiola. “There are many owners who are also operators, who are now planning to sell their properties to focus on operations, and that opens up an opportunity for those of us who are searching for property”, said the executive (…).

They are non-medicalised assets, for non-dependent people, which include some services within the rental price as well as other ad hoc provisions (…).

Catella Asset Management also operates in the retail segment with retail parks and shopping centres, “provided they have a management component” (…).

Catella Asset Management specialises in the investment and management of real estate assets throughout the whole cycle, until exit. The company purchases existing assets as well as turnkey projects from property developers. In Spain, the group also operates its other line of business, that of real estate consultancy.

Original story: Eje Prime (by Iria P. Gestal)

Translation: Carmel Drake

Aquila Capital Enters the Logistics Segment after Promoting 5,400 Homes

31 January 2019 – Expansión

The property developer of the German fund Aquila Capital has definitively backed Spain. In just five years, the company has made a name for itself in the Spanish property development sector, one of the key markets for the company. Aquila Capital, which is headquartered in Hamburg, was founded in 2001, by Dieter Rentsch and Roman Rosslenbroich. The fund, which also invests in infrastructure, renewable energy and agriculture, launched its property developer AQ Acentor in 2014.

Since we arrived, we have invested €1.4 billion in Spain”, explained the CEO of AQ Acentor, Sven Schoel.

One of the fund’s first projects in Spain was in Villaverde (Madrid), together with the property developer the Inmoglacier Group, to build 1,300 homes, including 400 units for rental use. That project has almost been sold in its entirety, including the rental properties, which were sold to Catella and the Socimi Vivenio. After concluding that project, the alliance between Aquila Capital and Inmoglacier came to an end last summer.

Following that launch, the company has been adding new developments on a piecemeal basis in Cataluña, Málaga, Madrid and Valencia (…).

In total, the company currently has 5,400 homes in various stages of development. The company has 550 homes in an advanced phase, which are going to be handed over during the course of this year.

In addition to residential development, the company owned by Aquila is now preparing its debut in the logistics sector. Specifically, it is finalising the purchase of two plots of land for development in Madrid and Barcelona with a total surface area of 500,000 m2 for around €50 million.

Potential

“Logistics is one of the sectors with the most potential; we will begin by developing logistics land, although we do not rule out carrying out turnkey projects for tenants in the future”, added Mr Schoel.

The director also highlighted the company’s commitment to the environment and its support for sustainability (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Sareb Invites 20 Investors to Participate in the Sale of its Socimi Témpore

20 December 2018 – El Economista

A formal process is being launched after initial interest was received from three buyers, including one that stood out from the US fund TPG.

On Tuesday, Sareb opened a formal process to sell Témpore, its rental home Socimi, according to confirmation provided by sources in the sector speaking to El Economista. The bad bank, which has not engaged an external advisor for this divestment process, has invited 20 investors to participate.

In November, Nicolás Díaz Saldaña, CEO of the residential company, acknowledged that a Data Room had been enabled containing information about the Socimi and that access had been granted to it for five investors interested in the acquisition of Témpore.

In the end, three offers were received, of which the ones from Ares and TPG stood out, the latter being the highest. In light of the expressions of interest, Sareb decided to raise the matter to its Board of Directors, which yesterday launched an orderly sales process in which investors may participate by invitation only.

According to the same sources, Sareb has not imposed any conditions regarding what percentage of its stake is for sale (it held 98.38% at the end of June), and so it will be open to all offers.

The Socimi has just carried out what will be its last non-monetary capital increase subscribed by Sareb amounting to €150 million to acquire 1,769 assets in total, of which 850 are rental homes. The operation, which forms part of the right of first refusal agreement (ROFO), which Sareb and the Socimi signed, allows Témpore to double in size to reach €325 million.

Growth plan

Before announcing the sales process, Témpore had a growth plan underway with the aim of achieving a portfolio worth €500 million and in this way having sufficient volume to make its debut on the main stock market. That was explained at the time by Díaz Saldaña, who noted that in order to continue growing, “we will have to look for financing, be it from the bank or an alternative, such as a bond issue”.

Amongst the different options, the Socimi is analysing the purchase of whole buildings of rental homes and is also studying the acquisition of developments under construction that are currently in the hands of Sareb. In addition, it is considering buying turnkey projects through delegated promotion. “In the case of the latter, the first projects would be with Sareb, given that at the moment, for the other property developers that we have spoken to, it is more profitable for them to sell in the retail market”, said the CEO.

Meanwhile, yesterday, Sareb announced the sale of some land in the Torre Salses area, in Lleida, for the construction of a large shopping centre, spanning more than 60,000 m2. Eurofund Capital Partners has paid €8.3 million for that plot, whose sale was agreed in 2016.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Aedas will Collaborate with Socimis to Build Rental Homes

21 October 2018 – La Vanguardia

The property developerAedas Homes has started negotiations with several Socimis to offer them “turnkey” projects for rental homes that they will be able to manage, and has ruled out, at least for the time being, turning itself into a listed real estate investment company (Socimi).

The CEO of Aedas Homes, David Martínez, explained to Efe that the intention of these negotiations is to allocate some of the residential land that it owns to building “turnkey” homes for rental, although the firm is continuing with the development and sale of its own homes in most cases.

“We cannot launch two developments at the same time because they would cannibalise each other, but we can launch one for sale by us and the other for rental by a Socimi”, explained Martínez by way of example for the areas in which his firm has land for two neighbouring plots for development.

What Martínez did rule out is the possibility of Aedas Homes becoming a listed real estate investment company (Socimi), at least for the time being.

“In the future, we can explore the possibilities, but, that is not something that interests at the moment, because our objective is to grow as a property developer”, he highlighted.

Moreover, the firm has no plans to explore other segments of the real estate market or venture overseas.

“Residential is a sufficiently large niche, which requires specialisation, primarily in the areas of high demand”, said the senior executive at Aedas, who also acknowledged that his company is interested in buying land from large owners such as, for example, Sareb.

Moreover, and when asked about the Government’s announcement to promote a stock of 20,000 new homes for social rental, Martínez said that “any initiative is welcome”.

In this regard, he said that “it is clear that this country needs homes, for ownership and rental”, and that “although rental prices are rising well above expectations, that is a clear sign that there is a housing deficit”.

The CEO of the property developer estimates that overseas demand amounts to 30,000 homes per year, which is “quite stable”, with British buyers “still the strongest, despite Brexit”, but there has also been a rise in acquisitions by Belgians, Dutch, Nordics and Russians.

In terms of reserving 30% of homes in new developments for social rental, an initiative approved by the Town Hall of Barcelona, Martínez does not think that the Generalitat of Cataluña will approve it and that, if it were to, “it would generate uncertainty and so would not be a good decision”.

What he does ask Town Halls is for them to speed up the granting of licences and changes to urban plans to allow an increase in density in Spain’s cities.

By way of example, he explained demolishing a block of low-rise homes, rehousing the residents and building taller developments, which would avoid the “expansive growth” of cities and the consequent problems that this causes for mobility.

In addition, he indicated that one of the challenges facing Aedas is to increase its industrialised construction of homes, building most of a home in a factory, for example. This method is not very widespread in Spain yet but his firm has been promoting it in six of the developments that it currently has underway.

Original story: La Vanguardia

Translation: Carmel Drake

CBRE: Logistics Leasing in Spain Grew by 17% during First 9 Months of 2018

8 October 2018 – Eje Prime

The logistics sector is continuing its rate of growth. In total, 1.38 million m2 of logistics space was leased in Spain during the nine months to September, up by 17% compared to the same period in 2017.

Investment in the industrial sector also increased between January and September 2018, exceeding €1.1 billion, up by 43% compared to the previous year, according to CBRE. Prime yields, on the other hand, amounted to 5.55%, driven by high buyer activity and a shortage of available products on the market.

In terms of geographical areas, during the first nine months of the year, 632,000 m2 of logistics space was leased in Madrid, almost equalling the figure recorded during the same period in 2017. Of that amount, more than 50% corresponded to warehouses with surface areas spanning more than 20,000 m2.

Similarly, in Barcelona, the other city that accounts for some of the most logistics activity in the country, 483,000 m2 of logistics space was leased during the nine months to September, whereby exceeding the figure registered during the same period a year earlier by 53%. The lack of available space in the first and second rings means that the volume of space leased depends, to a large extent, on turnkey projects and pre-leases.

For another quarter, prime rents in both Madrid and Barcelona remained stable at €5.25/m2/month and €6.75/m2/month, respectively.

Other areas recorded a good level of activity during the nine months to September with Valencia, Zaragoza and Sevilla leading the charge, with logistics leasing of 138,800 m2, 58,800 m2 and 42,000 m2, respectively.

According to Alberto Larrazábal, National Director of Industrial and Logistics at CBRE, “cities such as Valencia, Zaragoza and Málaga blame the lack of available land dedicated to the execution of new projects, which is making the search for new mega-plots imperative”.

Original story: Eje Prime

Translation: Carmel Drake