Tag: turnkey projects

BNP Paribas: Logistics Leasing Rose by 48% in Cataluña in Q1

20 April 2018 – Eje Prime

The leasing of logistics space in Cataluña rebounded by 48% during the first quarter of 2018 with respect to the same period a year earlier, to amount to 185,890 m2, according to a report compiled by the Research Department at BNP Paribas Real Estate. The leasing figure is 40% higher than the quarterly average for the last three years, during a period of consolidation in the Catalan logistics market.

A large proportion of the surface area leased during the first quarter of the year saw the pre-rental of warehouses under construction and turnkey projects. In this sense, operations involving surface areas ranging from 7,000 m2 to 50,000 m2 stood out in particular.

Rental prices continued to rise and prime rents increased by 3%, to reach €6.5/m2/month. The good pace of logistics leasing indicates that the upward trend will continue over the next few quarters. In terms of average rents in the local, regional and national logistics corridors, the same behaviour is being observed in terms of rising prices and a decrease in shortages, with growth of 5% in annual terms, to reach €4.7/m2/month.

On the other hand, the availability rate of logistics space in Cataluña continued to fall to reach 2.8%, at the same time as construction activity was increasing due to demand for rental properties. The development of turnkey projects means that the available surface area has not been affected, remaining at very low levels.

Original story: Eje Prime 

Translation: Carmel Drake

ACR: Residential Construction Costs Rose by 12.1% YoY in 2017

25 January 2018 – Cinco Días

The rate of inflation in the house building sector is causing concern. That has been reflected in recent months not only by the trade association but also by companies in the sector and other entities such as Sociedad de Tasación. On Thursday, some of the first data evidencing this phenomenon was published. Over the last year, to December 2017, the cost of residential construction rose by 12.1%. That is reflected in the recently created Index of Direct Construction Costs, prepared by the Navarran construction group ACR.

The index also shows that the increase has amounted to 17.5% over the last two years. The figure indicates that in 2017, these costs grew dramatically and that they accelerated. “Costs mainly grow for two reasons, a shortage of labour and a lack of manufacturing capacity in trades such as structures and façades”, said Michel Elizalde, CEO of the ACR Group.

The company has obtained this data from its construction sites in Madrid and is convinced that the inflationary figures can be extrapolated to other companies in the sector and to other regions such as Barcelona, Málaga, País Vasco and Zaragoza, where the housing market has reactivated.

Nevertheless, at the level of the general Spanish market, that rise is not being reflected in the most active areas. The statistics from the Ministry of Development indicate that in October 2017 (latest available figures), the cost of residential constructions had risen by 5.5 points since 2010. Sources at ACR report that the minimums were recorded in 2012 and 2013 after prices had been contained and have only been starting to rise since 2016.

“There is more tension when it comes to labour costs”, acknowledged Elizalde, basically due to the lack of qualified professionals in certain trades such as framers and rebar workers, according to ACR, as well as those involved with bricklaying, experts in partition walls, façades, flooring, tiling and carpenters. That causes teams and subcontractors to change construction site in the middle of house building projects if another company offers to pay them more.

“Contractors are suffering from this situation,” said the Head of ACR, given that property developers are contracting turnkey projects with fixed costs and the construction companies are, in turn, those who are suffering from a lack of professionals.

“There is a shortage of trained professionals because many of those who left during the crisis are not coming back or have now retired”, said the director.

In YoY terms, prices have increased by the most in glass making (25.2%), façades (15.4%), earth moving (15.6%) and structures (13.4%).

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

C&W: 130,000 m2+ Of Office Space Leased In Sant Cugat Since 2015

7 November 2017 – Eje Prime

The office business in Cataluña is not all about Barcelona. Sant Cugat del Vallès has become the most sought-after office sub-market on the periphery of the Catalan capital, not only for users but also for investors and property developers. More than 130,000 m2 of space has been leased there in the last three years, according to the Marketshot report, compiled by the real estate consultancy firm Cushman & Wakefield.

In 2015, more than 75,000 m2 of office space was leased in this Barcelona town. Sant Cugat del Vallès has always played an important role in Barcelona’s office space leasing figures. In the years 2015 and 2016, 54 rental operations were closed in Sant Cugat covering a surface area of 104,000 m2 (27% of the total signed in Barcelona as a whole).

The most important operations, including turnkey projects, in terms of size in recent years have been: Stradivarius (with 26,400 m2), Laboratorios Echevarne (with 12,000 m2), Mapfre (with 10,000 m2) and Natura Bissé Internacional (with 9,200 m2).

“Although the sub-market is maintaining the tone, the volume of absorption in 2017 has not exceeded 18,000 m2 (7% of the total leased in Barcelona)” – explain sources at the consultancy firm – “Nevertheless, we are not surprised to see fewer operations, given that the supply has been decreasing and the limited space that is still available is very fragmented”.

There is more than 115,000 m2 of potential office space in Sant Cugat, of which 100,000 m2 is located on buildable land. The potential for stock growth in the area is significant and, if all the projects come to fruition, the office park in this sub-market could increase by 22%.

As a result, the plots of land have great potential to respond to the lack of space in the area. “The Can Sant Joan and Can Ametller areas stand out for being home to the most iconic projects. Moreover, they are very well connected through their access to both public and private transport”, explain sources at the consultancy firm.

The increase in activity in the office market in Barcelona, the appeal of different business areas, other than the CBD and the city centre, added to the pre-leasing formula, which is present in the Barcelona market again for the first time since 2008, are all driving up rents. In the last year, the maximum rent in the peripheral areas rose by 7.5%; the minimum had been maintained between 2013 and the first quarter of 2017, but then the first significant increases started to be seen.

Original story: Eje Prime

Translation: Carmel Drake

Singapore GIC To Expand Its Logistics Portfolio In Spain & Portugal

19 May 2017 – Expansion

P3, the company specialising in the ownership, development and management of logistics assets, wants to take advantage of the support being offered by its new owner, the sovereign fund Singapore GIC, to lead the logistics market in Spain and establish itself as one of the country’s leading developers and investors in this segment.

The company, which operates under the commercial name P3 Logistics Parks, currently owns a portfolio of assets covering 400,000 m2 in Spain, after it purchased eleven logistics warehouses in April. P3 is planning to finish the year with 500,000 m2 under management, according to the CEO of the company in Spain, David Marquina.

“We want to become one of the main suppliers of logistics space over the next three years. Specialisation and a long-term outlook are our mantras”, he said.

To this end, P3 has just opened an office in Madrid and has a team there analysing opportunities. The group specialises in closing off-market operations.

The firm wants to strengthen its two business lines in the country: investment in rental assets and the construction of turnkey projects for clients. “We are analysing both the purchase of companies that own logistics assets, as well as the acquisition of portfolios and individual properties to grow in size”.

Similarly, as part of its expansion plan, P3 is considering expanding its operations into Portugal. The company, which was created in 2002 in Prague and which quickly began its expansion into central and Western Europe, owns a portfolio containing 170 logistics warehouses and parks in 11 countries across Europe, spanning a total surface area of 3.5 million m2 and with a land bank covering more than 1.8 million m2 for development.

“Germany, France and other countries where we have had a more limited exposure until now, such as Italy and Spain, are strategic markets for the group”.

In Spain, P3 has a presence in the central logistics corridor, which connects Madrid, Zaragoza and Barcelona, and it wants to strengthen its presence in the Mediterranean corridor.

The director highlights that 98% of its assets are leased through rental contracts that have an average term of 6.2 years.

For Marquina, the economic recovery and political stability have allowed investors to be interested in Spain, which is firmly back on the investment map. “After the crisis, real estate and logistics development was left paralysed. The stock became obsolete and out-dated. Over the last four years, liquidity has increased in the market and there has been a compression in yields, but there is still a long way to go”, he said.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake