Elite Partners Raises €150M for its European Logistics Fund

The Singapore-based firm Elite Partners Capital has successfully completed its first round of fundraising to invest in the logistics sector in the European Union and the United Kingdom.

The Singapore-based alternative investment asset management company Elite Partners Capital has successfully completed the first round of fundraising for its Elite Logistics Fund.

The Elite Logistics Fund was officially launched in January 2020 and is mainly aimed at investment opportunities in the logistics sector in the European Union and in the United Kingdom. It seeks to take advantage of the opportunities offered by this market with the rise of e-commerce.

Berkeley Assets Arrives in Spain by Opening its First Office in Marbella

10 April 2019 – Eje Prime

Berkeley Assets has just opened its first office in Spain, in Puerto Banús (Marbella). The investment fund, backed by capital in Dubai and London, also plans to open offices in Madrid and Barcelona by the end of the year.

The company will start by focusing its activity on Madrid, Barcelona and Málaga. It plans to raise funds and make substantial investments in the Spanish market, in its first venture outside of the UK and the USA.

Berkeley’s assets raised USD 112.8 million in 2018. The group’s portfolio includes properties in London, New York and Miami.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Offices & Logistics Assets will Drive Spain’s Real Estate Sector over the next 5 Years

20 September 2018 – Eje Prime

Spain is consolidating its position as one of the most powerful real estate markets in Europe. The Spanish real estate sector has been strengthened in recent years by the creation of employment and, in particular, by investments undertaken in the office and logistics segments. Looking ahead, it is expected that the scarce supply of these assets will lead to a rise in prices, especially in Madrid.

The sector expects the office business to maintain an upward trend over the next five years in light of the outlook for the creation of employment in Barcelona and Madrid. During this period, both cities are predicted to generate around 200,000 to 300,000 jobs, respectively.

Good news is also expected in the logistics sector. Above all thanks to the boom in e-commerce, the market for industrial centres and warehouses in Spain is currently one of the most powerful in Europe. Despite the great demand for assets, in cities such as Barcelona and Madrid, the rate of available stock stands at just 4%, which is pushing rental prices up. For DWS, the challenge until 2022 will be to “adapt existing buildings to the new needs of companies”.

In terms of the rest of Europe, an increase of 2% per year is expected in the prime office market. Together with Madrid and Barcelona, other areas that will see an increase in demand for such spaces until 2022 include Berlin and the financial district of Paris.

Logistics will be, undoubtedly, the most dynamic segment of the European real estate sector over the next five years. It is expected that, in light of an availability rate for industrial spaces of 5% in most of the large cities, rents will rise by 2.2% per year, on average. Germany, the UK and Poland are expected to lead that growth.

Original story: Eje Prime 

Translation: Carmel Drake

MGM Muthu Hotels Buys Second Hotel in Tenerife

22 December 2015 – Hosteltur

MGM Muthu Hotels has purchased the 4-star Hotel Golf Plaza, located in the south of Tenerife, containing 174 rooms. It represents the firm’s second establishment on the island together with the 3-star Muthu Royal Park Albatros. The Singapore-based group declined to reveal the consideration of the operation.

With the Grand Muthu Golf Plaza Hotel, the chain is strengthening its offer oriented at both family and couples vacations, with rooms adapted to the tastes and needs of both types of consumer at the two establishments.

Currently, MGM Muthu Hotels owns seventeen 3- to 5-star hotels in Portugal, Spain, the United Kingdom, India and Singapore. In Spain, besides the two properties in Tenerife, the company owns the Grangefield Oasis Club on the Costa del Sol, and the Infiniti Beach Resort in Almería.

Soon, the firm is going to open a 5-star hotel containing 500 rooms in Cayo Coco (Cuba), the Gran Muthu Cayo Coco, as Hosteltur revealed, which will be the first hotel owned by an Asian chain in Cuba.

The Group is now also negotiating the acquisition of hotels in Lourdes (France), Punta Cana and Riviera Maya to incorporate them in 2016 and whereby continue with its expansion.

Original story: Hosteltur

Translation: Carmel Drake

Valliance Puts Asset Portfolio On Madrid’s Gran Vía Up For Sale

17 November 2017 – Eje Prime

Valliance, the real estate services company specialising in investment operations, is reactivating the real estate sector on Gran Vía. The company has been selected to coordinate the sales process of a real estate portfolio comprising residential and commercial properties in one of the most iconic buildings on Gran Vía, Madrid.

Located between Plaza de Callao and Plaza de España, a Madrilenian family office has engaged Valliance to sell three residential units and five commercial assets.

All of them are located in one of Gran Vía’s most well-known buildings, which was constructed in 1923 and which has a comprehensive listing. “The scarcity of assets of this kind for sale on Gran Vía means that this portfolio represents a great investment opportunity”, explains Belén Díaz, Director General at Valliance in Spain.

Valliance is a real estate services company that specialises in real estate investment, divestment and value-enhancing operations. It advises on the buy- and sell-side of all kinds of real estate assets, including offices, shopping centres, retail premises, logistics warehouses and hotels.

The firm works in the Spanish market, as well as in the United Kingdom through a partnership with Lambert Smith Hampton. It also collaborates with partners in Lisbon and other European capitals to render its services. The company is also the capital markets arm of Gesvalt.

Original story: Eje Prime

Translation: Carmel Drake

Amancio Ortega Creates RE Subsidiary In Spain With Assets Worth €1,600M+

13 November 2017 – El Confidencial

Pontegadea, the investment vehicle owned by the founder of Inditex, Amancio Ortega (pictured below), has created a real estate subsidiary in Spain to group together its local assets, which have a combined value of more than €1,600 million. The assets include Torre Cepsa, designed by the architect Norman Foster and acquired at the end of 2016 for €490 million and the building at Gran Vía, 32, which is home to one of the largest Primark stores in Europe, and which was purchased at the beginning of 2015 for €400 million.

Specifically, Pontegadea Inmobiliaria, which closed 2016 with real estate assets worth more than €6,700 million, will have a new subsidiary, in the form of Pontegadea España, a company in which Ortega will group together his real estate business in the Spanish market.

Sources close to the deal have explained to Europa Press that Pontegadea Inmobiliaria already has specific companies in many of the countries in which it operates, such as in the USA, France, United Kingdom and Korea, to hold the real estate activity of the textile giant’s founder in each respective territory.

It is about having a “more homogenous” structure in all of the markets in which Pontegadea Inmobiliaria operates (…). In fact, according to the same sources, there was no need to constitute a company for this activity in the Spanish market, given that Pontegadea already had one, Torre Norte Castellana, owner of Torre Cepsa, acquired at the end of last year. As such, it has only had to change the name of that entity to Pontegadea España, and add the leasing of real estate assets in Spain to its activity, according to the Official Gazette of the Mercantile Registry (Borme).

Torre Cepsa, Gran Vía 32 and Torre Picasso

In addition to Torre Cepsa (…) and Gran Vía, 32, Ortega owns several other buildings in Madrid, such as Torre Picasso and the Castella 79 building, which houses the largest Zara store in the world.

The founder and largest shareholder of Inditex has received revenues of €1,256 million this year in the form of dividends from Pontegadea, through the companies Pontegadea Inversiones and Partler (through which he controls a 59.294% stake in Inditex), compared with €1,108 million in 2016.

Ortega closed 2016 with real estate assets worth €6,719 million, which represents €661 million more than a year before, grouped together into his company Pontegadea Inmobiliaira, which has net assets worth €6,485 million, up from the €5,460 million that it held a year earlier. Ortega, who invests some of the dividends he receives from Inditex in the real estate sector, owns the largest real estate company in Spain, focusing on the sale, purchase and rental of large buildings. The firm owns a portfolio of real estate assets, fundamentally comprising non-residential, office buildings located in the centre of large cities in Spain, the United Kingdom, the USA and Asia.

Original story: El Confidencial

Translation: Carmel Drake

Pontegadea: Global Political Uncertainty May Impact RE

30 January 2017 – Expansión

Speaking last Thursday (26 January), Roberto Cibeira, CEO at PontegadeaAmancio Ortega’s investment vehicle – highlighted the “significant uncertainty” that exists in the real estate sector regarding the UK’s exit from the European Union. “Depending on what Brexit looks like, the economy will evolve, along with the demand for space. Companies are being very cautious”, said the Director, who was participating in the Third Real Estate Meeting, organized by the IESE.

The UK is one of the top five most important countries for Pontegadea on the basis of turnover; it accounts for a significant proportion of the firm’s business. “London is London, it is always going to be there. We are hopeful and are waiting for opportunities to invest”, said Cibeira, who indicated that the company will continue to focus on the countries in which it already has a presence (Spain, USA, Canada, Mexico, France, UK, Italy, Portugal and South Korea), although growing in Asia “is also a possibility”.

Moreover, the Director said that Pontegadea’s debut on the stock market “goes without saying”, although he did not want to comment further and said that the real estate market in Spain is characterised by three features: “A shortage of supply, a lot of overseas investors and a great deal of competition”.

The Trump Administration

Pontegadea’s CEO was guarded in his comments regarding Donald Trump’s arrival at the White House. “If the country’s economy performs well, then it will be good for everyone. People are still waiting to find out about Trump’s economic policies. The decrease in taxes is good for companies operating in the US and is regarded as a good thing in the short term”, he said.

Regarding the real estate market in the country, the Director said that “it is beginning to explode. But that there has to be a limit to these rent hikes”. The words of Cibeira relate specifically to the rents for stores on Fifth Avenue in New York, where rental prices have risen to $5 million/year per 100 m2.

Original story: Expansión

Translation: Carmel Drake

Spain’s Bank Sold €15,800M In Non-Core Assets In 2015

18 February 2016 – Cinco Días

Spanish banks sold non-core assets amounting to €15,800 million in 2015. Spain accounts for 17% of transactions in Europe. Sabadell, Bankia, CaixaBank and SAREB were those most active. The sales pace will go on in 2017.

Investors keep betting on the purchase of non-core assets sold by European banks, with UK on the lead. In total, these sales in Europe accumulated a record of EUR 104,000 million over the past year, the highest level since 2008 according to the European Debt Sales report prepared by KPMG.

Spanish financial institutions divested some EUR 15,800 million, representing 17% of total asset portfolio transactions considered non-core carried out in the continent. Despite these sales, the financial sector still has some 238,000 million in non-performing assets (including doubtful and foreclosed), according to June Data from International Financial Analysts (AFI).

Sabadell, Bankia, CaixaBank and SAREB are so far the Spanish entities making the greater efforts to clean up their balance sheet through divestments of non-core asset portfolios. Bankia and Sabadell remain, however, the hottest sellers in the Spanish market, with one third of the transactions. As a novelty, BBVA has made its first sales over the past year, which brought its first market secured portfolio, an operation called Proyecto Liceo. And BMN with two projects, Neptuno and Pampa.

United Kingdom was the country with the highest sales activity during past year. Debt portfolio divestments totaled EUR 39,000 million. KPMG´s report, one of the most active companies in this type of transaction keeps that Spain has embarked on a path of deleveraging and economic recovery which makes it an interesting country for investors, this way competing closer to UK and Ireland – the latter with sales of EUR 25,000 million over last year. The same applies to Italy, where the amount of transactions totaled 13,300 million, largely from sales of real estate assets owned by its banks. Divestments in UK and Ireland are related to assets included in their “bad banks”. As an example, the study notes that the British entity managing problematic assets in the UK sold through Granite Project a portfolio of EUR 18,000 million to Cerberus Fund.

Despite strong sales, investors keep their interest in Europe in general and particularly in Spain, especially in the purchase of loan portfolios. Ongoing projects in the continent total 44,000 million. The report also reveals that the pace of this activity will go on in 2017, partly due to access to funding at very low interest rates.

The partner responsible for the sale of KPMG´s Corporate Finance portfolios in Spain, Carlos Rubí, stressed that Spain and Italy, “are increasingly active and attracting the investor´s appetite at the expense of UK and Ireland.”

Original story: Cinco Días (by A. Gonzalo)

Translation: Aura Ree

Popular Places A €1,000M Mortgage Bond Issue At 1%

25 March 2015 – Expansión

The entity has completed a 10-year mortgage bond issue amounting to €1,000 million.

The placement carries a coupon of 1%, the lowest historical rate for Popular in the last ten years. The most recent bond issue made by Popular in April 2014 carried a coupon of 2.125% and had a five and a half year term.

Specifically, 78% of the demand for the bond issue has come from international investors. It has managed to attract a lot of investors and achieve an oversubscription of 1.4 x.

In terms of the nationalities of the international investors: 31% were from Germany and 15% were from the UK and Ireland. Demand for the bond issue was highly diversified, comprising 80 orders. By type of investor, 47% were fund managers, 32% were central banks and 19% were banks.

Original story: Expansión

Translation: Carmel Drake