Metrovacesa Starts Building Offices Again

2 December 2017 – Expansión

Metrovacesa, which is controlled by Santander and BBVA, is looking to generate value from its tertiary (non-residential) portfolio of land and resume the development of offices. The real estate company plans to start construction of 37,000 m2 of space on tertiary land in Madrid and Barcelona.

The company, which has been focused on house building until now, owns more than 1,317,000 m2 of tertiary land, with an approximate value of €684 million. Of the total, it plans to allocate approximately 83% to offices and 10% to hotels.

In this way, in November, Metrovacesa completed the sale of an office under construction to the Socimi Axiare for €29.7 million. That property, located at number 40 Calle Josefa Valcárcel in Madrid, has a leasable area of 8,652m2, spread over seven floors and 261 parking spaces. The firm plans to hand over the asset during the last quarter of 2018.

Metrovacesa’s land does not require any urban planning permissions, and so the plots are very liquid and ready for construction to begin, allowing a quick response to the most important demands that may arise in the market.

“Our team has more than 20 years of experience in these assets, and so we are in a privileged position to maximise value through a sustainable proposal that follows the latest trends and that knows how to take advantage of the current potential in that market”, explained María Ruiz Gallardo, Director of Tertiary Assets at Metrovacesa.

Metrovacesa’s portfolio of tertiary land accounts for 25% of the total value of its assets, which amount to €2.6 billion.

These plots proceed from both the former Metrovacesa, as well as from the contributions made by the shareholder banks.

In this way, the new Metrovacesa emerged following the carve out of the land business from the 100-year old real estate company, which integrated the rest of its activities with Merlin. Metrovacesa’s shareholders decided to give the company a significant boost, with the contribution of new land worth €1.108 billion in June. Santander owns a 70% stake in Metrovacesa, having taken over the 9.21% held by Popular, whilst BBVA controls 29.6%.

Following this injection, which was articulated through a non-monetary capital increase, Metrovacesa now owns a portfolio of buildable land spanning 6 million m2 for the construction of more than 40,000 homes. Its main rivals, Neionr and Aedas, own land with the capacity to build 12,000 and 13,000 homes, respectively.

Metrovacesa, which plans to return to the stock market in February, has convened an extraordinary shareholders meeting for 19 December, when it plans to give the green light to the request for admission to the stock market of the company’s shares.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Silken to Manage Boutique Hotel in Las Palmas

2 November 2017 – Alimarket

The hotel chain Hoteles Silken has embarked on a new project, which will see it take over the management of an urban boutique hotel. The property, which is currently under construction, is located in Las Palmas de Gran Canaria, specifically on Calle León y Castillo, 329-331. The building has a surface area of 3,300 m2 and overlooks the beach (Playa de Las Alcaravaneras). It will comprise six floors and offer 66 category 4E rooms. In this way, Silken has added its second unit in the Canary Islands, after it inaugurated ‘Silken Atlántida Santa Cruz’ (4E-144), in Santa Cruz de Tenerife, in 2001.

The hotel is owned by Sanjay Bhagvanji Bhagvanji and Amarsi Ajay Bhagvanji Pradhan, through the company Saaj Hotels Invest, which was constituted in December 2015 and endowed with share capital of €1 million. It is the first hotel project that these businessmen have embarked on together, although they may undertake more in the future. For the time being, the construction work on the new establishment is progressing well and is expected to finish between September and October 2018. The final name of the property could be ‘Silken Saaj Las Palmas’.

Silken will not only manage the new hotel in Las Palmas once it is fully operational, it will also assume responsibility for everything relating to its launch from now on. The building, which will have a diachronic façade made from glass panels with changing colours and reflections, will house a double-height lobby on the ground floor, where the reception, breakfast room and a multi-use space will be located. The 66 rooms will be distributed evenly (11 per floor) whilst the top floor will be reserved for a restaurant and a chill-out area linked to the gastronomic space. Moreover, the hotel will incorporate strict light and sound control insulation measures. The design of the facilities, moreover, will result in an energy efficient building, “a property that is the hallmark of Hoteles Silken”, according to a statement. Meanwhile, “the attention to detail of the interior design project will translate into environments that will distil elegance and domesticity, offering users a familiar experience, with the benefits of the latest advances in home automation and light design”.

Original story: Alimarket (by Paco Mota)

Translation: Carmel Drake

Metrovacesa Sells an Office Building Still Under Construction to Axiare

22 November 2017 – Expansión

The real estate company controlled by Santander and BBVA has sold a building, located in Madrid and still under construction, to the Socimi for €30 million.

The Socimi Axiare is continuing to expand its portfolio, whilst its counterpart Colonial is pushing ahead with its plans to buy the company. The group led by Luis López de Herrera Oria has closed the purchase of an office building, located on Calle Josefa Valcárcel in Madrid.

Axiare has paid its former owner, Metrovacesa, €29.7 million for the property, which is still under construction, as reported by the Socimi to Spain’s National Securities and Exchange Commission (CNMV).

The project under construction includes a gross leasable area for offices of 8,652 m2, spread over seven floors, as well as two underground floors, which will contain 261 parking spaces. The construction work on this building is expected to be completed during the last quarter of 2018.

The property forms part of a small real estate portfolio that Metrovacesa held onto after transferring its non-residential buildings to the Socimi Merlin Properties in an operation closed in October 2016. Specifically, this project emerged from the final investment plans of Román Sanahuja, owner and President of Metrovacesa prior to 2008, when the real estate company ended up in the hands of its creditor banks.

Following this purchase, Axiare has a portfolio of assets worth €1.74 billion, dedicated primarily to office buildings. So far this year, the Socimi has purchased seven properties, located in Madrid and Barcelona, for a total investment of €245 million. Similarly, it has assets “in an advanced stage of analysis” worth another €170 million.

On Monday 13 November, Colonial launched a takeover bid  for 100% of Axiare, in an operation worth around €1.4 billion. Before launching the public offer, Colonial, which has been Axiare’s largest shareholder since October 2016 with a 15% stake, increased its shareholding to 28%.

Colonial’s offer boosted Axiare’s share price, which now stands at around €1.453 billion, equivalent to €18.38 per share, compared with the takeover offer price of €18.50.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Popular Values The Complex That Was Going To House Its New HQ At €400M

17 October 2017 – Expansión

Popular has increased the book value of the real estate complex that was going to house its future headquarters to almost €400 million. The complex, which is still under construction, is being built on two plots that Popular purchased from Vocento in 2008. The plots span a surface area of more than 100,000m2, alongside the A2 motorway in Madrid. The market valuation of the headquarters could amount to €200 million, according to calculations by real estate experts.

The property is one of the unique assets inherited by Santander following its purchase of Popular. For the time being, the group will retain control of the headquarters, given that it has not been included in the batch of assets that Santander is going to transfer to the company that it is going to constitute together with Blackstone. That new company, in which the US firm is going to hold a 51% stake and Santander a 49% stake, will manage the damaged portfolio inherited from Popular. The company will be born with assets on its balance sheet with a gross value of €30,000 million.

Two buildings

The corporate complex of the former Banco Popular comprises two independent buildings, located on both sides of the A2. One of them, on Calle Abelias, is already finished. The second, on Calle Juan Ignacio Luca de Tena, is still under construction. The initial forecast was that the building work would be completed this autumn.

The book value of the property on Calle Abelias amounts to €132 million, according to the most recently published figures, which relate to December 2016. Of that total value, €44 million relates to the cost of the land and €93 million to the investment in the construction of the building. The sum of those two figures equals €137 million, from which €5 million has already been deducted for cumulative depreciation, to arrive at the aforementioned figure of €132 million.

In terms of the building on Calle Luca de Tena, the cost of the land amounts to €112 million. Meanwhile, the value of the construction in progress amounts to €149 million at year-end, up by €74 million compared to 2015. The sum of the two figures gives a global value of €261 million.

The property that has already been finished, on Calle Abelias, was inaugurated in January 2013 and houses Popular’s technological headquarters. The IT migration is one of the most sensitive elements of the merger currently underway between Santander and Popular (…).

Four headquarters

Following the purchase of Popular, Santander now has four large corporate centres in Madrid. On the one hand, it has the Ciudad Financiera, its central headquarters, located in the Madrilenian town of Boadilla del Monte. That building was inaugurated in 2004, has a surface area of 250 hectares and comprises nine office buildings (….). Santander also owns Banesto’s former corporate complex, located on Calle Mesena in Madrid, which is home to the Santander España division. Meanwhile, the group owns the historical headquarters of the now extinct entity Banif, specifically, the small palace located on Castellana 24, which has housed the central services of Openbank, the group’s digital bank since this summer.

Original story: Expansión (by M. Martínez)

Translation: Carmel Drake

Lar Sells Office On c/Arturo Soria To Colonial For €32.5M

2 October 2017 – Eje Prime

New divestment in the real estate business. The Socimi Lar España has sold the office building located at number 336 Calle Arturo Soria to Colonial for €32.5 million, according to a statement made by the company. This asset had formed part of Lar’s portfolio since 2014.

The office building is located in the centre of Madrid. It comprises nine storeys and has an above-ground gross leasable area of 8,663 m2, plus 193 parking spaces. Both companies highlight that the strong future of this property, whose occupancy rate has increased from 80% when it was acquired by Lar España to the current level of 100%, following an initial investment in its renovation undertaken by the company.

José Luis del Valle, President of Lar España, highlighted “the importance of this first divestment, which fulfils the plan that the company initially forecast: acquire attractive properties, increase their value through good management and, having implemented the business plan designed at the time of the purchase, consider the possibility of divestment to continue investing in strategic assets that maximise the value for our shareholders”.

For Pere Viñolas, CEO of Colonial, this purchase forms part of the asset acquisition strategy in the three markets in which the company has a presence. They are all continuing to show “momentum and good performance in the context of policies to convert and reposition assets”. The operation in question has been completed off-market and has been advised by Aguirre Newman.

Lar España Real Estate currently owns thirty real estate assets whose combined value amounts to €1,419.1 million, of which €1,040.8 million corresponds to shopping centres, located in Madrid, Toledo, the Balearic Islands, La Rioja, Vigo, Valencia, Sevilla, Alicante, Cantabria, Lugo, León, Vizcaya, Navarra, Guipúzcoa, Palencia, Albacete and Barcelona; €149.8 million to three offices buildings; €83.3 million to four logistics assets; and €145.4 million to four developments under construction.

Meanwhile, the Colonial group is a listed real estate company specialising in the prime office market in Europe, with a presence in the main business districts of Barcelona, Madrid and Paris, and a portfolio of properties worth more than €8,600 million.

Original story: Eje Prime

Translation: Carmel Drake

Emerige Will Build 200 Homes In Spain In 2017

18 May 2017 – Observatorio Inmobiliario

The French real estate developer Emerige, which has been operating in Spain since 2013, is going to build 200 homes in Spain during 2017, according to a statement made by the company’s Deputy Director General, Yann Bloch.

At the same time, the head of the French real estate company announced the marketing of its latest development in Madrid, by Proel Consultoría, which will be officially unveiled at SIMA. It is a 105 home development – also containing one commercial unit – located on Calle General Yagüe 37, in the immediate vicinity of the Paseo de la Castellana business district. The development, which is under construction, will feature the high quality and design standards that characterise Emerige.

The French real estate company, founded in 1989 by Laurent Dumas, is one of the major property developers in Paris and the surrounding region. It specialises in the development of offices and homes, as well as in the restructuring of real estate assets. In 2017, it has more than 1,500 homes under construction and more than 200,000 m2 of tertiary space.

Emerige is characterised primarily by its special dedication to aesthetics and the design of its buildings, for which it collaborates with the best international architectural firms (David Chipperfield, RCR, Rafael de la Hoz, Factoría UDA, Antonio Ruiz Barbarín…). Another defining element is the firm’s attention to contemporary art, through patronage work, as well as by incorporating works of art into its projects. “We work in all segments of the market, but always with a special care and requirement for quality. We pay more attention to the quality of our operations than to the quantity”, said Yann Bloch.

This philosophy has been translated into projects that Emerige is constructing in Spain “where we are working only with Spanish collaborators, from the project manager to the architects, always with high levels of quality and demand”.

In theory, Emerige will limit its operations in Spain to central locations of Madrid and Barcelona. In this latest project, it began the journey with a project to renovate a 3,000 m2 property containing 29 homes, which has already been finished and sold in its entirety.

In Barcelona, the firm is currently marketing a project under construction, comprising the transformation of an office building into 24 apartments, located on Calle Montaner. In Madrid, it is currently working on the aforementioned project on Calle General Yaguë and is now at a very advanced stage on another 61-home property on Calle Garibay, 3, in conjunction with the firm Rafael de la Hoz, which it will start to market at the end of the year.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

French Guru To Build Giant Shopping Centre In Torrejón

25 April 2017 – El Confidencial

After four years of negotiations, the French multinational Compagnie de Phalsbourg has received the definitive green light to launch its first project in Spain. And it’s going to be a giant, with a gross leasable area of more than 100,000 m2, which promises to revolutionise the nature of shopping centres in the country.

The project will comprise an Open Sky complex and The Village outlet, two concepts that the French group has decided to combine in the same space for the first time in their history. Last week, the Town Hall of Torrejón de Ardoz granted the construction licence for the former, which had already received its urbanisation permit and, just three weeks ago, ING sold the French company the adjoining plot for the development of the outlet.

With these two milestones under its belt, Compagnie de Phalsbourg has put its foot down on the accelerator to begin construction of Open Sky next month and has already started marketing The Village. The aim of these two parallel lines of action is to inaugurate the complex in time for Christmas 2018 and to bring a new shopping centre concept to Spain, with the architecture taking on a starring role, including vast green spaces and water games.

The project presents a real challenge for this area in the northeast of Madrid, which just a few weeks ago saw the rejection of another major investment that had planned for this area, Cordish’s new Eurovegas, by the President of the Community, Cristina Cifuentes. The French group’s project, on the other hand, has already received the blessing of the local administration, which will allows it to enter and compete at the height of a period of transformation in the sector, following changes of ownership and the relaunch of Plenilunio, Cuadernillos and Alcalá Magna, as well as the upcoming sale of Parque Corredor.

The new Open Sky, designed by the architect Gianni Ranaulo, will be an outdoor shopping centre, with a gross leasable area (GLA) of 80,000 m2, containing 100 stores and 3,500 parking spaces, where numerous fashion houses will sell their wares along a walkway measuring more than 1.5 km The site will also have a navigable central lake, where light and water games will be held.

New giant

50% of the retail space has already been leased to firms such as Merkal, Adidas, Reebok, Soloptical, Kiwoko, Orchestra, Druni and Movistar, and an agreement with the Inditex giant is pending confirmation. (…).

Meanwhile, The Village, an outlet designed in the style of a villa by Philippe Starck, will cover a surface area of 22,000 m2 and will house 120 stores and restaurants, and 1,500 parking spaces. (…).

With these two developments, in which Compagnie de Phalsbourg plans to invest more than €100 million, the French group is beginning its expansion plan in Spain, where it plans to spend more than €500 million launching around half a dozen new projects over the next few years.

Founded in 1989 by Philippe Journo, the French group owns assets amounting to €1,240 million, as well as shopping centres (in operation) covering 600,000 m2, and shopping centres under construction covering 350,000 m2 in France. With rental income of €72 million per year, the company focuses its activity on the development, management and sale of both shopping centres and residential complexes (…).

Original story: El Confidencial

Translation: Carmel Drake

Vía Célere Acquires 2 Plots Of Land In Madrid For €10M

6 April 2016 – El Mundo

The property developer Vía Célere has acquired two plots of land in Madrid for €10 million, where it plans to construct two new developments, according to a statement by the company.

The plots, located in the town of Móstoles and in the neighbourhood of Embajadores, have an above ground buildable area of 5,400 m2 and 4,400 m2, respectively. Similarly, the owner pointed out that both sites are well connected and benefit from good services, “which are very important factors when it comes to buying a home”.

The Chairman of Vía Célere, Juan Antonio Gómez-Pintado, highlighted that Madrid and the Community in general “has some very interesting plots of land for the construction of new homes”. Specifically, in the case of the plot in Embajadores, he said that his company has “studied the area in great detail, as it is close to another development that we are already working on and where all of the units have already been sold”. Similarly, regarding the purchase in Móstoles, they commented that the determining factors behind the sale have been “the price and the location, two of our fundamental premises for the construction of new homes”.

Currently, Vía Célere owns seven property developments that have been completely sold out, one that is under construction and one that is pending delivery, but also sold completely and one with units still for sale, which is very close to the Méndez Álvaro area, called Residential Célere Adelgas II (pictured above). In addition, the property developer is hoping to launch three new projects within the next few months.

Original story: El Mundo

Translation: Carmel Drake

Merlin Invests €153M In 5 “Express” Operations

2 October 2015 – Expansión

Following its purchase of Testa, the Socimi has purchased several logistics assets and 50% of a shopping centre in Madrid.

The Socimi Merlin Properties is continuing to grow its real estate portfolio. Yesterday, the company announced the completion of five new operations, with a total investment volume of €153.1 million.

The assets include five logistics warehouses located in Madrid and Guadalajara and 50% of the Arturo Soria Plaza shopping centre, also located in the capital. To obtain this stake in the Madrilenian property, Merlin has acquired the company Obraser, administered by Joaquín Molpeceres, for €34.8 million. The remaining 50% of the shopping centre, which has a surface area of 6,965 m2, is controlled by Acciona Inmobiliaria. The chain Sánchez Romero is the owner of the supermarket for which the property is renowned.

Logistics assets

In a second operation, Merlin has purchased three logistics warehouses located in Cabanillas del Campo (Guadalajara). The assets, which have a total gross leasable area (GLA) of more than 103,000 m2, are still under construction and are due for completion at the end of 2016. Merlin will pay €46.6 million for these warehouses.

Meanwhile, Merlin has also acquired two other warehouses, in the Gavilanes industrial estate, in Getafe, for €28.1 million. Those properties are also under construction. Finally, the Socimi has completed the purchase of a logistics platform in Los Olivos, also in Getafe, which is rented to Gefco. Merlin has paid €11 million for this platform, which has a surface area of 11,488 m2.

These are the first purchases that the Socimi, led by Ismael Clemente, has made since it reached an agreement with Sacyr to purchase its real estate subsidiary Testa for €1,793 million. To complete that acquisition, Merlin Properties launched a capital increase of €1,034 million.

Months earlier, in May, it completed another capital increase, amounting to €614 million, to raise finance to purchase new assets.

Prior to this operation, Merlin had a portfolio worth €5,616 million, including €3,202 million from Testa, in which it now holds a 77% stake.

Merlin’s shares closed at €10.65 per share on the stock exchange yesterday, taking its market capitalisation to €3,440.3 million.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

CTH Capital Awarded ‘Golf Hills Village’ Complex In Estepona

21 January 2015 – El Mundo

The complex has 152 homes, with a total surface area of 14,762 square metres.

It is a particularly attractive asset for international developers and investors.

The company CTH Capital has been awarded the residential complex Golf Hills Village through an auction organised by the property consultant BNP Paribas Real Estate. The property, located in Estepona, in the area known as Selwo, has 152 newly built homes. In total, the above ground surface area occupies 14,762 square metres.

“Transactions such as this one highlight the growing interest in the Spanish real estate sector from international investors. In this sense, the Costa del Sol has a clear advantage since it is a landmark tourist destination and also benefits from high quality infrastructure”, says CBRE, a company that advised CTH Capital in its purchase of the complex.

The auction was conducted through sealed bids in the presence of a notary and had the distinction of being the first in Spain of an asset under construction. Nevertheless, the building work at the complex is in the advanced phase, with more than 95% of the basic project now complete.

An attractive asset for international investors

“As we explained during the presentation of the auction, the characteristics of this asset made it particularly attractive for international developers and investors, which has been proven at the close”, says Irene Valbuena, Head of Auctions at BNP Paribas Real Estate. “Furthermore, the transaction confirms the interest of international investors in Spanish assets and shows how they are adopting value-added strategies to enter into our market, such as in this case, where the construction work still needs to be completed”.

CTH Capital is dedicated to the management and investment of real estate, and is based in London, UK. The company specialises in direct investments with a special focus on investments in hotels and second homes.

CTH Capital has made its investment under a joint venture with the property developer and constructor, JAMSA, which has more than 40 years of experience developing property in Spain and overseas (Dominican Republic, Florida, Romania).

Original story: El Mundo

Translation: Carmel Drake