Domo Gestora Invests €33M to Build c. 100 Homes in Tres Cantos (Madrid)

27 April 2018 – Eje Prime

New challenges lie ahead for Domo Gestora. The property developer has just acquired a new plot of land in Madrid on which it will build around one hundred homes in Tres Cantos, according to sources at the group speaking to Eje Prime. The real estate manager, which specialises in housing cooperatives and delegated management, is going to invest €33 million in this development.

Domo is going to manage the project after one of its cooperatives acquired the plot where it is going to build the development. It will consist of 101 apartments in a gated community with a swimming pool and common areas, whose quality stands out due to the proposals in terms of efficiency, sustainability, child safety and accessibility. Construction work is expected to start in June and all of the homes are expected to be handed over in the middle of 2020.

Domo Gestora is currently operating in the market with a dozen developments. In Madrid, where the group has already handed over more than 500 apartments, the company has 700 homes under development, whilst in Guadalajara, Badajoz, Málaga and Granada, it has 81, 26, 23 and 24 homes under construction.

The most noteworthy developments include one located on Paseo de la Castellana, where Domo is building around twenty terraced homes and one located on Calle Raimundo Fernández Villaverde, which is going to comprise 334 homes.

In addition to the homes under construction, the company has also handed over more than 500 homes in recent years, located in places such as Valdebebas, where it has built 200 apartments; Vallecas, with around fifteen family homes; and Arroyomolinos, with a development of 43 family homes, amongst others.

In total, since Domo Gestora has been active, it has built more than 200,000 m2 of properties, handed over around 1,000 homes and managed more than 2,000 assets. Domo has also managed more than €108 million of contracted work and has accessed more than €300 million of financing.

Domo Activos, the Socimi

In addition to its core business, Domo Gestora has also had to focus on its Socimi in recent months. Last year, the company launched the first property developer Socimi dedicated to medium-sized investors. The business model of Domo Activos involves the acquisition of land for the development of buildings destined for rent, which are then sold off after three years of ownership.

The return on that project, once the divestments have been made could reach 10% per annum, according to the company’s estimates. Until the home is sold and for the period that the building is leased, investors receive the profit resulting from the rental income in the form of a dividend.

Currently, the largest project being promoted by Domo Activos is the development that it is constructing in Madrid, in El Ensanche de Vallecas. This building is going to comprise eighty rental homes, according to explanations from the group.

The next steps for the group are to look for new land on which to build more homes under its Socimi. The company has already identified opportunities in Spain and is now hoping to increase its financial muscle in order to carry out the purchase of the new land through a capital increase of up to €15 million. Domo Activos is going to focus these acquisitions on Madrid, Málaga and Valencia, in the first instance, but is also on the lookout for plots in Sevilla, Córdoba, Granada and Zaragoza.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Trinitario Casanova Invests €15M in a Logistics Platform in Barcelona

21 February 2017 – Expansión

Through the Baraka Group, the Murcian businessman has purchased a plot of land measuring more than 30,000 m2 from Consum, where it is going to build a logistics warehouse.

The construction group Baraka, controlled by the well-known businessman Trinitario Casanova, has completed the purchase of a plot of land dedicated to logistics-industrial use, located in the municipality of Sant Esteve Sesrovires, in Barcelona.

The land, owned until now by the Consum group, spans 30,665 m3; and Baraka is going to build a 19,213 m2 complex on the site, split into modules of around 6,000 m2, with the aim of leasing them to three operators, said the company. Currently, Baraka is negotiating with two companies interested in the project, say sources at the group, speaking to Expansión.

Sources at the company highlight the location of the future platform in the “strategic enclave of the Can Estella industrial estate, located next to the A-2 and AP-7 motorways, which connect the Mediterranean Arc with Barcelona, the main traffic route from Europe through the Mediterranean and Pyrenees, with Madrid”.

In total, Baraka is going to invest €15 million in this project.

In parallel to this industrial project, Baraka is working on the marketing of the commercial area of Edificio España, the property that it acquired last June from the Chinese Wanda Group, only to immediately sell it onto RIU Hotels.

In addition to the Edificio España operation, Casanova acquired a building on c/Preciados 13, also in Madrid, as well as the adjacent building, which houses the Carlos V Hotel. In the case of c/Preciados 13, Baraka has teamed up with the real estate group Hines, which is acting as the financial partner, whilst the Spanish firm is taking care of the building work and the search for a new tenant.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Lar España Secures Financing To Build Vidanova Parc Shopping Centre

22 September 2017 – Observatorio Inmobiliario

Lar España Real Estate has signed an agreement for the financing of the Vidanova Parc shopping centre located in Sagunto (Valencia). Under the terms of the contract, CaixaBank has granted the Socimi a €24 million loan to fund the construction of the shopping centre.

Building work on the shopping centre started in August last year, once the necessary preliminary phases had been completed to clean, prepare and urbanise the land. Vidanova Parc is expected to open its doors during the first half of 2018. The shopping centre will have a surface area of 120,000 m2, of which 44,252 m2 will be dedicated to retail and leisure. The centre will also have a car park with space for more than 2,300 vehicles.

Lar España says that more than 85% (of the space) at Vidanova Parc has already been leased. Specifically, the shopping centre’s future tenants include Leroy Merlin, Decathlon, C&A, Worten, Norauto, Burger King, Fifty Factory, Yelmo Cines and Urban Planet, along with another 30 brands to complement the food, sport, DIY, fashion, entertainment and leisure offering.

Sergio Criado, CFO at Lar España, highlighted his “satisfaction at having secured this new financing agreement, which is one of several to have been signed over the last few months, and which demonstrates the appeal of Lar España’s properties. In the case of Vidanova Parc, it also represents support for what is going to be one of the most important shopping centres in the region”.

Lar España’s investment in the project will amount to €53 million in total, in addition to the €40 million that the operators moving into the shopping centre are planning to invest. The complex will generate 1,000 jobs in total, split between direct and indirect roles, and the construction phase will create another 200 jobs.

Lar España Real Estate currently owns 31 real estate assets, whose value amounts to €1,448.2 million, of which €1,040.8 million corresponds to shopping centres, €178.6 million to office buildings, €83.3 million to logistics assets and €145.4 million to assets under construction, such as Vidanova Parc.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Neinor Homes Buys A Land Portfolio In Málaga For €68M

5 September 2017 – Press Release

Yesterday, Neinor closed a portfolio transaction comprising 6 of the most sought-after plots in Málaga; planning permission has already been granted for all of them. The plots are suitable for the development of more than 800 units and are expected to generate a projected gross margin of 27%, well above the Company’s target. The sites are located in Colinas del Limonar, a high-end residential area focused mainly on Spanish buyers and in Hacienda Cabello, a residential area close to the University of Málaga.

With this deal, Neinor’s total acquisitions since January now amount to €226 million, and as such it has already fulfilled 100% of its target for 2017 and 14% of its target for 2018, reflecting the Company’s commitment to harnessing the momentum in the market.

This transaction is the first to be funded using the JP Morgan bridge loan announced last week

Neinor Homes is the market leader in the residential segment in Málaga, where it owns more than 29 sites suitable for the development of more than 2,300 dwellings.

The Company has also just announced the launch of a new Eastern Andalusia Region team, which will be managed from the new Malaga office, led by Ignacio Peinado who is joining the Company.

Original story: Press Release

Edited by: Carmel Drake

Merlin Wants 20% Of Its Income To Come From Logistics Assets

9 May 2017 – Cadena de Suministro

The Socimi has set itself the objective of generating 20% of its revenues from the logistics sector.

The real estate logistics sector has become one of the key markets for Merlin Properties. Being the largest company in Spain in terms of logistics assets is not sufficient for the Socimi. It has set itself the ambitious objective of doubling its logistics stock to achieve 3,000,000 m2 in assets over the next few years.

This challenge comes in response to a larger goal that forms part of the company’s business plan: it wants the rental income from its logistics assets to account for 20% of its total revenues. Given that the Socimi’s current revenues from rental income amount to around €500 million per annum, the plan means that it will have to generate approximately €100 million from its logistics space.

At least that is according to the CEO of Merlin Properties, Ismael Clemente, speaking during the inauguration of the Cabanillas del Campo platform in Guadalajara, the largest logistics development to have been built in Spain since 2007.

In 2016, the company owned 34 logistics assets, with a surface area of 755,000 m2, which generated rental income of €33 million, which represented 7% of the total rental income for the year. If we add the €7.8 million that will be generated from the rental payments at Cabanillas, the Socimi’s current rental income accounts for around 10% of the total.

Commitment to stay

Clemente highlighted the Socimi’s commitment to stay in the logistics market, which allows it to offer “greater security” to its tenants by establishing “long-lasting relationships” and by “tailoring its facilities to suit them”. Since we have “no intention of rotating these assets”, the Socimi is able to commit itself to its clients “as much as necessary”.

In a statement to, the CEO said that the 3,000,000 m2 of logistics assets, that the Socimi wants, represents a “viable and feasible” objective. The large portfolio of land that the company owns in areas with high levels of logistics activity in Sevilla and Barcelona, together with land in Lisbon, will facilitate the achievement of this objective.

325,000 m2 under development

For the time being, the Socimi has 1,656,000 m2 of logistics space on the Iberian Peninsula, of which 921,000 m2 relate to own assets, 414,000 m2 correspond to its stake in the ZAL de Barcelona and 325,000 m2 is under development. The Socimi also owns a portfolio of land amounting to 880,000 m2.

All of the warehouses that are currently under development are located in the Community of Madrid, in Pinto and Gavilanes, in the A-4 Corredor and in the logistics areas of Meco, Azuqueca and San Fernando, in the heart of the Corredor del Henares.

Original story: Cadena de Suministro 

Translation: Carmel Drake