A Blow to Sevilla’s Retail Sector: Plans for Alcora Shopping Centre Cancelled

21 September 2018 – Eje Prime

Sevilla has lost one of its major post-crisis commercial projects. In the end, the Alcora shopping centre, promoted by Grupo Tremon, is not going to open its doors, even though its construction was announced in 2014 with a planned investment of €167 million, according to reports from Europa Press.

The plots on which the shopping centre was going to be constructed, which have a combined surface area of 23,000 m2, are located next to the headquarters of Canal Sur TV in San Juan de Aznalfarache. The plan envisaged by Grupo Tremon involved a 3-storey building plus two levels of underground parking with capacity for 1,300 vehicles.

In 2014, the plenary of the Sevillan town hall approved a modification to the urban regulations so that the work for the construction of the complex, located on the Aljarafe cornice, could be undertaken. The views over the Guadalquivir and Sevilla were going to take centre stage in Alcora, which envisaged a large square with a lookout over the Sevillan capital.

Tough competition

Nevertheless, the collapse of this commercial project contrasts with the good times that the commercial sector is experiencing in Sevilla. The imminent opening of Torre Sevilla (the fifth tallest building in Spain after the iconic Cuatro Torres in Madrid) by CaixaBank, will be followed in the spring by the Lagoh shopping centre, Grupo Lar’s big gamble in the Sevillan retail sector.

This latter complex (initially called Palmas Altas) is going to become the largest commercial space in the city, with a surface area of more than 100,000 m2. The investment in this project by Lar España will amount to €250 million.

Original story: Eje Prime

Translation: Carmel Drake

OHL Pre-Sells Half of the Luxury Apartments in Canalejas

28 December 2017 – El Independiente

The pre-sales of luxury apartments in the Madrilenian Canalejas complex, the only one in Spain – and one of just a few in Europe – to be serviced by the hotel chain Four Seasons, is going from strength to strength. Knight Frank and Colliers, the two firms that have been exclusively appointed to manage their sale, have already placed almost half of the homes with their contacts and clients during the private launch, in other words, before the For Sale sign has been officially put up, according to sources speaking to El Independiente.

Even the penthouse, the jewel in the crown of the building promoted by Juan Miguel Villar Mir, together with his construction firm OHL, has an owner: a European millionaire, who is going to pay more than €9 million for a 500 m2  home in one of the most iconic areas of Madrid.

To date, most of the homes on this block of prime Madrilenian real estate in Canalejas – next to the Puerta del Sol – have been sold to wealthy Spanish families even though, initially, they were expected to attract interest from foreign millionaires, specifically, Latin Americans. “Wealthy families from Latin America prefer the traditional and exclusive Salamanca neighbourhood, whilst Spaniards are more interested this concept, which is going to revolutionise the centre of Madrid”, explain sources in the real estate sector.

The 22 most expensive new build homes currently available in Madrid have a minimum surface area of 130 m2 and a minimum asking price of €2.5 million, which means that buyers paying more than €13,000/m2. The combined value of all of the homes amounts to around €90 million.

The apartments are located on the 5th, 6th, 7th and 8th floors of the Canalejas Complex, have between one and three bedrooms each, have independent access (as well as through the Four Seasons hotel) and will be handed over completely finished and equipped, with the exception of furniture.

The homes form part of a complex that comprises seven historical buildings, which in recent decades housed the former headquarters of Banesto, Central Hispano and Zaragozano.

For the time being, most of the homes have been reserved by Spanish millionaires.

The complex spans a surface area of 50,000 m2 in total and in addition to the twenty homes, is going to house a five-star Four Seasons hotel with 200 rooms, an underground parking lot with 400 spaces, a retail outlet for bank use and a 15,000 m2 shopping arcade.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

El Corte Inglés Should Receive Approval for Madrid Mega-Centre in March

23 December 2017 – Expansión

Three years have passed since El Corte Inglés acquired the most sought-after plot of land in Madrid, a space measuring 13,000 m2, located on Paseo de la Castellana. The group paid €136 million to be awarded the land, previously owned by Adif, in a deal that involved an initial payment of €68 million, followed by the disbursement of the remaining amount three years later. And that is also how long it has taken for El Corte Inglés to process the paperwork to allow it to expand the jewel in its crown, its Castellana shopping centre. According to sources familiar with the process, in January, the Town Hall of Madrid will submit its approval of the definitive plan to the central Spanish Government (…). According to the same sources, if all goes according to plan, El Corte Inglés will receive the green light to expand its Castellana megacentre in March, or, in any case, before the summer.

A complex project

The wait of more than three years to unblock the project has been due to a mix of complexity and bad luck. The urban planning proposal for the land established a total buildable surface area of 35,192 m2, of which 10,176 m2 corresponded to three above-ground storeys for tertiary use and 25,000 m2 to four underground basement floors for parking.

This proposal was very complex given the location of the land, located as it is, right on top of the Nuevos Ministerios Metro and Renfe stations (…).

Once it has been given the green light, it is likely that El Corte Inglés, which declined to comment, will not take long to start the building work to expand its Castellana centre. Its flagship store in the Spanish capital spans a surface area of more than 170,000 m2, with 70,000 m2 of retail space spread over seven floors and 1,600 underground parking spaces. More than 3,000 people work there.

According to sources in the sector, El Corte Inglés will also take the opportunity (of the construction of the new building) to reorganise the retail space that it owns in Nuevos Ministerios, and which includes its stores located between number 83 and 85 Paseo de la Castellana, which it sold to the real estate firm Monthisa in September 2016 through a sale and leaseback agreement (…).

Premium fashion and gastronomy

The marketing and design of the new retail space that El Corte Inglés is preparing to build on the land acquired from Adif is being carried out with the utmost secrecy by the retailer, which has refused to hire real estate agents like normally happens in these types of projects (…).

The most likely course of action is that it will create a premium space to house luxury brands and the highest-level gastronomy – although that is not the only possibility that the retail chain is currently contemplating -. That would strengthen one of the main objectives of its star centre: to attract tourist shoppers in the capital (…).

Original story: Expansión (by V. Osorio and R. Ruiz)

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

Mapfre Sells Office In Madrid To GMP For €72M

7 April 2017 – Expansión

Yesterday, Mapfre agreed to sell an office building in Madrid to the real estate group GMP for €72 million. GMP will completely refurbish the property from 2018, according to a joint statement issued by the two companies.

The building, located on Calle Manuel Cortina, in the district of Chamberí, has a gross leasable area of 14,424 m2, with ten office floors and a ground floor that is used for commercial purposes. Moreover, it has three underground parking floors, with 368 parking spaces.

At the moment, the property’s main tenant is Mapfre, but the insurance firm will vacate the office floors at the end of 2017. Nevertheless, it will continue to occupy the majority of the commercial space on the ground floor over the long term.

The Director General of Business at GMP, Xabier Barrondo, highlighted that the operation “is another example of GMP’s commitment to investing in high-quality office buildings and business parks”.

Meanwhile, the Director General of Mapfre Inmuebles, Melchor García, explained that the sale “formed part of the insurance company’s policy to rotate its real estate assets and diversify its portfolio”.

Original story: Expansión (by I. García)

Translation: Carmel Drake

Inversis Puts Bancoval’s HQ In Madrid Up For Sale

7 April 2017 – Expansión

Inversis – owned by the Banca March Group – has engaged Deloitte to sell Bancoval’s headquarters – located at number 20 on the Madrilenian street Calle Fernando el Santo – , which runs perpendicular to Paseo de la Castellana, in the heart of the capital’s financial district.

The property has an above ground surface area of almost 2,700 m2 and is seven storeys tall. It also has two underground parking floors covering an additional 700 m2.

The asset is expected to be worth more than €15 million, according to market sources.

The building, constructed in 1967, was renovated in 1998 and received a special mention in the prizes for urban planning, architecture and public works from the Town Hall of Madrid in 1999, in the refurbished building category.

Moreover, the sale and purchase agreement will include a lease contract with Bancoval, which assures the buyer that the tenant will continue to occupy the property.

Investor interest

Inversis, which purchased the Royal Bank of Canada (RBC)’ Spanish subsidiary last year – and subsequently renamed it Bancoval – is taking advantage of the boom in the real estate sector and investor interest in the sector, in general, to generate some cash from the sale of a non-strategic asset. (…).

The building that houses Bancoval’s headquarters is expected to spark interest amongst the Socimis, as well as with family offices, property developers and international investors, given its excellent location (in the Almagro district) in one of the most sought-after areas of Madrid, given the shortage of prime products there.

Moreover, this building could be renovated for office or residential use given that it already has licences for both.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

AEW Purchases An Office Building In Madrid For €26M

23 February 2016 – Expansión

The real estate management company AEW Europe has acquired an office building in Madrid for around €26 million. The property is located at number 240 on Calle Serrano and was owned until now by a private investor.

The building has a surface area of 7,550 m2 and an occupancy rate of 83%, according to the consultancy firm Savills, which has advised the purchaser. The property has seven floors and contains several commercial outlets, as well as an underground car park with 70 parking spaces, a restaurant and gym.

AEW Europe intends to renovate the offices and restaurant area and incorporate new facilities. The group, which is a subsidiary of Natixis, held assets under management amounting to €18,200 million at the end of September 2015. AEW Europe employs 280 people and has nine offices throughout Europe.

Original story: Expansión

Translation: Carmel Drake

El Corte Inglés Leases Iconic Titania Building To EY

27 November 2015 – Expansión

El Corte Inglés has signed a lease contract with the consultancy firm EY, which will occupy the eleven floors of office space in its iconic building, Torre Titania. The property is located in the centre of Madrid on the site of the former Torre Windsor, which burnt down in 2005.

The tower, which forms part of the El Corte Inglés commercial complex on the Castellana, is 111m tall and has 27 floors, five of which are dedicated to underground parking, with another four used for technical aspects (lift machinery, air treatment units, fans, etc..).

The first seven floors above ground were opened in 2011 as the retail area of El Corte Inglés on the Castellana, whilst the remaining eleven floors are reserved for office use and were put on the market for both lease and sale.

According to a statement by EY on Wednesday, the new offices will house its 2,000 employees in Madrid. It added that Titania is one of the most modern and efficient buildings in the capital from an energy perspective.

The property, also known as Torre Azca, is located in the financial district of the same name, says EY, which expects the relocation of its headquarters in Spain to be completed during the first few months of 2017.

It was vital for José Luis Perelli, the President of EY in Spain, to find new headquarters for the company given the growth of its workforce, which will amount to almost 3,000 employees by the end of the year, compared with 2,300 at the end of 2014.

Original story: Expansión

Translation: Carmel Drake