Saba Buys 800 Parking Lots from Indigo for €200M

12 December 2018 – Eje Prime

Saba is expanding in Europe. The subsidiary of CriteriaCaixa, which specialises in the acquisition and management of parking lots, has acquired 800 car parks from Indigo for €200 million. The package sold comprises 169,000 parking spaces spread over several countries across the continent, including the United Kingdom and Germany.

In addition to British and German territory, Saba has also entered Slovakia and the Czech Republic with this purchase. Those four countries join the five where the company already had a presence, namely: Spain, Italy, Portugal, Andorra and Chile. In total, the company managed 210,000 parking spaces to date.

By virtue of this operation with Indigo, which is owned by the investment fund Ardian, the Spanish company has almost doubled the size of its portfolio, which will increase to 378,000 parking spaces, distributed across 1,175 parking lots, according to Expansión.

Salvador Alemany, President of Saba, has said that the purchase of this package of alternative assets “consolidates Saba’s industrial project over the long term, giving coherence to the roadmap marked by the company with the aim of making it a first-rate international player”.

In 2017, Saba recorded revenues of €213 million, with an EBITDA of €100 million and net financial debt of €330 million.

Original story: Eje Prime

Translation: Carmel Drake

Brits Are Buying Homes On The Costa Del Sol Once Again

13 October 2017 – Inmodiario

The latest figures from the property developer Taylor Wimpey España relating to the sale of homes in urbanisations on the Costa del Sol to British citizens are encouraging. During the third quarter of the year, the number of citizens from the United Kingdom buying homes in developments such as Botanic, in the Reserva del Alcucruz, and Horizon Golf, in La Cala de Mijas, increased considerably, to make Brits the top-ranking nationality in terms of the sales made by Taylor Wimpey España.

Brits accounted for 19% of the buyers of Taylor Wimpey residential homes on the Costa del Sol, followed by Belgian citizens in second place and Swedes in third place.

For the Director of Sales and Marketing at the company in Spain, Marc Pritchard, “this data is a clear sign that citizens from the UK are continuing to choose the residential areas that Taylor Wimpey is creating when it comes to acquiring holiday homes”.

Moreover, adds Pritchard, another piece of data is noteworthy: the Brits who are buying holiday homes on the Spanish coast are very aware of sustainability and the environment and so prefer to invest a bit more in homes that fulfil those requirements (…).

This means that homes are being conceived to ensure minimum energy consumption and maximum environmental protection, through the use of solar panels, thermal insulation and maximum acoustic-protecting materials. As such, these homes have the highest energy rating in the market (“B”). In the same way, green spaces are becoming particularly important in the Botanic development, and the ecological environment of the Mediterranean pine tree wood is being further strengthened by the creation of a botanical garden for the enjoyment of all the neighbours.

These credentials that are respectful of the environment increase ownership values to 38%, according to CBRE Residencial, a company that also says that 82% of citizens from the United Kingdom are willing to pay more for a sustainable home.

The Botanic urbanisation on the Costa del Sol comprises 92 bright and spacious 3-bedroom homes, featuring large south-facing terraces. The 4-storey buildings have spacious penthouses with modern designs and spectacular solariums from where residents can enjoy the sunrise and sunset, with panoramic views over Los Arqueros Golf course, the sea and Gibraltar. The asking prices for these homes start at €365,000 (…).

Original story: Inmodiario (by Carmen Durán)

Translation: Carmel Drake

Engel & Völkers: House Prices Soar In Ibiza

21 July 2017 – Eje Prime

The real estate market in Ibiza is continuing to rise. Demand for high-end housing in Ibiza continues to significantly exceed the available supply, which has led to an increase in the prices registered on the island over the last year, according to a study prepared by the German real estate consultancy firm Engel & Völkers.

In its Ibiza Markets Report, the company explains that over the last year, it has sold homes to clients of 17 nationalities. Although most buyers on the island came from Germany, for the first time in almost ten years, Spaniards were the second largest group of house buyers.

The nationality of the other main house buyers included people from the United Kingdom, France, Switzerland, Italy and the Benelux countries. “Ibiza is still one of the favourite destinations for the international jet set and retains its leadership position in the Balearic Islands as the island with the most private flights”, say sources at the consultancy firm.

One of the most sought-after areas on the Balearic Island is the city of Ibiza and its surrounding areas. The redevelopment of the old town will be completed this year and so new luxury hotels will soon enhance the exclusivity of that area. In this sense, luxury villas measuring 350 m2 saw their prices increase by 14.2% in 2016 to reach €4 million.

Properties range from contemporary designer villas to traditional estates. The asking prices for villas measuring 350 m2 start at €3.5 million, whereby exceeding the figure of €3 million paid in 2015.

Entry prices for villas measuring around 350 m2 in very good locations rose to €2.6 million in 2016 compared to €2.5 million in 2015. “We are convinced that the growth of the real estate market will continue for the rest of the year in Ibiza”, predicted Florian Fischer, Director General of Engel & Völkers España.

The consultancy firm forecasts that the high level of demand will continue, both from domestic and international buyers, for primary and secondary residences on the Balearic Islands, primarily in the most premium segment, where the limited number of exclusive properties will lead to further price increases over the long term.

Original story: Eje Prime

Translation: Carmel Drake

British Groups Invest Heavily In Spain’s RE Sector

9 May 2017 – Expansión

The Grosvenor group is embarking on its first residential project in Spain, developing luxury homes in Madrid. It is following in the footsteps of other compatriot companies such as Intu, Taylor Wimpey and Benson Elliot.

One of the latest real estate companies to show its commitment to Spain has a history that spans 340 years. The firm in question is Grosvenor, the centuries-old British firm, which closed its first investment in the Spanish residential sector about two months ago.

The project chosen by Grosvenor for its arrival in Spain is a luxury residential development on the Golden Mile of Madrid. To this end, Grosvenor, through its subsidiary Grosvenor Europe, completed the purchase of a plot of land measuring around 820 m2, located at number 53 on Calle Jorge Juan, for the development of six exclusive apartments and one penthouse with views over the Retiro Park. (…).

Grosvenor’s operation on Jorge Juan forms part of a joint venture signed by the Asian firm Amcorp in July 2016, whereby it undertook to invest €70 million during the first phase. “We hope to build a significant real estate portfolio in Spain during 2017”, said sources at the British group, which was founded in 1677 by Sir Thomas Grosvenor, and which is nowadays one of the largest landowners in the United Kingdom.

In light of this commitment to Spain, Grosvenor, which has four divisions through which it operates in Europe, Asia, America and the United Kingdom, has strengthened its office in Madrid, led by Fátima Sáez del Cano, by hiring Miguel Silmi, who formerly served in interim roles at firms such as Altamira, owned by Banco Santander. (…).

Investment

Grosvenor’s commitment to Spain is not a unique case amongst the large British groups. “Investors from the United Kingdom have always liked the Spanish real estate market and they have invested throughout the economic cycle. For example, Heron International, which is known today for the shopping centres that it built in Madrid, Barcelona and Valencia, used to hold a significant portfolio of office buildings in Madrid, in the 1990s”, said Javier García-Mateo, Partner in Financial Advisory at Deloitte. (…).

Meanwhile, Benson Elliot has been present since 2011. That fund has just closed the purchase of the Hotel Silken Diagonal, together with the joint venture between Walton Street and Highgate. Previously, BE had purchased two other assets in Barcelona, which it has now sold. “Another British firm, London Regional, has purchased hotels and offices in Spain and has also taken advantage of the cycle to sell them at a profit”, said Rafael Bou, Partner in Real Estate at PwC.

“Having invested more than €2,147 million since 2011, British funds are the second most significant international investor in the Spanish real estate market, after the United States (…)”, according to Savills. During the first quarter of 2017, British firms have already made real estate purchases amounting to €550 million, according to Deloitte.

One example of this commitment is the return of British Land to Spain, which last year purchased the Nueva Condomina shopping centre in Murcia, and the more than €120 million that has been invested by the UK & European Investment group in operations in Madrid, Barcelona and Marbella. (…).

In addition to real estate companies and investment funds, some of the large British insurance companies are also placing their focus on the Spanish real estate sector, such as the case of Prudential and Aviva, which just closed the purchase of the Tormes shopping centre in Salamanca.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Madrid Seeks To Attract Companies Leaving UK Post-Brexit

3 May 2017 – Mis Oficinas

Madrid hopes to fill 80,000 m2 of office space following the United Kingdom’s exit from the European Union.

According to eleconomista.es, the capital of Spain is positioning itself as one of the possible destinations for companies deciding to abandon the United Kingdom due to Brexit. To this end, the Spanish real estate sector is optimistic, given that Madrid has available office space amounting to more than 60,000 m2 (thanks to buildings such as BBVA’s former headquarters) and in turn, is planning to increase the volume of office space on Paseo de la Castellana.

Spain offers a significant advantage in terms of the competitiveness of its rents, given that the costs of its offices, as well as its shared expenses, are some of the lowest in Europe, alongside Luxembourg and The Netherlands, which, due to their size, do not have sufficient office space available.

Despite this, many companies argue that Spain needs to improve its administrative arrangements if it wants to attract large businesses. According to them, the Government should accelerate the granting of licences to expedite the construction of offices and increase tax credits to facilitate the launch of companies in the country.

Spain is sixth in the ranking of the most attractive countries in the world to invest large fortunes. The ranking is led by the United Kingdom, the USA and Germany. This is the first time that Spain has featured in the Top Ten, which could influence the decision of these companies.

Original story: Mis Oficinas

Translation: Carmel Drake

CBRE: Spain Is Europe’s Sixth Largest RE Investment Market

29 November 2016 – La Vanguardia

According to data published yesterday by the real estate consultancy CBRE, Spain was the sixth largest country in the European Union for real estate investment in the tertiary sector during the nine months to September, with investment amounting to €6,438 million.

In fact, Spain accounted for 4% of the total amount invested in real estate across Europe during the 9 months to September, which amounted to €163,095 million in total, down by 16% compared to the same period last year.

The hotel sector accounted for most of the investment in Spain during the first nine months of the year; the country was third in the ranking for hotel investment in Europe.

The retail or commercial sector also performed well. It grew in Spain with respect to last year allowing the country to position itself as the fourth largest destination for retail investment in Europe.

Although the volume of investment in the tertiary sector in Spain during the first nine months of this year was lower than the figure recorded last year, the Head of Research at CBRE Spain, Lola Martínez-Brioso, thinks that it is likely that the final figure for the year will be in line with the previous two years.

All of this, she adds, does not include the operations that Merlin has completed this year, with its purchase of Testa and its merger with Metrovacesa.

As a result, the Director of the firm maintains that this data is indicative of sustainable activity, which “distances us from another potential bubble”.

Of the 28 countries in the European Union, the United Kingdom leads the ranking in terms of real estate investment, with a total investment volume of €45,915 million during the first nine months of the year.

The UK is followed by Germany (€32,700 million) and France (15,793 million). Sweden and The Netherlands are ranked in fourth and fifth places, respectively.

Nevertheless, Sweden recorded the highest increase in investment volumes (31%) compared with the same period last year, followed by Denmark, up by 21%.

Original story: La Vanguardia

Translation: Carmel Drake

Wimpey Protects Its Homes In Spain From Brexit

28 July 2016 – Expansión

The British real estate company has refinanced its property developments on the coast through the issue of bonds amounting to €100 million.

One of the consequences of the UK referendum, held on 23 June in which Britons voted in favour of Brexit (to exit the European Union), may be a decrease in the volume of house purchases on the Spanish coast by citizens of the United Kingdom, as a result of the depreciation in the pound against the euro and fears about future restrictions over the free movement of people between the two countries.

Taylor Wimpey, the real estate company that has property developments in Andalucía, Alicante and the Baleric Islands, aimed mainly at British buyers, has decided to protect itself against those risks through a debt issue in euros to “hedge its investments in Spain”.

On 28 June, just five days after the referendum, the company completed a private placement of bonds amounting to €100 million with institutional investors, secured by its Spanish assets. The securities pay annual interest of 2.02% and are due to mature in June 2023.

According to market sources, this operation seeks to refinance in euros Taylor Wimpey’s debt associated with its assets in Spain, which amount to €168 million. By having the assets and debt of its Spanish subsidiary denominated in the same currency, the group’s balance sheet is more stable in the face of possible fluctuations in exchange rates in the future.

Currently, Taylor Wimpey has several property developments underway along the Spanish coast, where it has already committed to sell 399 homes.

During the first half of 2016, the firm completed the sale of 53 homes in Spain, at an average price of €342,000. Interestingly, one of these property buyers was Pete Redfern, the CEO of Taylor Wimpey. The chief executive of the group acquired two houses from the Spanish subsidiary, one for €278,000 and the other for €350,250. According to the company, the first home was sold at market price, whilst the other was purchased by Redfern taking advantage of the discount plan offered to employees “under the same terms offered to all other staff”.

Taylor Wimpey’s revenue in Spain between January and June amounted to GBP 14.8 million (€17.6 million), generating an operating profit of GBP 0.3 million. “We hope to continue making progress in the Spanish market during the rest of the year, given the strength of our order book” said the group. “Looking further ahead, we remain cautiously optimistic, given the potential implications of the macroeconomic environment in Europe”.

The company, which besides its business on the Spanish coast, is heavily focused on the United Kingdom, recorded revenues of GBP 1,457 million during H1 2016, up by 9.1%. At the results presentation yesterday, Redfern said that Brexit had not yet affected the group’s sales in the British market.

Original story: Expansión (by Roberto Casado)

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