Tristan Capital & Savills IM Buy 6 Office Buildings in Madrid

6 October 2018 – Real Estate Press

Tristan Capital Partners, together with its local operating partner Savills Investment Management, has acquired a portfolio of offices spanning 78,000 m2 in Madrid from the Socimi Inmobiliaria Colonial for the added value fund Episo4.

The portfolio comprises six Grade A office buildings located in established sub-markets outside of the Spanish capital’s business district: Campo de las Naciones, Josefa Valcárcel (A2) and Arroyo de la Vega (A1), as well as Agustín de Foxá, in the district of Chamartín. The portfolio offers immediate and large-scale exposure to the office market in Madrid, as well as a well-diversified tenant mix, and has the capacity of capturing an expected increase in rents.

Nikolay Velev, CEO of Tristan Capital Partners, said: “After several years of solid economic growth, job creation and a shortage of new developments, an imbalance has been generated between supply and demand in the office market in Madrid, which has resulted in a high net absorption of space and a considerable growth in rents. This trend has been particularly strong inside the M-30 and the differential in rents between offices located inside and outside the central district is now at a historical high. We hope that this gap will be reduced over time”.

The local operating partner will be Savills Investment Management with which CCP 5 LL (Tristan’s core-plus fund over the long term) successfully completed the acquisition of the Manoteras business park (Madrid) in 2017 for €103 million.

Fernando Ramírez de Haro, Head of Savills Investment Management in Spain, stated: “We are delighted to expand our relationship with Tristan through this portfolio. The buildings are of an excellent quality and are highly energy efficient. Moreover, they offer modern and flexible spaces, making them ideally positioned to capture the increase in rents and the growth that is expected to take place outside the M-30”.

Tristan Capital and Savills Investment Management have been advised by Savills Aguirre Newman, Uría Menéndez, Currie & Brown and PwC.

Original story: Real Estate Press

Translation: Carmel Drake

Several Funds Acquire/Increase their Stakes in Hispania in the Midst of Blackstone’s Takeover Bid

11 June 2018 – Expansión

Blackstone’s takeover bid for Hispania has placed the Socimi firmly on the radar of investment funds. Since April when Blackstone announced its intention to launch a public share acquisition offer (OPA) for the Spanish Socimi, there have been continuous changes in the shareholding structure.

In terms of the funds who have been active, Fidelity has continued to back the company and has strengthened its stake to 9.64%. Prior to the takeover bid, the company’s stake remained at just over 7%.

Fidelity is the second largest shareholder of Hispania, behind Blackstone, which, after purchasing the stake owned by the Hungarian-born magnate George Soros, leads Hispania’s shareholder ranking, with a 16.56% stake.

Another one of the Socimi’s shareholders that has strengthened its weight since the takeover is Axa Investment Group, which now controls 4.14% compared to 3% before the takeover bid, and Bank of Montreal and BlackRock, which currently hold stakes of around 4.1% each, compared with 3.01% and 3.3%, respectively, that they used to control.

These shareholders constitute the hardcore nucleus of the company’s owners, together with the Mexican firm Canepa, which holds almost 6% through Tamerlane, and the Brazilian family office BW Gestao de Investimentos (BWG) with 3.7%.

New shareholders

In addition to the reference shareholders who have taken positions, Blackstone’s interest in Hispania has led to new interest from other shareholders.

The Norwegian fund, through its manager Norges Bank, has appeared to acquire 1.09% of the Socimi; Man Group, one of the largest hedge funds in the world, has bought 1.27%; and Kite Lake Capital Management has purchased 1.56%.

Blackstone’s takeover bid for 100% of Hispania at a price of €17.54 per share means that it is valuing the Socimi at €1,905 million. Hispania used to have a market capitalisation of €1,903 million and its shares closed trading on Friday at a price of €17.68 per share, slightly above the takeover price.

After Blackstone launched its takeover, Hispania’s Board of Directors engaged Goldman Sachs, UBS and JPMorgan as financial advisors and Freshfields and Uría Menéndez, as legal advisors, to analyse the terms of the offer and look for alternatives.

Expressions of interest

In a conversation with analysts in May, during the presentation of the group’s results, Cristina García-Peri, Director-General of Hispania, classified Blackstone as a “plausible” buyer, but she emphasised that other investors have been “very interested” in the Socimi and its hotel portfolio.

The American investment fund’s offer, whose brochure is pending approval by Spain’s National Securities and Markets Commission (CNMV) is conditional upon obtaining at least 50% plus one of the shares in Hispania. Moreover, the takeover is subject to a clause that prevents the sale of assets for an aggregated transaction value of more than 5% of the NAV (net asset value) (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Dazia Capital Creates a Property Developer JV with French Fund Eurazeo

25 May 2018 – Expansión

The real estate group Dazia Capital and the French private equity fund Eurazeo Patrimoine have joined forces to tackle the residential sector in Spain. This alliance is being manifested in the launch of the joint venture Dazeo.

With a time horizon of three years, Dazeo will have an investment fund from Eurzaeo amounting to €70 million to undertake acquisitions in Madrid, Barcelona, Valencia, the Costa del Sol and other urban nuclei in Spain. The joint venture, controlled by Eurazeo, will achieve a business volume of up to €250 million, according to the forecasts. The agreement has been advised by Montalbán, Cuatrecasas and Uría Menéndez.

Dazeo has been created with a portfolio comprising three buildings in Madrid on Calles Alcalá, Santa Engracia and Santa Isabel. The entity is going to begin a new build project soon in the capital’s Salamanca neighbourhood, which will comprise 23 luxury homes with gardens, a garage and a gym.

Dazia Capital will be responsible for managing the projects from the acquisition through to the development and subsequent sale of the homes with Dayra Homes, its promoter brand.

It is not the first time that Dazia has reached a such an agreement to grow and boost its business, focusing on the residential market in urban nuclei, where last year it accumulated an investment of €185 million.

In 2017, it signed an agreement with the British fund Chenavari. Over the last four years, it has acquired buildings and land with a surface area of 86,000 m2 and 500 homes in Madrid and Costa del Sol.

Daniel Mazín (pictured above) is the CEO of Dazia Capital.

Original story: Expansión (by Elisa Del Pozo)

Translation: Carmel Drake

Cerquia’s Directors Launch New Hotel Development Company: Xpandia

14 February 2018 – Eje Prime

The managers of Cerquia have set their sights on achieving five stars. Carlos Cercadillo, Javier Pérez Picallo and Jesús Salinero, all senior members of the Spanish company, have teamed up with a group of investors to leap into the hotel sector. The executives have launched Xpandia Projects, a company specialising in hotel development with a focus on Spain and Portugal, according to Pérez Picallo, CEO of Cerquia, speaking to Eje Prime.

Picallo will be in charge of the new project, although he will also continue in his position at Cerquia, as will Cercadillo, who is the President of the company and Salinero, who leads the expansion department.

“The hotels will be urban properties and they will be handed over turnkey-style to the operators”, explains the CEO of the company (…). The objective of the property developer is to hand over 800 rooms over the next three years. For the time being, the company is going to work on three projects, two in Lisbon and one in Valencia. The latter, located on Calle Guillem de Gastro, is on the verge of being granted its licence, with the aim of being completed and ready for delivery in 2020. In the case of the Portuguese assets, the delivery will take place in 2018 and 2019, respectively. In total, these three hotels will place 386 rooms on the market. Some of the major operators for which the firm is going to work include groups such as Accor, Iberostar, Hotusa, Vincci and B&B.

The development of the assets will be undertaken through both the renovation of buildings, as well as the construction of new build properties. The first project in Valencia and one of the projects in Lisbon involve the complete renovation of two properties. In addition, during this first phase, the company has pre-agreements to develop hotels in Madrid, Valencia, Alicante, Sevilla, Málaga, Bilbao and Donostia.

Xpandia is not planning to accumulate assets itself. “We will not hold onto the assets, instead we will sell them to investors who will operate them after we complete the building work”, explains Picallo, adding that “in some cases, we will hand over the hotels completely decorated and furnished”. The only hotel that the new company will own is a property in Lisbon, currently owned by Cerquia, which will be transferred from one portfolio to another. Despite the obvious synergies between the group and the property developer, “this is a project that will operate outside of Cerquia”, said its CEO.

The property developer will work on all stages of the projects from the location and selection of the properties to the drafting of the technical plans and the organisation of the construction work. Location wise, the properties will always “be in cities, primarily in central areas, to respond to the tourist interest that operators demand”, says Picallo. The property developer will study 100 potential projects per year.

The company is not going to work in Barcelona for the time being. Although the Catalan capital is the most touristic city in Spain, the property developer considers that “there is too much uncertainty around obtaining hotel licences in the city” (…).

During this first phase, the hotel operators that Xpandia is working with are expected to invest around €30 million. The hotels that the company is going to develop will be 3- and 4-star properties.

The group driving the project, Cerquia, is a company dedicated to the management and operation of its own real estate assets. The company, created in 2006, has offices, hotels and homes for rent in a portfolio that spans a surface area of approximately 20,000 m2 in the office sector alone across the Iberian Peninsula.

The firm’s clients include companies such as Banco Santander, Uria Menéndez, Garrigues, Catalana Occidente, Hoteles Vincci,  Bausch & Lomb, Intermoney, Worx, Lycamobile and Shine Ibérica, amongst others. For 2018, the group’s roadmap is to maintain its activity and continue with the progress of its three residential developments.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Onix Capital Buys Former ‘Páginas Amarillas’ HQ In Madrid

21 November 2017 – Expansión

The firm Onix Capital, in which several wealthy South American families own a stake, has reached an agreement with the former owners of the company to purchase the building, located on Avenida de Manoteras in Madrid.

Another office building in Madrid has changed hands. In this case, the star is a property located on Avenida de Manoteras, in the north of the capital, which, until just a few days ago, was home to the corporate headquarters of Páginas Amarillas (the Yellow Pages) in Spain.

The building used to be owned by the fund Hibu Connect, which sold the company that created the famous yellow coloured telephone directory in May (it now specialises in advising SMEs) to the firms Metric Capital Partners and Evolvere Capital. Following that corporate operation, the owners held onto the property, but they have sold it to a new owner six months on.

The architect of the purchase has been the firm Onix Capital Partners. “We are a group specialising in the real estate sector, with 30 years of experience in Argentina”, explained Martín Kielmanowicz, Vice-President of Onix Capital Partners. Our investors are Latin American families, above all from Argentina, and institutional groups (…).

In fact, the Páginas Amarillas building is the third purchase that this group of investors has made in Spain. Its first operation involved the acquisition of Edificio Montepríncipe, located next to Santander’s Ciudad Financiera, in Boadilla del Monte (Madrid). For that property, which is leased to the financial institution to house its IT services, Onix paid almost €80 million. Last year, the investor group also reached an agreement with Allegra Holding, the investment arm of the Losantos family, to purchase HP’s headquarters in Las Rozas.

“At the beginning, we focused on core properties, with long-term lease contracts and good tenants but, with such intense competition for those kinds of assets, we have now branched out to look at new options”, explained Kielmanowicz.

In this way, the Páginas Amarillas building appeared on the firm’s radar. It is one of the most well-recognised properties in the area thanks to its original design. Its surface area spans 12,000 m2 and it has 200 parking spaces. “The property is currently spread over five floors, but following the renovation, we hope to increase the height and extend the space to 13,000 m2”, said the Vice-President of Onix.

Following the completion of the purchase last week, the employees of Páginas Amarillas have now left the property, which will be renovated in its entirety to attract a new tenant. To this end, the Argentinian manager has engaged the architecture studio B720 Fermín Vázquez Arquitectos, which will take care of the complete refit of the building (…).

The renovation of the property will begin before the end of the year, with the aim of putting it on the market at the beginning of 2019. Onix will invest €35 million in total on the purchase and the renovation (…). “Behind the investment are five Latin American families and the Onix management team also holds a percentage stake”, he added.

The firms JLL, Knight Frank, Baker Mckenzie and Uría Menéndez have all participated as advisors to the operation.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

AEW Europe Buys Mercado Fuencarral For €50M

15 August 2017 – Mis Locales

The real estate asset manager, AEW, has purchased the property from the fund ASG for €50 million. It is the company’s fourth operation in Madrid after it purchased commercial premises and offices on Calle Serrano. It closed the other operation in Alcobendas, with the purchase of the Amura building.

The operation has been advised by ASG Iberia Advisors, CBRE and Uría Menéndez on the sell-side, whilst Herbert Smith Freehills has advised AEW Europe.

The company says that its strategy is focused on creating a portfolio of high-quality, profitable retail assets, which are well-located within Europe’s main urban centres.

The property in question will have a new tenant, the sports clothing and accessories firm Decathlon. As such, Decathlon will have two stores on Calle Fuencarral, given that last year, it opened a shop at number 147, near Quevedo, with a surface area of 145 m2.

Original story: Mis Locales

Translation: Carmel Drake

 

Hispania Commissions Block Sale Of Entire Office Portfolio

3 May 2017 – Mis Oficinas

According to elconfidencial.es, Hispania’s portfolio is worth €521 million, excluding one building measuring 4,800 m2, which is currently being refurbished and which will be sold separately to the law firm Uría Menéndez for its headquarters. The directors of the Socimi have held meetings with the major real estate consultancy firms with the aim of closing the agreement and commencing the sale.

The newspaper reports that during the course of this week, the main consultancy firms that operate in Spain, such as CBRE, Aguirre Newman and Cushman & Wakefield, have submitted their proposals to be awarded the project.

The Socimi has decided to focus solely on its hotel business, and whereby divest all of its homes and offices. The company hopes to sell its 26 office buildings, which have a total surface are of 181,945 m2, before July. Most of the offices are located in Madrid (78%), followed by Barcelona (20%) and Málaga (2%). In addition, the entity has 754 homes to sell.

With this project, Hispania will be able to return to its investors a large part of the €1,118 million that was entrusted to its manager Azora, thanks to whom a portfolio worth more than €2,000 million has been created. Despite having received several offers for various assets, the company has opted to sell the assets in a block, to allow it to obtain profits more quickly and to be able to return its contributions with the agreed interest amounts.

Original story: Mis Oficinas

Translation: Carmel Drake

Altamira Buys Oitante’s Servicer In Portugal

5 April 2017 – La Vanguardia

Altamira Asset Management and Oitante, the company created to manage Banif’s assets, have agreed to purchase the business unit responsible for managing the latter’s real estate assets and loans (the servicer) in Portugal.

The new servicer will initially manage real estate and financial assets worth more than €1,500 million, according to a statement issued by the manager, which currently has assets under management worth more than €50,000 million.

The manager indicated that the operation has been structured in such a way that ensures “significant” financial support, but it did not reveal any more details.

Alantra acted as the financial advisor to the operation, whilst Linklaters advised Oitante on the legal side and Uría Menéndez-Proença de Carvalho advised Altamira

Original story: La Vanguardia

Translation: Carmel Drake

Axiare Raises €144M In Financing To Fund New Acquisitions

23 December 2016 – Expansión

Axiare Patrimonio has closed four financing agreements, with ING, CaixaBank and BBVA, amounting to €144 million. The Socimi led by Luis López de Herrera-Oria has said that it will allocate these resources to new acquisitions and the active management of its real estate portfolio.

These loans have an average term of 7.3 years; an average total financing cost of 1.5%; and 95% of the principal will be repaid on maturity, according to the firm. Axiare also highlighted that the agreements do not stipulate any penalties in the event of early cancelation. They raise the company’s gross leverage ratio to 44%.

Since its creation in July 2014, the Socimi, which focuses on offices and logistics, has closed financing agreements amounting to €538 million.

For these operations, Axiare Patrimonio has been advised by Gómez-Acebo y Pombo.

ING Bank has been advised by Hogan Lovells; CaixaBank by Uría Menéndez; and BBVA has used its own internal legal experts.

The CEO of Axiare Patrimonio, Luis López de Herrera-Oria, has said that these financing agreements reflect “the quality of the current portfolio and the trust in our management team”. “These agreements are further proof that Axiare Patrimonio remains firmly committed to fulfilling its business plan. We are approaching the end of 2016 with a very good outlook”, said the director.

Axiare has been very active in recent months. The Socimi’s assets are worth around €1,230 million and it has invested €275 million in total during 2016.

Original story: Expansión (by R.Arroyo)

Translation: Carmel Drake