Catella Acquires a Block of Rental Homes from Domo for €25 Million

The property has a surface area of more than 15,182 square metres, distributed over 80 homes, six commercial premises, 106 parking spaces and common areas.

The fund manager Catella, through Catella Residential Investment Management and Catella Real Estate AG, has confirmed the purchase of a block of rental homes in the Madrilenian neighbourhood of Vallecas from the Socimi Domo Activos for €25.5 million, as revealed by Brainsre.news.

The Socimi announced the sale of a residential building located in the Vallecas neighbourhood of Madrid, through a statement to the MAB. The property, located on Calle Arte Figurativo, has a surface area of more than 15,182 square metres, distributed across 80 homes, six commercial premises, 106 parking spaces and common areas.

Domo Completes the Sale of a Residential Building in the Midst of Lockdown

The Socimi Domo Activos has announced the sale of a residential building located in the Vallecas neighbourhood of Madrid for €25.5 million.

The Socimi Domo Activos has announced the sale of a residential building located in the Vallecas neighbourhood of Madrid. The property, located on Calle Arte Figurativo, has a surface area of more than 15,182 square metres, distributed over 80 homes, six commercial premises, 106 parking spaces and common areas.

The asset sold is an investment project that Domo built on a plot with the aim of selling the properties to individuals. However, in February, Domo announced that it had received a binding offer for the whole property, as reported by Brainsre.news.

APG & Renta Inject Another €253M into their Socimi Vivenio

17 April 2018 – La Vanguardia

The Dutch pension fund APG is going to inject €253 million into the Socimi Vivenio, created together with Renta Corporación, which will contribute another €3 million, after the company already spent around €200 million on the purchase of residential assets in Spain.

Vivenio has recently closed the purchase of three buildings in Madrid – two located in Vallecas and another one in Aravaca – for a combined amount of €76 million, which means that it now has around 1,000 homes under management.

With these operations, the Socimi (Listed Real Estate Investment Company) has invested all of the initial committed share capital, which amounted to €130 million, and is starting a second phase, with a new capital commitment amounting to €253 million, contributed by APG for the most part.

This new capital injection will allow the Socimi to acquire new residential buildings worth up to €400 million, with the focus on Barcelona and Madrid, but without ruling out other Spanish cities, according to a statement issued today.

Vivenio was created less than a year ago and aspires to become a leading Socimi in the residential market in Spain.

The Dutch group is going to continue as the majority shareholder of this vehicle, which will make its stock market debut in 2019, and in which it currently controls around 95% of the share capital.

Renta Corporación holds a 3% stake and the remaining shares are held by minority investors.

Original story: La Vanguardia

Translation: Carmel Drake

Renta Corporación Fattens Up its Socimi with Flats Acquired through Suquía’s Bankruptcy

24 February 2018 – Voz Pópuli

The Socimi Vivenio, created by Renta Corporación and the Dutch pension fund APG, has reached an agreement with the Suquía group to acquire homes in Vallecas (Madrid) for a price of more than €13 million.

The real estate company Suquía, which is headquartered in San Sebastián and which was declared bankrupt two years ago, has recently reached a payment agreement with its creditors, the majority of which are financial institutions, to avoid the bankruptcy situation in which it is immersed.

During the negotiations to reach the agreement with its creditors, the company has made several deals to sell assets, including one with the Socimi Vivenio, which has agreed to purchase more than 100 homes located in a building on Calle Arte Pop, in the Vallecas neighbourhood of Madrid, for €13.54 million.

The agreement between Renta Corporación’s Socimi and Suquía values most of the homes at a price of less than €200,000, with the exception of the penthouses, which are reportedly worth more than €300,000. The sale agreement is pending authorisation by the judge of Mercantile Court number 1 in San Sebastián, which is in charge of Suquía’s bankruptcy proceedings, after having already requested it during the insolvency administration.

The creditors of the real estate company include Sareb, which has agreed that its mortgages on the homes that Vivenio is going to purchase may be cancelled simultaneously, as part of the bankruptcy process

Promociones Suquía was constituted in 1986, with a registered office for corporate and tax purposes in San Sebastián. It was declared bankrupt in December 2015. In 2016, according to the accounts filed by the company with the Mercantile Registry, to which this newspaper has had access through Insight View, it recorded losses of €1.8 million. The company ended that year with non-current bank debt amounting to €39.2 million and current bank debt of €8 million. Sources close to the real estate company indicate that following this agreement and the authorisation from the court, the company will continue with its property development activity in Bilbao, San Sebastián, and Madrid.

Renta Corporación, which has joined forces with the Dutch fund APG, plans to debut Vivenio on the stock market next year. The Socimi has set itself the objective of acquiring assets worth €1.5 billion in total, primarily properties in Madrid and Barcelona, with a minimum investment of €10 million.

Original story: Voz Pópuli (by Alberto Ortín)

Translation: Carmel Drake

Renta Corporación’s Socimi Will Soon Own Almost 1,000 Homes

26 October 2017 – Expansión

€170 million / The vehicle has acquired three buildings already and is currently finalising the acquisition of another three, all in the Madrid area.

Renta Corporación’s Socimi, created in April together with the Dutch pension fund APG, has already invested €75 million in the purchase of residential buildings and is preparing to spend another €95 million on three operations that it plans to close within the next month, in the areas of Aravaca, Vallecas and Alcorcón (Madrid). In total, in just over six months, the entity will have purchased six buildings, all in the Madrid area, containing 986 homes and with an occupancy rate of 90%.

The aim of the Socimi, which has been baptised with the temporary name Rembrandt and which will be renamed over the next few months, is to acquire residential buildings located primarily in Madrid and Barcelona, but, occasionally, in other Spanish cities. “All of the operations have been closed in Madrid so far, but that is down to chance, not design”, said the CEO of Renta Corporación, David Vila, yesterday, who assured the market that “(its choice of investment location to date) has nothing to do with the political conflict”, but rather with the smaller size of the market in Barcelona and the greater complexity involved in finding assets for sale.

The Socimi, in which APG owns a 97% stake and Renta Corporación holds the remaining 3% stake, is managed by the latter. The vehicle has committed capital of €130 million and plans to undertake acquisitions in the short term amounting to €250 million. Within two years, when the Socimi plans to make its stock market debut, it expects to have invested more than €1,000 million in properties.

The assets that it has already acquired include a complex of 156 homes in Aravaca (Madrid). The Socimi spent €50 million on the asset, which had an occupancy rate of 51%, with the intention of placing it at full capacity over the next few months.

The other two operations undertaken by Rembrandt correspond to two residential complexes in Navalcarnero and Rivas-Vaciamadrid, involving 335 rental homes, where it has spent €25 million in total.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

Carmena Is Set To Build 1,000 Rental Homes For €60M

19 September 2016 – Voz Populi

The rebirth of the real estate market will soon have a new, unusual, player in its midst: the Town Hall of Madrid. The capital’s Town Hall is getting ready to fire the starting gun for the construction of the first rental homes that it plans to build during its legislature. For the time being, it will put out to tender the construction of almost 1,000 homes, with an initial investment of more than €60 million.

Social housing was one of the key pillars of Ahora Madrid’s election campaign during the municipal elections to govern the largest town hall in Spain, which were held in 2015. For the first few months, the municipality’s new team focused on getting to know the financial circumstances of the ‘Empresa Municipal de la Vivienda y el Suelo’ (EMVS), which starred in spectacular asset sales during Ana Botella’s reign at the Town Hall, all intended to alleviate the city’s economic difficulties.

The Town Hall’s plans now include constructing 4,000 new social housing homes in Madrid before the end of its legislature. Work will begin on a quarter of them within the next few months, once the ten contracts that the mayoress’ team is currently preparing have been awarded (…).

The Town Hall’s property development activity will be launched once the role of the EMVS to contract and put homes on the market has been activated again, following the restrictions imposed on it in recent years. Previously, the company was in a very delicate financial situation due to the collapse in value of the large volumes of land that it had acquired at the end of the real estate bubble and, therefore, at exorbitant prices.

Those circumstances meant that the company had to divest assets, including packages of homes sold to vulture funds, which generated a lot of controversy, which has now been declared void in the courts and by the investigation committee created to try to determine the legal nature of the operation.

In April 2016, the Town Hall injected €17 million into the EMVS, through a capital increase, an amount that was intended to allow it to continue cancelling its debt but which, at the same time, allowed it to relaunch the public company’s construction activity. The developments are located in the district of Vallecas and in the areas of Rosilla and Nuestra Señora de los Ángeles, although the Town Hall’s also plans to construct homes in other areas of the capital too.

This is undoubtedly an unprecedented move and not only in the public sphere, but also in the private. Many real estate companies have cancelled their development plans due to the collapse of the market and the lack of demand, together with the problems generated by the large volume of empty homes in Madrid. The contracts that the Town Hall will put out to tender mean that almost 1,000 new homes will be constructed within two years of them being awarded.

Original story: Voz Populi (by Raúl Pozo)

Translation: Carmel Drake

Idealista: Rental Prices Rose By 1.8% In Madrid In Q1

8 May 2015 – El Confidencial

The property crisis; the difficulties faced by thousands of citizens when it comes to buying a home; and the havoc wreaked by evictions have all resulted in a significant boost to the (residential) rental market in Spain. Over the last seven years, many citizens and families have been forced out of the property market and, given their need or desire to become independent or start a family, their only exit has been through the home rental market.

Thus, although owned homes still win by a landslide over rented homes – 78% to 22%, i.e. a very similar level to the one seen at the end of the 1980s – the fact is that in recent years, the balance has tipped a little less towards the property side and although, many experts consider that it is unlikely that we will reach the levels seen in other parts of Europe, where rental properties account for 50% of the residential market in some countries, it is clear that something is changing. “The rental market is here to stay and not just as a lifestyle option, but also as an investment”, says Fernando Encinar, Head of Research at idealista.com.

The rental market in the Community of Madrid is showing the first signs of recovery, as too is the sale and purchase market. Similarly, some areas are sparking greater interest than others in terms of demand, which, in turn, is starting to create a certain amount of tension in terms of prices.

The differences between neighbourhoods are clear. It does not cost the same to rent a flat in the centre of the capital or in the neighbourhoods of Chamberí and Salamanca, where the price per square metre is around €14/m2 (€1,120 for an 80m2 flat) as it does in Villaverde, Carabanchel or Puente de Vallecas, where the price per square metre barely exceeds 8€ (640€ for an 80m2 flat).

These price differences are explained, in part, by the location of the homes – clearly, it does not cost the same to live in the centre of the city as it does in the suburbs – but also due to the excess supply, in places such as Carabanchel and Vallecas, and the strong demand, in areas such as Sanchinarro and Las Tablas, where the experts detect a lot of activity due to the presence of Telefónica and the future arrival of BBVA.

(….)

The tension in terms of rental prices is palpable. Madrid ended the winter with a quarterly increase in rental prices of 1.8%, taking the average price per square metre in the capital to €11.60, however, that represents a cumulative decrease of 15.8% from its record high of €13.80/m2 in 2008.

Moreover, during the first three months of the year, the increase in rental prices was generalised, with rises in almost every district in Madrid, with the exception of Villa de Vallecas and the neighbourhood of Salamanca, according to the data from idealista.com, which also reflects significant increases in the districts of Barajas (5.8%), Retiro (4.7%) and Hortaleza (3.6%).

(….)

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake