Colonial Buys the Egeo Building in Madrid from Lar España for €79.3M

17 January 2018 – Eje Prime

Colonial is continuing to add assets to its portfolio. To this end, the Socimi has just purchased the Egeo building in Madrid from Lar España for €79.3 million, according to a report filed on Wednesday with the National Securities and Markets Commission (CNMV). The Egeo building has a surface area of 18,254 m2, spread over six above-ground floors, as well as almost 400 parking spaces.

Lar is whereby pushing ahead with the asset rotation plan that it announced last year, by divesting those properties that it considers non-strategic properties and whose value-creation plan it has completed, in order to invest in strategic assets, such as shopping centres and retail parks.

Lar España has highlighted that the active management of this latest property, with the incorporation of tenants such as Giorgo Armani and the renovation of Ineco’s contract, as well as investments to improve the efficiency and undertake renovation work, which allowed it to obtain the Breeam quality certificate, have increased the value and potential of the building.

This is the second divestment that Lar España has undertaken after announcing in September the sale of its office building on Calle Arturo Soria in Madrid for €32.5 million, also to Inmobiliaria Colonial.

Original story: Eje Prime

Translation: Carmel Drake

Ministry of Development: Urban Land Prices Rose By 11.7% In Q2

25 September 2017 – Eje Prime

The average price of urban land is continuing to soar quarter after quarter. The average price rose by 11.7% in cities with more than 50,000 inhabitants during the second quarter of 2017, according to statistics from the Ministry of Development. This increase means that the price of such land now stands at €326.3, the highest level since Q3 2015 (€331.1).

At the national level, average urban land prices have risen by 1.8%, to €166.4. With respect to the first quarter, the QoQ variation was slightly negative, with a decrease of 0.7%.

The highest average prices were recorded in the provinces of Granada (€510/m2); Barcelona (€491.5/m2) and the Balearic Islands (€321.5/m2). The lowest prices were observed in the provinces of Albacete, Ourense and Tarragona (€60/m2, €117.6/m2 and €130.6/m2, respectively).

Meanwhile, the number of transactions undertaken during the second quarter of 2017 amounted to 5,998, up by 36.3% compared to Q1 2017, when they amounted to 4,401, and up by 35.2% compared to Q2 2016, when 4,435 plots were sold.

In total, the total surface area sold during the second quarter of 2017 amounted to 7.2 million m2, for a total value of €1,073.8 million. With respect to the second quarter of 2016, the YoY variations represent 28.6% more in terms of surface area sold and 43.0% less in terms of their value.

Original story: Eje Prime

Translation: Carmel Drake

CBRE GI Buys 70% Of H2O Rivas Shopping Centre

22 May 2017 – Expansión

CBRE Global Investors has acquired 70% of the H2O Rivas shopping centre – located in Rivas-Vaciamadrid (Madrid) – from Alpha Real Trust, which will hold onto the remaining 30% of the share capital.

The operation, which has been carried out through a joint venture, is expected to close at the end of June, after a series of conditions to which the purchase is subject have been fulfilled. As part of the agreement, Alpha Real Capital – investment manager and the main shareholder of Alpha Real Trust Limited – will continue managing the asset.

Although neither the buyer nor the seller have disclosed the amount paid in the transaction, market sources value the asset at between €150 million and €200 million. The entry of new shareholders and the recent acquisition of an additional plot of land will allow the asset to be renovated, and for the shopping centre to be expanded.

Alpha Real Trust purchased H2O Rivas from Avantis for €83 million in 2010. Since then, it has promoted the modernisation of the asset and H2O has gone from receiving 5.7 million visitors in 2010 to 7.7 million last year.

Inaugurated in 2007, the asset has a surface area of 52,000 m2 and comprises 130 stores spread over two floors. The shopping centre, which has an occupancy rate of 92%, also has an artificial lake and a garden area. Its tenants include Mercadona, H&M and seven brands from the Inditex group, including Zara.

Original story: Expansión (R.Arroyo)

Translation: Carmel Drake

Catella Buys 3 Residential Buildings In Madrid & Barcelona

5 December 2016 – Real Estate Press

Catella Real Estate, which is headquartered in Munich, has acquired 277 homes in Berlin, Madrid and Barcelona for €92.7 million, which it will incorporate into its real estate fund Catella Wohnen Europa. The acquisition forms part of the fund’s investment strategy to acquire residential properties across Europe into its portfolio.

“The Spanish market is enjoying a sustainable recovery. Specifically, in Madrid and Barcelona, there are currently some very attractive investment opportunities. Through our Catella network and in collaboration with our asset management and investment platform in Spain, we have identified and executed these excellent acquisition opportunities for our investors”, said Markus Wiegleb, Portfolio Director at Catella.

The Spanish residential portfolio comprises a surface area of 13,469 m2 in total. The fund has acquired two properties in Madrid: the recently renovated building on Calle Genova, 5 for €23.9 million, which was contructed in 1900 and which contains 24 homes; and the modern property on Calle Alaró 4, built in 2008, with 82 residential units, which was acquired for €12.9 million. The third Spanish property, Rambla Poplenou 124 in Barcelona, was constructed in 2002 and contains 59 residential units. It was acquired for €23.7 million. (…).

“Catella has a strong local presence in Europe, with offices in 12 countries. Moreover, we work in partnership with a large number of local companies in other European countries. Our extensive knowledge of the real estate sector and our pan-European reach allows us to access unique investment opportunities for our investors across Europe”, said Xavier Jongen, Project Director at Catella in the residential real estate funds division.

Original story: Real Estate Press

Translation: Carmel Drake

Lar’s Assets Appreciated By 5.4% In 9 Months To Dec 15

22 January 2016 – Expansión

LAR España’s real estate assets appreciated by 5.4% between March 2015, when the Socimi debuted on the stock exchange, and year end. In this way, the value of its properties increased by €46.2 million in just nine months to reach €898.9 million.

Company sources attribute the rise in the asset values to the recovery in the real estate sector, as well as to the improvements in the management of the properties. The valuation has been performed by the consultancy firms Cushman & Wakefield and JLL.

By type of asset, it was Lar’s logistics assets that increased in value by the most (by 11%), followed by the Socimi’s residential portfolio (7.1%), then its office buildings (6.6%) and shopping centres (4.4%).

LAR’s portfolio comprises: 12 retail premises in Guipúzcoa, Palencia, Albacete, Barcelona, Alicante, Madrid, Cantabria, Lugo, León, Vizcaya, Navarra and Valencia; four office buildings in Madrid and one in Barcelona; four logistics assets in Guadalajara and one in Valencia; as well as one residential asset in Madrid.

The President of LAR España, José Luis del Valle, highlighted that “this increase carries even more weight if we consider that a third of assets (€282 million) were acquired during the second half of the year, which barely gave us any time to undertake the necessary measures to allow us to create value”. The President of the Socimi expects that the value of the assets in LAR’s portfolio will continue to increase in 2016.

Original story: Expansión (by M. A.)

Translation: Carmel Drake