Ibosa Bids for the DGT’s Former HQ in Madrid to Build Luxury Flats

22 May 2019 – Idealista

The cooperative manager Ibosa is one of the parties interested in acquiring the former headquarters of the Traffic Department (DGT) in Madrid, located at number 125 Calle Arturo Soria, where 43 luxury flats are going to be built.

The Socimi Jaba I Inversiones Inmobiliarias put the building up for sale recently after acquiring it in 2014 for €19.2 million. The property is currently vacant having been previously leased to the DGT and Vodafone.

The office building has a gross leasable area of 5,526 m2 and comprises a ground floor plus 4 upper floors. It has 148 underground parking spaces and is located in one of the most sought-after neighbourhoods of Madrid. The asking price reportedly amounts to less than €25 million and the sale is expected to close next month.

If it is successful, Ibosa plans to build 43 high-end homes with 2-, 3- or 4-bedrooms. Each property will have a garage and storeroom and the sales prices will start at €554,000, with an average price per m2 of €5,900. The urbanisation, known as Residencial Capella, will have common areas such as a swimming pool and gym.

Original story: Idealista (by P. Martínez-Almeida)

Translation/Summary: Carmel Drake

IBA Capital & Angelo Gordon Acquire Barajas 1 for €37.5M

7 March 2019 – Eje Prime

IBA Capital Partners and Angelo Gordon have joined forces to purchase the Barajas 1 office building from GMP for €37.5 million. The property is located at number 29 Calle Trespaderne in Madrid, has a gross leasable area of 29,173 m2 and includes 204 parking spaces. Its main tenants are SGS and Vodafone and the advisor to the operation was CBRE.

The purchasers are planning to renovate the building, modify the façade, renew the common areas, remodel the vacant homes and adapt the technical facilities.

Original story: Eje Prime

Translation: Carmel Drake

Torre Sevilla Shopping Centre to Open in September with 92% Occupancy Rate

20 July 2018 – Eje Prime

Torre Sevilla is getting ready to open with almost a full house. The complex in the city of Sevilla, which will open its doors in just two months time, has commercialised 92% of its space. In recent weeks, the managers of the complex have agreed the entry of several new operators.

In the field of fashion, H&M, Parfois and the jewellery chain Time Road are going to open stores in Torre Sevilla, following in the footsteps of other groups such as Primark, Mango, Women’s Secret, Springfield, Calzedonia and Foot Locker, amongst others.

The shopping centre has also announced the arrival of the supermarket chain Día, as well as several telecoms operators, including Movistar and Vodafone. The gastronomic offer is going to comprise companies such as Udon, Vips, La Tagliatella, Burger King and the bakery chain Granier.

The opening of the complex will complete the Torre Sevilla architectural project, in which CaixaBank has invested more than €320 million. In addition to a shopping centre, Torre Sevilla contains an office block, the Eurostars Torre Sevilla hotel, CaixaForum Sevilla and Magallanes Park.

Designed by the Argentinian architect César Pelli, the retail complex comprises two large buildings, which span a gross leasable area (GLA) of 26,700 m2 and a constructed surface area of 43,000 m2.

Original story: Eje Prime

Translation: Carmel Drake

Who’s Who Behind The MAB’s Largest Socimis?

6 February 2017 – Expansión

The majority of Spain’s Socimis are now listed on the Alternative Investment Market (MAB). They have a combined market capitalisation of €3,500 million and so account for 68.5% of the value of that market, which is aimed at small and medium-sized companies.

In total, 29 real estate companies form part of the MAB, which comprises 67 companies in total. Seventeen of those real estate companies debuted on the MAB last year (…).

The largest Socimis

With a market capitalisation of €819 million, GMP is the largest Socimi on the MAB, larger even than one of the four Socimis that trades on the main stock market, Lar España. GMP, which was founded in 1979 by the Montoro Alemán family, debuted on the MAB last July, after adopting the Socimi structure two years ago. The real estate company, which owns around twenty office buildings in the most high profile financial districts of Madrid, has the sovereign fund of Singapore GIC as one of its shareholders; GIC owns a 32.9% stake in GMP, which it controls through another MAB-listed company, Eurocervantes.

Moreover, GMP is not only the largest Socimi (on the MAB) by market capitalisation, it also holds the largest portfolio of assets, worth €1,800 million as at 30 June 2016.

Another important owner of office buildings is Zambal. This Socimi is the only one of the five largest Socimis on the MAB that is not managed by its owner. The firm Investment Business Beverage Fund, based in Luxembourg and owned by the French magnate Pierre Castel, has appointed Iba Capital to manage its real estate investments in Spain. Iba is led by Castel’s fellow countryman Thierry Julienne.

This Socimi is the landlord of a number of large companies, both home-grown and from overseas. It owns the Madrid headquarters of Vodafone, Enagás, Gas Natural, BMW, Unidad Editorial and Día, amongst other buildings. Its portfolio is worth more than €730 million and its market capitalisation amounts to €559 million.

Meanwhile, Uro Property was created by the creditors of the company Samo, which purchased around 1,130 bank branches leased to Banco Santander in 2007. Nowadays, after selling several batches, it owns 755 branches worth €1,585 million (as at 30 June 2016).

Its main shareholder is the firm Ziloti Holding, although Santander and CaixaBank also hold direct stakes in the company amounting to 22.79% and 14.5%, respectively.

Blackstone, the largest investment fund in the world, has also listed a Socimi on the MAB to manage some of its real estate assets in Spain. Specifically, it has placed the thousands of homes that it owns and rents out into Fidere, worth €317.5 million.

The fifth largest Socimi on the MAB by market capitalisation is Isc Fresh Water. This vehicle was created with more than 200 bank branches from Banco Sabadell purchased in April 2010 by the Mexican fund Fibra Uno, controlled by the investor Moisés El-Mann.

Nowadays, the Socimi owns 213 branches, worth around €374 million, and its main shareholders are the El-Mann family, with a 65% stake and Jacobo Bazbaz Sacal, with 14.85%.

Diversity on the MAB

Each one of the Socimis on the MAB has its own characteristics, ranging from Promorent, with its market capitalisation of €4 million to GMP (which is worth more than €800 million). Their performance on the stock market is also very different: five of them have recorded increases since the beginning of 2017; three have registered decreases; and the remaining 21 have not seen any changes in their share price since the start of the year. (…).

Outlook for 2017

The proliferation of Socimis on the stock market will continue this year, according to the experts, who believe that the economic context favours these companies. (…).

Nevertheless, analysts warn that their small size and lack of liquidity imply risks for investors, since it is possible that they will not be able to sell their shares when they want to, due to the very small volume of business. (…).

Original story: Expansión (by Rocío Ruiz and Diana Esperanza)

Translation: Carmel Drake

Two New Socimis Will List On The MAB Today

11 March 2016 – Mis Oficinas

Two new Socimis are going to debut on the Alternative Investment Market (the MAB) today – Inversiones Doalca, which will list on the market at a price of €26.81 per share and Jaba I Inversiones Inmobiliarias, which will list at €1.03 per share.

With these new additions, 49 companies will be listed on the MAB, of which 15 will be Socimis.

The Board of Directors of the MAB, following a favourable evaluation report from the Coordination and Incorporations Committee regarding (the companies’) compliance with the applicable requirements, has approved the incorporation of the companies Inversiones Doalca Socimi and Jaba I Inversiones Inmobiliarias Socimi today, Friday 11 March.

On the basis of the valuation report prepared by the independent expert Grant Thornton, Doalca has set a benchmark value for each of its shares at €26.81, which values the company as a whole at €162.8 million.

The company’s investment portfolio comprises 11 properties, including 5 office buildings (3 in Madrid and 2 in Barcelona). It is currently in the process of requesting a lience to convert one of its office buildings in Barcelona into a hotel. In total, the company’s portfolio has a constructed surface area of 42,315 m2 and a total leasable surface area of 32,321 m2.

Meanwhile, Jaba I Inversiones Inmobiliarias, will list on the MAB at €1.03 per share which represents a total market capitalisation for the company of €18.9 million, on the basis of the valuation report prepared by the independent expert Aguirre Newman.

The company’s current portfolio of real estate assets comprises four office buildings in Madrid and Barcelona, such as the office building on Calle María de Molina in Madrid; another one in Arturo Soria, which is leased to the DGT and Vodafone; an office building in Sepúlveda (Alcobendas) and another one in Cornellá de Llobregat (Barcelona) leased to Gas Natural.

The company has 14 tenants. Its two main tenants occupy 49.25% of the total available surface area and account for 52.36% of its total rental income.

Original story: Mis Oficinas

Translation: Carmel Drake

Inv’t In Offices Exceeds €2,500M In 9m To Sept

22 October 2015 – Expansión

They are the most desirable assets in the sector and Socimis, investment funds and traditional real estate companies alike are all bidding for them. They are office buildings. During the first nine months of the year, this type of property has starred in investment operations amounting to €2,500 million, an increase of 15% compared with the total investment volume recorded in 2014 as a whole.

“Last year, €1,665 million was invested (in offices), of which €655 million was spent during the third quarter. This strong level of activity coincided with the closure by many Socimis of their first operations, which accounted for almost 40% of the quarterly total. This year, the figure for Q3 was 5% higher than the amount recorded during the same period in 2014, but if we look at the year to date, the cumulative total exceeds the total for the whole year 2014, by 15%”, said Pablo Pavía, National Investment Director at Savills España.

Some of the most active players include the large Socimis, such as Axiare, which has invested €243 million on the acquisition of ten buildings, mostly in Madrid and Hispania – which is not a Socimi itself, but which channels the majority of its investments through a subsidiary that is –, which has spent more than €97 million on the purchase of four office buildings.

Alongside the Socimis, which accounted for just over one third of the market, we have the funds and managers, such as Iba Capital, which has purchased several headquarters, including Vodafone’s. Insurance companies such as Axa and Mapfre monopolise the buying ranking, together with traditional real estate companies such as Colonial, which is currently analysing purchases worth €1,000 million.

Thanks to this investor boom, the average availability rate in Madrid is now 10.6%, a figure that has fallen below the 11% threshold for the first time since 2011 and which confirms the trend that began in the middle of 2014, according to JLL. In the case of Barcelona, the availability rate is 11.4%, a similar figure to the levels last seen in 2009.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Reale Finalises Purchase Of Sabadell’s HQ In Madrid

11 June 2015 – El Confidencial

The building at number 125, Calle Príncipe de Vergara, one of the most important thoroughfares in Madrid, is about to change hands. Sabadell opened a competitive process for the sale, which is about to come to an end, with Reale as the favourite to seal the deal.

The insurance company, which is being advised by Inmospace, has submitted a bid for more than €45 million, compared with the asking price of €40 million that was set at the beginning of the process. This figure virtually makes Realia the sure-fire winner in a deal that has attracted interest from up to eight bidders, according to sources close the deal.

The other interested parties include other insurance companies, such as Plus Ultra, although, unless there is a last minute surprise, Reale will end up signing the definitive agreement with Sabadell within the next two or three weeks.

This timetable matches the one being managed by the Catalan entity for its relocation to a new headquarters in Las Tablas, a process that will begin in July and will be carried out in several stages, in a phased way. Once completed, Reale will establish its new headquarters in Príncipe de Vergara.

(…)

Solvia transaction

Solvia, the real estate subsidiary of the Catalan entity, has led this whole process, which has not required any external advisors. It has culminated in the reorganisation of the properties and headquarters that the bank has carried out recently.

Last year, Sabadell was one of the major players in the real estate office market in Madrid, thanks to the sale of Vodafone’s new headquarters, an office complex measuring 50,000 m2, to the British fund London & Regional for €117 million and with the commitment of the telecommunications operator to continue as the tenant.

In parallel, the entity reached an agreement with Vodafone to acquire its former headquarters, located in the neighbourhood of Las Tablas, an area in which firms such as Telefónica, BBVA and FCC have also chosen to locate their headquarters. This move, which many industry experts viewed very positively, was also orchestrated by Solvia, the real estate company led by Javier García del Río.

With capacity for 1,500 people, all of Sabadell’s central services will move to this new headquarters in the North of Madrid, with exception of its territorial operations, which will remain in Calle Velázquez, and its private banking division, which will continue in Calle Serrano. The Presidency will also remain in Calle Serrano, which accommodates both the Chairman, Josep Oliu, and the CEO, Jaime Guardiola, when they are in the capital.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Savills: Spain’s Commercial Property Market Outlook Is Improving

11 March 2015 – Property Wire

There are already signs that Spain’s residential property market is recovering and now a new report shows that its commercial markets are also growing.

International real estate advisor Savills is predicting CBD office yields in Madrid will move from 5% to 4% and 4.5% for super prime properties, as a lack of good quality stock puts pressure on pricing.

This follows strong investment volumes in Spain’s office market during 2014 in which €2.8 billion was transacted, triple the €990 million total in 2013.

The firm states that in terms of location, 60% of investment was made in Madrid, 30% in Barcelona and the remaining 10% in other locations throughout the country.

Savills reports that the growing amount of demand and the lack of supply continues to push achievable yields down in the CBD and the main business areas. Prime yields at the end of the year moved by 100 basis points, secondary areas by 75 basis points and out of town locations saw a change of 50 basis points.

‘Investors preference for Spain’s more mature market of Madrid is undeniable, accounting for a total of €1.65 billion. But the lack of good quality stock is putting pressure on yields,’ said Luis Espadas, director of investment at Savills Spain.

‘The yield in the CBD stands at 5%, and for super prime properties could achieve between 4% and 4.5%,’ he added.

The firm finds that SOCIMIs, the Spanish equivalent of REIT’s, were very active in the office market, with 27% of their total capital being invested in commercial property and 76% of that total in offices.

‘Whilst the SOCIMI and domestic investors were very active in 2014 this year we predict we will see large Latin American investors capitalizing on opportunities in the Spanish office market,’ said Pablo Pavia, director of investment at Savills Spain.

The Savills report also states that take up in the office market at the end of 2014 was 382,000 square meters, some 2.5% less than the previous year. However, 2013 take up was heavily distorted by the Vodafone letting of 50,000 square meters, and discounting that letting take-up grew 12% on the previous year.

Additionally, it points out that there are a number of large space requirements currently in the market, several of which are seeking space exceeding 5,000 square meters.

‘Thanks to signs of a recovery in Spain some occupiers are more willing to sign pre-lease agreements on speculative space in the CBD which in term is prompting major market players to carry out speculative developments. The increase in take up activity will cause rents in the best properties to continue to rise through 2015,’ said Ana Zavala, director of office agency at Savills.

According to Savills rents in the CBD are currently in excess of €25.50 per square meter and could reach €28 per square meter in 2015 given continued strong take up. The firm also predicts landlord will continue to undertake refurbishment projects in 2015, with three quarters of new space in the pipeline for the upcoming year related to refurbishment projects.

Original story: Property Wire

Edited by: Carmel Drake

Socimis And Funds Invest €2,520m In Offices In 2014

15 January 2015 – Expansión

The acquisition of office buildings soared by 212% in 2014, thanks to deals signed by international investors, such as Blackstone, and new real estate companies, including Hispania and Merlin Properties.

The launch of Socimis and the arrival of large international funds in Spain has resulted in record investment figures in the Spanish real estate sector. And a new type of asset is proving particularly popular: offices.

According to a report by Deloitte Real Estate, 40% of the non-residential purchases (i.e. offices, shopping centres and stores, hotels and logistics platforms) made in Spain last year were office buildings. Thus, of the €6,500 million invested in 2014 in total, €2,520 million was spent purchasing office property, including Vodafone’s headquarters in Madrid, Gallina Blanca and HP’s headquarters in Barcelona, and the old offices of BBK in Bilbao.

In total, almost 50 transactions were closed, and more than half (57%, according to Deloitte Real Estate) were made by investors with an institutional profile, such as Socimis.

All four of the real estate companies listed on the stock exchange – Merlin Properties, Lar España, Hispania and Axia Real Estate – acquired office buildings during the last year. Merlin Properties, the largest Socimi currently listed in Spain, invested €130 million in the purchase of five office buildings in Madrid, which it leases to groups such as Philips, Vestas and Neoris. Yesterday, the company announced the purchase of Gallina Blanca’s headquarters, together with two logistics warehouses, for €88 million.

Meanwhile, Axia Real Estate paid €180 million for a portfolio of properties owned by Credit Suisse in Spain, which included 3 office blocks located in the Campo de las Naciones area of Madrid.

“Investment in the office market has grown significantly thanks to the Socimis and overseas investors, who consider that rents have reached their lowest levels and now is the perfect time to take positions”, explains Javier García Mateo, Director of Deloitte Real Estate. In this sense, rental costs in Spain’s two largest office markets (Madrid and Barcelona) have already recorded slight increases in the most sought after areas, i.e. in the business districts.

According to Deloitte, the highest rents in Madrid have been agreed for offices on Paseo de la Castellana, 31 (31 euros per square metre per month) and in Barcelona, on Avenida Diagonal, 640 (21 euros per square metre per month).

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Sabadell to Locate Its Madrid Headquarters in Las Tablas

26/08/2014 – Expansion

Banco Sabadell tidies up its real estate in Madrid. At present, the entitys main branches are scattered around the capital, housed by eleven rented or owned buidings.

The bank decided to gather all its services in one place – the Las Tablas neighborhood. It is predicted that Sabadells 550 employees will move there in January. The operation will bring €2 million savings on rental payments annually.

The new headquarters of Sabadell in Madrid will be placed in the old premises of Vodafone encompassed by the Parque Empresarial Castellana Norte (the North Castellana Business Park). The phone operator had moved to a building on the Avenida America street, developed by Sabadells servicer Solvia itself. Once Vodafone occupied the property, the bank sold it to British fund London & Regional for €117 million. In turn, Sabadell assumed the rental agreement of the Las Tablas building the operator had with the GMP Group, the propertys owner.

Technical Fields

The entity has awarded Aguirre Newman with the new office space design and with coordination of remodelation works. They are expected to complete by the end of the year and the move-in will take place in January. The Las Tablas headquarters will host experts in technical fields, like the risk, market analysis, transactions and services, excluding direct relation with the customers.

Sabadell aims at emptying the spaces it currently rents, such as the property situated at 90 Serrano Street, the unit at 141 Paseo de Castellana St. and the Henri Dunant building.

The entity also strives at adding value to its own properties like the NatWest headquarters on the Principe de Vergara St., where it wants to save the ground and the first floors and put the rest of the building up for sale. To give more examples, the bank possesses a unit on the Velazquez St., the one at 71 Serrano St. (the Banco Urquijo building, Sabadells pride), some facilities in the district of Embajadores, on the Conde Penalver St., as well as the properties located at 135 Castellana and at 67 Serrano.

 

Original article: Expansión (by Sergi Saborit)

Translation: AURA REE