Lone Star Sells c.1,000 NPLs & 600 Foreclosed Homes To Cabot

3 April 2017 – Idealista

The loan management firm Cabot has purchased Project McLaren from the US fund Lone Star. The portfolio contains more than 1,000 non-performing mortgages worth €102 million and more than 600 homes with a combined appraisal value of €51 million, according to financial sources consulted by Idealista. The properties that secure the mortgages and the homes are primarily located in Madrid, Andalucía, Cataluña and the Community of Valencia.

Cabot, together with Link Finanzas, were the two firms that initially expressed interest in this portfolio, but in the end, the former has acquired the project for an amount that has not been disclosed.

On the basis of their appraisal values, the properties that secure the mortgages are located primarily in Andalucía (21%), Cataluña (21%), Madrid (15%), the Community of Valencia (12%) and the Canary Islands (10%). In terms of the portfolio of homes, they are primarily located in Andalucía (26%), Cataluña (21%), Madrid (12%) and the Community of Valencia (11%).

Lone Star has become one of the most active funds in the Spanish real estate market. Following its purchase of the real estate company Neinor from Kutxabank for €930 million, the fund now wants to become the largest property developer in the country. Neinor Homes debuted on the stock market last month.

Another important operation was Cabot’s purchase, together with JP Morgan, of a package of real estate loans from Commerzbank worth €4,400 million. That portfolio contained loans secured by high-quality assets such as the Zielo Shopping Centre in Pozuelo de Alarcón (Madrid) and the MN4 Shopping Centre in Valencia, as well as the Ritz and Gran Meliá Fénix hotels.

Meanwhile, Cabot Credit Management is the largest manager of unpaid debt in the United Kingdom and Ireland. In 2015, together with the fund Elliot Asesores, it acquired the platform Paratus, which specialises in the management of problem assets. Since last year, it has also owned Gesif, another platform specialising in debt management and investments in portfolios of problem loans in Spain. (…).

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

Translation: Carmel Drake

UBS Pays Hines €70M For Zielo Shopping Centre

5 June 2015 – Expansión

The transaction confirms the return of institutional investors to the Spanish market.

International funds are continuing with their commitments in Spain. Whilst the key players in the market were opportunistic funds in 2013 and Socimis in 2014, in recent months, institutional funds, both European and Asian, have burst into the market.

The latest player to make an investment in Spain has been UBS. The Swiss fund management has finalised the purchase of the Zielo Shopping centre, in Pozuelo (Madrid), after several weeks of exclusive negotiations. UBS will pay €70 million for the property to Hines European Value Added Fund, a fund managed by the property developer Hines.

The company invested €100 million in the development of the shopping centre, designed at the height of the property boom, including a loan for €50 million. The property was opened in October 2009 and has a surface area of 50,000 m2, of which 15,555 m2 comprise the retail area.

In the transaction, UBS has been advised by the consultancy firm Knight Frank, whilst CBRE, which also manages the centre, has worked with the vendor. “This transaction shows that prime assets are generating significant interest amongst investors with a more core profile”, explains Gonzalo Senra, Head of Commercial Investments at CBRE.

In 2014, more than €2,000 million was invested in commercial property in Spain, a figure that may be exceeded this year, according to Knight Frank, given that €600 million has already been invested.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Hines Puts Zielo Shopping Centre Up For Sale

19 January 2015 – Expansión

The real estate company Hines has decided to sell one of its landmark shopping centres in Spain, namely the Zielo Shopping centre, located in the Madrid suburb of Pozuelo.

Zielo Shopping opened in October 2009. It occupies a total surface area of 50,000 square metres, of which 15,537 m2 are used for commercial purposes; and it has more than one thousand car parking spaces. In February 2011, Hines requested a €50 million loan from Eurohypo to finance the construction of the centre. Before its inauguration, the real estate company said that its investment in the facilities would exceed €100 million.

Now, Hines has put the property on the market for a price of around €65 million. To this end, the Houston-based real estate company has decided to organise a restricted sales process, in which it has invited three of the largest Socimis to participate, namely: Merlin, Axia Real Estate and Lar España, as well as the funds Tiaa Henderson and Deka Inmobilien. If no agreement can be reached with these five candidates, Hines will open up the process to new investors, according to real estate sources.

Original story: Expansión

Translation: Carmel Drake