Archive for May, 2010

Madrid, Spain – three deals in the hotels investment market in a week

Monday, May 31st, 2010

It appears that investor interest in Spain’s business hotels investment market is hotting up. Completions of three hotel sales transactions have been announced in the Madrid hotels investment market over the last seven days.

The largest transaction for €122m involved the Princesa Triangle complex located in Calle Princesa, Madrid, made up of two hotels operated by the Husa chain, Husa Princesa and Husa Moncloa, an office building of 5,011 square metres, various retail units and a car park. BNP Paribas Real Estate, which acted for Metrovacesa, had been working on the transaction since September 2009.

The other transaction was a sale and leaseback by the Abba hotel chain of the Castilla Plaza Hotel also located in Madrid. The transaction, at a price in the region of €33m, represented a yield in excess of 7%.

Transactions in the hotels investment market in Spain have recently been very few and far between and hotel agents hope that these Madrid hotel deals mark the commencement of a renewed period of activity in the Spanish hotels market. For detailed information on property transactions in the Spanish commercial real estate investment market contact: | i-comparables.com

Barclays to sell office investment building at Plaza Colon 1, Madrid

Thursday, May 27th, 2010

Market sources in Madrid, Spain indicate that Barclays Bank (Banco Barclays) will shortly sign a mandate to sell an office investment at Plaza Colon 1. Barclays have already sold an office building in Calle Mateo Inurria, Madrid this year and also many bank branches located around Spain. See previous blog posts of i-comparables.com. The exclusive sales mandate is likely to go to one of the big three international brokerage firms: Jones Lang LaSalle, CB Richard Ellis or Cushman & Wakefield. 1 i-comparables.com

Bidding intensifies for €160m prime office building at Diagonal 640, Barcelona

Wednesday, May 26th, 2010

Foreign and national investor interest in the Spanish commercial real estate market is still strong. According to the Spanish property and national press, buyer interest in Barcelona’s prime landmark office building at Avenida Diagonal 640 is intensifying. Press articles indicate that two German funds, Deka and Rreef have made bids with the Deka bid rumored to be the highest.

The Rreef bid is apparently associated with Metroinvest, the investment group of Spanish savings bank La Caixa and two Spanish family offices, Gallardo (owners of Almirall) and Costafreda (founders of Panrico). Realia, the owners of the building, consider that the value of the building is €160 million which makes it the largest ongoing sale in the Spanish commercial real estate investment market at the current time. | i-comparables.com

Santander postpone sale of Banif assets due to lack of demand

Monday, May 24th, 2010

Banco Santander cites generally illiquid and depressed state of Spanish investment property market as motive to postpone sale of Banif Property Investment Fund assets.

The “lack of any reasonable offers” for properties within the Banif Property Investment Fund, managed by Banco Santander, has led to Santander Real Estate postponing the sale of further assets in the fund.

In a communication to Spain’s stock market regulator (CNMV) Banif Inmobiliario explained that the fund will postpone the sale of its real estate assets until 2011 whereas previously it had said that sales would be undertaken in the second half of 2010. The reasons for the delay stated by the fund are the illiquid and generalized depressed state of the Spanish property market. The company’s fund managers have asserted that it considers that the offers received for a high number of its assets are not sufficient to justify going ahead with sales.

The real motive for delaying the sales may be because the fund is hopeful about the expected advantages which will follow legal modifications by the Government for the liquidation of property investment funds. The Government is making changes to the law which will allow the manager of a fund undergoing liquidation to sell the assets without any time limit. This situation has lead those responsible for the Banif fund, the largest property investment fund in Spain, with a portfolio worth €2.6bn and 43,400 shareholders, to reject offers received for its assets which it believes are not in the interest of its shareholders. Many of the assets comprise residential apartment buildings.

i-comparables.com supplies market intelligence and transactions information and rumours on the Spanish real estate investment market. The database contains over 2,000 commercial real estate investment transactions which are used by investment funds, investment brokers and valuation surveyors as comparable evidence and for many other purposes. Call us for a free demonstration and quote. | i-comparables.com

Apple & Andik compete for Banco Sabadell building – Paseo de Gracia, Barcelona

Tuesday, May 18th, 2010

According to sources Apple has made an offer for the Banco Sabadell building in Paseo de Gracia 36, Barcelona. Competition for this type of prime property asset is fierce in Spain’s commercial real estate investment market and it is understood that Isac Andik, chairman of Mango, the Spanish clothing retailer, has also made an offer for the building.

Banco Sabadell are believed to be asking in the region of €50m for the building which is situated in Barcelona’s prime retail pitch. The bank recently purchased the upper floors of the building for €20m in order to generate more buyer interest and a higher price on the disposal. This is an excellent example of added value based on the advice of a reputable and professional consultancy firm, in this case Cushman & Wakefield.

It is understood that the chief attraction of the asset for both interested buyers is the 2,290 square metres of retail accommodation within the building. Apple are seeking to open the first “Apple Store” in Spain and Mango are interested in opening their second clothing store on Paseo de Gracia.

Isak Andik is one of the principle private shareholders of Banco Sabadell with control over 5.7% of the share capital. International property consultancy firm, Cushman & Wakefield, has the sales mandate of the building and a final decision with respect to the buyer is expected to be announced within a question of days.

i-comparables.com provides property transactions data on retail leisure centres, cinema complexes, shop units, office, industrial, logistics buildings and other property types in Madrid, Barcelona and the rest of Spain’s commercial investment property market. Contact us for a free demonstration. | i-comparables.com

SEB acquire 43,700 office building – Caja Madrid sale & leaseback

Tuesday, May 18th, 2010

SEB Asset Management has acquired a 43,700 m2 office building in Las Rozas in Madrid from Caja Madrid. The transaction is one of the largest deals closed in the Madrid office investment market over the last 18 months and reflects the renewed interest of institutional investors in quality assets in the Spanish real estate market.

The deal consists of a sale & leaseback transaction on a 30 year basis. The reported price is around €108 million. Caja Madrid is the fourth major Spanish banking group. EXA Consulting Investment has advised SEB in the transaction. i-comparables.com is seeking more details concerning the investment yield and rental level on this investment transaction and information will shortly be available to our subscribers | i-comparables.com

Reyal Urbis to cede 51% of Madrid commercial property development “Castellana 200″

Tuesday, May 11th, 2010

Reyal Urbis is to cede 51% of its “Castellana 200″ development project to six of its creditor banks. The ambitious mixed use scheme, involving a luxury hotel, residential units, offices, a shopping centre and parking facilities, was commenced in March 2006 but suspended in 2009. The site is located to the north of Madrid in the Paseo de la Castellana, close to the junction with Calle Carlos Maurrás, which is the prime office location in Spain’s commercial real estate investment market.

Total investment in the 41,757 square metre development project (plus a 28,609 sq.m. undergaround car park) to date has been in the region of €350m. The “sale” forms part of the refinancing agreement with the creditor banks of Reyal Urbis. The deal is expected to be finalised this week and is neccessary to avoid bankcruptcy proceedings.

Many last minute refinancing deals have been signed in Spain’s troubled commercial real estate sector recently. | For in depth property transaction data and news on the latest transactions in the commercial property market in Spain contact | i-comparables.com

Barclays to sell another 34 branches in Spain – Jones Lang LaSalle instructed

Thursday, May 6th, 2010

Barclays have put up another Spanish commercial property investment portfolio for sale and leaseback, this time of 34 bank branches.
The bank has a network of 586 branches throughout Spain and has been selling many of these over the last few years. In 2008 it sold 24 branches to Redevco in a transaction reported at €65m. The bank also sold a unit in Paseo de Gracia, Barcelona some 12 months ago for around €20m. Colliers International acted in one of the last portfolio sale and leaeback transactions for nine Barclays bank branches around Spain towards the end of 2009.
The largest transaction recorded by i-comparables.com for Barclays in the Spanish real estate investment market took place in 2006 for a price of around €115m. This was for the office investment building located at Calle Mateo Inurria, Madrid, Spain.
According to sources close to the transaction the current offering is the last Spanish property investment transaction which Barclays intend to undertake this year. Jones Lang LaSalle have been given the exclusive mandate. | i-comparables.com

Jorge Juan 32, Madrid – investment sales mandate goes to Aguirre Newman

Tuesday, May 4th, 2010

Spanish commercial real estate consultancy firm, Aguirre Newman, have signed an exclusive sales mandate on the building located at calle Jorge Juan 32, Madrid. Located between Calle Velázquez and Calle Núñez de Balboa this street section has recently been subject to improvement works.
The propery has an area of 3,563 square metres and until recently was in educational use. Aguirre Newman confirm that the building has consent for a change of use to residential which could include an increase in floor area to 3,951 square metres in addition to 44 robotic car parking spaces. As part of the refurbishment the ground and semi-basement floor levels may be used for retail purposes.
According to Aguirre Newman the building characteristics and location make it an attractive investment opportunity in the Spanish commercial real estate investment sector. The potential range of buyers for the property includes private real estate investors, property developers, embassies, hotel owners and office owner-occupiers. | www.i-comparables.com

Sabadell board approve transaction with Moor Park for 378 properties in Spain

Monday, May 3rd, 2010

Spain – retail bank investment property portfolio transaction

Banco Sabadell reported on Friday that its board have now approved the sale and leaseback of 378 properties located in Spain to the Moor Park Capital Partners group, an opportunistic real estate investor, in a transaction which was initially reported by i-comparables.com in its blog on 29th March 2010.
Most of the assets, which range in size from 150 m2 to 1,000 m2, are located in Cataluña and Madrid and comprise bank branches and office properties. The transaction has been formalised for a total investment volume of €403 million.
Banco Sabadell was advised by real estate consultants Cushman & Wakefield. CB Richard Ellis acted in the transaction, as advisors to Moor Park. Clifford Chance acted as legal assessors to the buyer.

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