Archive for October, 2011

Spain – “In 2011 the national property investment market will record its lowest investment volume in a decade.”

Thursday, October 27th, 2011

“The turmoil in the global economy is holding back investment activity in southern Europe and Spain. In 2011 the national market will record its lowest investment volume in a decade. Although there is product available, investors are increasingly conservative and continue to wait for the perfect investment. The increase in the cost of financing and growing problems in gaining access to credit are slowing down sales processes.”

Danny Kinnoch – Director International Investment, Savills. 27th October, 2011.

Catalonia, Andalusia to divest RE assets worth €950m

Tuesday, October 11th, 2011

Amid belt-tightening measures, Spain’s regional governments are freeing up a large portfolio of real estate assets, with Catalonia and Andalusia selling buildings worth a combined €950m, seeking sale-and-leaseback deals in order to remain as tenants.

Catalonia aims to pocket €550m before the end of the year with the sale of 37 properties, among them the city’s stock market on Paseo de Gracia, one of the most expensive streets for European real estate, and the building housing the agriculture secretariat. Brokers Jones Lang LaSalle and Aguirre Newman are advising the sale.

Andalusia is aiming to pocket €400m with the sale of 76 buildings, including the culture secretariat in Granada and youth centres in Málaga, for which the government will pay up to €30m annually in rent.

For more information on these Spanish office investment transactions please contact i-comparables.com

Chamartín eyes sale of 16 Portuguese malls to RREEF for €150m

Tuesday, October 11th, 2011

Madrid-based unlisted developer Inmobiliaria Chamartín is reportedly considering a €150m offer to buy its Portuguese shopping centre division, comprising 16 malls, from RREEF, the real estate investment management arm of Deutsche Bank.

Chamartín paid €500m in 2006 for Portuguese firm Amorim Inmobiliaria, which it renamed Dolce Vita, from Portuguese mogul Americo Amorim, in a transaction financed by 10 Spanish banks and which included the €800m debt shouldered by the Portuguese firm, which pushed Chamartín’s total debts to €1.7bn.

Chamartín has had interest from 12 investment funds, with RREEF’s offer of close to €150m having prevailed, and the terms of the final transaction are now under discussion, according to Spanish daily El Confidencial. The newspaper quoted an unnamed investor who had bid unsuccessfully as saying, “Portugal is an almost illiquid market and it is almost impossible to secure financing for a real estate investment there.”

The Spanish firm, which in 2010 requested a three-year extension for its debt repayments and in early 2011 postponed a planned IPO, has resorted to the sale because its rental revenues, estimated at €100m annually from its office portfolio in Spain, Portugal and Germany, are insufficient to meet debt obligations. The firm’s largest stakeholder is its CEO Carlos Cutillas, with 42.5%, with 16% owned by Morgan Stanley and the remainder by Spanish savings banks.

For more information on Spanish real estate investment transactions contact | i-comparables.com

Acciona sells Splau! mall to Unibail-Rodamco for €185m

Monday, October 10th, 2011

Madrid-based infrastructure and renewable energy firm Acciona has sold the 54,000 square-metre Splau! mall in Barcelona to French/Dutch real estate investment trust Unibail-Rodamco for €185m, in a sale aimed at cutting debt, according to Spain’s National Stock Market Commission (CNMV).

“The sale is part of our mature asset rotation policy in order to maximize growth potential and returns on investment,” Acciona said in a statement.

Acciona had initially been seeking €200m for the shopping centre, which comprises 160 retail units, including brands such as Zara, H&M, MediaMarkt, an 18-sala cinema and a Mercadona supermarket. Acciona built the mall in conjunction with Grosvenor and Lar Group but took full control of it in 2007.

Jones Lang LaSalle represented the vendor in the transaction.

For more information on this transaction and other retail investment deals in Spain contact | i-comparables.com

Restaura applies for voluntary insolvency proceedings

Monday, October 3rd, 2011

Restaura applies for voluntary insolvency proceedings following months of negotiations with its creditors and the search for new financial partners.

The limit to arrive at an agreement on the refinancing of its debt of close to €500m passed on Friday and Chairman and Founder of Restaura, Xavier Solano, who had found it impossible to secure the necessary support, had no option but to apply for voluntary insolvency proceedings.

Over the last year Restaura has managed to reduce its liabilities to €300m through the sale of buildings and it appeared that it might be able to overcome its debt problems. In November 2010 it sold three properties in Paris to the RLM fund of Luxembourg for €55m. This allowed it to cancel debt of €38.4m with BBVA, Banco Sabadell and the French entity BCME. The main debtor of Restaura is Banco Pastor, a Spanish bank.

Towards the end of 2010 the French firm Foncière Colbert Finance took 70 percent of the company. Although the transaction volume was not disclosed, it is understood that Colbert bought into the company for a symbolic amount, with a commitment to provide equity up to €25m to enable the company to resume development on a number of projects.

Colbert’s commitment was subject to the renegotiation of the bank debt. It was also subject to other conditions including achievement of a moratorium on interest payments for five years on those loans subject to guarantees. However, none of this was forthcoming and as a result Xavier Solano forced Colbert out of Restaura. No replacement was found and hence the company’s application for voluntary insolvency through the Barcelona courts.

For information on commercial real estate transactions in Spain contact | i-comparables.com