Archive for the ‘Real Estate Financial News’ Category

Investment funds falling over to recruit top executives in Spain

Tuesday, January 28th, 2014

Spain is back on international investor radar screens. Foreign investment funds increasing interest in entering the Spanish property and capital markets is having a positive effect on the executive employment market, giving rise to a wave of executive signings. After several years of monitoring from London or New York, investment companies have decided to form local teams or hire consultants to carry out their plans for Spain.

Some large investment funds have preferred to wait until they had acquired some investments before hiring a team. This was the case with the U.S. fund, Anchorage, which waited until it had acquired real estate assets from EuroHypo (Operation Copernicus) and shares in Codere and La Seda, apart from looking at other transactions such as El Arbol and Supersol supermarket portfolios. After this period they signed up Juan José Nieto as representative for Spain. Nieto is a past chairman of Service Point, a quoted Spanish company, and also of Vía Digital and Antena 3 TV, both previously owned by Telefonica.

Other funds have preferred the figure of senior advisor to take the market pulse before making their first investment. This path was the one adopted ​by U.S. firm, Searchlight, founded by former directors of Apollo. Searchlight has appointed Gonzalo Díaz-Ratobeen as its top Spanish executive. Díaz-Ratobeen is a veteran of Spanish venture capital companies and has passed through Gala and Suala Capital, both Spanish investment managers.

Firms such as Oaktree, Cerberus and Brookfield have all been busy recruiting due to their interest in the Spanish economy and investing in companies such as Panrico, BankiaHabitat and Abertis. These funds have hired veterans from the Ibex 35 in the role of senior advisors, namely Juan Arena (formerly at Bankinter), Juan Hoyos (formerly at McKinsey) and Rafael Miranda (former CEO of Endesa).

For more operational roles, the contracted financial and management executive profile is of a lower age range (35/45). Some recent signings include Fortress (Chema Cava), Varde (Hector Serrat), Goldman Sachs (José Antonio Urquizu), Apollo (Enrique Ibáñez) and HIG (John Barnet), who have turned to professionals from other funds in the same industry (Gladia, Patron, Portobello, BBVA and Riverside) which are now less operational.

This wave of signings is maintaining the momentum initiated by the first investment funds which set up operational structures in Spain in early 2013, such as Blackstone (Iñaki Echave) and KKR (Jesus Olmos). Now, in 2014, other well known international venture capital partners such as BC Partners and Cinven are addressing their physical prescence in Spain. Investor appetite has always been around, but the gap between buyers and sellers pricing aspirations is increasingly narrowing which is why international investors are committing more and more resources to Spain.

For transactions information about the Spanish commercial real estate investment market and Madrid and Barcelona office rental markets contact: i-comparables.com

Invesco buys Madrid Titán 4 tower from Pramérica for €40m

Friday, November 18th, 2011

German investment fund manager Invesco has bought the Titán 4 office building in Madrid for €40m from Pramerica, the real estate arm of US insurance firm Prudential. The sale of the tower, located in the Méndez Álvaro neighbourhood in the south of Madrid, is the largest single-asset transaction so far this year in Spain.

Pramérica bought the tower, which is a recent build, from Nozar in 2008. The building is currently rented to Adif, the railway infrastructure management company, and has a total area of 10,300 square metres and 218 parking spaces, according to the broker for the operation and future manager of the building, Cushman & Wakefield.

“This transaction has been possible thanks to the excellent quality of the building and its privileged location, despite of Spain’s current difficult market situation. A well-known tenant has also played an important role. High quality well- located product such as Titán 4 are the type of asset that international investors are looking for,” according to Jaime Alonso-Allende, Head of Office and Industrial Investment of C&W in Madrid.

For more information on this investment transaction and others in the Spanish real estate market contact
| i-comparables.com

Investor interest returning to Spain – CBRE

Thursday, November 3rd, 2011

Investors are optimistic of a recovery in Spain’s real estate sector but are avoiding residential, according to a study by realtor CBRE released during the Barcelona Meeting Point expo.

“European investors are showing an absolute lack of appetite for the Spanish residential market, CBRE’s research director Patricio Palomar said. According to the firm’s Barometer of Investment in Spain, only 7% of investors will opt for the residential and hotel sectors, with 50% seeking office and 40% prime shopping centres.

The report, based on a survey of 600 local and international investors, reveals that 73% believe the Spanish real estate sector will recover in the next 18 months and almost 57% plan to invest in Spain over the next six months.

The majority of investment in Spain comes from foreign investors. “Opportunist funds are showing a great deal of interest in Spain,” Palomar said, adding that a lack of deals is due to prices not matching investors’ expectations of reductions, and a lack of financing, the main obstacle to transactions according to 80% of the investors consulted.

For detailed information on corporate and investment transactions in the Spanish real estate market contact | i-comparables.com

Spain’s NH Hoteles drops price of 20% stake to China’s HNA

Thursday, November 3rd, 2011

Spanish hotel chain NH Hoteles has revised downward the price of the sale of a 20% stake to China’s HNA Group, better reflecting NH’s share price, which has tumbled by nearly 50% since January. The deal was originally announced in May.

The Chinese group will now pay €330m for a 20% stake, compared to the €432m originally offered, and based on €5.35 per share against €7 per share, which still represents a 64% premium on NH’s current share price of €3.26, the firm said in a statement.

The Spanish hotel chain will carry out a capital increase, issuing 60m shares at a price of €5.35 per share, which will make HNA the second-largest stakeholder after Hesperia, with 24%, and provide NH with a much-needed injection of liquidity and reducing its debt from €1.1bn to €787m.

The deal foresees the opening of two or three NH-brand hotels in China in 2012, with the Spanish chain keen to open “dozens” of hotels in what is perceived as a high-growth hospitality market over the coming years.

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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

Over nine percent of European property investors favour the Spanish market for 2011

Wednesday, March 9th, 2011

i-comparables.com | reports from MIPIM, Cannes.

“Despite the country’s economic difficulties, Spain’s investment appeal has grown slightly in the past year, with 9% of investors favouring the market in 2011″.- CB Richard Ellis (MIPIM, Cannes, 9 March 2011).

The findings of a survey by CB Richard Ellis, released at MIPIM, reveals that investors have shown a clear strategic shift in their investment preferences in Europe in favour of Germany and Central and Eastern Europe (CEE) as the most attractive markets in which to purchase real estate in 2011.

Germany leapfrogged the United Kingdom and France to become the number one target destination for investment opportunities in Europe in 2011, continuing a trend which began in 2010 when Germany was one of the fastest growing investment markets in Europe. This reflects the influence of the strong economic performance in Germany as the driver of real estate investment opportunities.

According to the survey the UK led the European market recovery in both transaction volumes and property values from the low point in 2009, but revealed that investor attention is starting to turn elsewhere, possibly as a result of the degree of capital value growth that has already been realised in the UK’s prime markets.

France, as the fourth most attractive market in Europe for 2011, also showed a substantial fall in its relative attractiveness compared to last year, with 10% of investors naming it as their key destination.

Despite the country’s economic difficulties, Spain’s investment appeal has grown slightly in the past year, with 9% of investors favouring the market in 2011, primarily underpinned by core investors seeing an opportunity to buy into this market at historically attractive yields.

For reliable information on the Spanish commercial real estate market contact | i-comparables.com

Pontegadea evicts Restaura from its Barcelona HQ for non payment of rent

Friday, November 5th, 2010

Tenant insolvency in Spanish real estate commercial investment market

Pontegadea has decided to evict Restaura from a building it owns in Gran Vía, Barcelona for non payment of rent, according to the Catalan daily, La Vanguardia. Apparently, this is not the only problem which Restaura faces with respect to Amancio Ortega, owner of Pontegadea. Fonrestaura Internacional, ownership of which was shared between between Restaura y Ortega, has denounced the Catalan company for non payment of the expenses which it agreed to pay when it was spun off.

Another problem is that Restaura has not managed to persuade the French company, Foncière Financière Colbert to buy either its shares or finance its debt of €420m as it had hoped. A number of assets of the group have already been embargoed by creditors. One such creditor is Spanish bank, BBVA which had taken over all of the mortgages of the property company adding up to more than €70m.

Restaura has now presented a declaration of insolvency of its investment company, Som Tots, which has outstanding credit of €30m and which acts as guarantor for other companies within the group.

For information on the Spanish commercial real estate market including property deals contact | i-comparables.com

Rreef and Moor Park to resell BBVA and Sabadell office and bank branch portfolio

Monday, October 18th, 2010

Office and bank branch investment portflios for sale in Spain

Moor Park and Rreef, which purchased the office and bank branch portfolios of Banco Sabadell and BBVA a few months ago, have started to put the properties back onto the market with the objective of achieving quick capital gains.

Moor Park, owner of the Banco Sabadell portfolio and Rreef which owns the BBVA properties, are offering limited sized portfolios and individual properties to institutional and private investors through various real estate consultancy companies.

Commentators claim that the decision to resell is a sign of confidence in the market which has witnessed low transaction volumes again this year. The properties imply very low risk for the buyers given that the initial sale of these properties was undertaken on a sale & lease back over a long period of time.

Rreef, owned by Deutsche Bank, initially purchased 948 bank branches from BBVA for €1.2bn in September 2009, at initial yields of between 6% and 7%. In March, Sabadell sold 378 bank branches to the British fund, Moor Park Capital Partners, for €403m, with an implied initial yield of 6.65%.

Moor Park has initially placed a portfolio of 50 Sabadell branches on the market, comprising some of the best located properties which it previously acquired, half of which are in Madrid. The properties are being offered at yields in the region of 5%.

For more details on distressed property assets and investment real estate transactions news in Spain contact | i-comparables.com

S&P increase Gecina (Metrovacesa) rating

Friday, October 1st, 2010

Spanish commercial real estate news

Standard & Poors’s rating service has increased the long term debt rating of Gecina to “BBB-” from “BB+” and states that the stable outlook reflects their view that Gecina will continue to exhibit a stable performance in line with the investment-grade rating.

The rating agency indicated that Gecina has resolved the issues affecting the shareholding of the company, in reference to its main two shareholders, Joaquín Rivero and Metrovacesa.

At the same time, the short-term corporate credit and debt ratings on Gecina were raised to ‘A-3′

For transactions information on the Spanish commercial real estate market contact | i-comparables.com