Spanish Real Estate News 21/11/2023
Dazia Capital and Aermont purchase land in Madrid to construct a building with 256 flexible apartments
Dazia Capital and Aermont Capital have invested €32.4 million in acquiring land in Las Tablas, Madrid, for the construction of a building with 256 flexible apartments. This investment is part of a larger plan spanning three years, with a total investment of €350 million.
The new property, located at Castiello de Jaca Street, will add to Dazia Capital's existing portfolio, including projects in Alcobendas, Valdebebas, and Tres Cantos. The apartments, catering to a diverse audience from corporate clients to postgraduate students, will offer amenities such as a gym, coworking spaces, green areas, rooftop facilities, and a pool.
Construction of the Las Tablas project is set to begin early next year, with an anticipated completion date in the last quarter of 2025.
Home Capital agrees to sell a building in Madrid for 18.5 million euros
Home Capital Rentals, a real estate investment company, has agreed to sell a six-story building with 26 rental apartments and two commercial spaces in the city center of Madrid for €18.5 million. The property, located at 20 General Pardiñas Street in the Goya neighborhood, District of Salamanca, was purchased by Home Capital Rentals in March 2021.
Home Capital Rentals has entered into a preliminary sales agreement, receiving approximately €1.9 million (10% of the sale price) as a deposit. The potential transaction is expected to be completed before the end of 2023.
Urbas sells a build-to-rent project to Q-Living in Bilbao for 24 million euros
Urbas has sold a build-to-rent project to Q-Living in Bilbao, comprising 143 general social housing units. The development, located in the significant urban development area of Isla Zorrozaurre, is part of Bilbao's major urban regeneration efforts.
The project, sold for €24 million, includes two towers of nine and 10 floors, offering a total of 143 ready-to-rent residential units, 185 parking spaces, 143 storage units, bike parking, green areas, and three commercial spaces. The total revenue for Urbas exceeds €30.5 million, benefiting from a €6.5 million subsidy from the Basque Government to promote affordable rental housing.
The development is set to offer one, two, and three-bedroom units for rent by 2026, with a focus on social and affordable housing.
Pedro Sánchez commits to making available up to 183,000 public housing units
Spanish Prime Minister Pedro Sánchez, in his inauguration speech, has pledged to provide up to 183,000 public housing units and increase the Young Rental Bonus as part of his commitment to address housing accessibility, a problem faced by many citizens.
The proposed increase in the Young Rental Bonus aims to facilitate earlier independence for individuals under 35, although specific details were not provided. Additionally, Sánchez highlighted a coalition agreement measure involving a 20% state guarantee for first-time homebuyers. The commitment extends to supporting middle-class citizens in environmentally friendly home renovations through unspecified tax incentives.
Cepsa acquires Ballenoil's network of more than 220 service stations in Spain
Cepsa has agreed to purchase the network of more than 220 gas stations from Ballenoil in Spain, expanding its business to over 2,000 gas stations in the Iberian market, pending regulatory approval.
Despite the acquisition, Cepsa plans to keep the Ballenoil brand, its business model, and structure intact. The aim is to strengthen the position in the low-cost segment, offering a range of economically priced fuels while supporting Ballenoil's growth plan to reach 500 gas stations by 2027.
Neinor Homes and Urbanitae create a joint venture of 150 million euros to invest in Build to Sell
Neinor Homes, a property developer, and Urbanitae, a real estate crowdfunding platform, have formed a joint venture to invest up to 150 million euros in Build to Sell projects over the next 18 months. Urbanitae will hold an 80% stake, with Neinor Homes holding the remaining 20% and acting as a managing partner overseeing project design, licensing, marketing, and construction.
This collaboration marks Neinor Homes' third venture in just seven months, contributing to 60% of its five-year strategic plan target of 500 million euros. The partnership aims to explore and capitalize on various investment opportunities in the real estate market.
The Nobu Hotel in Miraconcha temporarily closes due to an order from the City Council of San Sebastián
The Nobu Hotel in Miraconcha, San Sebastián, has temporarily ceased operations following a closure order from the City Council. The closure was issued by the Department of Urbanism due to violations of urban planning regulations.
The hotel, owned by a company founded by actor Robert De Niro, stopped both its accommodation and restaurant services temporarily. Operations will resume once the necessary authorization is obtained from the authorities.
The Department of Urbanism issued the closure order on November 6 after inspections revealed non-compliance with regulations.
AEW sells the Planetocio shopping center in Collado Villalba to Azora
Azora has purchased the Planetocio shopping center in Collado Villalba, Madrid, in its first operation for the new multi-strategy fund in the leisure segment. The property, previously owned by Axiare and later acquired by AEW in 2018 for 20 million euros, has now been sold to Azora for an estimated amount of around 16 million euros.
The Planetocio center offers 21,000 square meters of leasable space with a high occupancy rate of 95%. Approximately 80% of the center is dedicated to entertainment, featuring tenants such as Yelmo Cines, Media Markt, McDonald's, and Ginos. The center has shown consistent growth in visitor numbers (+5.8%) and sales (+9%) compared to 2022.
Azora recently launched a multi-strategy European fund with a total equity of 270 million euros and an investment capacity of 500 million euros.
Arcano Partners sells land in Alcalá de Henares to Iridium for the construction of a data center
Arcano Partners has sold land in Alcalá de Henares, Madrid, to Iridium (ACS) for the construction of a data center. The data center, with a guaranteed power of 50 MW and an area of 67,000 square meters, is expected to become operational in 2025.
Arcano Partners' Real Estate team has managed the land, bringing it to the 'ready to build' phase, having obtained all necessary permits for construction.
This transaction aligns with Arcano Partners' strategy, particularly with its AVA III fund focused on real estate and alternative assets, including data centers, in Spain and Portugal.
Merlin Properties achieves an EBITDA of €274.2 million until September, a 10% annual increase
Merlin Properties, a real estate investment trust (socimi) specializing in tertiary assets across the Iberian Peninsula, achieved a 10% year-on-year increase in EBITDA, reaching €274.2 million from January to September 2023. The company focuses on investments in offices, shopping centers, logistics platforms, and data centers.
In the first three quarters of 2023, Merlin Properties reported total revenues of €365.4 million and gross rents of €356.6 million, reflecting a 6.5% year-on-year growth. The company also generated an operating profit of €216 million, equivalent to €0.46 per share.
The sale of homes plummets by 23.7% in September
The number of registered home sales in Spain plummeted by 23.7% in September 2023 compared to the same month in 2022, according to data from the National Institute of Statistics (INE). Specifically, 92.5% of the homes sold were free-market properties (-23.5% YoY), and 7.5% were subsidized or protected housing (-25.3%).
Of the total transactions, 18.6% were newly built homes (-19.7%), while 81.4% were existing homes (-24.5%). The data also indicates negative annual growth rates in home sales across all regions, with the largest declines in the Canary Islands (-40.1%), Extremadura (-32.2%), and Aragon (-31.1%).
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