Optimus - Spain RE Market Report Q3 2015
- 1. 1 This publication should not be viewed as a ‘personal recommendation’ within the meaning of the Financial Conduct Authority rules. Spain Real Estate Update Q3 2015 Spain’s Economic Backdrop… 2014 was characterized by the arrival ‘en masse’ of international investors and the creation of large Spanish REITs (SOCIMIs). After seven years being a no-go area, Spain has transformed into one of the hottest markets for investors. Last year alone, more than €7bn ($7.8bn) was invested in commercial real estate – this is almost triple the amount invested in 2013 when it stood at €2.5bn ($2.8bn). The influx of investor interest is mainly due to Spain’s economic recovery and the attractive price levels. Spain has been one of the best performers in the Eurozone with consistent quarterly GDP growth since mid-2013. Eurozone growth has been mixed, growing by 0.8% in 2014 whereas Spain’s GDP grew at 1.4% over the same period – Spain is expected to grow 2.8% in 2015 and 2.5% in 2016. The recovery is demonstrated by all the main economic indicators, such as increased consumer confidence, improved labour market, greater disposable income and household consumption as well as improved access to financing. IMPLICATIONS ON THE REAL ESTATE INVESTMENT MARKET: As mentioned above, 2014 was a successful year for the Spanish real estate market. The commercial property segment saw investment volumes of €7.2bn of which 43% was in the capital, Madrid. When splitting this into sectors, 72% was apportioned to the Office and Retail markets whilst the remainder was in Industrial (8%), Hotels (14%) and Bank units (6%). It must be highlighted that the investment volume seen in 2014 across both logistics and hotels in Spain saw the greatest y-o-y increase across the entire real estate market. It is important to note the distribution of the investor origin, with 44% of the demand carried out by national investors, whilst international OPTIMUS Insights KRIS VAN LANCKER Managing Director T: (+34) 91 123 7600 E: [email protected] DAVID DIEZ Investment Consultant T: (+34) 91 123 9181 E: [email protected] Optimus Global Investors, a trademark of Optimus Capital, S.L.
- 2. 2 investment took the majority (North America 40%, European 37%, Latam 12% and Asia 11%). The rationale for the large amount of national investors was the creation of the SOCIMIs in Spain that amounted to 70% of the domestic investment volume (30% of total volume in the sector). Although SOCIMIs are a Spanish tax-efficient investment vehicle, there is increased participation from overseas investors taking stakes in these vehicles as a way of entering the market. Investors generally had capitalized on low prices and the potential of gaining from the impending upward growth cycle. The focus has mainly been on prime properties in prime locations where we are already seeing hardening of yields over all segments of the market. This characteristic coupled with the lack of prime stock has made many investors redirect their search to prime properties in secondary or decentralized areas. In terms of strategy, the value-added approach through repositioning, refurbishment, improvement of property management and development are the preferred routes for investors. 1. RETAIL (HIGH STREET & SHOPPING CENTRES): €2.4bn/$2.7bn was invested in 2014. Growing GDP, falling unemployment and rising real wages have resulted in growing consumer confidence, an upturn in household disposable income and increased consumer spending, the key pillars for the success of the Spanish retail market. High Street: The continued recovery has fed into the Spanish high street since 2014, with demand for prime high street units increasing so much so that there is a now shortage of space on the best streets. Many expanding domestic and international retailers are considering streets off the prime areas and secondary cities. Most of the demand over the last 18 months has been seen in Madrid, as a result of its above national average income levels, larger population and the regional government’s positive stance towards retail developments and liberal opening hours. The most popular streets in Madrid city center are Gran Via/Preciados (rents of €2,700sq.m/$32,500sq.ft per annum), Fuencarral (€1,425sq.m/$17,150sq.ft), Jose Ortega y Gasset, Serrano (€2,300sq.m/$27,700sq.ft) and Goya (€1,300sq.m/$15,650). Gran Via has been the only street that has shown countercyclical behavior and where rental yields on the best section of the street have increased by more than CPI during the crisis, increasing by 40% since 2006 (+9% in 2014). The world’s biggest fashion brands, institutional investors, real estate companies, hotel specialists and developers have gravitated to Gran Via due to the aforementioned pick-up in yield, expected appreciation in values as well as the 2014 was the year of change for Spain – since the end of 2013, the positive economic prospects for the country have been the main drivers for new foreign investment into the country. Real Estate presents the biggest opportunity at the moment given the aggressive correction we experienced during the crisis – the biggest volume of investment has been in Offices and Retail, with 72% of the total volume. Prime street Retail units are forecasted to remain at 4%, for super-prime properties with super-prime tenants (typically luxury goods sector) yields could drop to 3.25%.
- 3. 3 potential for (re)development through active management. Although the majority of investors are asking for the best locations in order to let them out to large international retail chain tenants, we are seeing an appetite for non-prime rental premises. Typically, institutional investors are behind those investments although the market of transactions under €10m are dominated by family offices and local private investors who target typically 4% for prime premises. Shopping Centres: In 2014, Spain witnessed renewed interest in shopping centres by major retail brands. Attracted by increasing consumption, improvement in consumer confidence and reductions in unemployment retailers have had increased sales and footfall in prime shopping centres and in those located in areas where the economic situation is more stable. Not only has the improvement in the economic outlook contributed to the increased appetite by international investors but also the attractive pricing relative to comparable markets. Furthermore, SOCIMIs have provided additional liquidity/demand having accounted for 50% of the total investment volume of shopping centre assets in 2014. We still witness ongoing demand for core/prime shopping centres despite the aggressive hardening in yields seen over the last 2 years (6.75% in mid-2013 to 5.25% at present) and we believe there is room for 75bps further hardening with minimal volatility. Second-tier assets however offer some margin for pickup in returns leading to new transactions as investors accept marginal further risk. Despite the expected yield compression in due course as a result of the low availability of space, we forecast rental growth of 20-30% over the next 5 years depending on the shopping centre. Specific to Madrid, the vacancy rate in prime centres is low at 8.7% and we see this to be consistent across both urban and semi-urban centres, as well as centres with both low and large GLA. Typical rents in prime are €190sq.m/$2,300sq.ft per annum. In Madrid, which accounts for 20% of Spain’s GLA of shopping centre space, we have noticed a shift in population to the suburbs which makes semi-urban centres all the more attractive. 2. OFFICE: The recovery of the Spanish office market seen since 2013 has been a consequence of the new economic growth model undergone in Spain; supported by structural reforms to stimulate competition, productivity and exports as well as stability in public finances and recapitalization of the banking sector. The office market has also benefitted from a weaker Euro and lower oil prices that support the industrial sector and exporters along with the improved labour market. Investment volumes reached €2.8bn ($3.1bn) in 2014, which is more than double those levels seen in 2013, and the highest registered Excess demand and relative lack of product has resulted in a general compression in office yields, especially in prime locations. Despite this yield compression, the positive macroeconomic forecasts coupled with additional credit and rental increases leads to the expectation that investment in 2015 will be similar to that in 2014. Prime Shopping Centre Yields: 5.25% Vacancy rates: 8.7% Rents: €190sq.m per annum
- 4. 4 over the past 10 years, excluding 2006-2007. In terms of distribution, 61% of investment was made in Madrid, followed by 24% in Barcelona and the remaining 15% in other locations throughout the country. The office market in Spain has seen a gradual improvement in occupier demand over the last year with take-up levels bolstered by a larger number of transactions. Madrid prime office yields stand at 4.75% but with lot sizes of below €30m they show 50bps harder. Decentralised areas show a 100bps pick-up. As economic conditions improve, there has been a noted increase in demand with take-up in Madrid increasing by 10% over the last year and we expect this trend to continue throughout 2015 and 2016. We have seen notable interest from investors who did not traditionally form part of the Spanish real estate market, such as South American, American, Israeli, Arab, Canadian, Chinese and Russian investors. The SOCIMIs accounted for roughly 1/3 of the total investment in the office market in 2014. Investors are certain that after rents fell by more than 40% from the peak of the market in 2007-2008, that these corrections have bottomed-out and foresee significant rental growth over the short to medium term. 70% of the volume seen in 2014 came from Core or Core+ investors whilst 20% applied a value-added strategy. 3. HOTEL: €1bn/1.2bn investment in 2014. The Spanish tourism sector witnessed a growth rate of 2.9% last year, which is double that of the national GDP (1.4%), not only due to the overseas demand but also the increased domestic demand. Domestic demand, both inland and on the coast, rose by 10% due to increased household income and the general improvement in the Spanish real economy. The aforementioned, coupled with a depreciating Euro and falling oil prices, making travel cheaper, have resulted in the recent success seen in the Spanish hotel sector. The hotel market in Spain is highly fragmented with varying quality of assets. 58% of the existing hotel supply is independently operated, many of which are family-owned, with the remainder consisting of domestic and international hotel operators meaning that the discrepancy of standards can be very apparent. Accordingly, the need for consolidation across the sector as well as the asset repositioning presents a significant opportunity for investors with a value-add investment strategy. In 2014 Spain witnessed a RevPar growth of 10% across the sector that has made the asset class all the more appealing for international investment. Additionally, in spite of its seasonal behavior, the hotel resort market has performed well over the last couple of years with average occupancy rates well above the average for urban centres. The outpacing of demand over supply in the hotel sector means that The current yield levels in Madrid and Barcelona for trophy assets lie at around 4- 5.5% whilst city centre hotels yield in the region of 6-8% Madrid prime location hotel yields: 6-8% Madrid trophy asset yields: 4- 5.5% Value added strategy: Purchase of empty buildings and renovation into new hotels is more economical than acquiring existing hotels outright.
- 5. 5 the key markets have recorded an increase in occupancy rates. Most transactions have taken place in Madrid, Barcelona and Mallorca, although over the last months there has been increased demand in the Balearic (especially Ibiza) and Canary Islands, as well as some other costal areas. The trend over the last 2 years in Madrid and Barcelona has been to convert empty buildings into hotels and follow change-of-use strategies where office buildings have also been converted into hotels. This has been the preferred route by many investors to gain greater returns compared to acquiring existing hotels that are offered at very high asking prices. 4. INDUSTRIAL: Pertinent to the recent success of the industrial- logistics markets has been the improvement in private consumption; GDP growth up 1.4% in 2014 and increased exports as a result of the drop in oil prices and the Euro as well as improved access to financing. Putting this into numbers, investment volume in the area was north of €600m ($670m) last year (the highest level seen in the last 10 years), yields in excess of 7% and take-ups levels greater than 30% in Madrid. 70% of the investor activity over the last year took place in the Madrid area while the rest was in Barcelona, Seville, Zaragoza and Valencia. 60% of demand came from institutional investors, 30% from SOCIMIs (Spanish REITs) and 10% from family offices. Naturally, the amount of interest in this market has lead to a fall in supply (despite there still being high levels of supply), a fall in vacancy levels over the last 2 years and rental price increases for the best quality assets. Less prime assets have seen a stabilization of rental levels as most appetite is focused on prime at the moment. Industrial Properties: Industrial rents in Madrid, depending on the area, are either stabilizing or are close to stabilizing as rental corrections are ever smaller - prices fell around 4% over 2014 to €3.15sq.m/$38sq.ft per month. Approximately 20% of the space taken in industrial properties over the last year was for sale, whilst the remaining 80% was to let. Despite the industrial sector as a whole lagging slightly behind other real estate segments, yields across prime assets have actually started to fall due to the ongoing shortage of large, high-quality assets – prime yields currently stand at 7% having hardened 50bps in 2015 alone and an additional 75bps in 2014. Logistics: The story in the logistics sector is similar to the industrial space in that rental prices of the best quality and located properties have begun to rise and remain stable in other markets. Prime units with solvent tenants and compulsory fixed term contracts in the best communicated areas have seen a 100bps hardening over the last 6 months to the existing 7.5% yield levels. Nevertheless, yields in Yields for prime Logistics assets: 7.5% Yields for prime Industrial assets: 7%
- 6. 6 secondary markets are seen at 8.5% and have been stable. During 2014, and continuing on from the falls seen in 2013, vacancy rates fell from 16% to 14.5%. Furthermore, take-up registered its fourth consecutive year of growth increasing by 35% compared to 2013, 90% of which was for lettings and the remainder for outright purchase transactions. After 6 years of consecutive price falls, logistics rents on average followed different lines to those in the industrial sector and rose by 4% in Madrid and currently stand at just over €3sq.m/$36sq.ft per month. There is a quantifiable relationship in the logistics space between rents and distance from the most urban areas of Madrid – rents fall from €4.75sq.m/57sq.ft per month from within the most central and urban areas of the city to €2.5sq.m/$30sq.ft per month in the outer regions. 5. RESIDENTIAL: The residential market has started to bear the fruits of the wider economic recovery that Spain is experiencing, reflected by increased sales of residential properties. This is a tendency that is expected to continue throughout 2015. Despite domestic demand increasing, overseas buyers interest continues to grow, as it has done since 2009 (+17% in 2014 and increasing to 30% in 2015). Prices are now stabilizing and, according to data provided by Spanish authorities, the accumulated price correction since the top of the market in 2007-2008 stands at 32% for new-build properties and 43% for pre-owned. Despite the considerable reduction in prices, property values are still not affordable. This is demonstrated by the current “mortgage cover ratio”, which stands at over 6x, well below the ideal 4-4.5x. Accordingly, new residential supply coming to the market is still low. New-build properties that are coming to the market are generally very different to the current available stock and developed in markets where there is strong demand with affordable prices and strong sales rates. Over the last 18 months we have seen a heightened interest amongst investors in land or buildings with refurbishment potential in these areas. Over the last year, land and refurbishment deals were carried out in the core real estate markets for an approximate value of €1.8bn, of which 60% in city centres. Furthermore, the largest amount was allocated to Madrid where a large number of these deals (primarily residential) were completed. Part of this was due to foreign investment, as overseas investment funds have little access to asset classes that offer returns of 10-15%; a level that is viable in residential real estate.
- 7. 7 KEY TAKEAWAYS The Spanish economy is set to be one of the strongest performing economies in Europe over the next five years. Following yield compression, returns will be led by the continued rise in prime rental levels. Low supply of fully let investments means taking on additional risk and investors focusing their attention on less core areas, with higher vacancy rates. Nevertheless, these areas present opportunities as there are grade A buildings with grade A tenants. Contact us If you would like to discuss this report or the investment opportunities for your institution in further detail, please email the team or call us directly. Email: Global phone numbers: [email protected] Spain: (+34) 91 123 7600 [email protected] UK: +44 (0)20 3514 3775 US: +1 (646) 453 6252 www.optimusinvestors.com Address: Calle General Oraa 29, 28006 Madrid, Spain Optimus Global Investors sources and manages real estate assets as well as other alternative investments in Spain. We are a boutique consulting group based in Madrid that helps investors access and manage assets in Spain. With its experienced team of multilingual professionals Optimus provides bespoke solutions to meet any investment need, offering comprehensive advice and creating value for our investors.
- 8. 8 Appendix (I) – Economic Indicators Macroeconomic backdrop, Spain: SPAIN 2008 2009 2010 2011 2012 2013 2014 2015f 2016f 2017f GDP (% YoY change) GDP (YoY%) 1,1 -‐3,6 0,0 -‐0,6 -‐2,1 -‐1,2 1,4 2,8 2,5 2,0 Spain Eurozone Germany France UK Italy 2,7 1,0 1,0 0,8 2,4 0,1 Industrial Production (YoY) -‐-‐ -‐-‐ -‐-‐ -‐-‐ -‐-‐ -‐-‐ 1,5 2,5 2,6 -‐-‐ Household Consumption (YoY%) -‐0,7 -‐3,6 0,3 -‐2,0 -‐2,9 -‐2,3 2,4 3,3 2,4 1,8 CPI (YoY%) 4,1 -‐0,2 2,1 3,0 2,4 1,5 -‐0,2 -‐0,4 1,1 1,2 Unemployment (%) 11,3 17,9 19,9 21,4 24,8 26,1 24,5 22,5 20,8 19,3 Central Bank Rate (%) 2,50 1,00 1,00 1,00 0,75 0,25 0,05 0,05 -‐-‐ -‐-‐ 3-‐Month Interest Rate (%) 2,89 0,70 1,01 1,36 0,19 0,29 0,08 0,01 -‐-‐ -‐-‐ 2-‐Year Note (%) 2,29 1,85 3,44 3,16 2,78 1,41 0,38 0,37 -‐-‐ -‐-‐ 10-‐Year Note (%) 3,81 3,97 5,44 5,04 5,23 4,13 1,60 1,93 -‐-‐ -‐-‐ EURUSD 1,40 1,43 1,34 1,30 1,32 1,37 1,21 1,05 1,10 1,13 Source: Bloomberg, Optimus Capital Key Economic Indicators, Spain: Source: Bloomberg, Optimus Capital Spanish Yield Premiums: Yield by Asset Class: Source: Bloomberg, Optimus Capital 0 5 10 15 20 25 30 -‐04 -‐03 -‐02 -‐01 00 01 02 03 04 05 2008 2009 2010 2011 2012 2013 2014 2015f 2016f 2017f GDP (YoY%) CPI (YoY%) Household ConsumpOon (YoY%) Unemployment (%) 8.50% 7.50% 7.00% 7.00% 5.75% 5.25% 4.75% 4.75% 4.00% 3.25% 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Yield %
- 9. 9 Appendix (ii) – Market Transactions 2014 (>€100m) & 2015 YTD 2014 Asset Class Asset Location Transaction Value (€m) Vendor Purchaser 2014 Offices 70 Andalucian government buildings Several locations 300 Junta de Andalucía (Gov. entity) W.P. Carey (US REIT) 2014 Retail & Hotel Marineda City Complex La Coruña 260 Invest Cos (Fund) Merlin Properties (SOCIMI) 2014 Retail Islazul Madrid 232 Grupo Lar & Ivanhoé Cambridge (Fund) TIAA Henderson Reat Estate (Fund) 2014 Hotel Resort Sotogrande Cadiz 220 NH (Hotel Group) Cerberus (Fund) 2014 Offices 13 Generalitat buildings Barcelona 201 Generalitat de Catalunya (Gov. entity) Zurich (Insurance) 2014 Offices & Retail Four office buildings & one retail warehouse Madrid, Barcelona & Tarragona 180 Credit Suisse (Bank) Axia Real Estate (SOCIMI) 2014 Vastned Portfolio (8 centers) Several locations Several locations 160 Vastned (RE Group) Baupost Group (Fund) / Green Oak Real Estate (Fund) / Grupo Lar (RE Group) 2014 Retail El Boulevard San Sebastian 157 CBRE Global Investors (RE Group) REI Investment IBV (Fund) 2014 Office, Retail & Hotel Paseo de la Castellana, 200 Madrid 140 Reyal Urbis (RE Group) Drago (RE Group) + PSP Investments (Canadian Pension Fund) 2014 Offices Santa Hortensia 26-‐28 Madrid 130 Morgan Stanley (Bank) Finacess (Fund) 2014 Industrial Six logistics assets Madrid & Guadalajara 133 Gran Europa (RE Group) Logicor (RE Group) 2014 Offices Levitt Portfolio Madrid 130 Levitt (RE Group) Merlin Properties (SOCIMI) 2014 Offices Eight buildings Madrid & Malaga 120 Oncisa (RE Group) Hispania Activos Inmobiliarios (SOCIMI) 2014 Offices Avenida de America 115 Madrid 117 Solvia (RE Group) London Regional (Fund) 2014 Retail Gran Vía de Vigo Vigo 115 ING Real Estate developments Oaktree (Fund) 2014 Industrial Portfolio SABA Madrid & Barcelona 100 SABA (Interparking) Prologis (Logistics) 2015 Asset Class Asset Location Transaction Value (€m) Vendor Purchaser January Retail Building on Gran Vía 30 Madrid 42 N/A Talus Real Estate (RE Fund) January Retail Building on Gran Vía 32 Madrid N/A Drago Capital (RE Group) Pontegadea, Amancio Ortega (Retail) January Offices Torre Ederra Madrid N/A BBVA (Bank) GMP (RE Group) January Offices BMW Offices Madrid 41 Gecina (RE Group) SOCIMI managed by IBA Capital Gecina January Residential & Commercial 11 plots in Madrid Madrid 64 Sareb (Restructuting fund, Spain banks) N/A January Office Office buildings on Goya 29 Madrid 27 N/A Realia (Fund) January Residential & Commercial RE complex 'Golf Hills Village' Madrid N/A N/A CTH Capital (Fund) January Offices Building in Barcelona Barcelona 37 UBS (Bank) Merlin Properties (SOCIMI) January Retail Ten Consum Supermarkets Valencia & Castilla-‐La Mancha N/A A group of investors Meridia (Fund) January Residential, offices & nursing homes 18 buildings Barcelona 90 La Llave de Oro (Developer) Goldman Sachs (Bank) January Offices Office building in Barcelona Barcelona 10 Sareb (Restructuting fund, Spain banks) Colonial (Fund) January NPL portfolio NPL Portfolio "Aneto" Madrid 250 Sareb (Restructuting fund, Spain banks) Blackstone (Fund) January Offices Tripark Business Park (Las Rozas) Madrid N/A N/A IBA Capital Partners (Fund) January Residential & Commercial Real Estate complex Madrid 35 Cevasa (RE Group) AKM Arganzuela (RE Group) February Residential Plots in Madrid Madrid 13 Sareb (Restructuting fund, Spain banks) Castlelake (Fund)
- 10. 10 February Hotel Hotel Solvasa Barcelona N/A N/A Eurohotel Group (Hotel Group) February Industrial Gescobro (Collection company) Madrid N/A Miura (Fund) Cerberus (Fund) February Offices Building at Gran Vía 14 Madrid 21 N/A Private Mexican Investor February Residential Building at Calle Juan Bravo Madrid 120 N/A Lar España (RE Group) & PIMCO (Fund) March Residential & Offices Principe de Vergara & Sanchinarro Madrid 86 N/A Hispania (SOCIMI) March Offices 11 office buildings Barcelona (7) & Madrid (4) 100 GE Capital RE (Fund) Meridia (Fund) March Retail Airesur Shopping Centre Sevilla 77 N/A CBRE GI (RE Group) March Retail Plenilunio mall Madrid 375 Orion Cap Managers (Fund) Klepierre Acquires (RE Group) March Self storage & Offices Self-‐storage Madrid 8 Baraka Global Invest (RE Group) Bluespace (Self-‐storage Group) March Retail Zielo Shopping Centre Madrid 73 Hines (RE Group) UBS (Bank) April Offices Revlon's HQ Barcelona 30 Morgan Stanley (Bank) Standard Life (Fund) April Retail As Termas' shopping mall Lugo 67 N/A Lar España (SOCIMI) April Offices The 'Torre Norte' building Barcelona 15 CaixaBank (Bank) SegurCaixa (Insurance) April Logistics Logistics Plot Guadelajara N/A N/A Montepino (RE Group) April Student Accomodation Two Halls of Residence Barcelona N/A N/A The Student Hotel May Land Private plot of land Mallorca 6 Ministry of Defence (Gov. entity) La Llave de Oro subsidiary (RE Group) May Logistics 3 Logistics Platforms Madrid & Valencia 19 UBS (Bank) Lar Group (SOCIMI) May Retail 68 Gran Vía Madrid 45 Carlyle (Fund) FMS Wertmanagement (German 'Bad Bank') May Retail Puerta del Sol 9 Madrid 30 Auction Kennedy Wilson & Renta (Fund) May Retail 3 land plots in Arroyo del Fresno Madrid 50 Madrid City Council (Gov. entity) CP Grupo Inmobiliario (RE Group) May Offices Paseo de la Castellana 89 Madrid 147 N/A Corporacion Financiera Alba (March Family) May Logistics Logistics Platform Meco 22 Kefren Capital (RE Group) Merlin (SOCIMI) May Retail Shopping centre Leon N/A CG Malls Europe (RE Group) Blackstone (Fund) May Hotel Ritz hotel Madrid 130 Belmond Spanish Holdings & Landis JV -‐ Olayan (Fund) & Mandarin Group (Fund) June Hotel Villa Magna Hotel Madrid 190 Sodim (HoldCo of Queiroz Pereira family) Jaime Gilinski (Colombian individual) June Loans NPL Portfolio -‐ 'Project Gaudi' Madrid 260 FMS Wertmanagement (German 'Bad Bank') Oaktree (Fund) June Offices 2 office buildings (Las Rozas & Cristalia BP) Madrid 55 Deka (Fund) Hispania (SOCIMI) June Logistics 5 Logistics Platforms Madrid 75 N/A GreenOak (Fund) June Retail Plaza Éboli Shopping Center Madrid 30 Doughty Hanson (Fund) HIG Capital (Fund) June Hotel (Trophy assets) 2 Hotels In Canary Islands Canary Islands 105 N/A Hispania (SOCIMI) June Offices Offices in Madrid Madrid 51 Sareb (Restructuting fund, Spain banks) Axiare (SOCIMI) June Offices Office Building Barcelona 20 N/A Lar Group (SOCIMI) June Supermarkets Eroski Hypermarket Alicante 7 Altadena (Fund) Lar España (SOCIMI) June Residential-‐ Hotel Condeminas Building Barcelona N/A N/A Manel Adell (Private investor) June Trophy asset Building In Puerta de Alcalá Madrid 80 Auction Mapfre (Insurance) June Company Subsidiary Testa Madrid 1800 Sacyr (Construction) Merlin (SOCIMI) June Loans Hotel Loan Portfolio (Project Castle) Madrid N/A Bankia (Bank) UBS (Bank) June Retail Zielo Shopping Centre Madrid 70 Hines (RE Group) UBS (Bank) June Port 50% Of Puerto Venecia Zaragoza 225 Intu CPPIB (Canadian Pension Fund)
- 11. 11 APPENDIX (III) – MADRID OFFICE MARKET DISTRIBUTION: CBD: Central Business District / RBD: Rest of Business District / RC: Rest of City / DEC: Decentralised / OUT: Outskirts
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