Brainsre compiles below the weekly news highlights.
- Spanish retail sector closes June with a new Spanish-Chilean real estate partnership. Five companies join forces to launch Alerce Real Estate, an investment vehicle with plans to invest up to 400 million euros in acquiring land and developing new commercial projects in Spain and Portugal.
- Alerce Real Estate aims to develop both medium-sized urban commercial parks and large-scale supermarket facilities.
- The Spanish partners in this new group are real estate company iKasa, private banking company A&G, and real estate fund manager MedCapital. The Chilean companies involved are real estate manager Grupo Patio and WildSur, owned by the Lería-Luksic family. The group’s plan is to support grocery store operators by constructing standalone buildings with parking, catering to brands like Mercadona, Lidl, Carrefour, Aldi, and Veritas (an organic food chain).
Hotel – Abu Dhabi buys 17 hotels in Spain for 600 million euros
- Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund from Abu Dhabi, has acquired 17 hotels owned by Equity Inmuebles, with the hotels continuing to be managed by Meliá, a Mallorcan firm. The deal, valued at around 600 million euros, is awaiting approval from European competition authorities, which could potentially block it.
- The portfolio of hotels includes the exclusive ME Madrid Reina Victoria Hotel in the city center, five Meliá hotels in Madrid, Marbella, A Coruña, Chiclana de la Frontera, and Baqueira Beret, eight Tryp hotels (two located on Madrid’s Gran Vía), and three Sol hotels.
- Equity Inmuebles, the selling entity, is composed of the Calero, Briones, and Mazin families, who are connected to the creation of the Tryp hotel chain, with which Meliá has had a close relationship since 1999. This is the third agreement between Meliá and ADIA, aimed at expanding Meliá’s hotel business. JLL served as the advisor to the selling party. This transaction represents one of the most significant deals in the hotel sector in recent years, surpassing the value of some transactions recorded in 2018, a year of historic highs with an investment volume of 4.81 billion euros.
Residential – Neinor Homes and AXA IM Alts invest, through a joint venture, 110 million in residential property in Madrid
- Neinor Homes and AXA IM Alts, a specialist alternative investment firm, have acquired a plot of land in Madrid through a joint venture. The land has urban planning permits for the construction of approximately 250 residential units in two 17-story buildings. Alantra acted as the exclusive financial advisor for this joint venture.
- AXA IM Alts holds a 90% stake, while Neinor Homes holds the remaining 10% and also serves as the managing partner of the development. Neinor Homes will oversee the project’s design, licensing, marketing, and construction. The companies intend to continue exploring other investment and development opportunities in the Spanish residential market in the coming months.
- This co-investment strategy is a key part of Neinor’s business plan, aiming to optimize its balance sheet and capital growth. Between 2023 and 2027, the company plans to invest approximately 1 billion euros in new land acquisitions, with half of the funds coming from new partners.
Land – Bain Capital and Conren Tramway buy 92,000 sqm of leasable land in Valencia
- Bain Capital and Conren Tramway have formed a joint venture to invest over 600 million euros in the acquisition and development of logistics assets in Spain and Portugal over the next five years.
- The joint venture will prioritize investments in established and growing logistics centers in Madrid, Catalonia, Valencia, and the southern region of Spain. In Portugal, the focus will be on the logistics hubs in Lisbon and Porto.
- The joint venture aims to develop grade A logistics projects that meet the diverse needs of logistics operators, including big-box assets, cross-docking facilities, cold storage warehouses, and last-mile logistics. The partnership is committed to promoting assets that adhere to the highest ESG standards. They have already agreed to acquire a plot of land in Loriguilla, Valencia, with a rentable area of 92,000 square meters.
Residential – Momentum invests 20 million in build to rent development in Guadalajara
- Momentum has started construction on the Las Jaras de Cabanillas build-to-rent development in Cabanillas del Campo, Guadalajara. The project consists of 87 single-family homes with private gardens, communal areas, and a shared swimming pool. The construction is being carried out by Avintia, and Momentum has invested 20 million euros in the development, which is expected to be completed in January 2025.
- The homes in Las Jaras de Cabanillas will have plot sizes ranging from 180 to 260 square meters. The built-up area of the houses varies between 147 and 177 square meters.
- The development will be enclosed with a perimeter fence, controlled access, and concierge service. It will also feature communal areas, a illuminated swimming pool, a children’s playground, and landscaped areas for relaxation and strolling.
