Brainsre compiles below the weekly news highlights.
Industrial/Logistics – Pictet and Freo acquire a logistics warehouse in Alovera from CBRE IM
- Pictet along with its local partner Freo, has increased its investment in the Spanish logistics market. They have acquired a logistics asset of 43,500 square meters in Alovera (Guadalajara), which was previously owned by CBRE IM.
- This property is one of the largest in the Corredor del Henares area and underwent renovation in 2021. It is currently leased to a third-party logistics (3PL) company.
- The platform is located in the Los Picones Industrial Park, which is one of the main logistics areas in Spain.
Hotel – Madrid and Barcelona will close 2023 with 7,000 luxury hotel beds
- Spain has seen a considerable growth in the number of luxury hotel rooms since 2013. By the end of 2023, it is projected that Madrid will have expanded its inventory of luxury rooms by 51% to reach 2,700, according to a report by JLL.
- The report highlights Madrid as one of the most coveted cities in Europe due to the constant demand from leisure and business travelers, as well as the continuous growth in the number of international visitors the city receives.
- Madrid is positioned as the next luxury destination in Europe with the arrival of several international luxury hotel brands such as Four Seasons, Edition, and Mandarin Oriental. Additionally, Barcelona is highlighted as one of the most established urban hotel markets on the continent, with the city’s luxury room supply set to nearly double by the end of this year compared to a decade ago, reaching a total of 4,200 luxury hotel rooms.
- B&B Hotels and Meridia Capital Partners have formed an alliance to develop a platform of budget hotels with high ESG standards in Spain, with a projected investment of 200 million euros.
- Meridia will acquire land on the outskirts of major Spanish cities to construct hotels with 100 to 200 rooms. These properties will be leased to B&B Hotels under a fixed contract.
- Meridia will collaborate with Lexxa Hotels to strategize, identify opportunities, manage development, secure financing, and oversee operations. B&B Hotels is expanding its presence in Iberia and currently operates 45 hotels in Spain and 11 in Portugal, totaling over 5,000 rooms.
Office – Royal Metropolitan sells office building in Plaza de Castilla (Madrid) to private investor
- Royal Metropolitan has sold a fully occupied multi-tenant office building located in Plaza de Castilla to a private investor.
- The building spans 3,500 square meters and holds the LEED Gold sustainability certification, attracting interest from active investors in Madrid’s office market.
- The capital city’s office market continues to show strong demand, with a positive absorption trend and over 137,000 square meters leased in the first quarter, representing a 5% year-on-year increase.
Industrial/Logistics – Inmo-Arnedo builds 33,050 m2 logistics centre in Dos Hermanas
- Inmo-Arnedo has built a 33,050 square meter warehouse in the Sen-2 Lugar Nuevo Industrial Estate in Dos Hermanas, Sevilla.
- The new logistics center is situated on a 47,214 square meter plot of land that Inmo-Arnedo acquired in 2021. A second phase is planned for the construction of another building on the adjacent plot.
- The recently constructed warehouse in Dos Hermanas features fire prevention systems, security measures, surveillance, and office space.
Residential – Habyt launches short-stay accommodation in Spain and aims to add 2,000 units this year
- German company Habyt is expanding its presence and opening new markets. In Spain, the company has already reached over 1,300 rooms in the first quarter and aims to exceed 2,000 units by the end of the year.
- Key milestones for Habyt’s growth in the Spanish market last year included the preparation for the launch of Alcalá, the largest coliving complex in Spain, located in Madrid’s Salamanca neighborhood, spanning 2,900 square meters with 128 units. They also introduced short-term stays in Spain.
- The team has recently signed a new building with 45 units, offering serviced apartments for tourists and corporate clients looking to stay in Madrid for less than a month. All rooms will be fully equipped and function as smart homes with support from Domatica Systems. The building, expected to open in the first quarter of 2025, will feature a gym and multiple green areas and courtyards. This agreement has contributed to expanding their short-term portfolio in the country, which currently has over 200 signed units, according to the company.
Retail – Physical shop openings in Spain return to pre-pandemic levels
- Physical store openings in Spain have recovered pre-pandemic levels, according to a report by real Savills. The report shows that the availability of retail space on the streets decreased by around 7% compared to the 10% vacancy rate in 2021.
- The report also highlights that expansion strategies of retailers maintain a significant offline market share in an omnichannel scenario, with retail sales estimated at 72% in street stores, 18% in commercial centers and parks, and nearly 10% online.
- The most active brands in commercial centers and parks were those focused on low-cost, textile, home, and pet segments, with the fashion sector experiencing significant growth, accounting for 46% of the new openings compared to 27% in 2021.
Hotels – 66% of institutional investment in holiday hotels in Spain is directed towards repositioning
- Since 2015, institutional capital has played a significant role in the hotel investment market in Spain, accounting for 68% of the total volume invested, which amounts to nearly 25 billion euros.
- The hotel investment market in Spain has experienced a new configuration, with an average annual investment of 3.081 billion euros between 2015 and 2022, compared to an average of 1 billion euros per year from 2007 to 2014.
- The investment distribution between urban and resort hotels has been fairly balanced over the past eight years. Madrid and Barcelona have accounted for 78% of the investment in urban hotels, while the Balearic Islands, Canary Islands, and Costa del Sol have concentrated 80% of the total investment in resort destinations.
