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Asset investment reaches a historical high in 2019: €12.725M
08 January 2020 | Observatorio Inmobiliario

2019 set a new record in terms of direct asset investment (offices, retail, logistics, hotels, portfolios, housing and alternative segments), with 12.725 million euro traded, 5% more than the previous year, according to the latest report from BNP Paribas Real Estate.

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The volume registered during the last quarter of the year was 3.880 million euro, the year’s most dynamic and a number similar to the same quarter of the previous year.

The segment most in demand of the year was the office segment with a 4.600 million investment, which represented a historic high and doubled the numbers of 2018. BNP Paribas Real Estate pointed out that value add and Core + funds and insurance companies were the main players and the products most in demand were located in Madrid (63%) and Catalonia (30%). The prime yield in Madrid and Barcelona remained at 3.25%.

The most relevant operation of the last quarter was the purchase by American fund Cain and Freo Group of a real estate portfolio from Merlin Properties for 200 million euro.

Build to Rent boom in 2019

The housing segment was the second most dynamic segment of the year with an approximate investment volume of 2.000 million euro.

2019 brought to this segment the Build to Rent (BTR) phenomenon and developers such as Metrovacesa and Aedas Homes carried out several operations of this type in 2019. The yields varied between 3.50% in prime locations and 5.80% in secondary markets.

The logistic segment set a new record for the fifth consecutive year, with 1.850 million euro registered, which represented a 42% increase yoy.

The volume of investment during the last quarter reached 545 million euro and the largest operation was the sale by GreenOak to Patrizia of the largest logistic portfolio in Europe for 1.300 million euro.

The prime yield during the fourth quarter was, for the first time, set below 5%. For 2020 it is expected a potential adjustment in terms of yield, because of the investors’ high interest.

The sale of «Puerto Venecia» in Zaragoza leads retail

Retail reached the significant investment volume of 785 million euro during the fourth quarter. However, the total amount traded was 1.965 million euro, which represented a 54% drop yoy, as a consequence, mainly, of the lack of big portfolios being registered when compared to the previous year.

The largest operation of 2019 was the sale of shopping centre Puerto Venecia in Zaragoza, for 475 million euro.

The hotel segment maintained its high activity, with less corporate operations. The most significant operation was the sale of the future W hotel in Madrid for 82 million euro.

Thus, BNP assures that «Spain is one of the most attractive markets for international investors. Spain is under the radar of the main investment funds thanks to the high liquidity, the low rates, attractive yields and the market fundamentals’ good moment».