The Iberian Property Investment Awards, organised by Iberian Property, are gearing up for the awards ceremony of the second edition of these awards, which will take place on the 25th of June in Madrid. These awards recognise and reward the most outstanding players and projects in the real estate investment sector in Spain and Portugal throughout 2023. One of the awaited categories is "Deal of the Year in Spain", which recognises exceptional Real Estate investment operations carried out in Spain.
The Finalist projects and players competing in this category are:
DWS – PLAN VIVE PROJECT
LOCATION: Madrid.
SECTOR: Affordable Housing.
DATE: Q1 2023
BUYER: DWS
SELLER: Culmia
INVESTMENT VOLUME: €250M
DWS has secured a deal to acquire a 50-year concession over a portfolio of 12 buildings with 1.763 residential units in Madrid metropolitan area. This investment in Plan Vive positions DWS as the first final investor to enter affordable housing, at a moment where only developers were invested.
This a disruptive deal in Spain which joints several factors:
- Public and private collaboration, between Madrid Regional Government and well-known real estate companies such as Culmia (developer) and DWS (investment & asset manager).
- Covering a society need for rental spaces, with strong population increases in large cities and with a scarce, obsolete, and low-quality supply (only 4% institutional).
- ESG impact: rental dwellings at a large discount below market rents and highly affordable effort rate vs. the standard effort rates for free market BTR, therefore, Social impact is a reality. There is also a strong Environmental impact by using the innovative methodology of modular construction provided by Avintia (having built a factory specifically for Plan Vive), and a high level of environmental credentials with the possibility to reach Breeam Excellent certification.
- In terms of the profitability of the investment, it implies the acquisition of a large affordable rental residential portfolio, with a secure and counter cyclical cash flow (rents below market), inflation hedging benefits and returns well in excess of indexed-linked bonds.
IBA CAPITAL PARTNERS – FRANCISCO GERVÁS 10
LOCATION: Madrid.
SECTOR: Offices.
DATE: Q4 2023
BUYER: IBA Capital Partners (Zambal Socimi)
SELLER: Blackstone
INVESTMENT VOLUME: €59M
The Francisco Gervás 10 deal represents the acquisition of an emblematic office in one of the best areas of Madrid´s CBD, beside Plaza de Cuzco and Paseo de la Castellana. The building, with c. 8.000 sqm GLA, is fully rented to the “Courts of Comunidad de Madrid”, a public entity. The transaction was executed through a share deal, for a total asset value of €59M.
The main aspects used to succeed in the deal were the following:
- Payment structure: including an intrinsic financing for the buyer. This produced an optimal combination of price for seller and return for investor, especially considering the current difficult bank financing context. IBA Capital Partners considered market prospects and seller requirements to define a right maturity, making the BP feasible with alternative strategies (flip over if the market shows opportunities, hold for the long term with the optionality of refinancing at accretive levels).
- Lease contract complexity: the former owner was able to extend the contract creating significant value through a long-term single tenancy schedule. IBA Capital Partners took the risk and obligation to execute certain capex commitments but put in place different compensation mechanisms to assure stable cash flow production from the asset.
- Coordination and no-risk execution: key to end up with a clean and fast delivery. Relevant volume of external advisors and tasks to be covered in a short period of time.
M&G REAL ESTATE – PROJECT ISLAND
LOCATION: Bilbao.
SECTOR: Build to Rent.
DATE: Q3 2023
BUYER: M&G Real Estate
SELLER: Grupo Urbas
INVESTMENT VOLUME: €98M
The Project Island deal represents an ambitious residential rental project developed by M&G's European Living Fund. This is the first acquisition carried out in Spain by the fund, which seeks to respond to an existing high demand for housing due to a very strong growth in the household creation.
Project Island, located in Bilbao’s Island of Zorrotzaurre, is part of a large urban regeneration operation in Bilbao, comparable to other international projects such as Canary Wharf and Docklands. The urbanization project faces important technical challenges such as solving the problem of flooding that can be caused by the tides of the estuary.
The comprehensive and sustainable plan, designed by Zaha Hadid Architects, recovers a currently degraded industrial area to turn it into a new neighborhood, well connected to the rest of the city, with services and facilities that the city demands. The project is a Build to Rent Development of residential units classified as Free Housing. It will consist of 314 units distributed in two buildings, underground parking and retail area on the ground floor.
More categories in the Iberian Property Investment Awards:
These finalists represent excellence in real estate transactions in Spain in 2023, and the winner will be revealed at the awards ceremony - a Gala Dinner celebrated on 25th of June in Madrid, coinciding with the Spanish Real Estate Summit. In addition, full details of the other finalists will be announced in the coming days for the other categories that mark the premiere of these awards, which are:
- Deal of the Year in Portugal
- Green Asset Initiative of the Year
- Social Impact Initiative of the Year
- Research Report of the Year
- Commercial Leasing of the Year
- Marketing Initiative of the Year
- Financial Innovation of the Year
For more details on how to join Iberian Property in this celebration click HERE