The Iberian Property Investment Awards, organised by Iberian Property, are gearing up for the awards ceremony of the first edition of these awards, which will take place on 19 September in Estoril, Portugal. These awards recognise and reward the most outstanding players and projects in the real estate investment sector in Spain and Portugal in 2022. One of the main categories is "Deals Of The Year in Spain", which recognises exceptional Real Estate investment operations carried out in Spain.
The projects and players competing in this category are:
BNP PARIBAS RE - Sale of Gran Vía 12, in the heart of Bilbao.
Real Estate Advisor: BNP Paribas Real Estate
Seller: Mutualidad General de la Abogacía
Buyer: Israel Pension Fund
Transaction Date: Third Quarter 2022
Location: Bilbao
Sector: Offices
This transaction stands out for several reasons, including the challenge of selling an iconic building in the heart of Bilbao with a significant volume in a secondary city. BNP Paribas Real Estate advised the Mutualidad General de la Abogacía on the sale of a well-known property located in the prime area of the Basque city, Gran Vía 12. It is a 16,530 sqm office building with 167 parking spaces in three nearby locations. This property has been occupied by BBVA since 1923.
The consultancy firm has been classified as a finalist for advising Mutualidad General de la Abogacía, materialising an operation that stands out for:
- Large volume for a small city: The volume of the operation was one of the most challenging aspects of this transaction. Although there are many investors with the capacity to invest more than 140 million euros in an office building, not many are willing to invest this amount in a secondary city.
- Property with a high occupancy rate and a mandatory lease term of less than 10 years: In addition, at the time of the transaction, the proportion of work from home was very high, and BBVA had a very flexible policy in this respect. Therefore, when the property was visited, most of the space was empty of workers and this did not provide comfort to the investors. To overcome this obstacle, a thorough analysis of the demand for offices in Bilbao was carried out and an architectural project was designed in case it was necessary to transform the property into a multi-tenant building.
- Investor relevance (Israel's largest pension fund): To find the right investor, the consultancy collaborated with its international platforms and its wealth management arm at BNP Paribas. All the investors who made it to the second phase were foreign, with one from Switzerland and two from Israel.
- Courage and perseverance always close to the client: The transaction failed twice after due diligence, with two different investors. However, the consultant did not give up and continued to work with the same determination and with the support of her client.
CUSHMAN & WAKEFIELD - Acquisition of Castellana 51, in Madrid
Real Estate Advisor: Cushman & Wakefield
Buyer: InmoCaixa
Seller: La Caixa
Transaction Date: Fourth Quarter 2022
Location: Madrid
Sector: Offices
This transaction involved the acquisition of the emblematic building at Paseo de la Castellana 51, Madrid, by InmoCaixa, the real estate development arm of Fundación La Caixa. This acquisition, advised by Cushman & Wakefield, is considered one of the most significant in the Spanish office market in the last five years, exceeding 200 million euros.
It is a true luxury asset, the kind that rarely comes on the market. The seller was the financial institution La Caixa, advised by CBRE, and Ramón y Cajal on the legal side. Cushman & Wakefield handled the commercial due diligence, underwriting and acquisition advice, working with Deerns on the technical elements. Once redeveloped, this property is expected to be one of the major landmarks in the Spanish office market.
This building is unique and benefits from a prime location in the heart of the capital's prime CBD area. Some of the distinctive features of the asset are:
- Detached urban office building.
- Excellent views over a landscaped garden.
- High level of brightness and serenity that favours the well-being of its occupants. In addition, the spacious floors, in the context of Madrid's CBD Prime, facilitate the possibility of a mixed-use conversion, with commercial space on the lower levels and offices or residences on the upper levels.
The role and proactive stance of the consultancy is summarised as follows:
- Conducting a speculative review of the property prior to any marketing.
- Establishing the best business and development model, which was particularly difficult to agree given that the building would be sold partially vacant.
- Study of potential occupiers and overall leasing strategy to gain certainty in potential pricing.
- Detailed analysis of risk/return ratios of refurbishment options to address construction cost inflation.
- Customer risk management given the constraints of the process.
Bids were plentiful and aggressive, with a significant number of both domestic and international parties. Relative certainty and confidence in closing were key to opting for one bid over another, the consultant says.
GREYSTAR - Acquisition of a Flex Living portfolio in Madrid
Buyer: Greystar Real Estate Partners
Seller: King Street Real Estate
Transaction Date: Second Quarter 2022
Location: Madrid
Sector: Multifamily (Flexible Accommodation)
Greystar Real Estate Partners acquired a portfolio of flexible accommodation in Madrid in advance from King Street Real Estate. The portfolio consists of 2,500 units and was acquired on behalf of a discretionary management fund. These units will be located in three buildings under development in Rivas, San Sebastián de los Reyes and Valdebebas.
The buildings will operate under a new brand, and guests will benefit from designer rooms and high-end amenities, including a gym, coworking space, swimming pool, outdoor areas and a concierge service. The buildings, which are currently under construction, aim to achieve a BREEAM "Very Good" rating.
The Madrid market is characterised by a significant shortage of all types of rental accommodation, including flexible and affordable solutions. This acquisition provides Greystar with a substantial portfolio in the Madrid region, which will be highly attractive, designed and built especially for guests looking for a place to stay away from home.
More categories in the Iberian Property Investment Awards:
These finalists represent excellence in real estate transactions in Spain in 2022, and the winner will be revealed at the awards ceremony on 19 September in Estoril, Portugal. 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 (E)
Social Impact Initiative of the Year (S)
Investor Reporting of the Year (G)
For more details, please visit the official Iberian Property Investment Awards website.
