INVESTORS CELEBRATE THE MAIN ACHIEVEMENTS OF IBERIAN REAL ESTATE ACTIVITY IN 2023

The winners of the Iberian Property Investment Awards 2024 were announced at an impressive ceremony in Madrid, which brought together more than 300 Iberian real estate professionals, coinciding with the first day of the Spain Real Estate Summit.

This prestigious award, which is judged by an outstanding panel of 48 leading real estate professionals in Spain and Portugal, highlights diversity and excellence in the Iberian market, underlining the importance of innovation, sustainability and corporate social responsibility in the sector.

The Iberian Property Investment Awards, now in their second edition, play a crucial role in highlighting and celebrating successes and best practices within the Iberian real estate sector.

Almost doubling the applications received compared to last year, a total of more than 50 applications were received between 8 categories. Also worth highlighting is the fact that these applications were made by a variety of players: Asset Managers, Investment Funds, Private Equity Firms, SOCIMIs, Real Estate Consultants amongst others.

With 5 nationalities represented the applications involved projects worth more than €2 billion – a very significant share of the real estate activity in 2023.

The German asset manager, one of the world's leading asset management companies with more than 941 billion invested, was the star of the gala, winning one of the most prestigious awards of the night, specifically for the acquisition of a 50-year concession on a portfolio of 12 buildings with 1,763 residential units in the metropolitan area of Madrid. This investment in Plan Vive positioned DWS as the first end-investor to enter into affordable housing, at a time when only developers had taken that risk. 

This was a disruptive operation in Spain in which several factors converge:
Public and private collaboration, between the Community of Madrid and prestigious real estate companies such as Culmia (developer) and DWS (investor and asset manager).
Coverage of a societal need for affordable rental housing, with strong population increases in large cities and with a scarce, obsolete and low quality supply (only 4% institutional).
ESG impact - rental housing at a steep discount below market rents and a very affordable effort rate compared to standard effort rates for free market BTR, so the Social impact is a reality. There is also a strong Environmental impact by using the innovative modular construction methodology provided by Avintia (having built a factory specifically for Plan Vive), and a high level of environmental credentials with the possibility of achieving Breeam Excellent certification. 

Manuel Ibáñez, Head of Iberia at DWS, commented: “Every real estate transaction is important, nonetheless this one has been especially relevant to address the problem of housing affordability in Spain. With a small team in Spain, it is incredible the support we received from the Community of Madrid and from our counterparty Culmia who both ensured the success of the initiative. We hope this investment serves as inspirations so that more capital can be allocated to this sector, and consequently more houses built”.

The jury awarded the Portuguese firm, which received the prestigious awards for the best deal of the year in Portugal for the creation of a Collective Investment Vehicle, under the name of CTT IMO YIELD. Establishing a long-term relationship between the two companies and a group of investors, the transaction had an agreed value of 138 million euros, and the properties total around 240,000 sqm of gross leasable area with multiple uses, such as Retail, Logistics, Residential and Offices.

The vehicle is an innovative solution that will focus on the management of part of the real estate assets of CTT - Portugal's postal company - with unique characteristics, comprising around 400 properties, many of them steeped in history. For this very reason the jury decided that the initiative was also worthy of the title of best financial innovation of the year. 

More than half of the portfolio's value is concentrated in the Lisbon and Porto districts and most of the properties are leased on long-term triple-net leases, with opportunities for property development remaining.

Vitor Freitas Duarte, Director of Investment Management at Sonae Sierra, commented: “Being passionated about innovation has been a motto for several years in Sonae Sierra. This concrete vehicle was not built without its challenges, but at the end a strong commitment and partneships of value both parties will always prevail”.

The European Private Equity firm was recognised for its innovative Oriente Green Campus project, managed by Norfin. Located in Lisbon, it is a transformation of an obsolete asset and derelict structure - retaining 91% of the structure, resulting in significant embodied carbon savings - into a highly sustainable world-class office building.

The existing three-storey structure has three levels of basement, a total interior above ground area of approximately 42,000 sqm, with 19,000 sqm outdoor areas and 1,450 parking spaces. The project green initiatives integration allows the project to reach best in class sustainability standards (LEED Platinum, WELL Platinum) with energy saving and wellbeing right at the top of the company’s list of priorities.

The jury highlighted how despite the change of use from retail to offices, the reuse of the structure has saved an estimated 20,000 tonnes of CO2.

Velázquez 86D, acquired by Colonial through the purchase of Axiare, presented a unique set of challenges. While its prime location was undeniable, the building faced limitations in height and an underutilized semi-basement devoid of commercial viability.

Through CBRE Impulse team, a thorough consultancy to reimagine the semi-basement was conducted, birthing “El Jardín de Velázquez,” a testament to innovation. CBRE’s architecture team was in charge of the design of this asset.

CBRE Property Marketing and Investor Leasing joined forces with Colonial to craft a distinct identity for the building, culminating in a meticulously curated launch and marketing strategy. The integration of five diverse CBRE teams exemplified the collaborative spirit, culminating in a resounding success that exceeded even our loftiest aspirations.

The hurry highlighted how within a mere four months of completion, Velázquez 86D achieved full occupancy, welcoming esteemed tenants such as Bain & Company, AON, Sagardoy Abogados, White & Case and GPF Capital.

The European report of BNP Paribas Real Estate was recognised as the best report of the year thanks to the collaboration of 7 economists and 9 national directors of Research. This research tries to tell what is currently happening globally (Europe) in all sectors of the real estate market, with a special focus on the commercial real estate sector and the residential sector and more importantly, what is expected to happen in the coming years, which is key when making any investment or decision in the real estate sector.

The jury highlighted the precise analysis of the main macroeconomic variables (GDP, inflation, labor market, policy rates, government bonds, retail sales, ecommerce penetration by countries, etc.), their evolution and their outlook in the coming years, to see the impact they will have on the evolution of Real Estate (offices, retail high street and shopping centers, logistics and residential) in the next five years.

David Alonso Fadrique, Head of Research in Spain at BNP Paribas RE, commented: “This is a good example of the strength of teamwork, analyzing the current market situation our goal at BNP Paribas Real Estate is to ensure our clients can invest and operate with the maximum knowledge and little risk possible”.

On the other hand, with an innovative showcase of its best 12 deals advised during 2023, the consultancy was also recognised with the best marketing initiative of the year. BNP made use of a variety of channels, including an interactive website, social networks and Google Ads so as to maximize the reach and engagement of its audience.

Once again, the jury highlighted the high level of collaboration between different departments to carry out the "Advent Calendar" project.

Ktesios SOCIMI embarked on its mission to democratise access to affordable housing in 2019 by strategically purchasing vacant or underutilised flats in Spain's forgotten regions. It was with this mission to recover "the forgotten Spain" that SOCIMI managed to be recognised with the best social initiative of the year.

The jury highlighted the social component inherent to the business model of the Socimi, offering rental solutions at an average rate of €390 per month, significantly below the market average - a pricing strategy that addresses the growing disparity in housing affordability-

Henry Gallego, CEO of Ktesios SOCIMI, commented: "It is for the emptied Spain, or the forgotten Spain which does not meet the conditions of attractiveness for institutional investors that our mission becomes crucial. The recognition for a SOCIMI of our size, still in the development phase, makes us proud and motivates us to continue democratising access to affordable housing”.

The Iberian Property Investment Awards is a high-impact initiative, with no commercial sponsorship, counting with a broad jury made up of more than 40 prestigious professionals to guarantee total independence.

Find out more about all the Winners and Finalists in the OFFICIAL AWARDS website.