In removing: vulture funds out of Spain with million dollar surplus

14/07/2016

They landed in Spain in 2012 and 2013, when no one wanted to invest a single euro in our country. They were described as opportunistic or, less kindly, as vulture funds that were launched to buying all kinds of real estate assets knockdown prices. Their goal was very clear, to buy very cheap, reposition the asset, sell as soon as possible and realize significant capital gains.
These investors began investing in offices and shopping centers, but soon were interested in industrial and logistics assets, and even broke into the residential market and platforms 'servicing'. They bought banks, private investors, but also to the SAREB and public administrations. Some of them have begun to unwind positions and to sign succulent gains, some even came to buy and sell the same asset in less than six months, others are in the process of sale.
The last about to give the stroke is Northwood Investors, the fund's biggest shopping center owner of Catalonia, Diagonal Mar. The firm bought the asset in November 2013 the Irish bad bank at such a good price and at a time as low market now, before three years have passed, and puts it on sale with an unrealized gain of 87%. It paid 160 million for this complex and hopes to get 300.
Indeed, the shopping center segment has starred in the last two years and a half very high-profile operations. The most recent was closed less than a month ago and it featured the ABC Serrano in Madrid. He was Capital Partners bought it from Reyal Urbis in 2013 for 60 million euros to later bring it bag inside your SOCIMI Zambal Spain in December 2015. Just three months later, Zambales sold it last February to the joint venture formed CBRE Global Capital Investment Partners and IBA, who paid 140 million, representing a revaluation of 133%.
Although undoubtedly the main attraction of the two big balls of the commercial sector has been Orion Capital Managers, one of the biggest real estate investors in the world. In record time he fell from Plenilunio (Madrid) and Puerto Venecia (Zaragoza), totaling 826 million euros.
Very active shopping centers,
On the second of these assets, one of the largest shopping centers in Europe and the largest in Spain, Intu Properties paid a record 451 million euros in the final stretch of 2014, when Spain began to speak for the first time in seven years after the end of the housing crisis. Undoubtedly, the biggest real estate deal signed that year, and one of the most important of all time.
A year later -a mid-2015, gave entrance Intu 50% of the mall to the Canadian pension fund CPPIB by 225.4 million. Orion European Real Estate III held 50% of the commercial complex since its construction and commissioning in 2008 and 2013 British Land bought the remaining 50% for 144.5 million euros. Capital gains may have exceeded 100 million euros, according to sources.
Orion also got a good pinch by Full Moon. Purchased in 2009 to Banco Santander for 235 million euros, sold in the first quarter of 2015 Klépierre 375 million less than the 25 originally planned. However, with gains of 60%. In total, 826 million euros in two operations signed within months.
"We are talking about investors who entered a very hard and difficult time. Some took long-term positions, while others bought assets that contributed added value with intent to reposition and get significant gains with its subsequent sale, "says El Confidencial Mikel Marco-Gardoqui, national director of investments at CBRE Spain. "The most striking, with more name and that most written operations are those that have had starring such big malls but also there have been significant transactions in secondary zones and in the segment of medium-sized surfaces," he adds.