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98 // iberian.propery / 2017
dossier// ISSUE: TOP IBERIAN cities
Analysis per segment
Retail
: the city of Valencia continues to witness yield compression in the
zones in highest demand in the high street segment due to a lack of product
on the market and solid demand from investors, particularly local investors.
The initial prime yield was around 4% at the end of 2016, a minimum value.
The shopping centre sector is the star of the investment market in the region,
both among foreign funds and SOCIMIs, with operations completed in 2016
adding up to 246 million euros (156.000 m² of GLA traded).
Offices
: the Valencia market continues to awaken investor interest. And,
despite registering a low investment volume compared with other major
Spanish cities, in 2016 the city attained a new record of capital invested, with
more than 20.000 m² traded. The key players are Valencian family offices,
and the operations in this segment were both numerous and large scale.
Logistics
: due to the lack of available quality product, the volume
invested decreased 45% in 2016, with transactions involving 37.000 m² and
approximately 15.7 million euros. International investment funds were the
most active players in this market, and family offices dominated 40% of the
total investment. Yields were between 7.75% and 9% at the end of 2016.
Hotels
: demand is growing, and 2016 closed with more than 150 million
euros invested in the purchase of assets, portfolios and projects under
development.
INVESTMENT
500
500 million euros
– volume
invested in the property market
in the Valencia Region in 2016
(Source: CBRE)
Origin
: most of the capital invested
in 2016 was of national origin,
but there is a strong presence of
foreign capital in the hotel and
shopping centre sectors
Profile
: private investors and
investment funds lead the market
in 2016, with 42% and 44% shares,
respectively
Demand
increases with the
number of investors analysing
opportunities in the city of Valencia,
especially in the high street retail,
hotel and residential segments
EL MANAR RETAIL PARK,
Valencia
HOTEL SELOMER, Benidorm
Portfolio: La Marina shopping
center and Llobregat shopping
Date
06/2017
GLA
24.000 m²
Price
€ 40 million
Buyer
Catella and Aberdeen
Seller
Harbert Management
Corporation
Brokers &
Advisors
CBRE and Eversheds
Sutherland, Dentons
Date
06/2017
Keys
245
Price
€ 16 million
Buyer
Hispania
Seller
undisclosed
Brokers &
Advisors
----
Date
08/2017
GLA
48.844 m²
(35.599 m² + 13.245 m²)
Price
€ 98 million
Buyer
Marathon Asset
Management
Seller
Pradera European
Retail Fund
TOP Deals 2017, Valencia