Insurance companies hold more than €8,600 million in real estate

Insurance companies hold more than €8,600 million in real estate

Although they invest all over Spain, is to Madrid they focus the largest share of its investment, and the capital centers a bit more than 50% of the invested value.

The numbers are stated in the «Estamos Seguros 2016» report by UNESPA, the association of Spanish insurers, showing that these companies have invested around 3% of their revenues in real estate assets and positions.

Whether it's major independent Spanish groups, like Mapfre, Mutua Madrileña or Catalana Occidente, or insurance subsidiaries from major national banks (BBVA or CaixaBank, for instance), or branches from the major European insurance groups (Allianz, Zurich, Generali, Axa, Sanitas), traditionally they all have seen the real estate sector has an investment opportunity. However, they are very selective regarding its strategy, preferring core assets, of historical value or very iconic, in the best locations.


Mapre and Mutua Madrileña at the top

Mapfre and Mutua Madrileña are the entities more active in the real estate investment.

The first one, also the largest Spanish insurance company, invested more than €115 million in the sector, in 2016, assigned to the acquisition of yield assets and others for private use, to works of improving on assets which were already part of their portfolio. Regarding divestment, in the same year were alienated properties in the amount of more than €215 million. Mapfre ended the year of 2016 with more than €3,116 million in real estate assets, which correspond to around 6% of its investments portfolio, with gains arising the €800 million. Analyzing its portfolio, about 55% refers to real estate to private use and about 45% to yield assets.

Other of the main players on the insurance sector in the Spanish real estate market is Mutua Madrileña, which ended the year in 2016 with c.a. 30 buildings in the portfolio. Most of them are located in the center of Madrid, representing an asset value of €1,500 million and hidden gains of more than €504 million, according to their annual report. For its investment strategy the company demonstrates a special preference for Paseo de Castellana area. Despite the significant dimension of its assets portfolio, the truth is that the insurer has not been investing a lot over the last few years, and spent almost a decade without new acquisitions until, in the Summer of 2016, had acquired the nº51 at Calle Jose Abascal to Credit Suisse. Meanwhile, this August, the insurance company alienated Mirafores Palace, Nike headquarters, held since 1999, and sold it for €60 million to Remer Investment.


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