The residential sector is still booming despite the pandemic and is making its presence felt in the investment market for both land and rent, which continues to rise, especially in prime areas of large cities. This is the case of the last operation that has just been closed in the center of Madrid, where Naturgy has sealed the sale of a plot of land located in front of Google’s Campus, as confirmed by different sources in the sector.
The buyer is Dazeo, the residential joint venture created in April 2018 by Dazia Capital and the French fund Eurazeo Patrimoine. With this new operation, which has been advised by Residential Multifamily & Land of CBRE, the firm has now completed its sixth project in Madrid.
The new land, which becomes part of its portfolio, and for which they have paid, according to the same sources, close to $18.4 million (€15 million), is located in the district of Arganzuela, in Mazarredo Street.
This land, which historically has been used for an electrical substation which could not be buried, has a buildable area of about 5,000 square meters. With its sale, Naturgy continues with its strategy of rotating assets and focusing on its main business areas, as well as making its available spaces more profitable and efficient.
Read more about the selling of a 5,000 square meters land in the center of Madrid, by Naturgy, and find the most important business news of the day with the Born2Invest mobile app.
Divestments made by Naturgy
In this context, the energy company has sold its corporate headquarters in Madrid and Barcelona, under the sale & leaseback formula, which has allowed it to remain as a tenant in these facilities. Specifically, at the end of 2016 it sold four buildings in the capital for a little over $245 million (€200 million), as the company reported at the time to the CNMV, which meant a net capital gain of some $43 million (€35 million) for the company.
On the other hand, in April of last year Naturgy sold to Colonial the 45% that it had in one of its headquarters in Barcelona, in Tower A, part of the complex of MareNostrum la Barceloneta.
Betting on the rent
For Dazeo this land, both for its location in the area of Madrid Río and for its buildability, can be used for promotion for sale or for Build to Rent, since this area also attracts young professionals looking for a residential alternative for rent.
According to Samuel Población, national director of Residential & Land of CBRE Spain, the product in terms of profitability “is one of the most resilient at present and one that is arousing the most interest among investors, since the trend in the growth of homes for rent will be accentuated in the coming years by the tightening of access to the purchase of housing, among other factors, and we estimate that it will reach the figure of 5 million homes by 2024 (27.3% of total homes, under a rental regime).
The volume of investment in the residential rental sector will close at (€2.4 billion in 2020, according to CBRE.
In this sense, Ofelia Núñez, director of residential investment of CBRE Spain, explains that “according to our forecasts, the volume of investment in the residential sector in rent will close in the (€2.4 billion in 2020, becoming one of the few segments that will improve the levels of investment with regard to 2019, and leading above other asset class as the retail or offices”.
Dazeo, for its part, is making progress towards its objective of achieving business worth $306 million (€250 million) with this operation. The firm has been very active in recent months despite the crisis situation generated by the pandemic, demonstrating its appetite for the Spanish market. Thus, last October Dazeo sealed the purchase of a residential complex of three buildings (two of them new and one for restoration) in the center of Madrid, with a total surface of 6,000 square meters and an investment of $40.4 million (€33 million).
Dazia Capital is responsible for the management of Dazeo’s projects with its developer brand Darya Homes.
More land operations
The sale of Naturgy land comes just one month after Repsol sold two plots of land in Méndez Álvaro, in front of its headquarters. In this area, the process of selling two Adif plots is also underway, on which more than 200 homes can be built.
In this case, the divestment will be carried out by means of a public auction, with a minimum amount of $93 million (€75.9 million). Some cooperative management companies such as ikasa or Domo have already launched projects for these plots.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in elEconomista.es, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Avalanche Price Forecast: AVAX Forms a Dangerous Pattern
In the four-hour chart, the AVAX price has been moving in a tight range over the past few days. A...
First Closing of €95M for Bio, Indaco’s New Fund Dedicated to Biotech and Pharma
Indac's new fund, Indaco Bio is focused on Italy, but will not lack significant room for investments abroad, particularly in...
The French Fintech Company Lemonway Grows 65% in Q1
In 2020, Lemonway was named among the fastest-growing FinTech startups (CB Insights 250 FinTech List) and among the 28 most...
New Government Budgets Feature Significant Increases in Tech Allocations
The magnitude and the depth of technology services that governmental entities rely on is staggering, and the significant increases in...
WeedFest Hemp Fair to Take Place in Warsaw on May 28-29
After the huge success of the previous two editions, the Hemp WeedFest Warsaw Festival returns to host enthusiasts of the...
Cannabis2 weeks ago
The Global CBD Gummies Market Will Reach $12 Billion by 2028
Featured2 weeks ago
Understanding the Fed’s Rate Hike: the Long Term Goal of 2.0% Inflation
Cannabis2 weeks ago
Why the Cannabis Market Has Growing Investment Prospects
Biotech2 weeks ago
Pharma Mar Seeks Approval for its Lung Cancer Treatment in the UK