Santander presents the acquisition of Madrid Xanadú to its personal banking purchasers | Companies | EUROtoday

Banco Santander is advancing a brand new sort of actual property product. The entity chaired by Ana Botín has provided its personal banking purchasers (with excessive web price) to take part within the buy of fifty% of Madrid Xanadú, one of many massive procuring facilities within the area, by the bid that the supervisor has made to the vendor. Spanish Rivoli, in line with three sources from the actual property sector, who reveal that not too long ago Rivoli and Santander have already used this formulation to additionally purchase the Moraleja Green procuring advanced in Alcobendas (Madrid).

Rivoli Asset Management has participated within the sale means of Madrid Xanadú launched by the British actual property firm Intu and commissioned as an advisor to the consulting agency CBRE. The UK procuring middle large went bankrupt and went into liquidation, a course of for which the agency Interpath Advisory is accountable. Among the various belongings that this proprietor had is 50% of the industrial advanced positioned in Arroyomolinos (Madrid). The different 50% corresponds to the fund supervisor Nuveen (which primarily manages academics’ pension funds in California, USA).

Different sources point out that, at the moment, Rivoli Asset Management is the principle candidate to accumulate Intu’s participation, in a proposal that may very well be round 200 million euros. Although folks accustomed to the negotiation point out that the settlement has not but been signed. Last month, Expansion cited the French firm specialised in procuring facilities Klépierre as one other candidate to accumulate 50% of Intu.

Rivoli, a agency created by Ignacio Fonseca (former director of Blackstone), acquired Moraleja Green for 70 million final July, a shopping mall in Alcobendas that was within the arms of the Kennedy Wilson fund. In this case, the bulk capital to accumulate that asset additionally got here from the Santander personal financial institution, whose head in Spain is Víctor Allende. For the provide on Xanadú, the dedicated capital additionally has primarily the identical origin, a division often known as Santander Private Banking.

In addition to one of these procuring middle belongings, Rivoli specialised within the administration and sale of workplace buildings, primarily a portfolio of Blackstone properties that got here from the US fund’s takeover of Hispania.

It is just not the one financial institution that invitations its purchasers to take part in actual property purchases, which usually have a return that exceeds that of investments in public bonds. Bankinter, for instance, has structured totally different automobiles for this goal comparable to Atom (resort possession), Palatino (housing for hire) or Montepino (logistics). The monetary establishment has greater than 20 of those funding automobiles for personal purchasers, additionally in sectors comparable to renewable power and scholar residences. The capital dedicated by traders is greater than 4,400 million, in line with knowledge from the Orange Bank, which, together with challenge financing, represents a portfolio of belongings below administration of greater than 7,200 million, of which greater than 3,000 million have been directed to actual property. .

Although, in contrast to Bankinter, within the case of Santander it’s not recognized that it has created any particular firm to take a position along with Rivoli in procuring facilities.

For its half, the opposite accomplice in Xanadú, the American administration firm Nuveen, had a trial choice if a proposal from a 3rd celebration was offered for the share of Intu, however the deadline to train it expired on September 14, so it’s dominated out. that Nuveen takes over the whole middle.

Intu purchased 100% of Xanadú in 2017 from the Canadian fund Ivanhoé Cambridge for 528 million. A couple of months later, it offered 50% to TH Real Estate, at the moment referred to as Nuveen, for half that quantity.

The debt of Xanadu

Xanadú, opened in 2003, is among the largest procuring facilities in Spain, with 210 shops and the peculiarity of getting an indoor ski slope. The asset has 152,000 sq. meters of gross leasable space unfold over two flooring and 10,500 parking areas. Among the manufacturers with shops within the advanced are Adidas, Aliexpress, Apple Store, Bennetton, Bershka, C&A, Decathlon, H&M, Mango, Pepco, Primark, Scalpers and Zara, amongst others.

This asset is managed by the corporate Madrid Xanadú 2003, shared equally by Intu and Nuveen. Last yr, this firm obtained 36 million in income in 2023, 5.5% greater than the earlier yr, and misplaced 17.8 million, which meant rising the crimson numbers by 42.4%.

In a number of months this firm has to resolve an necessary entrance, that of the refinancing of the asset. In 2022, it renewed the mortgage mortgage, for 227 million, with BBVA, CaixaBank, BSCH, Crédit Agricole and AXA at ​​a value of two.5% above Euribor. Expiration is scheduled for March 2025.

This debt is more and more weighing extra on the house owners, for the reason that asset has been dropping worth (as has occurred with different massive belongings as a result of rise in rates of interest from virtually a zero value of the value of cash). The newest appraisal, carried out by Cushman & Wakefield, positioned its market worth in 2023 at 440 million, in comparison with 465 million the earlier yr (3.6% decrease). Regarding the debt of 227 million, the leverage is 51.6%, which represents a excessive mortgage to worth (LTV), within the jargon of the sector, with respect to present actual property charges.

The sale course of comes at a time of reactivation of procuring middle operations, which permits traders to know a profitability surroundings (roughly from 7%-8%) for big properties, after one of these belongings have misplaced worth as a result of rise in rates of interest and the low curiosity of traders in one of these properties in recent times as a result of rise of digital commerce. Among the most recent operations is the acquisition, by the South African actual property firm Lighthouse, of the Espai Gironés procuring middle (Girona) for nearly 170 million, as introduced Five Days. This newspaper additionally printed final week that the developer AQ Acentor has gone in the marketplace to search for a accomplice with which to construct the most important procuring middle in Valencia, referred to as Infinity and wherein an funding of 400 million is anticipated.