After seven dormant years, Spain tiptoes back into house-building

On a street in central Madrid, Juan Jose Perucho points to where he is going to build one of the capital's tallest residential blocks after buying a site bigger than five football pitches from the state-owned metro network.
"We've sold faster than ever before on this development," says the head of unlisted real estate company Grupo IBOSA of the project, which will feature a 25-floor tower with swimming pool and hanging gardens.

"I've seen nothing like it in all my 24 years in this business."
Spain is building again after seven years of a crushing downturn in the construction sector with investment in house-building registering its first quarterly rise since before the crisis in the three months from June to September.
But while this is a sign of Spaniards' confidence in their recovering economy, construction is unlikely to return to pre-crisis levels, leaving a shortfall in economic activity which has yet to be replaced by any other sector.

Spanish construction accounts for 5 percent of the country's output compared to 10 percent in the boom years, or an annual shortfall of about 50 billion euros ($62 billion), and employs less than half than before the housing crash of 2008, with no quick prospect of a sharp rebound.

At the peak of its decade-long building bonanza, Spain was putting up more houses per year than Germany, France and Italy combined. This has left a stock of 740,000 unsold new homes, hard to shift as many stand in out-of-town areas like Guadalajara and La Rioja where demand for housing is weak.
Banks, with 161 billion euros homebuilder debt weighing on balance sheets, much of it soured, are highly cautious about lending to projects and are focusing on high-end developments in Madrid and Barcelona where prices are rising.

Developers must show half the flats have been sold off-plan before sealing financing deals. They must also buy the land with their own money and put half of their own capital into building costs, lenders say.
Even under such strict conditions, the amount of projects is up from last year, mostly because of the dynamism of Madrid and Barcelona. In Madrid, the city council issued 3,131 building permits for residential use in the first 10 months of 2014, more than it awarded in the whole of 2013.

BANKS CAPTURE MORTGAGES

New building is planned for prime real estate plots like former Ministry of Defence land in the exclusive Madrid neighbourhood of Chamberi, which another unlisted property company Domo bought in November and where it plans to build 355 flats in a gated development with swimming pool and shops.
Banks see financing upmarket housing projects in big cities and providing mortgages for buyers as a good way of capturing rich clients to whom they can later sell other products and boost their falling margins.

While 80 percent of Spaniards own their home -- twice as much as the euro zone average -- the amount of new mortgages ceded has dropped to less than a tenth of its pre-crisis peak of 127,233 signed in March 2006.

"One of the big motivations to get into the developer financing business again is to capture the mortgage holder," said Joan Bertran, head of real estate developer investment at Banco Sabadell.

His team is considering around 150 financing requests from house builders for projects, up from none this time last year, and has approved around eight new investments so far this quarter in Madrid and a similar amount in Barcelona, also compared to none last year.

Back at Perucho's site on the former metro land, the developer says most of the buyers are Spanish and buying flats to live in, not as an investment.

He says a larger than usual proportion are Spaniards working abroad with well-paid jobs in countries from Australia to the Gulf States in sectors like engineering -- a sign of how Spain's professionals who have travelled abroad for work during the crisis are now helping the country to recover.

This project is financed by Caixabank. Other parcels of land are coming up for sale that he is interested in, like the site of the old Atletico de Madrid soccer club stadium on the banks of the River Manzanares in central Madrid.

"It's about a return to normal activity, it's not a boom," he says. "The market was absolutely paralysed for seven years and there is a backlog of demand." ($1 = 0.8037 euros) (Additional reporting by Robert Hetz; Editing by Julien Toyer and Angus MacSwan)

source: dailymail.co.uk

Spain is investing big in Space progams

SPAIN TO INVEST 344.5 MILLION EUROS IN SPACE PROGRAMS 

At the Ministerial Council of the European Space Agency (ESA) held in Luxembourg earlier Wednesday, the Spanish delegation – led by the Secretary-General for Industry and SMEs, Begoña Cristeto, and the Managing Director of the Centre for Industrial and Technological Development (Spanish acronym: CDTI), Elisa Robles – announced that Spain will invest 344.5 million euros in space programs under agreements reached at the government’s Council of Ministers.
First and foremost, this investment will be used to finance participation by Spanish companies in the programs proposed by the ESA at the Ministerial-Level Council Meeting:
Spain will make significant progress in the field of launch vehicles by becoming the 4th country involved in the new Ariane6 launcher, via a contribution of 6% (182 million euros). This investment will generate a positive return over the course of the launcher’s life cycle and will lead to a business volume of approximately 1 billion euros for companies taking part in the ESA development programme. Furthermore, this 6% will enable more Spanish companies to participate in the Ariane6 launcher, as opposed to the lower number taking part in the current Ariane5.
Spain will also provide 46 million euros to other launch vehicle programmes.
Spain will contribute 17 million euros to maintaining the International Space Station (ISS).
In addition, Spain will contribute to programs for which the ESA requested funding at the previous Council Meeting at a Ministerial Level, held in Naples in 2012, and to which Spain was unable to contribute at the time given the economic situation of the country that year:
In the field of security: 20 million euros, for the development of a national Space Security system, through which to gain access to the 0.6 billion-1 billion euros that the European Commission has allocated to the European system over the next decade.
In the field of telecommunications: 18 million euros, for maintaining the technological capabilities of Spanish industry in a sector that is highly attractive to trade.
In the field of technology: 15 million euros, for the development of new technologies capable of enabling Spanish companies to bid from a level playing field alongside their European competitors on future ESA missions.
In the field of Earth observation: 25 million euros, for Europe’s Copernicus satellite constellation (that generate additional business paid for with funds from the European Commission); and 12 million euros, for future scientific missions (including maintenance of the Maspalomas space centre).
In the field of space exploration: 10 million euros for the mission to Mars, Exomars and technological activities in preparation for future missions
Spanish investments in ESA programmes
Spain has traditionally stood among the five or six highest contributors to the European Space Agency, with a contribution of between 5% and 7% of the total funding allocated to optional programs.
This has enabled spectacular progress over the last 20 years, in which the Spanish space industry has moved from playing a secondary role in the value chain to one of leadership in complete systems.
Besides the capacity to lead complete space systems, there is a raft of independent medium-sized companies that have developed important technologies and components that are now used successfully in both the commercial and institutional markets.
In the field of space infrastructure, Spain is also home to one of the five major activity centers operated by the ESA. The European Space Astronomy Centre (ESAC) in Madrid focuses on the development and operation of the instrumentation on scientific satellites launched by the ESA. The centre has experienced strong growth since 2004 (the number of employees working there has more than doubled), its status within the ESA has been risen from a ‘monitoring station’ to an ‘establishment’ and new lines of activity have been launched (the Space Situational Awareness Programme or SSA).

India a investment magnet for Spanish BUsiness?

India presents itself as investment magnet for Spanish businesses.

Madrid, Dec 3 (IANS/EFE) More than 100 representatives from the Spanish and Indian public and private sectors got together Wednesday in Madrid to strengthen their countries' ties at a time when the Asian giant has become a global "centre of gravity" for development with huge opportunities for investment.

The two-day meeting is taking place within the framework of the 1st Spain-India Forum organised by the Spain-India Council Foundation under the theme, "Cities and Sustainable Transport for the Next Generations". 

"The Forum is a magnificent opportunity to consolidate our bilateral relations and bring together Spanish and Indian society," said Antonio Escámez, president of the Spain-India Council Foundation, at the event's inauguration. 

"It's clear that the global centre of gravity is moving towards the East," he said, "and Spain is ready to boost its relations with India."
Currently, 230 Spanish companies are active in India and bilateral trade last year reached 3.3 billion euros ($4.06 billion) with the Asian nation enjoying a 1.2 billion-euro trade advantage, according to official Spanish government figures. 

Also taking part at the Forum's inauguration was India's Federation of Chambers of Commerce and Industry (Ficci) secretary-general Didar Singh, who emphasised that "Asia is the engine of the 21st century in the short term" and especially India with its one billion inhabitants and a market of 700 million people.
However, he said India needed to invest heavily in infrastructure to improve competitiveness and take advantage of investment opportunities.
Didar Singh referred to a mission underway in his country, "Make in India", which is aimed at easing business, and mentioned the "economic corridors" project which is based on improving infrastructure and creating an entrepreneurial environment in smart cities which he described as a great business opportunity. 

The Ficci secretary-general also spoke of schemes to boost India's training programmes to put 500 million qualified workers into the job market in the coming years.
Didar Singh, whose organisation has 250,000 businesses as members, announced that the next forum would be held in New Delhi. 

Tallen Kumar, the CEO of the Delhi-Mumbai Industrial Corridor, in charge of industrial policy and promotion at the Indian ministry of industries and trade, highlighted sustainable cities with good transport networks as being "fundamental for us" and invited Spanish businesses to invest in these projects.
Among India's challenges, he said, was to transform the industrial sector into an engine for the economy which now lags behind agriculture and services.
In this regard, he stressed the role of the industrial corridors, although he cautioned that "we want to be the basic engine in this development, but with sustainability".
Kumar said India needed to bet on quality infrastructure and emphasised the work the Indian government was carrying out in deregulating to facilitate administrative processes and in reforming the labour market. 

Another challenge for India, he mentioned, was urbanisation as there was already a huge population movement from rural areas to the cities and calculated that in 2050, there would be 700 million people living in urban environments.
"The industrial corridors will be the solution," he said, with the goal of reaching integral development with sustainable cities linked by state-of-the-art transport systems.
Kumar also stressed the "commercial model" of urbanisation, saying there would be no government subsidies but "the soul of the city" would be taken into account, along with "good governance." 

Offering wonderful opportunities for foreign companies, including Spanish firms, were energy management, water, public transport, security and waste management.
Participating at the forum inauguration on the Spanish side were Director General of Foreign Policy, Ignacio Ybañez, and Director General of Trade and Investment at the ministry of economy, Antonio Jose Fernández-Martos, who spoke of India's potential for Spanish investment. 

Over the two days of the Forum, representatives from Indian cities like New Delhi, Chennai and Bangalore, and Spanish cities like Madrid and Barcelona, will discuss with business people and bankers from both countries urban development, sustainability and transport.

Source: www.business-standard.com/

China and Spain sign massive business deal worth $4 Billion

Massive business deals between China and Spain.

China and Spain signed business deals worth about 3.2 billion euros ($4 billion) on Thursday during a visit by Spanish Prime Minister Mariano Rajoy to the Asian powerhouse to drum up support for his country's economy.

At a ceremony in Beijing's Great Hall of the People, Chinese and Spanish companies signed 14 deals in industries ranging from telecommunications to nuclear power to finance.

Rajoy, who will meet Chinese President Xi Jinping on Friday, is the latest European leader to visit China to lure investment from the world's second-biggest economy.

He was welcomed to the capital by Premier Li Keqiang late on Thursday following a morning gathering of Chinese and Spanish business executives in Shanghai, where Rajoy called for Chinese investment in Spain, saying the Spanish economy was back on track after its problems during the euro zone debt crisis.

"Few countries offer such a good investment opportunity as Spain with its open and competitive market," Rajoy said in Spanish, adding that the food and consumer industries were areas where the companies of both countries could increase cooperation.

Companies that took part in the meetings included Spain's largest bank, Banco Santander (SAN.MC), Inditex (ITX.MC), the owner of global fashion chain Zara, and Chinese e-commerce juggernaut Alibaba Group Holding (BABA.N), which listed on the New York stock exchange last week.

There was no word late on Thursday of a tie-up between Inditex and Alibaba despite reports in Spain that Rajoy was hoping to push through a partnership between the world's largest clothing retailer and the Chinese e-commerce company that now has a market capitalization of more than $220 billion.

The 14 agreements included deals between China's Huawei Technologies [HWT.UL], the world's largest telecommunications equipment maker, and Spanish telecom giant Telefonica SA and a 150 megawatt contract in Hebei Province for wind turbine maker Gamesa Corporacion Tecnologica SA (GAM.MC).

Spain is one of few economic brightspots in the euro zone this year. It grew at its fastest pace in six years in the second quarter, accelerating a recovery from an on-off recession that began in 2008 after a property bubble burst.

"As the world economy slowly recovers, trade between China and Spain has been growing against the trend this year," Li said during his meeting with Rajoy.

As China's economy matures, its companies are increasingly investing abroad in search of higher returns. By 2014, China's overseas direct investment is expected to exceed the direct investment it receives from foreign firms, the trade ministry said this month.

Chinese firms invested $90.2 billion in 156 countries last year, government data showed, up 17 percent on an annual basis.

Source: reuters.com

Spectacular 5 bedroom Villa on the most beatiful beach of Javea

This spectacular 5 bedrooms 6 bedroom villa is located in one of the most prestigious areas in Javea over looking Granadella beach, which was voted the most beautiful beach in Spain of 2013!

The villa boasts amazing panoramic views of the Mediterranean and has a spectacular free hanging pool of 11 x5 M in size. In addition to this the villa also has it´s own private indoor heated pool along with a private cinema room and even it´s very own spa for total relaxation.

The villa is built with the highest quality materials and is guaranteed to impress with it´s intricate modern design and views that cannot be found anywhere else.

Source: www.paradisepropertysolutions.com

One of the newest and most impressive Luxury villa designs in Javea

This villa is one of the newest and most impressive designs we have for this project on a plot of 2000 sqm and a build of 450 sqm.

The property consists of 4 bedrooms, 5 bathrooms, it´s own home cinema room, indoor heated pool of 6x2 m and a huge external pool of 20x 12 m with beautiful views towards the sea and Spanish valleys. 

There are many features and fittings in the house that can all be controlled electronically from the intelligent Domotik system included.

The materials used to build are of the highest quality with Spain´s top ceramic company provider Porcelanosa.

Source: www.paradisepropertysolutions.com

Unique luxury property in Javea with beautiful sea view

This unique property has beautiful sea views along with excellent views of the Montgo Mountain. It is in an excellent location and a short drive from all amenities. The villa has a beautiful 5x10 pool where these views can be admired and enjoyed.

This modern design is finished to the highest of standards on one of the most sought after urbanizations in the area. On a large plot of 1000sq m and a build of 240 sqm this villa has everything you need and boasts ultimate luxury.  

 What really makes this villa stand out the intricate original design, which can also be tweaked to your taste and desires, which you will not find anywhere else along this coastline.

Source: www.paradisepropertysolutions.com

Brand new luxury property in Javea

This modern style villa in Javea is in one of the most spectacular natural locations along this coast line, located close to Granadella beach with amazing panoramic sea views over the Mediterranean.

Boasting 4 spacious bedrooms and 4 bathrooms, open plan living area, infinity edge pool of 12×4 m in size with sunken chill out area, under floor heating throughout, security glass and contemporary domotic system this villa really does have everything you need with ultimate luxury.

• Villa 460 Sq metres
• 4 Bedrooms
• Domotic System
• 12 X 4 Pool 
• Open living area
• Plot 1250 Sq Metres
• 4 Bathrooms
• Under floor Heating
• Sunken Chill out area
• Indoor Pool

 

 See more of this and other amazing luxury properties in Javea and the surrounding areas click here.

Spain Shows Signs of a Property Revival

The real-estate investment trust industry is beginning to take root in Spain in the latest sign that its commercial-property market is starting to emerge from Europe's economic downturn.

Last week, Hispania Activos Inmobiliarios SA HIS.MC +0.77% began trading on stock exchanges in Madrid, Barcelona, Bilbao and Valencia after it raised €500 million ($695 million) in an initial public offering. Earlier this month, Lar España Real Estate, LRE.MC +0.19% Socimi SA became the first Spanish REIT listed on the Madrid Stock Exchange after it raised €400 million. 

Neither REIT owns any property. They are so-called cash box companies that will use the funds to buy Spanish real estate.

Still, market reaction so far has been positive. Both REITs went public with shares selling for €10 a share. Lar España was trading at €10.80 while Hispania's shares were at €10.56 at the market's close Tuesday.

At the same time, the REITs' success in raising money shows an investor appetite for Spanish property. Among those buying stock in Hispania were investment firms Quantum Strategic Partners Ltd. and Paulson & Co.

"There's a plethora of money coming into Spain," said Rupert Lea, partner of Cushman & Wakefield Spain Ltd. "All different colors."

Real-estate experts say the investor interest in Spain is being driven primarily by real estate's relatively high yields amid low interest rates in global capital markets.

In 2013, investment in Spanish commercial real estate was €5.2 billion, twice the amount of 2012 and the highest amount since 2008, according to data from CBRE Group Inc. CBG -1.18% Foreign investment was €3.7 billion, over 70% of the total, with North America contributing approximately €1.6 billion.

Still, with the Spanish economy anemic, experts say it remains unclear whether investor bets will be rewarded. Rents won't rise without employers adding jobs and consumers increasing spending, they say.

"There is certainly a long road ahead," said Patricio Palomar Murillo, a director for research with CBRE Group.

The Spanish government paved the way for the formation of a REIT industry in January 2013 by abolishing corporate taxes for companies with the REIT structure. REITs don't pay corporate income taxes as long as they distribute most of their income as dividends. Besides Hispania and Lar España, two other smaller REITs have listed on Spain's Mercado Alternativo Bursátil, a so-called "alternative" listing venue.

At least 15 Spanish REITs—known as Sociedades Anónimas Cotizadas de Inversión en el Mercado Inmobiliario, or Socimi—have been registered with Spanish tax authorities, said Pablo Serrano de Haro, a partner focusing on REITs at law firm Clifford Chance LLP. After registering, REITs have two years to start trading.

The companies on the runway include one being sponsored by European real-estate firm Orion Capital Managers LLC, which already owns €400 million of Spanish assets, according to people familiar with the deal.

A nascent REIT industry also is developing in other countries that got hammered by the downturn. In Ireland, the country's first two REITs started trading in 2013. The Italian government is planning to introduce changes to its REIT law to encourage more IPOs in a sector that currently only includes two companies.

Some European REITs have come under criticism. The new Irish and Spanish REITs are externally managed by separate companies rather than by REIT employees, a structure that some analysts say brings higher costs and opens the door to conflicts of interest. 

But Juan del Rivero, chairman of Azora Gestión Inmobiliaria SL, the asset manager that will manage Hispania, defends its management structure. "We spent time in gathering feedback from leading investors around the world to understand their perspective on externally managed vehicles and blind pools of funds," he said. "Our commitment to deliver superior investment performance for our shareholders will be unrelenting."

Some analysts also warn that investors are taking a risk in buying shares in cash-box REITs because investors don't know what properties the companies will own. 

"Some large investors are playing more on the Spanish recovery macroeconomic story, than being specifically interested in the specific story of these IPOs," said Charles Boissier, an analyst at Green Street Advisors.

Luis Pereda, chief executive of Grupo Lar, the manager of Lar España, said the REIT is hoping to use leverage to invest up to €800 million within two years primarily in office buildings in Madrid and Barcelona, and shopping centers across the country.

"There are a lot of assets in the market from a lot of sources. Banks are selling. Our bad bank [Sareb] is selling, funds that bought in 2008 now have to sell," said Mr. Pereda.

Hispania said it plans to invest up to €900 million mainly in office buildings in Madrid and Barcelona, in residential real estate across the country and in hotels in the Baleari and Canary Islands.

Source: online.wsj.com

Spanish economy to grow 1 pct in 2014, U.S. investment bank says

The Spanish economy will grow 1 percent this year and 1.5 percent in 2015, according to the latest forecast from U.S. investment bank Morgan Stanley.
The bank earlier projected Spain's GDP would expand by 0.6 percent in 2014 and by 1.2 percent next year.
Morgan Stanley attributes the more optimistic forecast to increasingly favorable financing conditions and an improved outlook for leading European countries.
Economists at the U.S. bank expect Spain to enjoy healthier domestic demand over the next two years.
Spain's progress could surpass that of most eurozone countries except Germany, since Spanish exports are expected to maintain one of the highest growth rates in the region, the report said.
Spain's export sector has become more competitive thanks to a decline in unitary labor costs, Morgan Stanley said.
At the same time a stabilization of the job market is taking place, which augurs "a modest" net job gain of 0.2 percent this year, the bank said.
Morgan Stanley's growth forecast coincides with that of Bank of Spain Gov. Luis Maria Linde. EFE

Source:foxnews.com

Chinese luxury hotel boss buys Madrid’s Edificio Espana

Skyscraper in Madrid has been sold to a Chinese tycoon after years of being left empty and in disuse.

The Edificio España, in the Plaza de España and at the top of the Gran Vía, is a tourist attraction due to its unusual shape and size and, until now, it has been owned by Banco Santander.

Regional president of Madrid Ignacio González says multi-millionaire businessman Wang Jianli – who has so far invested in the UK and USA but wants to expand into Spain – is in the middle of closing the deal to buy the Edificio España.

Wang Jianli’s company specialises in luxury hotels and élite shopping centres, meaning his purchase of the Edificio España could ‘turn around’ the area completely, according to González.

The new owner is currently the richest man in China and has long expressed an interest in breaking into the Spanish luxury leisure and tourism market.

Until 2006, the Edificio España – which has 25 floors and is 117 metres high – housed the Hotel Crowne Plaza, a shopping centre, apartments and offices.

 Source: news.gnom.es

Second best year for foreign investment in Catalonia, up over 30% in 2013

In Catalonia, direct foreign investment – excluding the stock-exchange –grew by 31.5% year-on-year to reach €3.51 billion in 2013, as indicated by a report from the Spanish Ministry of Economy and Competitiveness.

According to the Foreign Investments Registry, with such a figure, Catalonia achieved its second best year in history, only surpassed by the €4.82 billion received in 2010. Besides, Catalonia accounted for 22.2% of all foreign investments in Spain in 2013, which amounted to a total of €15.81 billion, meaning 8.8% more than the previous year.

The region of Madrid was the leading Autonomous Community in Spain for foreign investment attraction, receiving €8.64 billion, which is it to say 54.6% of the total amount. However Madrid's sum also represents a 7.1% decrease on 2012 figures.

Source: catalannewsagency.com