Spain: Expect some retail outlets to come onto the market in prime areas in large cities early next year

Angel Garcia, whose family has sold hand-tailored shirts since 1857, will be shutting his shop on Madrid’s Gran Via in the New Year after his landlord decided to raise the rent almost 10-fold. 

At the stroke of midnight on Dec. 31, a rent-control rule introduced under Spanish dictator General Francisco Franco comes to an end, spelling financial turmoil for thousands of small store owners.

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Commercial Real Estate Investment in Spain: Very good transaction levels in 2014. But who is buying what?

Among the 236 real estate deals sealed in Spain during the first nine months of the ongoing year, noteworthy are the purchase of the Edificio España building by China’s richest man Wang Jialin who paid €265 million for it, and the €2 billion amount invested year-to-date by local REITs (known as Socimis).

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Italy’s steps to transform its real estate investment trust industry mirror changes made by Spain that helped attract foreign investors including Bill Gross and George Soros. 

The Italian changes include lifting the maximum stake a single investor can hold in a REIT, known as a SIIQ in Italy, to 60 percent from 51 percent, according to a decree published in the state bulletin on Sept. 12. It also reduces the amount of recurring rental income the company must distribute to investors to 70 percent from 85 percent.

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Spain: It is getting increasingly difficult to find good deals in size, with so many funds looking for discounted property

Spain: It is getting increasingly difficult to find good deals in size, with so many funds looking for discounted property. While Socimis (=Spanish REITs) don't pay tax on a corporate level, please note that you still owe dividend tax as a shareholder. 

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Scandies buying in Spain ... logistics this time at a discount to replacements costs

Norges Bank Investment Management, which manages the world’s biggest sovereign wealth fund, bought a portfolio of real estate in Madrid and Barcelona through a joint venture with Prologis Inc. 

Prologis European Logistics Partners Sarl bought more than 1.6 million square feet of logistics facilities and development land in the two Spanish cities from SABA Parques Logisticos, Prologis said in a statement today. 

“Demand for logistics infrastructure in Spain is rising while construction of new facilities is at an historic low,” Philip Dunne, president of Prologis Europe, said in the statement. “We are pleased to acquire this well-located portfolio at a discount to replacement costs.”

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Goldman New Madrid Landlord as Investors Return to Spain

Marcelino Calvo Sanchez and his wife, Maria Luisa, had never heard of Goldman Sachs Group Inc. until last year, when the global investment bank bought the four-building housing estate where they live in Vallecas, on the southern outskirts of Madrid. Marcelino, a 71-year-old retired truck driver, isn’t impressed by his new landlord. 

Goldman Sachs picked up the 289-unit complex in August 2013 as part of its purchase of 3,000 low-income apartments from the regional government of Madrid for 201 million euros ($269 million). With the sale, some subsidies for tenants disappeared, and, according to Sanchez, a small problem with squatters has become a larger one.

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