Retail properties represent more than 25% of all investment-grade commercial real estate in the United States.   Consumer spending represents nearly two-thirds of the domestic economy, and the U.S. has more retail space per capita than any other country.  Although internet sales have had an impact on some retail sectors (notably electronics and books) by moving some of the related business online, in some sectors online retailers have begun opening up traditional physical stores.  Preferential sales tax treatment previously given to internet-based retailers has now ended.  The vast majority of consumer purchases still take place in physical stores, and studies show that most consumers prefer the “touch and feel” aspect of shopping -- indicating that physical retail centers will likely remain the dominant means of consumer purchasing in most sectors for the foreseeable future. 

There are several possible legal structures in which a syndicated investment group can be organized, but most real estate investment are structured using limited liability companies so that none of the participants -- neither the investing members nor the operator -- will (generally) be financially liable for the venture beyond the value of their investment.  The structuring issues then come down to questions of how to divide the financial benefits of the project among the investing members and the sponsor, or “who gets what -- and how much?”

Spain’s credit rating was raised one level to BBB at Standard & Poor’s, which boosted its economic growth forecasts for the nation.

The outlook for the rating is stable, S&P said in a statement today, after increasing the score for the first time since stripping Spain of its AAA grade in 2009. The move was from BBB-, which is one step above junk, and follows similar moves by Fitch Ratings last month and by Moody’s Investors Service in February.

PSP Investment is understood to have entered Spain with the acquisition of a prime mixed-use asset on Castellana, Madrid's main avenue.

Investment volumes in Europe ‘slow’ to €35.2 billion in the first quarter of the year according to Real Capital Analytics, claiming a pause has taken as investors struggle to locate suitable investment grade property.

European real estate investments actually slowed in the first quarter of the year compared to same stage last year, according to the latest research by data provider Real Capital Analytics (RCA)

New York-based private equity real estate firm Northwood Investors has closed its debut deal in Spain with the acquisition of a majority stake in the Diagonal Mar shopping center in the heart of Barcelona.

Northwood has bought approximately 70 percent of the trophy asset’s floor area from Dublin-based property manager Avestus Capital Partners.

The sale price has not been disclosed although it has been reported as being €150 million.

Whether or not it is your target market, commercial real estate opportunities in Spain are a hot topic!

According to a new report by Cushman & Wakefield's Corporate Finance team, European real estate loan sales have started off 2014 at a frenetic pace as loan volumes have already hit 98 percent of all of 2013 totals.

Europe is seeing the rise of the listed property sector. On February 28, Los Angeles-based Kennedy Wilson tapped the markets for a $1.7 billion initial public offering of Kennedy Wilson Europe Real Estate on the London Stock Exchange. In a second example, Hispania Activos Inmobiliarios raised €500 million on the Madrid Stock Exchange last month. Also in Spain, there are Lar Espana Real Estate Socimi, which announced its plans on February 12 for an IPO to raise €400 million, and Magic Real Estate, which is the latest company said to be lining up a listed vehicle.

Commercial real estate loans accounted for the largest amount of non-core loans sold by European banks last year, according to PwC’s latest findings.

The single highest proportion of non-core loans sold by European banks last year were made to commercial real estate, according to the latest research by financial services firm PwC.

Banks sold €64 billion of non-core loans across asset classes last year, €18 billion of which was made to commercial real estate, the research revealed.

China's richest man Wang Jianlin has made a massive bid to buy a historic Madrid skyscraper, offering hope that a key part of the city centre could be rejuvenated, a source said on Wednesday.

With distressed opportunities in the US dwindling, Europe has become the main stage for higher risk-return investors. The large UK market is an obvious target, but the peripheries, including central and eastern Europe, are also on the radar screen. Generating double-digit returns, however, is likely to become more of a challenge as competition continues to intensify.

The number of investors viewing Spain as the most attractive market for commercial real estate acquisitions has increased dramatically as investors move up the risk curve in 2014.

The much stronger tone and sentiment in the European commercial real estate investment market is clearly reflected in the findings of CBRE’s 2014 ‘European Real Estate Investor Intentions’ survey.  Investor confidence in Western Europe is up sharply compared with last year, with the market chosen by 71% of respondents as the most attractive global region for investment.

According to the latest findings by global property services firm Cushman & Wakefield, real estate investment in Europe and the US should drive global transaction volumes upwards by 13 percent in 2014. The firm noted that 2013 saw $1.18 trillion in transactions globally, a 22.6 percent increase on 2012 and the highest total since 2007.

David Hutchings, Cushman & Wakefield’s head of EMEA, said: “The real estate market ended 2013 on a high on the back of greater confidence and rising liquidity, and that momentum is building further this year with signs of a firmer occupier market as well as greater investment demand and new sources of debt to drive investment activity and property pricing higher.”

The number of investors viewing Spain as the most attractive market for commercial real estate purchases has increased dramatically as investor interest grows for European recovery markets. Investor confidence for Western Europe grew compared to last year, with 71 percent of investors choosing the market as the most attractive global region for investment.

Investors are more willing to target distressed assets as confidence returns to the global economy, according to a survey revealed on Tuesday at MIPIM.

The survey, conducted by KPMG, found that 42% of investors are now focusing on opportunistic strategies, compared with 32% at the same point last year.

Investors are more willing to target distressed assets as confidence returns to the global economy, according to a survey revealed on Tuesday at MIPIM.

APG and Cohen & Steers are investing in Hispania Activos Inmobiliarios as it looks to raise €500m in gross proceeds from its listing on a number of Spanish stock exchanges this month.

Hispania Activos Inmobiliarios, a new Madrid-based real estate company, has declared it is seeking to raise €500 million via an initial public offering on a total of four Spanish stock exchanges. 

Cornerstone investors that have already agreed to invest in the company include Quantum Strategic Partners – part of George Soros’ private circle of firms, New York’s Paulson and Co, Moore Capital Management, Dutch asset manager APG, Cohen & Steers and the Canepa group.

In a statement today, the firm said so far these cornerstone investors had helped it to €314 million of commitments and that it would seek further capital by institutional share placements on the stock markets of Madrid, Barcelona, Bilboa and Valencia before the end of the month.  
 

European retail investment in 2013 reached the highest level since 2007, with retail investment activity broadening both geographically and in terms of asset quality. In 2013, retail investment in Europe totaled €41.3 billion, increasing 20.4 percent from the €34.3 billion transacted in 2012.