Spanish REIT Elaia Investment Spain, Socimi, S.A. has announced the sale of a 3,800m² building with 60 apartments located on Barcelona’s Calle de Sants 387 to Teleno Real Estate.
The transfer price of the asset is reportedly €11.7M representing approximately 6.5% of the gross value of all the assets of the REIT (according to the valuation as of June 30, 2019 published on September 26, 2019 in the explanatory notes of the interim financial statements ).
The REIT, which was listed on the Madrid Alternative Stock Exchange (MAB) on November 2, 2017, is 66% owned by Batipart, the holding company of the Gala Ruggieri family. Other investors include Euler Hermès Reinsurance, with 13.81% and Allianz Invest Pierre (9.21%)
The building on Calle de Sants is reportedly part of a wider portfolio of 8 assets that have been brought to the market and represent 55% of the REIT’s total portfolio, which is valued at c. €222 million. According to eleconomista.es the Spanish property fund could be negotiating the sale of some of these properties with Zurich-based insurer, Swiss Life.
The buyer, Teleno, has also purchased an office building in Madrid, rented to television content producer RTL bringing its portfolio up to 8 assets including offices, homes and touristic apartments.
Teleno was founded by Josep Maria Xercavins a year ago with a pool of national and international investors, following the sale of his previous venture, Tauro Real Estate, to Globe Invest. In a three year time period, Tauro had deployed €180 million and doubled its value with the creation of a portfolio of c. 600 flats which included parking lots as well as retail units.
According to Xercavins, the new fund doesn’t expect the same level of returns «because the market is already very mature». Instead, their objective is to obtain net return of over 5% per annum which is very competitive in today’s environment. Teleno, like Taurus, has attracted ultra high net worth individuals from Catalonia including José Crehueras (owner of Planeta) and Marco Creperio Guiral (owner of Tradisa).