Special focus: Real Estate 2017 Special focus Real Estate 2017 | Page 3

Special focus: Real Estate
Reaching new heights
The Iberian real estate market
is attracting investors from
around the world with the
result that, for some law firms,
deal flow is exceeding pre-
crisis levels
The Spanish real estate sector is
enjoying a strong recovery following
the turmoil of the crisis years with
investors targeting commercial real
estate in prime locations, lawyers
say. In addition, investors are also
eyeing property in the logistics and
health sectors, as well as student
accommodation and residences
for elderly people. Coupled with
this, residential real estate assets
are increasingly changing hands
with the result that some real estate
lawyers are now experiencing a
surge of activity not seen since
before the start of the crisis.
Meanwhile, in Portugal, the real
estate sector is booming thanks
to government initiatives such as
the Golden Visa regime and new
regulations that make it easier to
renovate old buildings. The market
is given further buoyancy by the fact
as they used to be,” says Dentons
partner Jesús Varela. “Investors
believe that Spain has entered
a new phase and they are now
looking for commercial real estate in
prime locations – such as shopping
centres or hotels – if they have a
longer-term strategy.” In addition
to commercial
real estate, Varela
says residential
Investors believe that
Spain has entered a new phase developments are
another key target
and they are now looking for
for investors.
Indeed, there
commercial real estate in prime
has been a
locations.
notable revival
Jesús Varela
in residential real
Dentons
estate transactions
in recent
times. “A year
that good quality real estate assets
ago, residential real estate was
are available at reasonable prices.
anathema to investors, but there
is increasing demand for these
Fewer NPL portfolios available
types of products,” explains DLA
In recent years, the sale of portfolios
Piper partner Orson Alcocer. In an
of non-performing loans (NPLs)
indication of the surge in interest in
has been one of the most dominant
real estate in Spain, RCD – Rousaud
features of the real estate market in
Costas Duran recently advised
Spain, and there continues to be an
property developer Elix on the
appetite for acquiring such loans,
creation of a €200 million Spanish
lawyers say. However, partners
real estate investment trust, known
agree that the most profitable
as a SOCIMI. The company, called
portfolios have been sold, and in
Elix Vintage Residencial Socimi,
general, sales of distressed loans
will invest in residential real estate
are in decline. “There are fewer
in Madrid and Barcelona.
NPL portfolios, and the ones that
Alcocer says that, after a few
are available are not as interesting
difficult years, some law firm
“
www.iberianlawyer.com
”
real estate departments are now
performing even better than they
were before the crisis. “We´ve
exceeded pre-crisis levels in terms
of deal volume and the market is
expanding,” he says. Cuatrecasas
partner Joaquín Garaulet agrees that
market conditions have improved:
“We are advising on a wide range
of deals, from acquisitions to the
refinancing and