Black Rock It has completed its entry into the housing market in Spain. This was confirmed at the IESE business school’s tenth property conference, organized by consultancy Savills and valuer Tinsa, by Adolfo Favieres, the firm’s general property manager in Spain, who expressed interest. “housing development for sale“Not only that, but they are keeping a close eye on other housing formulas as well.”Life’ (English language where the settlement is known) The industry we love most. We include student dormitories, flexible housing and social housing here,” said the director of the world’s largest investment fund manager.
As Prensa Ibérica’s economic vertical ACTIVOS announced a few weeks ago, BlackRock is exploring different opportunities. One of these is the purchase of 50 María de Molina street in the center of Madrid. Behind a bid with the help of Grupo Lar 205 million euro purchase from the Ministry of Finance, the owner of the property. The intention of Grupo Lar and the North American manager is to transform the building into ‘hyper-luxury’ homes and student dormitories, known as ‘branded residences’.
In addition to all these segments, Adolfo Favieres noticed: Analyzed opportunities in logistics warehousesHowever, the low returns they offered prevented any investment from being closed. BlackRock for now It also doesn’t deal with data centersseen as an infrastructure asset or where offices have not been converted household because “there are too few technically feasible buildings” and they do not want to take on the planning risk.
Difficult situation in capital increase
The increase in interest rates and the change in the macroeconomic environment have put fund managers who have to raise capital in recent months in a difficult situation; This is a process known in the jargon as ‘fundraising’. “HE fundraising market sank. Last year it was at 2012 levels, with a 39% decrease“said the BlackRock executive.
Adolfo Favieres emphasized that despite the difficult situation of the capital raising market, this situation will not prevent the funds already collected from investing: “Faced with the little money raised by the managers, capital already committed by investors In the past, they expected to invest in companies like us, at historical peaks“It is estimated to be around $4 trillion.”
According to the American company executive, this capital supply will make 2024 a “very interesting and full of opportunities” year. As for what will happen in 2024, BlackRock’s first real estate executive predicted: “The first half of the year will be stable, but I’m hopeful for the second oneThis is where we will start to see declines in interest rates. “I also predict that the alternative financing sector will be quite active.” These forecasts are based on forecasts already made public by the European Central Bank (ECB), which plans to make the first reductions in the summer.
But Spain is at an intermediate point because asset prices have not yet recovered as they have in other European markets, such as the UK or Germany, where valuations have fallen precipitously in the heat of this change in monetary policy. “Spain is the last country to adjust prices I hope this will never happen,” concluded BlackRock’s managing director of real estate in Spain.
Source: Informacion
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