16 July, 2010 No Comments
Evaluating the Solar Decathlon project, we see that:
- It is a renewable energy system, where the consumer becomes its own electricity generator.
- The sponsor Schneider Electric has created a microgrid or intelligent power system, which converts the 17 homes that were part of this project in a self-sufficient network, which could even sell electricity to utilities. Unlike conventional network, in which there is only one source of energy (electricity company) and all network elements are consumers, in microgrid, the consumer is able to generate electricity and could be connected elements at times acting as consumers or power generators.
- Therefore, future homes, fed with any type of renewable energy, inject their excess energy network and, in turn, in the event that there is little solar radiation, would feed electricity from the system. It should also be able to store some of the energy in batteries to be used later on.
- This system is currently used in isolated or not connected to the electrical grid areas, mainly due to the complexity of managing electric power, that’s why it is limited to hotels, public buildings, etc.
- We have built 17 real houses, sustainable, self-sufficient, comfortable and fed exclusively by solar energy. Of the houses that have intervened, the winner was “Lumenhaus” held by the team of Virginia Tech University
From the above we can deduce that in the future, these systems will lower enough the power consumption of households, this may complicate the lives of the electricity companies, as they not only lose a part of the business, but produced in accordance with demand, because this demand will vary as they generate electricity which, until now they have only been consumers.
All these advantages should help promote the increased use of renewable and clean energy at the expense of current ones, whose use is more polluting and damaging to the ecosystem.
16 July, 2010 No Comments
We will see that when houses are able to generate their own renewable or clean energy, do not spend more than necessary and reaching a responsible consumption reaches where each consumer becomes its own electricity generator.
Differentiating energies:
- Non-renewable energy. Are exhaustible, due to the reserves of fossil fuels and materials used to produce nuclear energy is limited (coal, oil and natural gas) which also cause large emissions of CO2 to the atmosphere, creating the current situation of climate change as well as her removal and extraction is complicated (causing disasters like the Prestige and the Chernobyl nuclear power plant).
- Renewable energy. They are inexhaustible and never ceased to occur. Renewable energies include wind power, solar thermal, solar photovoltaic, biofuels, geothermal, those from the sea, biomass and hydro.
What is the Solar Decathlon?
An International Architecture & Engineering Competition sponsored by U.S. Energy Department, along with the National Renewable Energy Laboratory, where the participating universities should build a house supplied entirely by solar energy.
It is noteworthy that the sun is at the basis of all renewable energies, the heat causes it to produce pressure differences that give rise to winds and organizes water cycles, leading to evaporation and therefore the rains, while promoting the plants perform photosynthesis.
The 17 houses participating in “solar village” has produced nearly three times the energy they have consumed. The excess energy has been poured into the network and used by residents of the area where the houses have been built.
12 July, 2010 No Comments
After the bursting of the housing bubble, this is perhaps the best time for investing in property in Spain, as the next Arabs investments, who have come to our country to fill the gap left by the German and British investors.
In particular, Arab Union for Real Estate Development (AURD), through S. Al Fahim, are looking to invest in Spain, prime real estate assets of such offices and residential properties located in the best areas of Madrid and Costa del Sol, with prices starting at € 5 million.
This investor, called the “Donald Trump” of Abu Dhabi, is also behind the purchase of English soccer club Manchester City (purchased € 270 million), while supporting the Academy of Italian football club Inter Milan in Abu Dhabi.
It is also the visible face of a holding company in the Middle East, called Royal Group of Companies, formed by 50 companies (which also has been one of the promoters of projects such as building “The Palm” in Dubai). Due to the current saturation of the real estate market in Dubai, they consider it is the right time to buy in the Spanish market, since Spain is a market they know.
Following this break in Dubai, the sovereign funds need continued investment. In Spain they invest in real estate market and in renewable energy.
Tags: Abu Dhabi, AURD, Dubai, Dubai real estate, Inter Milan, invest in Spain, Manchester City, Middle East, property in Spain, Real estate market, residential properties, Royal Group of Companies, S. Al Fahim, The Palm
Category: International Real Estate, Real estate investment, Spanish Real Estate
6 July, 2010 No Comments
This is the world’s largest “playing card development“. The creator of this project, Bryan Berg, an American architect Harvard graduate, spent 44 days building it.
As the author, this is a very complex project because it needs to be designed like a real building, room by room, and taking into account what weight should support each point of support.
5 July, 2010 1 Comment
Currently, the group Sacresa is negotiating with banks for their Caufec company (which owns the Porta Barcelona project) not become part of the package in bankruptcy, with assets of the other four companies.
The debt of the group, a probably amount of € 1,600 million are loans with fifteen banks and savings banks, with the Institut Català de Fianances and foreign banks, among others.
International banking prefers to assume losses than exchange actives for debt, and did not accept the terms of Sacresa to allow much of its assets. For instance, Caufec Plan valued at 1,000 million €, which the company would be able to pull forward with the problem. This pool of banks considered that the refinancing would not prevent a future collapse of the group.
The viability plan that the company has presented to the bank transfer assets valued at over € 1,000 million, a rebate of 30% of the debt, which has no mortgage and a grace period of five years for all payments to the bank giving almost all its real estate assets, including Porta Barcelona development, retaining the bare ownership of the mall Magic Badalona, some land to promote housing near Finestrelles and patrimonial society owner of the Illa Diagonal.
The next step of the society was trying to bring the debt to the current market situation to engage in housing development in the area of Barcelona. In fact, in 2009 and began to give way to Metrovacesa real estate assets to redeem debt, and among them was Les Arenes de Barcelona.
According Expansion (06.2010) Caufec society owes nearly € 200 milion with Bancaja, La Caixa, CAM and Banco Popular, but its assets are also around 200 million €, and therefore the company expects that this society can save itself from the concourse. But even thinking that saved the concourse, the bank has refused to grant more credit to the society. As I said before, banking, given the few opportunities open to him to pay the debt and, seeing that if he did not has concourse now it would probably happens in two years, sales of assets that had been made would now be likely to be challenged or reversed (in a future post will discuss this).
Sacresa is a promoter who has made investments or long-term bets, including the purchase would be in Finestrelles Fecsa, one of Australia’s largest tertiary Catalonia. But today, international banking, which has massive investments in Spanish real estate, does not rely on the outlook for the Spanish economy and prefer not to refinance but devote itself to developers to contest … making projects viable as it would be great in this If not funded.
But… How is Caufec Plan situation nowadays? Well, if there is no news, still belongs to Caufec society, from Sacresa realtor. As of today have become works of infrastructure and urbanization of the main part, which was agreed with the council. Also in its final stages the burial of Fecsa electricity towers, in addition to finishing the garden areas, walking areas and bicing, street furniture and three playgrounds. But that is nearing completion does not mean that is actually delivered and is currently fenced all means (but is allowed to pass) and the finished park, but you can not use them. There are very few operators working … If a project is not working heavily, is an indicator that the developer has problems, which generally tend to be financial.
It is assumed that the project should be going on, because it has already built a sales office. But there is no indication that the building of houses or flats will start soon, nor the construction of the hotel and shopping center … perhaps we should expect to improve the housing market.
For now, assume that the idea would be to sell the homes by planes, or at least make a waiting list, as it has being done years ago at the Barcelona Meeting Point, when it began to publish the project.
From my point of view, this is a great project for the area, if it is to make as it is currently planned, always aiming to make it solved the issue of vehicle entrances and exits to the Diagonal and Ronda de Dalt.
Sources: La Vanguardia, Expansión and Cinco Días newspapers.
2 July, 2010 No Comments
The large land plot between Esplugues de Llobregat and Barcelona city is disappearing. After 23 year of negotiations, this 40ha in which only had power a line, bushes and a makeshift motocross track is already a developed area to which only lacks the buildings.
Historically, Caufec society led the urban reform in this area in the early 90s, owned by FECSA and the French group CAUVAL, who sold this land plot to the real estate developer Sacresa.
The problem this project had to be urbanized were the power lines, which should be dismantled and buried by FECSA, so the transaction cost should be offset by an increase in the heights of the floor area permitted initially. The future planning 234.000m2 roof will be built on.
In 2002, the Legal Adviser of the Government decided to finally give the “green light” to the Porta Barcelona project, the urban plan promoted by Caufec society, one of the companies that make the real estate company Sacresa.
The Porta Barcelona project will be built to either side of the B-23:
In the northern part, Finestrelles area, there will be 67 detached houses and 90.000m2 of offices and premises, located in two towers of about 80m (23 floors), designed by architect Bofill. In this part, they have also created a large green area on Jacint Esteve Avenue, with bike areas, cross and trekking in Collserola Park.- In the south part, near Hospitalet, will be built 120 housing units, a shopping center, a 25.000m2 of entertainment and a 6.200m2 luxury hotel.
This real estate development, nearby Collserola Natural Park, is next to Ciudad Diagonal and Pedralbes, both areas of luxury houses, together with Sarrià, Bonavista and Sant Gervasi.
In the next post we will discuss how Caufec Plan will possibly finish after the insolvency in which the company Sacresa is immersed.
29 June, 2010 No Comments
All the media are reporting that the bank has refused to refinance the debt and has not accepted the plan submitted by SACRESA, which in its attempt to become one of the largest Spain real estate entered into an excessive debt (with the purchase of Metrovacesa), which has led it in an economic collapse situation.
To undertand how this could happen in 3 years, to be on the top of the top ten ranking real estate companies to fall into insolvency, it is necessary a bit of company history and the evolution of its growth.
Like other real estate developers, Sanahuja’s family company began building homes in Barcelona due to the high emigration suffered by this city and its industrial belt during the 60s. From building blocks of flats in popular neighbourhoods went to make bigger real estate developments. In recent years, they have been present in large transformation projects of Barcelona, like Illa Diagonal, Basketball City Badalona, the shopping center Les Arenes and the underway project Porta Barcelona, next to residential area of Barcelona. After that, their expansion covered the rest of Sapin to go ahead in the foreign market.
Sanahuja entered the capital of Metrovacesa, a company owned by Joaquin Rivero and, to gain control of the company displacing Rivero, winning the presidency and control 80% stake in the compoany. It had to assume a debt of close to € 6.000 million. This project went wrong when the bank not allowed the fusion of Metrovacesa and Sacresa; this union would hace made more affordable the debt incurred by Sacresa, all further aggravated by market crisis and the current slowdown in sales.
After having take Metrovacesa’s control, with 80% of capital (which he lost a year later), began buying important product based on debt, and do went to buy the headquerters of HSBC bank, one of most expensive buildings in Europe by € 1.600 million, competinfçg with a major Saudi group.
Perhaps one of their mistakes was not looking at the value of what they bought, and so again Metrovacesa resell HSBC bank tower a year later by € 1.000 million. But there have been billions of euros that became an unsustainable debt that has led to this situation.
Sources: La Vanguardia, Expansión and Cinco Días newspapers.
28 June, 2010 No Comments
Once the general description of what legally constitutes a reverse mortgage, I would like to get deeper on this subject from the practice.
In fact, we are trying to see the possibility that home ownership to be a source of income for retirement, because the properties are usually one of the main assets for people during their retirement age.
This type of mortgage assures the owner will receive a monthly amount in exchange for his home, keeping it as a place of residence to his death.
Normally, is possible to earn a starting spot sum, to pay the expenses resulting from the completion of the contract and the reforms that have to do, etc. Since that time, periodic amounts are charged; depending on the financial entity, they can reach 90% of the initial appraisal.
The operation can be canceled at any time, but typically would receive the income until the death of the holder, when the heirs will receive the property and their loads. This leads, today, that some reverse mortgages are being made on second homes, as a way to dispose of apartments that are not selling in the market.
On the other hand, the initial idea of a reverse mortgage, which originated about the year 2005, was to have a high valuation of the property and thus receive a higher monthly income. But now, valuations are lower, that’s why the income that can be achieved with the same property are much lower than those obtained earlier, due to a fall of the housing market.
There is another element that can create uncertainty for the bank to make reverse mortgage: life expectancy is now set to reach the 80 years in many cases. The bank wants to make sure income, which adds costs to the operation to avoid reaching what the financial market is called “negative equity”, which means that the debt exceeds the property value.
To eliminate the obstacles that appear to have the reverse mortgage at the moment, there is the idea that in Spain, “who has an apartment has a treasure”. Therefore, older people think well before taking a reverse mortgage to offset income his small pension. Furthermore, the sons are not yet aware that this house belongs to their parents, and so they are not obliged to let them it in heritance.
27 June, 2010 No Comments
The reverse mortgage becomes a formula created for retirees supplement thier pensions, so that older homeowners may obtain some extra money by charging an annuity, in exchange for their home, without sacrificing ownership or use thereof.
The requirements of the law are:
- That the applicant and the beneficiaries are 65 or older or are suffering from severe dependence.
- That the property on which the mortgage is either the main residence.
- That the debtor of the loan amount available through any regular or unique.
- That the debt will only be payable by the creditor when dies last borrower.
- That the property was rated ans insured against damages.
With a reverse mortgage, homeowners can continue living in their home, without having to leave it, until their death. This assures that they will remain owner of the property.
When the owner of mortgage dies, his heirs may get the house, returning to the bank the payments it has made the mortgage more interest. It corresponds to the heirs liquidate the situation with the credit institution. In this case, the institution can not demand any compensation for the cancellation of the mortgage. Once they have paid and the heirs have released its load housing mortgage, can inherit it in the same way as any other good.
If the heirs do not want or can not cancel the mortgage, the institution may foreclose and collect the debts due more interest. But the agency may only collect the goods they have in the inheritance, without being able to collect anything from the personal capital of the heirs.
In this type of mortgage, the homeowner receives a periodical payments or a single payment for a maximum amount, which determines the percentage of the valuation at the time of the mortgage creation, and to reach that figure, they stop have income, but the debt continues to generate interest.
25 June, 2010 No Comments
A few months ago was considering the sale of the Sabadell Bank building, in Passeig de Gracia 36, Barcelona (Spain).
The receipt of offers was carried out by the consultancy C & W, the sale conductor. According to articles published in business and local journals (as La Vanguardia), there have been formal offers for this property by MANGO and APPLE. After a quick sale process, the media confirmed that building was eventually acquired by Mango.
The building has a total of 4.600m2 constructed, distributed on 1.100m2 ground floor and 4 floors of 600m2 each, all with a front line of 20m. Located in one of the best areas of Barcelona, right in the center of business, at the confluence of streets Consell de Cent and Diputació.
The main value of the property is the shop, which consists of 2290m2, well above the value of the offices. Inf act, in 2004 the Reig family bought the top of this building to the Sabadell Bank for € 15 million, with the idea of luxury flats, but this plan was paralyzed due to the housing bubble.
A few months ago, the Sabadell Bank repurchased the top of the building for € 20 million, thus selling the entire building, what would bring greater benefits. The amount of the sale would be € 50 million, assuming a gain of € 30 million.
The buyer, Isak Andic, who made the offer through one of this holding companies, is president of textile group Mango, besides being one of the private shareholders of Sabadell Bank, with a 5.7% stake. In October, he was named president of the Instituto de Empresa Familiar (IEF), relieving the position of S. Pedro Barceló.
Turn to assess the marketing strategy of this transaction, we see a clear reflection of the idea of the fashion leading companies, looking to have a greater presence, occuping key places in the main streets of big cities, in detriment of competence. At number 16 of Passeig de Gràcia is a Zara store located in an excellent strategic place, in the very corner of Gran Via… really we must also recognize their real estate success throughout the world.
A question still in the air is: Why Apple has not been imposed in the bid? As the company has not commented in any way, guess who has decided to leave because he has found another place better or perhaps, after the negotiations process, it has not been as profitable purchase, or its planned investment to open shop Barcelona was only for the value of the premiser and was not interested in the whole building… Whatever reason, we must wait to see where the new Apple Store will be located in Barcelona, which will have wide acceptance (currently there is only one small Apple in FNAC).
