Immo-news.net : Can you present Coperfil Real Estate?

Coperfil Real Estate is a leader in non residential real estate and in the development of logistics, business and retail parks. Established in February 1994, the Group is the result of a merger of several companies owned by founder and shareholder Vicent Roig Puigtió. Together, these entities have more than 35 years of experience in the sector.

Since its incorporation, the Group has maintained an average annual growth of 34% (CAGR). It began with revenue totaling 10 million Euros in 1994, a figure that has significantly grown over these years until reaching total revenue of 336 million Euros in 2006.

In 2001, the Copefil Group began its real estate activity under the name Coperfil Inmobiliaria. Since then, it has achieved significant results due to the quality of its projects, its exclusive real estate concept and the know-how it has acquired.

On 21 December 2007, the Coperfil Group's real estate activity was spun off from the Coperfil Group as a new company, the Coperfil Real Estate Group. This new group is an independent company that relies on a team of over 100 professionals in offices located in Barcelona, Madrid, Valencia and Lisbon

The current corporate development plan will solidify the Coperfil Real Estate Group's position as a reference model in the development and operation of logistics, business and retail parks.


Immo-news.net : What is the situation of the market for commercial real estate in Spain?

The real estate sector understood as such, i.e., as a real estate investment in rental assets, continues to be attractive. Real estate investment in Europe and Spain is still a wealth reserve. Even in Spain, where investment in real estate funds is subject to stricter conditions than in the rest of Europe, the returns on 5 years (5,87%) are clearly higher than in the rest of investment funds.

At investment level, there has been a certain repricing of assets to adapt profits to current goals and these higher profits are being compensated by rent increases. Our analyses of other countries, extrapolated to the situation in the Spanish market, lead us to conclude that, in the medium term, the financial restrictions will allow rising rents to continue to offset the higher returns demanded by the market owing to the significant limitation of supply, even in the face of a possibly lower demand.

However, rents in the long term will balance out when there is a greater supply of land on offer in Spain, being promoted for the most part by the Government. That is why apart from our investments in prime areas, we want to invest in public-private partnership initiatives.


Immo-news.net : What are the effects of the subprimes crisis on real estate business in Spain?

The subprime crisis, despite not having directly affected Spain, has been accompanied by a tightening of the financial market that has had a negative effect on Spanish real estate while causing a significant economic slow-down. However, this was a necessary adjustment and brings with it a change of business model for the domestic real estate sector.

The Spanish economy grew a lot in recent years thanks to heavy investment brought about by the availability of cheap money on the international markets. When these markets closed up as a consequence of the subprime crisis, the possibilities of attracting funds were drastically lowered, severely affecting the growth of the Spanish economy, particularly in the sectors that are most dependent on this finance funds, such as Real Estate.

Real estate investment has a new paradigm based on more equity, more insurance and higher returns.

The other problem is inflation, as it means that steps such as lowering interest rates or others that could encourage growth, as happened after 9/11, will not work in Europe. Nowadays the widespread price rises in raw materials and oil are making the situation in practically every sector and every economy much more complicated.

All the affected sectors need to optimize their cash flows which is why we think that the logistics and retail sectors will have an important role to play in keeping costs down.

Immo-news.net : Some large Spanish companies have suffered significant declines, do you think this drop will continue?

There are very few companies left that have not readjusted their share prices to the reality of the new cycle. Logically, those companies that have not properly readjusted the value of their assets could still see a drop in their market value. In Spain we have had to face up to the change in cycle and this is happening very fast; many companies in the sector have been successfully professionalized.

Nevertheless, the punishment has been the same for everyone in the sector; some good companies have excessive discounts on their NAV and should, in the long term, recuperate some of their worth.

Immo-news.net : At what rate of return do investors sell/buy commercial buildings in major Spain cities?

The rates of return demanded by investors in Spanish commercial buildings have risen by more than 5% (between 30 and 100 basic points) in the second quarter of the year because of the effect of the rise in the Euribor and greater apprehension about risk. Less inflationary pressure and lower interest rates are vital.

Immo-news.net : You are a specialist in logistics surfaces, what are the advantages of this segment?

The logistics sector in Spain has been very healthy over the last few years, thanks to the rising internationalization of Spanish companies and the relocalization of production to Asian countries that have made logistics platforms essential in order to be able to distribute these products manufactured in China, India, etc. all the warranty to the end consumer.

At demand level, the sector has not yet reached the maturity to be found in other more mature markets such as in France and Paris in particular or in England with its capital city of London.

According to our regional studies, there is still a very active demand in the main Spanish cities that is not, in most cases being met by the existing supply of logistics real estate. This is especially d this applies more so in the case of new buildings close to the cities, adjacent to new infrastructures, with available manpower and all the security measures required by domestic and international regulations and efficient from an environmental point of view.

Even in the event of a temporary deceleration of growth in consumption, the demand for new logistics space is ensured by the unquestionable fact that the logistics sector will become strategic in the next years, as a basic tool for improving the efficiency of the European economy and a key sector to hold down prices. It must be remembered that transport constitutes the main sector as far as energy consumption goes.

Immo-news.net : Do you plan to invest abroad, if so, when and in which country?

We have no plans to make any foreign investments in 2008, however we are open to the idea of negotiating investments in Europe, the Middle East and Asia, and we are working along those lines.

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