BUSINESS AREAS: STRATEGY AND BUSINESS MODEL
Gmp’s business model concentrates on the following:
- Clear property-owning focus.
- Specialisation in the high-end office and business park segment in Madrid.
- Active management of its assets.
- This means Gmp’s core business centres on the offices and business parks it owns in Madrid. In addition, and on an occasional basis, it operates in the residential tourism sector through the resort it owns.
Investment capability: acquisition, rotation and land management
Gmp’s investment activity includes land and existing buildings.
Over the years, Gmp has known how to identify and position itself in advance in the business expansion areas in Madrid that have the greatest potential. From the 1980s, it gradually began to acquire strategic land plots for future third-party developments in north Madrid, which the Company has managed from the outset and where three business parks have been developed, covering a total area of 183,188 m². As is indicated in the next section, in 2016 Gmp started to develop a new office building, Oxxeo, on one of its plots for urban development in Las Tablas. This work is expected to be completed in mid-2018.
It is currently managing its own land bank with 65,105 m² in buildable area for new office projects in Valdebebas, Las Rozas and Las Tablas. Moreover, its experience and in-depth knowledge of the segment in which it operates enable it to identify and leverage investment opportunities to complement its own development portfolio, ensure satisfactory returns, have strong prospects and capitalize on the added value of its specialised management.
In 2017, the Company acquired the Manuel Cortina 2 building in Madrid, with an area of 16.383 m² occupied by Mapfre. The building was pre-leased to Patrimonio del Estado before Mapfre vacated 15,141 m² at the end of the year. This was one of the largest lease transactions in the Madrid office market in 2017.
Gmp’s investment activity is combined with the rotation of mature or non-strategic assets aimed at enhancing the efficiency and quality of its portfolio through new investments or developments. In 2017, the Company sold the Puerto Somport 8 building in the district of Las Tablas in Madrid.
Technical capability: renovation and development
Gmp is one of the pioneering development groups with the most experience in Spain in the development and renovation of offices and business parks. Its technical capacity enables it to be involved in each project from its inception, guarantees high quality standards, minimizes the risks arising from deviations in costs and deadlines and guarantees optimal adaptation of the end product to market demand and, by extension, marketing success. Gmp has experience in turn-key developments aimed at company head offices and in multi-tenant buildings and business parks.
The group’s development business includes new developments with land acquired and managed by Gmp to this end and complete renovation of pre-existing buildings, mainly in prime areas which are already consolidated.
In May 2017, Gmp completed an ambitious renovation of Castellana 77, a state-of-the-art building in terms of sustainability, whose emblematic aesthetics have made it a point of reference in Madrid’s urban landscape. The building received the award for Best Office Architecture Spain 2017-2018 in the European Property Awards Architecture. In December 2017 refurbishment was started on the Manuel Cortina 2 building. It is expected to be completed in the summer of 2018 and will subsequently be occupied by its new tenant, Patrimonio del Estado.
In relation to new developments, in 2017 Gmp continued with the building of Oxxeo, an office building with a sustainable, cutting-edge design from the renowned architect’s studio Rafael de La-Hoz, located on one of the plots for urban development in Las Tablas. With an area of 14,299 m² on five floors above grade and 450 garage spaces below grade, the property aims at the highest qualifications for sustainability, environment, accessibility and health and safety, and at the well-being of its tenants.
At the time of preparing this report, Gmp is undertaking the renovation of the last five floors of the emblematic Castellana 81 building. This was started at the beginning of 2018, after its historic tenant, BBVA, left at the end of 2017. The 6,500 m² comprising this space constitutes one of the most exclusive, exceptional offers in the Madrid office market. Castellana 81 was recently recognized by the AEO (acronym for Asociación Española de Oficinas – Spanish Office Association) with the 2017 award for the best renovation.
Management capability: property commercialisation and management
The asset management of all buildings owned by Gmp is carried out by a highly committed and customer-led team of professionals. The commercial team focuses on fostering customer loyalty, both by renewing rental contracts and promoting vacant space. In 2017 Gmp renewed 47,000 m² and signed 28 new lease contracts for 49,569 m². The following transactions are worth highlighting:
- The lease of 8,000 m² to Banco Sabadell prior to the expiry of the contract with Vodafone, which is in force until 2019.
- The pre-lease to Patrimonio del Estado of 15,141 m² in the Manuel Cortina 2 building, before its previous tenant Mapfre leaves this same space. This lease was the second-largest transaction in Madrid inside the M-30 ring road.
- The marketing of 11,700 m² at Castellana 77, where renovation was completed in May 2017. This implied that the building had an occupancy rate of 72% at the end of the year.
- The Head of Client Management and his team are playing a key role in efficiently resolving incidents and in anticipating clients’ needs. All the properties managed by Gmp have a Property Manager and an on-site Facility Manager.
As part of its management and aligned with its customer-led focus, Gmp provides a full design service to fit out office spaces for tenants through IN-PLANIA. This service prioritises optimisation of space, the comfort of occupants and environmental sustainability.
Gmp conducts annual satisfaction surveys on all its clients. The overall results obtained have displayed a high level of satisfaction year after year, from tenants who see Gmp as a company that is serious, professional, responsible and committed to continuous improvement. Specifically, in 2017 the score was 4.1 points out of 5.
Gmp adopts a clear customer-driven approach to management, positioning it as one of the property-owning real estate groups with the highest levels of customer retention, occupancy and satisfaction in the market. Gmp is the only property owning real estate group in Spain with an integrated management system for Quality, the Environment and Health and Safety in the Workplace certified by International Standards ISO 9001, 140001 and OSHAS 18001.
Occupancy at the end of 2017
50,000 sq m
Rented office space in 2017
47,000 sq m
Renewed office space in 2017
4.1 out of 5
Customer satisfaction level
2. OTHER BUSINESSES: DEVELOPMENT OF RESIDENTIAL TOURISM
Apart from its core property-owning business in office space, Gmp owns and manages a 330-hectare residential tourist development near the coast, south of Alicante: Las Colinas Golf & Country Club.
It comprises bespoke villas, apartments and plots of land for sale, as well as extensive sports and leisure amenities and a range of accommodation and restaurants. It features an 18-hole championship golf course and a private beach club on the seafront.
It operates through three companies owned by Gmp: Colinas Golf Residencial SL, Colinas Green Golf SL and Campoamor Sun & Beach SL.
Colinas Golf Residencial SL owns the Golf & Country Club’s residential land. Its core business consists of marketing the land to other developers and developing homes for sale to end users. It performs the function of Master Developer, ensuring that the different residential projects meet the resort’s strict quality and design standards. To this end, it applies a rigorous procedure to approve them before building is undertaken.
In 2016, in response to growing demand from European clients, it intensified its development business through a joint venture with a local developer, with a view to the development and sale of 56 apartments. In 2017 the scope of this project was extended to include the development and marketing of a further 260 apartments.
The total number of homes sold at Las Colinas Golf & Country Club in 2017, by both Colinas Golf Residencial SL and the other developers owning land, was 75 units: 48 villas and 27 apartments. Of the total of 1,671 homes projected at the Golf & Country Club, 298 had been sold and delivered at the year-end, 121 had been sold with different degrees of progress and 355 were under development and marketing.
Las Colinas Golf & Country Club’s master plan includes three plots for commercial use in different locations. They are also owned by Colinas Golf Residencial SL.
Colinas Green Golf SL is the company which owns the golf course and the facilities at the clubhouse and in its immediate surroundings. The course, designed by Cabell B. Robinson, is one of the best in Continental Europe according to the ranking of the prestigious British publication Your Golf Travel. In 2017 it was recognized for the third year in succession as the best course in Spain in the World Golf Awards. It is managed by the world leader Troon Golf. It operates with the pay & play system, with a limited number of memberships renewable every year. In 2017 more than 42,000 games were played, with a green fee way above the average for the area.
Lastly, Campoamor Sun & Beach SL owns the Golf & Country Club’s hotel land, which is as yet undeveloped, and the beach club located in Campoamor, on the seafront at La Glea beach, some 10 kilometres from Las Colinas. In addition, Las Colinas Residences manages the resort’s supply of accommodation, a selection of exclusive apartments and villas. The homes are fully equipped and their clients benefit from a wide range of services and mixed packages of accommodation and golf.
Plots and uses
|OWNER COMPANY||USE||PLOT SURFACE sq m||BUILDABLE AREA sq m||UNITS|
|COLINAS GOLF RESIDENCIAL S.L.||RESIDENTIAL||562,823||132,990||908|
|COLINAS GOLF RESIDENCIAL S.L.||COMMERCIAL||12,167||3,250||3 different commercial locations|
|CAMPOAMOR SUN & BEACH S.L.||HOTEL||50,401||25,000||300 rooms approximately|
|COLINAS GREEN GOLF S.L.||GOLF||1,012,057||6,000|
|PROPIEDAD PÚBLICA||LAND CEDED PUBLIC USAGE||26,915||2,000|
|TOTAL URBAN DEVELOPMENT PLAN||2,118,213||269,620||1,671(1)|
(1) Residential units.