Owned by the former owners of Riofisa, the Losantos family, Allegra Holding wants to challenge the habitual doubters who claim that it is impossible to sell dwellings in Spain right now. The company has just purchased a 6.000 square meter plot in the Puerta de Hierro area of Madrid, aiming at raising a new, high-end housing development.
The Losantos are planning to build between 55 and 60 apartments. The venture stands among very few which are presently initiated in the capital as during the recession many construction projects were halted.
Allegra plans to sell high-quality dwellings at much lower prices than those found in the area. Before the crisis, a square meter in the northern area of Madrid was €4.500 when referring to existing homes. Allegra could barge in the Puerta de Hierro neighborhood asking between €3.000 and €3.500 for each square meter.
The plot is located on the Islas de Cabo Verde street, nearby the Puerta de Hierro club and the university area, adjacently to exclusive Los Robles housing development.
The real estate group could obtain a building permit in spring 2015 and the finished apartments could be traded at the end of 2016. Each unit will have 70 to 140 square meters, two garage spaces and a swimming pool included.
Barclays, the vendor, informed that the plot was repossessed and it was one of the assets the entity wanted to shed before it leaves Spain by transferring its local branch to La Caixa. The final amount has not been disclosed but it was paid in cash.
New Construction Project
The Puerta de Hierro housing development will surely cheer the Madrid market up. During the 2007 peaks, 45.900 new building permits were issued in the capital. In 2013, the number showed only 6.100 applications.
Allegra seems to bet firmly on the Spanish market, once it nearly crawled out from the financial crash. It undertook a strategy of low pricing in order to grow rapidly, brand and rotate its properties fast.
First housing development raised by the Losantos in Madrid (the billboard) was started few months ago close to the Plaza de Castilla square, on the Sorolla street. Out of the total of 96 apartments put up for sale, 85 have already found new owners, which proves quite good reception of the project. Prices hit the cap of €240.000 for a three-bedroom home (about 2.200 €/m2).
‘There are very, very few newly built properties in the center of Madrid at reasonable prices. They sell like hot cakes’, assures a developer with an excellent knowledge of the local market. The Sorolla development was constructed on a 3.200 square meter plot bought from Sareb.
Allegra could count on support of builder ACR both in the previous and the new project. The latter will have a 20% share in a joint venture vehicle set to be established to implement the future plans.
Original article: Expansión (by Amparo Polo)
Translation: AURA REE