15 December 2016 – El Confidencial
They have exceeded all expectations and broken a new record in the luxury residential market in Madrid. The Socimi Lar España and the US fund manager Pimco, which jointly own (50% each) the most exclusive housing project in the capital, Lagasca 99 (previously known as Juan Bravo 3), have already sold half of the 42 super-luxury homes that make up the development, where the average sales price stands at around €10,000/m2.
But that is not the most interesting part of the story. One of the homes, measuring 800 m2 (one of the largest in the development) has been sold for around €16,000/m2, bringing its final sales price to around €13 million, including the price of the parking spaces (four or five), according to sources close to the project.
Moreover, these same sources also confirm that the project has just received the green light from the Town Hall of Madrid for the last urban planning licence necessary, not only for the definitive launch of the project, but also so that the sales of the homes can be formalised. Until now, only reservations have been accepted.
The price of €16,000/m2 undoubtedly breaks all records in the high standing market in the capital, where, until a few weeks ago, a 600 m2 penthouse on Calle Serrano 7 boasted the honour of being the most expensive multi-family home ever sold in the heart of Madrid. It was sold for €9 million, equivalent to €15,000/m2.
The transaction signed now at Lagasca 99 has even exceeded Pimco and Lar’s initial expectations, given that they had fixed a price range of between €10,000/m2 and €14,000/m2 for the properties. (…).
The identify of the purchaser has not been revealed and the utmost secrecy is being maintained. Nevertheless, several sources indicate that the buyers of Lagasca 99 include some very wealthy Latin American and Spanish investors, primarily from outside of Madrid.
The homes will be ready in 2018
The plot of land on which this exclusive development, designed by the architect Rafael de la Hoz, is going to be constructed, was sold to Lar España and Pimco at the beginning of 2015, when the two companies joined forces to purchase Eurosazor. The property developer was previously owned by Rafael Ortiz and the businessman Fernando Fernández Tapias, and owned a 26,023m2 plot of land on Juan Bravo 3 and a 5,328 m2 plot of land on Claudio Coello 108. Lar and Pimco paid €120 million for the business and since then, this asset has appreciated in value by more than 10% – the building on Claudio Coello was sold to the German firm Patrizia Inmobilien for €22 million. (…).
The homes are expected to be finished during the first quarter of 2018.
Luxury homes gain momentum
The luxury residential market in Madrid is enjoying a real boom. At the beginning of October, the homes on José Abascal 48 went on sale, with the first luxury properties now ready for their owners to move in. The building contains 17 homes measuring between 100 m2 and 400 m2, whose prices range between €6,000/2 and just over €10,000/m2. But there are also several important renovation projects being carried out right in the heart of the capital, such as on Príncipe de Vergara 11, Recoletos 13 and 8, Salustiano Olózaga 12 and Lagasca 19. (…).
Original story: El Confidencial (by E. Sanz)
Translation: Carmel Drake