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Mutua Owns Prime RE Assets Worth €1,200M

9 April 2015 – Expansión

The real estate subsidiary of the insurance company owns more than twenty assets, including 15 (properties) on the Paseo de la Castellana, Madrid’s prime (real estate) axis.

Mutua Madrileña is not only one of the largest insurance companies in the Spanish market, it is also one of the largest owners of office buildings. Through its real estate subsidiary, led by Emilio Colomina, Mutua manages a portfolio of more than twenty real estate assets, with a (combined) surface area of around 200,000 square metres.

Fifteen of the buildings in the portfolio are particularly noteworthy; they have a (combined) surface area of approximately 175,000 square metres and include several properties located on the prime axis (the most sought after area) of Madrid. Mutua Inmobiliaria owns numbers 31, 36, 50 and 110 on the capital’s main thoroughfare, the Paseo de la Castellana, as well as the Torre de Cristal, located in the Cuatro Torres complex, at number 259.

And just a stone’s throw away from La Castellana, in the heart of the capital’s financial district, the company also owns the Alfredo Mahou building (pictured), which has a surface area of around 24,000 square metres; as well as the Torres de Colón.

At the end of 2014, these fifteen buildings had an appraisal value of €1,200 million, representing a slight increase on the previous year, with unrealised gains of €356 million.

In 2014, the real estate company recorded turnover of €46.8 million from rental payments, and (its buildings) had an occupancy rate of 90%, i.e. 2% higher than last year.

“The favourable development of Mutua Inmobiliaria’s business is due, to a large extent, to the investment plan that the company launched in 2008 and completed in 2014. As a result, the company modernised its (portfolio of) buildings”, explains the insurance company.

During this period, Mutua invested around €150 million in upgrading (its buildings, including) the Torres de Colón, for example – work there began in late 2011 and involved a budget of around €25 million. “The investments made have allowed us to build loyalty and retain customers, sign new rental contracts, at maximum prices, and reduce operating costs, which has increased the attractiveness and efficiency of our properties”, says Colomina.

The new (rental) contracts include: the move of the law firm Hogan Lovells to Castellana 36-38 late last year, where it leases 4,608 square metres, and KPMG’s upcoming move to Mutua’s skyscraper in the Cuatro Torres, which has a surface area of 20,000 square metres.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake