British, German, Luxembourg, American…international investment funds are behind the majority of the super-luxury residential projects currently underway in the centre of Madrid. Foreign capital has established a strong foothold in the Madrilenian residential market, to become an undisputed protagonist of major land purchases – examples include InmoGlacier and Aquila Capital’s purchase of Parque Ingenieros in Villaverde from Sepes –, corporate operations – Lone Star’s purchase of Neinor, the real estate arm of Kutxabank –, and housing developments, which has become a great luxury product over the last year. (…)
The well-known firm Pimco (USA), which is leading the iconic Juan Bravo 3 project together with Lar España – which has just managed to record a 7% valuation increase – has been joined by names such as Eurostone (Luxembourg), Patrizia Inmobilien (Germany) and UK & European Investment (UK), which regard the luxury residential segment as a goldmine in light of the resurgence of the real estate market in Spain.
Between them over the next few months, they will put more than a hundred high quality homes on the market, in the most exclusive neighbourhoods of the capital, where the supply of new homes for sale is very scarce. (…).
Luxury homes in EFE’s former headquarters
The trickle of operations has been constant in recent months. The latest, closed just a few days ago, was Eurostone’s purchase of EFE’s former headquarters on Calle Espronceda 32-34 from BBVA. The fund plans to develop a residential project on the site, containing 46 luxury homes with up to four bedrooms, terraces, gardens, a swimming pool, gym and almost 230 parking spaces. Eurostone is working with Mina Inmobiliaria on this project (…).
And that is not the fund’s only project of this kind – i.e. with a good location and high quality -. Eurostone is also managing…the property located on Calle Génova 7 (pictured above), right on Plaza de Alonso Martínez, in the exclusive neighbourhood of Almagro.
Meanwhile, Mina Inmobiliaria has several super-luxury projects underway in the capital, not only with Eurostone, but also with AKM Real Estate, funded by Spanish capital, constituted at the end of 2014 with the aim of acquiring residential properties in Madrid and Barcelona.
One of the most striking developments is on Calle Menéndez Pelayo, 41, opposite El Retiro park – acquired for €12.6 million -. A renovation project where more than twenty homes will be constructed with an average price that will range between €7,000/m2 and €8,000/m2. Other buildings are also being renovated on Calle Modesto Lafuente, 18, Calle Barquillo, 11 and Calle García de Paredes.
Another actor to have emerged onto the scene in recent months is the German firm Patrizia Inmobilien. At the beginning of February, it purchased the building located on Calle Claudio Coello 108 for €22 million from Lar España and Pimco. It plans to construct 14 luxury homes there, measuring around 300m2, with two or three parking spaces per home. According to a recent report compiled by the appraisal company TecniTasa, the market value of those homes may reach €10,900/m2.
Juan Bravo 3 – Pimco and Lar’s flagship project
This building is located just 50 metres away from what will undoubtedly be the flagship project of the high-end market in the capital, Juan Bravo 3, which has been renamed Lagasca 99. (…).
For the time being, no details have been revealed about the project in terms of the number of homes and prices. Nevertheless, several sources indicate that around fifty homes will be constructed on the 2,250 m2 site, measuring between 250m2 and 450m2 each, and prices are likely to reach €10,000/m2, on average, with the most affordable homes costing around €8,000/m2 and the most expensive costing around €14,000/m2.
Just a kilometre away, in Plaza San Juan de la Cruz, next to Nuevos Ministerios, another project will be constructed over the next few months. This is the former tenement building that Pontegadea, the investment arm of Amancio Ortega, sold a few months ago to the Catalan property developer Uniq, which specialises in the development of luxury homes.
According to sources, Uniq will construct 41 homes, in other words, it will be responsible for the development of the project, but another company, the British fund UK & European Investment, put up the capital to close the deal, which amounted to €20 million. (…).
Original story: El Confidencial (by Elena Sanz)
Translation: Carmel Drake
Translation/Summary: Carmel Drake