All Market News: Spanish Real Estate Intelligence

Miu Miu Moves Into Store On C/Serrano 54

20 October 2017 - Eje Prime

Change of tenants on Madrid’s most luxurious street. The luxury firm Miu Miu, owned by the Prada group, is finalising the opening of a new establishment on Calle Serrano, a store that was occupied until now by the historical shoe shop Lurueña.

Prada will thus become the tenant of the Lurueña family, which owns the property. The establishment, measuring more than 250 m2 over two floors, is located at number 54 Calle Serrano. According to sources in the sector, the operation has been brokered by Cushman & Wakefield.

As well as the chain of shoe shops and the management of its premises (many of which it owns outright), the Lurueña family also operates another business line, franchising restaurants. Until 2006, Lurca, a company owned by the Lurueña family, was the second largest franchisee in Spain of the chain Burger King. One branch of the family is still linked to the restaurant sector as franchisees of the 100 Montaditos breweries and the pizza chain Papizza.

The family’s decision to generate returns from its premises by leasing them out instead of operating them commercially is not unique. In Barcelona, the owners of the also historical Mercería Santa Ana (haberdashery) have done the same thing in Portal de l’Àngel in Barcelona, the most expensive street in Spain for opening a store. The owners have moved their business to a neighbouring street and have leased the premises to Oysho, Inditex’s underwear chain.

Until now, Miu Miu operated in the Salamanca neighbourhood in a smaller store at number 72 Claudio Coello. Meanwhile, Prada has its flagship store on Calle Serrano, at number 25.

So far in 2017, the luxury thoroughfare in the capital has seen numerous changes of tenants. At the beginning of the year, the jewellery firm Carrera and Carrera launched a flagship store at number 27, measuring 150 m2.

In recent months, it has been joined on Calle Serrano by two other luxury firms: Salvatore Ferragamo, which took over from Lladró at number 68 and Kenzo, which chose number 17 to open its first establishment in Madrid.

Original story: Eje Prime (by I. P. Gestal and C. Pareja)

Translation: Carmel Drake

 
Madrid's Most Indebted Town To Pay €3M More Due To Fraudulent Ex-Mayor

20 October 2017 - El Confidencial

The political legacy of Baltasar Santos (pictured below), who served as the mayor of Navalcarnero for 20 years (between 1995 and 2015), is still taking its toll on the public coffers. According to the Ministry of Finance, Navalcarnero is the most indebted town in the Community of Madrid (and number 24 in the ranking for the whole of Spain). Each one of its 27,000 residents owed more than €3,700 as at the end of 2016. Then, the tax authority based its calculation of financial debt of €101 million, although the current Government estimates that the figure is more like €230 million. And that amount is expected to increase gradually due to the steady trickle of legal rulings that are going to be made against the previous Town Hall due to mismanagement by the former PP-party mayor.

The most recent ruling, issued by the Provincial Court of Madrid on 28 September, ordered the Town Hall to pay €2.8 million (plus legal interest) to around fifteen local residents and companies because the local Government, led then by Santos, sold them land that was not actually owned by the Town Hall (…).

This is the first ruling of its kind, but José Luis Adell, the current (socialist) mayor, expects that more will follow, unfortunately, against the Town Hall due to the “disastrous management by Santos” (…). We estimate that we are going to pay around €70 million in relation to these types of rulings, which will increase the municipal debt to €300 million (…).

Nobody knows where Baltasar Santos is now. He was expelled from the PP in 2015, after hiding from the party that he had been charged for several legal misdemeanours. Santos participated in the municipal elections that year with another political party, URCI (...) but resigned just a few months later, in October 2015, just like he had done previously. Nobody has replaced him. The Town Hall has created an investigation committee to analyse his management. Moreover, it has engaged legal counsel so that all of the irregularities that have been detected can be brought to justice and it has asked the Chamber of Accountants to audit Navalcarnero’s accounts for the financial years from 2007 until 2015.

Original story: El Confidencial (by David Fernández)

Translation: Carmel Drake

 
Bulevard Rosa Shopping Arcade To Be Converted Into Large Format Stores

20 October 2017 - Eje Prime

The historical Bulevard Rosa, managed by the Catalan Vives family, will close its doors during the first half of next year, according to explanations provided to Eje Prime by sources close to the process. The establishment, which will be converted into between large format stores for fashion retailers, is whereby following in the footsteps of the Madrilenian shopping arcade El Jardín de Serrano, which is also in the process of closing its doors for a refit to welcome Uniqlo’s first megastore in Madrid.

Bulevard Rosa opened its doors in December 1978, to become one of the most iconic shopping arcades in the centre of Barcelona. The complex, which occupies the ground floor of the office building located at number 55 Paseo de Gracia, currently comprises around 100 shops and has a gross leasable area of 5,200 m2.

According to sources at Bulevard Rosa, the managers of the shopping centre have already contacted the tenants to inform them that their rental contracts will not be renewed beyond June 2018. According to sources in the real estate business, the owners’ project involves transforming the arcade into between two and four megastores, depending on the needs of the operators that express interest in the location (…).

This decision comes ten years after the managers of Bulevard Rosa tried to revitalise the shopping centre by expanding it and introducing new operators. In 2008, the company converted its former movie theatres into a Nespresso megastore, whilst the Galician ladies’ fashion label Bimba y Lola also recently expanded its store in the complex.

With the disappearance of Bulevard Rosa, the owners of the complex may be able to generate a return on their commercial investment with the opening of new large format stores. Currently, the monthly rent for a store on Paseo de Gracia amounts to between €240/m2/month and €310/m2/month, with a return of 3.8%.

Moreover, fortune is playing into the hands of the owners of the shopping arcade, given that the availability of stores along this stretch of Paseo de Gracia is almost nil (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake