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A 3.200 m² Property Next to Puerta del Sol Up For Sale by Madrid Asking €11 Mn

23/07/2014 – El Confidencial

After successful sales of the buidings located at numbers 3 and 18 of the Gran Vía street for over €26 million and the one at 8 Plaza Chamberi square for €40 million and unfortunately failed biddings for the 20 Gran Vía, the 40 Los Madrazo, the 6 Santa Catalina and the 8 Plaza Chamberi properties, Madrid´s Community announces an auction of another unit situated at 1 Alcala street, said to be the greatest 2014 transaction. The local authority asks for at least €10.5 million for it.

The building, erected in 1880, is located at several meters from the Puerta del Sol square and just in front of the future Canalejas Triangle and the Apple store. It houses the Economy and Treasury Council of the Community of Madrid which will rent it until 2016. Although right now the building serves as an office space, it may also be converted into a hotel, a commercial center, an administration premises, a healthcare center, an educational center or even into a residential block of flats.

Its area covers 3.209 square meters of surface and offers a 6.62% return. Average rent posts 18.38 Euros per square meter monthly, according to the property´s sale intermediator Addmeet.

“The only pitfall is that Bankia owns the ground floor, limiting considerably the range of its use classes. However, if negotiations conducted, maybe the bank would consider moving out, adding to the marvellous potential of the building for any kind of residential, hotel or commercial development”, say sources from the sector.

Madrid´s auction called attention not only of domestic and international investors, from high-end firms to Socimis (REITs), foreign banks and family offices.

There are several more properties currently up for sale in Madrid, such as the six-floor, 1.200 square meter office building at 28 Miguel Angel street (Salamanca neighborhood) listed at €3.5 million. Rented by the Community of Madrid until 2016, the unit will bring a 7.32% yield to its purchaser.

Also, the property located on the Braganza street (Carabanchel) looks for a buyer. The three-storey, 1.500 square meter building stands at €4.88 million and is said to provide a 4.9% yield.

Another edifice is located at 29 Madronos avenue (Hortaleza). This 4.000 square meter unit asks for €8 million in exchange for a 6.73% yield.

The most ambicious sale of the capital´s authorities was the auction of the building situated at 8 Plaza Chamberi square as the asking price was set at €42.2 million floor, ensuring a 5.5% yield. The first round was unattended, while at the second Linea Directa purchased the property for some €40 million.

 

Original article: El Confidencial (by Elena Sanz)

Translation: AURA REE