10 November 2017 – Cinco Días
Atlético de Madrid is looking to shake up the real estate sector with a record-breaking operation. The club is heating up the housing market with an operation to sell the plots on the site of its former Vicente Calderón stadium, through which it wants to achieve much higher prices than are currently being paid for land in the surrounding area.
The club, chaired by Enrique Cerezo and controlled by Miguel Ángel Gil, has engaged the consultancy firm CBRE to sell the plots of land, and the first round of offers have already been received. Atlético has already been sounding out potential buyers regarding a land asking price of €3,300/m2, according to four companies in the real estate sector, which would represent a record in this part of the Spanish capital.
That high land value would mean that the houses built on the site would have to be sold for approximately €6,000/m2, according to the calculations performed by several sources. That figure is equivalent to other more expensive areas in the capital and represents almost twice the current sales price of new build homes in the district of Arganzuela, where the stadium is located. According to the appraisal company Tinsa, new homes in this neighbourhood are currently being sold for prices ranging between €3,000/m2 and €4,000/m2, based on data as at 2017.
Specifically, Atlético is selling three plots of land, which have a total surface area of 63,076 m2, of which 57,094 m2 corresponds to residential use and the remaining 5,892 m2 to commercial use. Around 500 homes are expected to be built on the site. If the club manages to find a buyer willing to pay €3,300/m2, it will receive proceeds of €210 million. If the price ends up being €3,000/m2, the purchaser will have to spend around €190 million.
This urban planning operation is linked to the club’s change of stadium after it moved this season from its former pitch next to the Manzanares River to the new Wanda Metropolitan (…). Moreover, the football team needs to sell these plots to repay Inbursa – owned by the magnate Carlos Slim – for a €160 million loan that it was granted to build its new stadium.
The so-called Operación Mahou-Calderón, which also includes the adjacent plots on the site of the former brewery headquarters- but which are not included in the sale now being undertaken by Atlético – was approved by the municipal plenary in September. The buildability of that environment has decreased from 175,000 m2 to 147,000 m2 with respect to Ana Botella’s plan dated 2014.
Sources in the sector explain that CBRE has already received at least five offers during the first phase of the process, which is expected to close at the beginning of 2018. For the time being, it is not known whether any of these bids exceeds the figure of €3,000/m2 that Atleti is looking for (…).
Sources at the real estate consultancy firm Knight Frank calculate that the price of land in this neighbourhood amounts to a maximum of between €2,400/m2 and €2,800/m2. They explain that recent similar purchases in the district of Arganzuela, in the Méndez Álvaro area, for example, were closed for a price of between €2,000/m2 and €2,220/m2.
However, some experts in the residential market do believe that the €3,000/m2 threshold may be broken due to the high purchase pressure currently in play, primarily due to interest from international funds. They also consider that these plots are very attractive, located as they are in the Madrid Río area, and so they expect the degree of interest in them to be high.
Meanwhile, on the other side of the river, in the Usera area, Neinor Homes is marketing quite an exclusive development called Riverside at prices that exceed €4,000/m2, according to the portal Fotocasa, and the penthouses are going for €6,000/m2.
Original story: Cinco Días (by Alfonso Simón Ruiz)
Translation: Carmel Drake