3/10/2014 – El Confidencial
Another piece of news from the Azca business and retail complex in the financial heart of Madrid. Only few days ago, information about a tender of one of the most desired plots in the Spanish capital, namely the parcel located on the Paseo de la Castellana street, between the tower of BBVA and the Nuevos Ministerios light railway station and just in front of El Corte Ingles store, leaked out.
Now BBVA itself is selling another juicy asset, its impressive Torre Saint Gobain skyscraper (pictured, in the background), situated at 77 Paseo de la Castellana street, adjacently to the bank’s headquarters, El Corte Ingles and at a few meter distance from the famous Torre Picasso, owned by Amancio Ortega.
The 18-story (above ground level), 70 meter tall property disposes of a 16.000 square meter area in total. Moreover, it goes six floors deep into the ground where its parking lots, warehouses, instalations and services are found. CBRE España will advise on the operation.
According to experts, given the size of the property, the landlord may obtain between 22 and 3o euros for each square meter monthly, giving a 6% yield and an estimated asking price of between 70 and 100 million euros. The skyscraper was bought by BBVA in 2003 and that time the entity paid €87.5 million for it. However, specialists remark that the building requires refurbishment, a cost to be born by the future purchaser.
The Ederra tower – as it is known in the Azca area – used to be the premises of the Saint Gobain Cristalería group. Rental contract with this firm expired last year.
Over the last three years, Madrid’s office market has witnessed many large-magnitude operations like this one. The most recent took place in May 2014, when the Castellana 200 bulding changed hands. It was bought by PSP Investments for €140 million, after pretty troublesome sale process.
To give more examples, at the end of 2013, Abu Dabi and its investment fund IPIC barged in the market and acquired the Torre Foster building for €450 million.
Original article: El Confidencial (by E. Sanz & M. Lamelas)
Translation: AURA REE