12/12/2014 – Expansion
Old terrains of the Ministry of Defense in the area of Campamento, in the south-west part of Madrid, could soon become a new high-end residential zone. At least, this is the ambicious plan of China’s richest Wang Jianlin (pictured), the owner of the iconic Edificio España building in Madrid.
Through their business conglomerate Dalian Wanda Group, Jianlin and his closest partners have been searching for the perfect location for months. They want to raise a residential and leisure complex inspired by other developments created in China. The project requires 2 million square meters and a 6 billion euro investment.
The estate, unlike the disastrous Eurovegas mega-operation, will be based on residential purpose with 15.000 luxury homes. Their prices will post around 4.000 euros per square meter. Apart from all services and priviledges, the complex will also offer its own entertainment areas, including theme parks, shopping malls and even casinos. ‘The projects of Dalian Wanda pivot around stadiums development, movie theaters and art and cinema theme parks. Surely his model can be copied out of Asia, once adopted to other markets and their customs, like the U.S. or Europe. However, due to the real estate bubble burst, we must take a cautious approach to Spain‘, explained Patricio Palomar, Head of Alternative Investment at CBRE Spain.
The luxury minicity will stand on the land formerly carrying military headquarters called Campamento, an area where prices are much more affordable but the location was the closest to Madrid’s center among other land options.
The talks between Wang Jianlin and various Public Administration units (State, Regional and Local) are still ongoing. The 9 million square meter scope of land underlying negotiations belongs to the Ministry of Defense. The Ministry of Public Works bought them in 2011 for 150.5 million euros for construction of 10.700 dwellings, of which 7.000 were supposed to represent public housing. Finally, the venture petered away and in May 2013 the land returned to the Defense.
Original story: Expansión (by R. Ruiz)
Translation: AURA REE