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Domo Buys Desirable Plot of MOD For €111.05 Mn

5/11/2014 – El Mundo

After months of keeping the sector on the tenterhooks, the sale of the plot located at 50 Raimundo Fernandez Villaverde street in the center of Madrid singled out the winner: Domo Gestora. The co-operatives manager purchased the piece of land from the Ministry of Defence for a price of €111.05 million.

Domo Gestora, under the brand name Residencial Maravillas S. Coop. Mad., bought the closed block formerly housing the TPYCEA, Spanish artillery research and electrotechnical testing center, situated adjacently to the Nuevos Ministerios light railway station and the Paseo de La Castellana street. The company offered €20.77 million more than the €90.28 million amount the Ministry set as the asking price.

At the bidding, Domo emerged ahead of such leading firms as Construcciones Amenabar (attending as Amenabar Arroyo del Fresno Avantium SL), Ferrovial (Vergara Promoinvest SL) and Pryconsa (Promociones y Construcciones PYC Pryconsa SA). Specifically, Amenabar submitted a €103 million bid, Ferrovial offered €102.19 million and Pryconsa €95.59 million.

Domo Gestora’s portfolio includes a plot at 13 Guatemala street and one at 58 Cavanilles street, recently acquired from the Metro of Madrid.

President of the company, Feliciano Conde did not hide his satisfaction from the purchase: ‘it represents triumph of the cooperative economy’, he assured.

Domo Gestora has designed a project for the 54.225 buildable square meters of the plot, assuming construction of 355 unsubsidized homes priced at €325.000 each. Two- to five-bedroom dwellings inside a private estate with a swimming pool and common areas will soon come up for sale. As the company claims, 90% of the products is already reserved and the rest of the apartments will be sold like hot cakes thanks to this deal. All will be handed over the soonest at the end of 2017.

According to experts, the feverous competition about the plot demonstrates revival of the residential development market in Madrid.

The Public Administration has got many more properties placed up for sale, giving an opportunity to the investors to build up thousands of new apartments in the very center of the capital.


Original article: El Mundo (by Jorge Salido Cobo)

Translation: AURA REE