El Corte Inglés Offers €136 Mn For Adif’s Nuevos Ministerios Plot

25/11/2014 – Expansion

El Corte Inglés is ready to come down to history of real estate investments carried out in Madrid. After spending €480 million on now non-existent Torre Windsor tower (replaced by the Torre Titania), the department store group has submitted a €136.48 million offer for a 10.700 square meter plot situated on the Paseo de la Castellana street in Madrid.

The piece of land, stretching adjacently to one of its stores (pictured), would allow the chain to build a new shopping mall in downtown Madrid, just next to the Nuevos Ministerios Cercanias (the light railway of the capital) station.

Except for El Corte Inglés, the tender of the plot was attended by five other bidders. The second-best offer came from Madrid-based property manager Monthisa (€77.04 million), followed by developer Pryconsa teamed up with one investor more (€62.57 million), Mario Losantos’s holding Allegra (€55.1 million) and Colonial (€52 million). Venezuelan Capriles bidded the lowest with €46 million.

Owned by Adif, the desirable piece of land currently offers 72 parking lots with 22.000 spaces. The public railway manager put the plot up for sale as a part of its non-core assets divestment plan including 16 activities, like awarding commercial spaces and renovation of some stations.

The terrain’s use is tertiary (meaning no dwellings allowed thereon) and it is suitable for constuction of a five-floor building. According to experts, the price may oscillate between €70 million and €100 million, or between €6.200 and €9.000 euros per square meter. El Corte Inglés’s bid reaches 12.775 €/m2.

If the clear bet accepted, the Spanish department store king would extend its 86-large store, 42-hipermarket and over 250-convenience shop (Opencor and Supercor Express) portfolio valued at €18 billion, as Tinsa estimates.


Original article: Expansión (by R. Ruiz & A. Polo)

Translation: AURA REE