El Corte Ingles finalized the sale of one of its buildings at 9 Preciados Street in Madrid. The property, situated on the most expensive commercial street in Madrid and one of the most important in Europe, consists of 1.375 sqare meters´ shopping area. The rest are offices. In total, there are 2.500 square meters of space.
The chain owned by Isidoro Álvarez, possessing more buildings on the same street, used 3 floors of the sold building as a shopping area with sports equipment and 3 more as offices.
The new property owner is a real estate company IBA Capital, a French fund manager which brings together European, American and Asian fortunes. (…) First time the companies did business together when El Corte Ingles sold to IBA a building close to Plaza de Cataluña in Barcelona for 100 million Euros. This time the Gaul fund paid about 50 millions, according to the real estate sector sources. Thus, a square meter has been valued at 20.000 Euros.
The two sold buildings are adjacent with two big shopping centers of the group. Before February 28th, El Corte Ingles owned 86 department stores, out of which 84 were situated in Spain. According to the valuation conducted by Tinsa consulting company, the firm´s assets on the market exceed 18.000 million Euros.
The decision to shed the property was made after the conclusion of refinance agreement of its 5.000 million Euros debt. (…) In the last exercise, closed on February 28th, El Corte Ingles earned 171.5 millions, about 18% less, and charged 14.552 millions. (…).
The New Operator
The sale of 9 Preciados was one of the scarce transactions carried out in the so-called ´Golden Triangle´of the capital, which embraces districts of Sol, Gran Vía and Preciados. (…) Rental cost on the last reaches 245 €/m2.
The new owner´s target is to rehabilitate the entire building and convert it into a flagship establishment for an international chain company. That is why, the leaders have already started negotiations on the rental price with various international companies. (…).
There are several Northern American great companies among the potential tenants, who wish to open their branches in Spain. Other important firms interested in the deal are: Japanese Uniqlo, Inditex and H&M.