Ferrovial, Domo, Amenabar & Prygesa Compete For Alluring Plot of MOD

31/10/2014 – El Confidencial

Within less than a week the sector will know the name of the new owner of the Madrid downtown plot sold by the Ministry of Defence that is asking €90.3 million for it. Merely 500 meters from the popular Paseo de la Castellana street and located on the Raimundo Fernandez Villaverde street, one may find the most attractive 14.500 square meters currently up for sale in the capital. The piece of land has been listed at portal Addmeet.com for one and half year.

Despite the commotion and interest the parcel invoked, only four companies presented their binding bids: Ferrovial, co-ops manager Domo, Basque builder Amenabar and Prynconsa’s branch Prygesa.

Participation of Ferrovial is somewhat surprising as the firm sold its residential development arm to Habitat in 2006. Allegedly, it operates on behalf of a fund. At one time, the company constructed more than 200 dwellings on land which used to house the old Madrid’s Town Planning Department, situated in the cofluence of the Guatemala, Alfonso XIII, Paraguay and the Puerto Rico streets. The piece of land was purchased by La Cooperativa EAI 310 for €65 million. Further on, the company named Domo Gestora de Viviendas to manage and develop the project.

Domo itself is another bidder at the tender for the Defense’s plot. If the firm wins, it will build 355 homes ranging from one to five bedrooms at a price fixed between 3.200 and 3.300 Euros per square meter. True bargain as for the Rios Rosas neighborhood inside the Chamberi district, where a year ago prices oscillated around 4.400 euros per built square meter, data by Foro Consultores. Also, Domo takes part in an auction of another plot in Madrid, located at 58 Cavanilles street, up for sale by Metro.

Next candidate to buy the piece of land of the Ministry is Basque builder Amenabar. ‘It is a proven, solvent company with great potential from the economic point of view’, sources from the sector describe it. Few years ago, Amenabar purchased several plots intended for subsidized housing in Arroyofresno from the city of Madrid.

The last player is Prygesa, company belonging to Pryconsa Group, one of the few recession survivors. Its project for the land assumes construction of 310 dwellings, from two to six bedrooms. Besides, Pryconsa bids for the Cuatro Caminos depots of Metro, shoulder in shoulder with Ibosa.

To take part in the auction, all bidders had to hand a 5% deposit equal to 4.513.913,25 Euros.

How high may the price reach?

The Ministry of Defense asks €90.3 million for the plot which is, in the sector’s opinion, a very low listing price. Therefore, the offers for sure will aim above that level but will not exceed €110 million.


Original article: El Confidencial (by Elena Sanz)

Translation: AURA REE