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GMP Given Exclusive Negotiation Rights In Bidding For Saint Gobain Tower

9/01/2015 – El Confidencial

GMP outbid its rivals in the run for the Torre Saint Gobain skyscraper, the last jewel of the Azca complex for sale and the most elitist office building in Madrid. Sources from the market confirmed that the real estate firm led by family Montoro has been picked for exclusive negotiations which are expected to close within next days.

Situated at 77 Paseo de la Castellana avenue, the property belongs to BBVA Propiedad. The banking arm sold its famous Torre Negra (Black Tower), also a part of the Azca (circled in the picture), to GMP seven years ago, together with three other buildings in a €300 million deal.

The final bids for the Saint Gobain tower (marked by the smaller circle), reaching €90 million, were submitted at the end of December by GMP, fund GreekOak and Infinorsa, the owner of the Torre Europa.

The 18-storey property for sale is 70-meters tall and has a 16.000 square meter total area. Moreover, it has six stories underground, including parking lots, storage space, facilities and services. The most alluring aspect of the skyscraper is its location and its weakest point lays in the necessity of integral rehabilitation.

The Saint Gobain tower, officially called the Ederra Building, was bought by BBVA Propiedad in 2003 for €87.5 million. It owes its name to French insurer Saint Gobain which leased the property until it relocated in 2013.

Today’s Big-Fish: GMP

Presently, GMP is one of the most admired real estate firms. Not only has it survived the recession hit, but also it has taken the forefront position in the sector. Its excellent performance made the Sovereign Wealth Fund of Singapore buy 30% of its capital worth €200 million last September.

Thanks to the new stakeholder, the Montoros have funds for investments in prime assets, like the Saint Gobain Tower, at hand. The fruit of the partnership, a REIT vehicle known as a Socimi in Spain, is set to go public soon.

The purchase of the skyscraper, as well as the ownership of the majestic Black Tower, give the Socimi all the necessary arguments to convince potential investors.

 

Original article: El Confidencial (by R. Ugalde & E. Sanz)

Translation: AURA REE