13 March 2017 – Mis Oficinas
The Baraka Group, the former owner, will manage and market the property until the renovation project is completed.
Aguirre Newman has advised Hines on the purchase of the adjoining buildings on Calles Preciados 13 and Maestro Victoria 5 in Madrid, from the Baraka Group. The future plans for the property involve the development of a 5,000 m2 flagship store, which will be managed and marketed by the Baraka Group until it is handed over (most likely in 2018).
It is the second operation between Hines and the Baraka Group that Aguirre Newman has advised and it may be considered to be the most ambitious and representative development on Calle Preciados, given that it will house a large store with a surface area of more than 5,000 m2 spread over several floors.
In fact, according to Aguirre Newman, this operation will be one of the most representative of the year on the high street in terms of volume and representativity, given that, although investor appetite to invest in retail premises is high, few opportunities arise to acquire assets with similar characteristics.
Calle Preciados is still the most expensive street in Spain, although prices there are still well below those charged in the prime areas of London, Paris and Milan.
For Aguirre Newman, the imminent developments in Canalejas and Edificio España have already become a reality and are changing the central area of Madrid. The strong tourism figures, as well as the future retail and hotel projects that are going to be developed in the area, are attracting international brands and investment funds, seduced by what is expected to be the great transformation of the central area of Madrid, which began with the commercial development of Gran Vía and is now moving along the Canalejas-Sol-Plaza España axis.
Retail groups’ interest in positioning themselves in the centre of the city also extends to adjacent streets such as Montera and Arenal, according to the real estate consultancy Aguirre Newman.
Original story: Mis Oficinas
Translation: Carmel Drake