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  • Transaction / Assets
  • Seller
  • Buyer
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The Hotel Asturias in Madrid Bought by Platinum Estates

21/10/2014 – Inmodiario, Expansion

A part of Hong Kong – based Platinum Estates investment group led by textile magnate Harry Mohinani allied with a Spanish partner Juan Luis Segalerva and together with him have acquired the Hotel Asturias located at the Canalejas square in Madrid.

The vendor is the Salazar family which has just ceased dispute over the Ada Palace hotel and conveyed its management to Pau Guardans and his Unico Hotels.

The transaction includes the building found at number 2 of the Sevilla street which used to house the two-star, 175-key establishment. The amount involved in the deal is said to hit €35 million.

Presided by the wife of the businessman, Roshni Mohinani, Platinum Estates foresees rehabilitation of the property, aiming at converting it into luxury residences under the international brand name.

Back in February, the investment group purchased the Edificio Estel building, former Telefonica’s headquarters, situated on the Roma avenue in Barcelona.

In Madrid, Platinum Estates bought the property localized at number 9 of the General Oraá street inside the Salamanca neighborhood in Madrid.

The company’s bet on Spain is firm and it has got a far-reaching investment plan for the country. In fact, the group is in talks on diverse significant transactions in Madrid and Barcelona, informed Juan Luis Segalerva.

Barcelonas Garrigues lawyers office advised on the operation.

The Salazars are going to intend the proceeds from the sale for reduction of their high indebtness. At the end of 2012, it showed €45 million, plus 5.13 million losses and €17.09 million earnings.

In order to beat the debt down, the family is expected to sell its other establishments: two hotels in Asturias and the 4* Maria Elena Palace situated adjacently to the Puerta del Sol square, Madrid. The Salazars still own two four-star establishments: the Gran Hotel Velazquez and the Hotel Osuna.

 

Original article: Inmodiario, Expansion (by Yovanna Blanco)

Translation: AURA REE