6 March 2016 – El Confidencial
The recovery of the real estate market is starting to be reflected in the income statements of real estate companies and Socimis, especially in the value of their assets. According to information submitted to Spain’s National Securities Market Commission (CNMV) by Lar España, the famous plot of land located on Calle Juan Bravo, 3, which is going to be home to the most exclusive luxury housing development in the capital, has risen in value by 7% in the last year.
The Socimi has owned 50% of the land, alongside the US manager Pimco since the beginning of 2015, when both companies joined forces to buy Eurosazor (the development company created by Rafael Ortiz and the businessman Fernando Fernández Tapias) which owned the 26,203 m2 plot on Juan Bravo, 3 and another 5,318 m2 plot on Claudio Coello, 108.
Lar and Pimco acquired both residential assets for €120 million, in such a away that the purchase amounted to €60 million for each plot. Six months later, in June 2015, the consultancy firms JLL and C&W valued the plots at €61.3 million, and by the end of last year, that figure had increased to €64.35 million, up by 7.1%. This increase in value is explained not only by the recovery of the residential market, but also the scarcity of plots of land and new homes on the market in the neighbourhood of Salamanca, the most sought-after by wealthy individuals, both domestic and international – especially Venezuelans.
This increase in value has been generalised for the whole of the Socimi’s portfolio. The value of the assets acquired between its debut on the stock exchange and 31 December 2015 amounted to €898.9 million, in other words, €46.2 million more than their combined acquisition prices, which represents an increase of 5.4%. By type of asset, besides residential, Lar’s shopping centres have increased in value by 4.4%, its office are up by 6.6% and its logistics centres are up by 11.1%.
Juan Bravo, 3 is, nevertheless, one of the most important assets in the portfolio, at least from the media’s point of view, given that the market has been waiting for work to begin there for more than a decade. (…).
The demolition work is about to begin
Now… the project is increasingly closer to becoming a reality, after it recently received the licence from the Town Hall of Madrid that will allow it to demolish the basements and consolidate the land. This is the first step to obtaining the construction permit and, therefore, the definitive launch of the project, which will be designed by the Madrilenian architecture firm Rafael de La-Hoz (see photo above).
Although the details of the project have not been revealed yet, all indications are that around one hundred homes measuring between 250 m2 and 450 m2 will be constructed on the 2,250 m2 plot of land, which has a buildable capacity of 26,000 m2. Prices could reach, on average, €10,000/m2, with the most affordable homes averaging around €8,000/m2 and the most elite averaging around €14,000/m2. (…).
Original story: El Confidencial (by E. Sanz)
Translation: Carmel Drake