Transaction / Assets Seller Buyer € MM
KKH Property Buys Monte de Piedad’s Former HQ For €80M
9 December 2016 – El Confidencial
A year after engaging Irea to organise an official sales process for its headquarters in Plaza del Celenque, the Fundación Montemadrid (the successor of the former Fundación Caja Madrid) has reached an agreement with KKH Property Investors to sell the property for around €80 million, according to sources consulted by El Confidencial.
This is a key operation both for the Fundación, which will raise funds through this divestment to allow it to ensure the continuation of its social work, as well as for the buyer, which is entering the sought-after real estate market in Madrid with a bang.
Headquartered in Barcelona, KKH Property is a joint venture between KKH Capital, the investment group controlled by the former CEO of Renta Corporación, Josep María Farré, and Perella Weinberg, which owns a stake in this partnership through one of its opportunistic funds.
The JV plans to convert the Monte de Piedad building in Madrid into a luxury hotel, with 180 rooms and suites, as well as an extensive range of restaurants and spaces for conferences and social events. The building has a surface area of 27,000 m2, spread over seven above ground floors and two basement floors, used for parking.
Located between Plaza de Celenque and Plaza de Las Descalzas, the property will continue to house the activities of the Fundación Montemadrid, which will continue to occupy approximately 2,000 m2 of the property. (…).
The building was constructed in 1975, on the site of the former Montepío, just opposite the Monastery of Las Descalzas Reales and only 200 m from the Puerta del Sol. (…).
The sale of the former headquarters of Fundación Montemadrid, whose offices are now located next door in La Casa de Las Alhajas, sparked interest amongst a large group of buyers. Nevertheless, the price expectations of the seller ended up whittling down the potential candidates to just two, KKH Property and Hispania, both of which submitted definitive offers in the summer, according to market sources.
In the end, KKH has emerged victorious. Although this is the company’s first major operation in Madrid, the vehicle led by Farré already owns several iconic buildings in Barcelona, most notably the former headquarters of Deutsche Bank, located at numbers 109 and 111 on Paseo de Gracia, which it acquired in July 2014. (…).
Original story: El Confidencial (by Ruth Ugalde)
Translation: Carmel Drake