Transaction / Assets Seller Buyer € MM
Lar España RE & Pimco Seal the Deal on the Juan Bravo 3 Luxury Complex
16/10/2014 – El Confidencial
After three years of disagreement between real estate businessmen Rafael Ortiz and Navarre-born Fernando Fernandez Tapias, their highest-definition-of-luxury housing development Juan Bravo 3 was sold at a price of nearly €3 million per apartment.
The complex, located in exclusive Salamanca district in Madrid, was aquired by Socimi (Reit) Lar España and its U. S. partner Pimco for around €130 million from Mr. Ortiz’s property company Eurosazor.
To be sealed, the transaction required a permission from the main lender of the vendors, Santander. The entity inherited ownership of the project from Banif. It is said that the bank agreed on the sale after Mr. Fernandez satisfied his personal debt amounting to €23.5 million.
Rafael Ortiz and Fernando Fernandez Tapias are known for construction of high-end flats in Madrid and for purchase of two office buildings of Repsol and Mutua Madrilena situated in the intersction of the Juan Bravo and Lagasca streets. The original properties were demolished and the plot was designed to carry the abovementioned luxurious housing development. Sadly, for the recession, the construction works had to be halted.
By the deed, Lar España Real Estate meets its targets to invest in prime assets located in Spain’s biggest cities. Just yesterday, the Socimi reported acquisition of a controlling stake in the Portal de la Marina retail park in Ondara, Alicante, for €17.5 million. At its flotation, the REIT firm raised €400 million in funds. Until now, Lar España Real Estate has spent €230 million of this amount and soon it is going to invest another €130 million in a new project in Madrid.
Original article: El Confidencial (by Jose Antonio Navas)
Translation: AURA REE