• Transaction / Assets
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Larrain & Loiola Gestión Buy Illunbe Leisure Complex For €17.1M

22 November 2016 – Noticias de Gipuzkoa

The exiting Illunbe leisure complex (in Donostia) will soon be demolished and a new shopping centre, called El Mirador de Illunbe, will be constructed in its place. The aim of the property developers Larrain SL (which forms part of the Moyua Group) and Loiola Gestión Inmobiliaria (owned by Altuna y Uria), to whom the Town Hall of Donostia has awarded the sale of the leisure complex for €17.1 million, is to create a modern “first rate” shopping centre, in a prime location in the city, with views overlooking the sea. To achieve this, the developers will invest a total of €80 million over the next two years (including the aforementioned purchase price of €17.1 million and another €5.5 million to improve access to the site, as required by the Town Hall), in addition to €30 million that the future tenants may invest. The new Illunbe centre is expected to open its doors in time for Christmas 2018.

Although the sale still needs to be formalised (the municipal Government plans to approve and sign the deal soon), the JV (UTE or Unión Temporal de Empresas) formed by Larrain and Loiola Gestión Inmobiliaria was the only group to present an offer and the municipal services team has given their bid the green light. For this reason, the developers have spent the last few weeks marketing the property and making contact with potential tenants; and they admit that the proposal has received significant interest.

The new retail and leisure space will comprise three buildings. Two will be completely new and will be located to the south of the bullring: one will house a 3,000 m2 supermarket and the other will be home to a four-star hotel, with around 75 rooms. The third building will be the star attraction and will be constructed on the land that currently houses the existing property, which will be completely demolished (only the two underground parking floors will be maintained, and another similar floor will be added). Above ground, there will be four new floors and 30,000 m2 of space dedicated to retail and leisure, with a glass façade overlooking Donostia and the sea. “Instead of turning its back on the city, the new centre will look it in the eye”, said Juan Merino from Idea Real Estate, the company that is marketing the new premises at Illunbe on behalf of the property developers Larrain and Loiola Gestión Inmobiliaria. (…).

Original story: Noticias de Gipuzkoa (by Arantzazu Zabaleta)

Translation: Carmel Drake