Madrid Puts a Building Near to the Canalejas Complex Up For Sale at €14 Mn

10/06/2014 – El Confidencial

The Community of Madrid also wants to take advantage of the great opening of the Canalejas Complex, currently under development, in the pounding heart of Madrid. The authority has put a building housing the Treasury Department located at 13 Carrera de San Jerónimo street up for an auction at asking price of €14.1 million.

The subject to sale is a 4.500 square meter property divided into a 7-storey-above-ground-level part of 3.272 square meters (the ground floor, 4 stories, a mezzanine floor and a roof) and a 2-storey basement of 1.306 square meters. The Community of Madrid will stay as a tenant of the space to 2017.

The main and present use of the building is labelled as “Public Administration” but it may be also converted into a hotel, offices, shopping area (up to 2.500 sqm), multi-family or dotational. The nearby Canalejo Complex of 50.000 square meters and to consume a €500 million investment assumes a luxury hotel, a shopping center and high-standard apartments.

In spite of the fact that the building has been listed as the Ist grade (meaning it cannot be altered anyhow) and therefore will bring a hardly 5% yield, the property´s location is exceptional and at only 100 meters from the lucrative Canalejas project.

Offers can be submitted until July 24th and they must contain a guarantee equivalent to 2.5% of the total value of the property (€352.500).

Over the past two and a half year, Madrid sealed several important deals on the field. For instance, it sold jointly two buildings at the numbers 3 and 18 of the Gran Vía street for €26.6 million at the end of 2013. Another excellent example makes the sale of the Canalejas Complex itself to OHL for €225 million.

For the reason that the bidding for the building at 20 Gran Vía street up for sale at €20 million was unattended, the authority is considering selling it directly to the highest bidder. Also, Madrid is selling the third floor of 1.132 square meters in the building situated at 6 Gran Vía for €4.3 million. It may bring up to 5.22% return to the purchaser.

Original article: El Confidencial (Elena Sanz)

Translation: AURA REE