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Madrid Sells a Downtown Building to the Aguinagas For €4.5 Mn

26/11/2014 – El Confidencial

The Aguinagas, one of the most powerful Basque Country families, won an auction of a building put up for sale by the Community of Madrid at an asking price of €3.5 million at the beginning of the year. The family offered €4.46 million for it, meaning a bid by 26% better than the central region had expected.

Also other four family offices attended on-line tender of the property located at a minute walk from the Paseo de la Castellana, as well as firm Velapi, a Venezuelan fund and a Swedish investor.

The residential unit has a 1.196 square meter area distributed over six floors above the ground level and no basement level. However, as the advertisement on the Addmeet.com states, it has a mixed-use ground floor: industrial – except for a workshop-, hotel, retail, office and recreational.

Thoroughly refurbished in 1987, the building disposes of a rental obligatory compliance agreeement with the Community of Madrid assuming 7 months of rents until 2016.

The Region’s Sales

Madrid’s Community gave an impulse to its property sales at the end of 2013, when the region sold two Gran Via buildings (numbers 3 and 18) for €26.6 million, 27% above the listing price.

However, next tender took seven months to be closed and at the end of July a unit at 8 Plaza Chamberí square was sold to Línea Directa for €40 million, by €2 million more than predicted. Few days later, the region transferred another building on the Gran Via street, nº 20, to Caja Rural de Almendralejo for €20 million. Also, it sold number 151 of the Embajadores street for nearly €18 million and a unit at 21 Vía Lusitana street for €16.7 million. For the property located at 4 Plaza de San Martín square, the Community earned €3.4 million, while for 19 Fernando VI building it received €3.6 million.

Altogether, the sales contributed to the wealth of the region with a €130 million amount. However, still some operations are pending closing, like the one concerning the 1 Alcala street standing at €14.1 million, as well as two other properties situated on the Los Madrazo (asking price: €9.4 million) and the Santa Catalina (€10.11 million) streets of the capital.


Original article: El Confidencial (by Elena Sanz)

Translation: AURA REE