Madrid Values ‘Ciudad de la Justicia’ Project at €800 Mn
12/12/2014 – Expansion
The Campus de la Justicia de Madrid (CJM) already has an implementation date and budget. In July next year, the building works start and the project will be ready for summer 2019. Total investment will consume 483 million euros, an amount which shall be paid by concession holder in order to raise the judicial complex. In exchange, the Community of Madrid will pay a ground rent of around 45 million euros annually. This is the same expense the authorities have to bear while leasing space for 28 judicial departments dispersed around the capital. In line with present prices, the value of the project totals at 800 million euros.
The state licence will be valid for 30 years and will contribute since the day when construction is awarded, near to first days of July 2015. However, Madrid will dispose of a four-year qualifying period so the first rent will be due in July 2019, just when the cranes are supposed to withdraw from the site. As a consequence, the ground rent will be paid for next 26 years. According to sources from the local government, the IRR may post 12% for each investor.
The Community of Madrid is also optimistic about the plan because of the projections for GDP growth, annual production of 282.5 million, activity profits of 118 million euros and creation of 2.200 jobs.
Moreover, the ruling body foresees by 20% better performance of justice due to faster document processing, among others. More agile work of the courts results in more dynamic commerce, increased legal security and general economic well-being of the region.
With an extension of 200.000 square meters, the Ciudad de la Justicia complex will be nestled inside the Valdebebas Business Park.
Original story: Expansión (by A. Vigil & S. Saiz)
Translation: AURA REE