24 October 2017 – El Español
Merlin Properties plans to invest around €459 million in the renovation and improvement of several office buildings, shopping centres and logistics facilities that comprise its real estate portfolio. The entity plans to undertake this work between 2018 and 2021, according to reports from the Socimi in which Santander and BBVA hold a stake.
The company led by Ismael Clemente (pictured above) calculates that these improvements will generate additional revenues from rental income amounting to €60.9 million per annum.
Merlin estimates that these improvements, together with its management and the natural growth of the assets, will allow it to raise its current revenue from rental income by 22% and whereby exceed the €500 million threshold, without the need to purchase any new properties.
That is according to the company, which is currently the largest listed real estate firm by asset value. It is holding its “Investor Day” in Barcelona this week, despite the uncertainty currently hanging over Cataluña.
During the event, the firm unveiled a presentation, which has been submitted to Spain’s National Securities Exchange Commission (CNMV), detailing the assets that Merlin plans to renovate.
The list includes the building that houses Sacyr’s headquarters in the centre of Madrid, at numbers 83 and 85 on Paseo de la Castellana, the heart of the capital’s business district.
The Socimi will spend €20 million on a comprehensive renovation of that property, which it expects to complete by 2020 and which will involve a radical change to its external appearance, which will be completely glazed.
Merlin’s list of renovations also includes investments and construction work in Barcelona, in properties as iconic as Torre Glories, the building formerly known as Torre Agbar.
There, the firm will spend €15 million to convert the tower into a “multi-tenant” office building. Moreover, it will install an observatory at the top of the tower, on the 30th floor (…).
Original story: El Español
Translation: Carmel Drake