• Transaction / Assets
  • Seller
  • Buyer
  • € MM

Mexican Investor Buys Residential Building In Madrid For €48M

13 March 2017 – El Mundo

A new and important real estate operation has been closed along the so-called Golden Mile, in the most exclusive area of Madrid. A Mexican investor has purchased the majestic building located on Plaza Marqués de Salamanca, 11 for €48 million, according to comments by Pierre-Célestin & García-Argüelles Partners, a firm that specialises in brokering the sale of prime assets in major international capitals and which has brokered this super-operation.

If this figure is correct, it will be the highest grossing transaction involving a residential building in the city for at least a decade. The historical property, which is used for both residential and hotel purposes, has an above ground surface area of 8,797 m2, spread over eight storeys including the ground floor (which contains storerooms, the concierge’s house and a commercial outlet) and the roof top terrace. Each floor has a surface area of 1,000 m2 and is currently divided into two homes with ceilings measuring more than 3.5 m high.

Javier García-Argüelles, one of the partners of the company that advised the sale, highlighted the great interest that this asset has sparked. He reportedly received nine expressions of interest – five from funds and four from individual investors – from two domestic and seven international buyers – two Venezuelan, one Colombian, one Brit, one Dutch and one Canadian -. “The property was awarded to the first investor who was willing to pay the non-negotiable figure of €48 million and make the 10% deposit”, he said.

Regarding the new owner, for confidentiality reasons, García-Argüelles is only able to reveal that he is Mexican, features on Forbes’ list and works in the international real estate market. (…).

Until now, Marqués de Salamanca, 11, whose homes were being operated under a lease arrangement, belonged to an aristocratic family from Oviedo.

“This operation is a clear sign that the luxury real estate sector is experiencing a real boom”, said García-Argüelles, who revealed that the new owner intends to invest heavily (“spending no less than €10 million”) on the renovation of the building to transform it into exclusive apartments.

Apparently, although the property could be converted into a five-star hotel, the new owner’s plans involve creating three 250-300m2 homes per floor and holding onto the whole of the top floor for his own personal use (the rooftop terrace will be left untouched. It has views of the entire city of Madrid as it is the highest point in the neighbourhood of Salamanca). In total, around 15 high-end apartments will come onto the market as a result. Their price? According to García-Argüelles and Pierre Célestin, and based on comments made by the buyer, the asking price for the homes will start at €14,000/m2.

Original story: El Mundo (by Jorge Salido Cobo)

Translation: Carmel Drake

1,197