16 December 2016 – Real Estate Press
The Ministry of Employment has managed to sell off two plots of lands located in Málaga capital, which it no longer requires after it rules out an operation to construct the new headquarters for the Comisiones Obreras and UGT trade unions on one site and a building for the Malagan Confederation of Entreprenuers (CEM) on the other.
On Tuesday, the auction called by the Government to award these plots of land was tentatively resolved, after a first attempt in April 2015 was abandoned because no offers were received. On this occasion, the plots of land were awarded to two provisional buyers. One of the plots, located on Calle Padre Jorge Lamothe, behind the Ibis Hotel, which was previously going to house the new headquarters for local businessmen, was put up for auction for €406,366 and has been awarded to the Malagan-based construction group Rivervial for €610,005, according to sources at the Ministry of Employment.
The other, located on Calle Mesonero Romanos, in the Teatinos neighbourhood, and which had been initially reserved for a new building for the trade unions, is going to be sold to the company Resa, Encampus Residencias de Estudiantes, for €1,752,000, which represents an increase of €184,050 above its original asking price. In this way, the central Government will pocket €2,362,005 from the sale of both plots of land.
High demand for halls of residence in Málaga
In both cases, the plots of land will house halls of residence for students, a real estate product that, according to sources consulted, is in high demand in Málaga at the moment. Sources close to Rivervial agreed; the construction group is seeking to diversify its current business portfolio through this project. In this case, the land is located in the heart of the city’s Historical Centre, next to the Guadalmedina River.
The site on Mesonero Romanos will allow Resa to build its third hall of residence for students in Andalucía; it already owns one in each of Sevilla and Granada. Its Commercial Director, Carlos Cano, explained that the hall of residence in Málaga will have 300 beds in a nine-storey building that will have a constructed surface area of 8,500 m2. “The idea is to start processing the construction licence as soon as the Ministry confirms that we have been awarded the plot, so that the hall of residence can open its doors in September 2019”, explained the Head of Resa, which currently owns 33 properties of this kind, containing 9,000 beds in 19 cities. The building in Málaga will offer air-conditioned rooms, equipped with their own kitchen, study rooms, classrooms, a swimming pool, cafeteria and car park, amongst other facilities.
Original story: Real Estate Press
Translation: Carmel Drake