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Pimco & Lar to Restart Top-End Project in Madrid

9/10/2014 – Expansion

One of the world’s largest fund managers, Pimco, has just signed a joint venture agreement in order to acquire Inmobiliaria Juan Bravo 3, the company owning the plot located on a street of the same name in Madrid.

Founded in December 2006 by Eurosazor, the firm is controlled by Rafael Ortiz. The target was to build a top-luxury housing development inspired by London’s One Hyde Park skyscraper. To bring the plan to reality, Eurosazor bought two office buildings from Repsol and Mutua Madrileña in 2007 for the total of €165 million.

The recession hit halted the project. In June 2011, Mr. Oritz and partners decided to pick the venture up and construct 60 apartments of more than 150 square meters each and sell them at prices starting from €2.5 million.

The complex was about to be designed by prestigious architect’s office Rafael de La-Hoz and traded by real estate company Gilmar. Finally, the new trial ended up in fiasco and pulled both Eurosazor Activos and Inmobiliaria Juan Bravo 3 down to bankruptcy.

Pimco’s offer amounts to €130 million, by €30 million less than originally asked. For this venture, the U.S. property giant allied with Spanish Lar Group. This is not the first time the business partners cooperate as Pimco holds a 12.49% stake in a Socimi (a REIT company) created by the Lar Group and valued at €46.75 million.

The U.S. fund manages a $1.8 billion worth of assets. What is more, it has got shares in Spanish public debt and preferred participations in BBVA, Bankia and Sabadell.

 

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE