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Realia Puts “Los Cubos” Building Up For Sale For €57M

2 November 2016 – Expansión

Realia, the real estate company controlled by Carlos Slim, has decided to cash in one of its most iconic assets. The company has put the office building known as Los Cubos, in Madrid, up for sale.

The property, which owes its name to its unique architecture, has a leasable surface area of 18,324 m2 and 334 parking spaces. The building has been empty since the end of 2015.

Its location, alongside the M-30 and next to the headquarters of companies such as Iberia and Alstom – which occupy an adjacent office complex owned by Colonial – and its unique design make it attractive in the market, even though it does not have any tenants, say sources in the market.

Realia has decided to put the property on the market for €57 million – in other words, for around €3,000/m2 -, although it is also considering a possible project to renovate it, according to sources in the sector. Realia bought the building, which was constructed in 1981, in July 2004 from the insurance company Allianz for €60 million.

Possible interested parties include large Socimis such as Axiare, Hispania and Lar España, which have experience buying and renovating empty properties of this kind, as well as international funds looking for investment opportunities in Spain, who are struggling to find available properties in the centre of Madrid and Barcelona, say real estate sources.

This is Realia’s first divestment in the Spanish market in recent years. In 2014, the real estate company sold its stake in the French Socimi Siic de Paris. Realia received €559 million from the sale of its 59% stake, which it used to reduce its debt by around €1,000 million.

As at 30 September 2016, the group’s financial debt amounted to €900 million, down by 20% compared with the same time last year.

During the first nine months of the year, Realia generated revenues of €71.7 million and profits of €89 million. Excluding extraordinary items, its recurring profit amounted to €17.6 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake