25 July 2017 – Expansión
The headquarters of Bancoval in Madrid has a new owner. The fund manager Royal Metropolitan has closed an agreement with Inversis to purchase the building, located at number 20 on the Madrilenian street Calle Fernando El Santo.
The operation has been closed for a price of just over €20 million, which is equivalent to around €7,400/m2, according to market sources.
Last year, Inversis – owner of Grupo Banca March – acquired the subsidiary of Royal Bank of Canada (RBC) – later renamed Bancoval – and inherited this asset.
A year later, the financial institution decided to put the building up for sale to take advantage of the good times in the real estate sector and the interest from investors in assets in the best locations. Savills has participated in the transaction, which has been closed in record time, advising the buyer, and Deloitte has advised the vendor.
The building has a gross leasable area of almost 2,700 m2, distributed over seven floors, as well as two basement floors for parking with more than 700 m2 of additional space. The building, constructed in 1967, was renovated in 1998 and received a special mention from the Town Hall of Madrid in 1999 for the urban planning, architecture and public work awards, within the renovated building category.
This property is located in the Almagro district – one of the most-sought after in Madrid for investors due to the scarcity of prime products there -. The location, its renovation potential and the possibility of using it for offices (for one or more tenants) or for residential purposes, since it has licences for both uses, constitute some of the main advantages of the asset.
The office market is still one of the star segments in the real estate sector. In the first half of the year alone, the volume of investment in the office market in Madrid and Barcelona exceeded €1,100 million. Although the growth in rents is still in its infancy, an improvement is starting to be felt in buildings located in the business district and in the best-located areas, and upwards movements are forecast for the second half of the year.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake