2/09/2014 – Cinco Dias
According to the European Real Estate Market 2014 report drawn by PwC and Urband Land Institute, investment in the property market is close to reach the pre-recession levels thanks to the equity flowing from Asia and the United States. Madrid and Barcelona enjoy the greatest popularity among the targeted Spanish cities.
The crisis and high maintenance costs pushed many owners to put their venerable historic buildings up for sale, especially prompted to international investors. Financing in Spain is still a big conundrum and probably a simple mortgage would not be enough for acquisition of one of the following edifices with a board ‘for sale‘ hanging on them:
1. Edificio España. The building, situated in the very center of Madrid (pictured centrally on the right), has been standing empty for plenty of time. In 2005, Banco Santander bought it for €389 million and ran refurbishment works which completed in 2007. In June this year, the property was sold to Chinese hotel group Dalian Wanda for €265 million. Since its construction in 1953, the iconic building was the first skyscraper in Spain, standing there, 117 meters tall.
2. Palacio de la Música. The 6.600 square meter property is located at 35 Gran Via street. Since 2008, it has been owned by Bankia. On announcing the sale, the bank rceived a bid from clothing brand Mango, currently under review. Protection constitutes a pitfall for the transfer and, additionally, a campaign has been launched to convert the valuable property into a cultural interest unit instead of a fashion store.
3. The Building at 1 Alcala Street. Emblematic edifice due to its location – adjacently to Madrid‘s Puerta del Sol square – is presently up for sale by the Community of Madrid at an asking price of €10.7 million. Currently, it houses local Economy and Treasury Departments that will rent it until 2016. Great potential invoking great interest.
4. Torre de Madrid Tower. Building situated on the Plaza de España square in Madrid (pictured centrally on the left), belonging to property manager Metrovacesa. In 2005, the company tried to sell it as a whole for €250 – 300 million but after refurbishing the property and transforming it into luxury apartments, it changed its mind. Now, the unit will be sold in pieces.
5. Dracula‘s Castle. Outside of Spain, in Romania, a famous and authentic jewel has been put up for sale. The Castle of the legendary count Dracula, or the Bran Castle to be nearer to the reality, is one of the most attractive touristic destinations in the country and it may be acquired for only $64 million (about €48.8 million).
Apart from these, the Community of Madrid auctions 45 public properties.
Original article: Cinco Días (by María Valero)
Translation: AURA REE