Spanish Government to Auction a 13.000 SQ M Plot in Madrid Center Asking €90.3 Mn

8/09/2014 – Expansion, El Confidencial

Adif, a state-owned railway infrastructure manager, has received a permission to award a lucrative developable piece of land located inside the Azca complex in Madrid via a public tender.

The plot spreads over 12.919,19 square meters and is situated adjacently to the Nuevos Ministerios station. More precisely, in the intersection of the Paseo de la Castellana and the Raimundo Fernandez Villaverde streets. The plot is of urban and residential type but it is not fully consolidated. As a consequence, any demolishment works will need an approval from Madrids City Hall. The process could last up to one year since the deal is sealed, say consulted experts.

The land belongs to Adif and currently it is occupied by a public parking lot. Several housing co-ops, as well as various operators and funds sought development of a new commercial space in the financial district of the capital and are quite eager to acquire the plot.

Aforementioned the co-ops are planning to construct over there dwellings at between €3.200 – €3.300 per square meter. The price is unimaginable in the city center with an average of €4.400 a sq m  and the enormous interest of the citizens evoked around the houses allowed such companies as Domo or Ibosa to set up co-ops within few days only.

Minimum asking price has been fixed at €90.278.264,98 and those who want to bid are obliged to lodge a 5% security equalling to €4.5 million. The deadline for the bids submitting passes on 22nd October 2014. They will be reviewed on November 5th.


Original article: Expansión, El Confidencial (by Elena Sanz)

Translation: AURA REE