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  • Transaction / Assets
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Tomás Olivo Buys Cortefiel Building In Granada For €29M

3 July 2017 – Ideal

Last week, the owner of General de Galerías Comerciales, businessman Tomás Olivo, purchased the property known as the Cortefiel building on the corner of Reyes Católicos and Gran Vía, in Granada, owned until now by BMN. The price of the operation amounted to €29 million for a property that dates back to the beginning of the 20th century, which houses the aforementioned textile firm on the ground floors and offices on the upper levels. According to sources at Galerías Comerciales, the new owner intends to continue the lease contract with Cortefiel and subject the upper four floors to a “new renovation”, but no further details have been provided about the project at this stage.

The Cortefiel building – as it is known popularly – dates back to 1908 and at the time cost 500,000 pesetas. The property development group was formed by bankers Manuel Rodríguez-Acosta and Enrique Santos, architect Francisco González Arévalo and industrialist Juan López Rubio, amongst others, and the original idea was to use the property as a hotel to compete with the Victoria and the Washington Irving. But the Hotel Colón never took off and the building was later split into rental apartments. On the ground and first floors, La Paz warehouses set up shop, owned by the fabric merchant Ramón García Ruiz, who over time, ended up taking ownership of the whole property. (…).

The former Caja General de Ahorros y Monte de Piedad de Granada acquired the building in 1984 for 250 million old pesetas to avoid it being taken over by a foreign entity. That entity then invested another 300 million pesetas on the renovation and on 28 November 1991, the iconic building was unveiled again, to coincide with the savings bank’s centenary celebrations. (…).

Following the merger, the building was transferred to BMN’s estate, and that entity is now selling the property for €29 million – almost 5,000 million old pesetas – and the historical Cortefiel building is passing into the hands of Tomás Olivo, who also owns the Nevada Shopping Centre.

In parallel, Olivo has ruled out the acquisition of Serrallo Plaza, an opportunity that sources had been speculating about for several months. (…).

Original story: Ideal 

Translation: Carmel Drake