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Villar Mir Joins Forces With Corestate To Fund Fifth Tower

24 September 2015 – Expansión

The company led by Juan Miguel Villar Mir has signed an agreement with the Swiss fund Iberian Corestate to jointly develop the plot of land next to the Cuatro Torres complex, on the Paseo de la Castellana in Madrid, following the problems he encountered trying to finance the project by himself.

Grupo Villar Mir decided to look for a partner to reactivate the project to construct a new building on the plot of land located behind the Cuatro Torres complex, following the difficulties it faced tackling the construction alone, due to the need to inject €500 million into OHL. To this end, Villar Mir has signed an agreement with the Swiss fund Corestate, a real estate investment specialist, to invest €240 million in the project through its company Iberian Corestate Capital Advisors. (…).

Last year, Villar Mir was awarded the concession to operate the plot of land, which is owned by the Town Hall of Madrid, after it agreed to pay a fee of almost €4 million per year for the next 75 years. Villar Mir’s company, Espacio, had planned to construct a tower on the site, of a similar height to the other four skyscrapers (the tallest one measures 250m), which would require an investment of around €450 million.

That is not the only asset that Villar Mir owns in the complex. The company invested €400 million in Torre Espacio, an office building that was inaugurated in 2007, of which €187 million was used to purchase the land.

Tenant

(…). Following the failed negotiations with the Mount Sinai hospital group…Villar Mir is now studying other options, including the option of signing a deal with a tenant form the world of academia or changing the structure of the building to make it more suitable for the operations of a hospital company.

Original story: Expansión (by Rocío Ruiz and Carlos Morán)

Translation: Carmel Drake