• Transaction / Assets
    Mutua Sells Palacio de Miraflores for €60MM
  • Seller
    Mutua Madrileña
  • Buyer
    Remer Investment
  • € MM

Mutua Sells Palacio de Miraflores, Nike’s Headquarters in Madrid, for €60 Million


23 August 2017

Remer Investment is the new owner of the office building

Mutua Madrileña has finalized the sale of the Palacio de Miraflores, a property located in the centre of Madrid, which is now in the hands of the company Remer Investment, this newspaper confirmed with various sources in the sector.

The new owner has paid about 60 million euros for this classical style office building, located at 15 Calle Carrera de San Jerónimo, just 200 meters from Madrid’s Congress of Deputies.  The building is the site of Nike’s headquarters in the capital city.

The deal is part of the insurer’s policy of dynamic asset management, which is based on the analysis of possible purchases or sales of real estate assets in favourable circumstances. In this case, the Palacio de Miraflores is one of Mutua’s office assets that, despite being in a very central location, is not in the Castellana area, which is considered the prime zone for corporate real estate in Madrid and is where the principal buildings owned by the company in the city are located.

The Palacio de Miraflores, which was included previously as a Property of Cultural Interest by the Spanish government, was acquired in 1999 by Mutua Madrileña, and for which it paid 3 billion of the old pesetas (about 18 million euros). The building, which was designed by the architect Pedro de Ribera and built between 1731 and 1732, has an area of 7,132 square meters distributed between six floors and 81 underground parking spaces.

In 2007, the building was chosen by Casa Asia to house its delegation in Madrid, but since 2011 it has become Nike’s headquarters, which left Las Rozas to move to this emblematic building, where it rented 2,800 square meters, distributed on two floors. In addition, the sports company shares the building, which is fully occupied, with other tenants such as the National Tourism Office of Japan and the company Nigel Wright, among others.

The Palacio de Miraflores, which was originally the residence of the Count of Villapaterna, who was named as the Marqués de Miraflores in 1817, was rehabilitated by the insurer in 2011 as part of the real estate modernization plan that Mutua undertook between 2008 and 2014. The objective of this reform was to upgrade the building to attain higher levels of efficiency and sustainability, reducing its energy consumption.

Equity portfolio

At the end of 2016, Mutua Madrileña, which confirmed the sale of the property to eleconomista.es, had assets with a market price of 7.331 billion euros, €500 million more than at the end of the previous year. The insurer’s real estate portfolio accounted for 19% (1.446 billion euros) of the total.  At the end of last year, the portfolio was composed of 25 buildings with a total area of 210,060 square meters.

Among Mutua Madrileña’s latest acquisitions is an office building located at 51 Calle José Abascal. This property, located in Madrid’s central business district, underwent an intense renovation and last July, Barclays announced that it would set up offices there. The financial institution will be installed in the old Philatelic Forum building for at least a ten-year period, fully occupying the building’s 3,600 square meters.

Among the insurer’s principal properties on the Paseo de la Castellana in Madrid, are its headquarters, at number 33, as well as the numbers 31, 36-38, 50 and 110. It also owns the Torre de Cristal, the Torre de Colon and the Torre de Alfredo Mahou (2 Plaza de Manuel Gómez Moreno).

Original Story: Eleconomista.es – Alba Brualla

Translation: Richard Turner