Royal Metropolitan Buys Bancoval’s HQ In Madrid For c. €20M

25 July 2017 – Expansión

The headquarters of Bancoval in Madrid has a new owner. The fund manager Royal Metropolitan has closed an agreement with Inversis to purchase the building, located at number 20 on the Madrilenian street Calle Fernando El Santo.

The operation has been closed for a price of just over €20 million, which is equivalent to around €7,400/m2, according to market sources.

Last year, Inversis – owner of Grupo Banca March – acquired the subsidiary of Royal Bank of Canada (RBC) – later renamed Bancoval – and inherited this asset.

A year later, the financial institution decided to put the building up for sale to take advantage of the good times in the real estate sector and the interest from investors in assets in the best locations. Savills has participated in the transaction, which has been closed in record time, advising the buyer, and Deloitte has advised the vendor.

The building has a gross leasable area of almost 2,700 m2, distributed over seven floors, as well as two basement floors for parking with more than 700 m2 of additional space. The building, constructed in 1967, was renovated in 1998 and received a special mention from the Town Hall of Madrid in 1999 for the urban planning, architecture and public work awards, within the renovated building category.

This property is located in the Almagro district – one of the most-sought after in Madrid for investors due to the scarcity of prime products there -. The location, its renovation potential and the possibility of using it for offices (for one or more tenants) or for residential purposes, since it has licences for both uses, constitute some of the main advantages of the asset.

Investor interest

The office market is still one of the star segments in the real estate sector. In the first half of the year alone, the volume of investment in the office market in Madrid and Barcelona exceeded €1,100 million. Although the growth in rents is still in its infancy, an improvement is starting to be felt in buildings located in the business district and in the best-located areas, and upwards movements are forecast for the second half of the year.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Inversis Puts Bancoval’s HQ In Madrid Up For Sale

7 April 2017 – Expansión

Inversis – owned by the Banca March Group – has engaged Deloitte to sell Bancoval’s headquarters – located at number 20 on the Madrilenian street Calle Fernando el Santo – , which runs perpendicular to Paseo de la Castellana, in the heart of the capital’s financial district.

The property has an above ground surface area of almost 2,700 m2 and is seven storeys tall. It also has two underground parking floors covering an additional 700 m2.

The asset is expected to be worth more than €15 million, according to market sources.

The building, constructed in 1967, was renovated in 1998 and received a special mention in the prizes for urban planning, architecture and public works from the Town Hall of Madrid in 1999, in the refurbished building category.

Moreover, the sale and purchase agreement will include a lease contract with Bancoval, which assures the buyer that the tenant will continue to occupy the property.

Investor interest

Inversis, which purchased the Royal Bank of Canada (RBC)’ Spanish subsidiary last year – and subsequently renamed it Bancoval – is taking advantage of the boom in the real estate sector and investor interest in the sector, in general, to generate some cash from the sale of a non-strategic asset. (…).

The building that houses Bancoval’s headquarters is expected to spark interest amongst the Socimis, as well as with family offices, property developers and international investors, given its excellent location (in the Almagro district) in one of the most sought-after areas of Madrid, given the shortage of prime products there.

Moreover, this building could be renovated for office or residential use given that it already has licences for both.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake