ECI Sells Shopping Centre To Monthisa RE For €150M

10 October 2016 – Real Estate Press

El Corte Inglés has sold a shopping centre located on Paseo de la Castellana, 83-85 in Madrid to Monthisa Real Estate for €150 million and a return of just under 4%. Monthisa Real Estate has been advised by the international real estate consulancy Inmored.

The operation has been structured as a sale & leaseback, whereby El Corte Inglés will remain as the tenant for at least ten years. Currently, El Corte Inglés occupies this centre, which also houses a Bricor store, a branch of ECI’s travel agency and a veterinary hospital, open 24-hours a day.

The acquired space has a surface area of 17,500 sqm, which is divided into three above ground floors and three basement floors. The shopping centre is located on the ground, first, second and first basement floors. The second basement floor houses the car park and the technical services are located on the third basement floor. Both Monthisa Real Estate and Inmored declined to comment on the operation.

The Azca area is undergoing a transformation at the moment and investors are focusing on it. El Corte Inglés plans to build a shopping arcade for luxury brands on the plot of land it acquired from Adif two years ago, located between Paseo de la Castellana and its Nuevos Ministerios shopping centre. Meanwhile, Zara is going to open a new flagship store at number 76 Paseo de la Castellana on the premises that used to be occupied by Habitat and Fnac. And, the ground floor of the former headquarters of BBVA, owned by GMP, is currently being refurbished to house two other commercial premises.

The real estate consultancy Inmored, which was launched in 1995 and which is a member of The International Retail Network with offices in Europe and the USA, recently advised Inditex on the rental of an entire building on Calle Preciados, 9 in Madrid.

Original story: Real Estate Press

Translation: Carmel Drake

Renta & Kennedy To Buy & Renovate Building Nr Callao

12 June 2015 – Expansión

The US investment fund Kennedy Wilson and the Spanish real estate company Renta Corporación will invest €11 million in the purchase and renovation of a residential building in the centre of Madrid.

The property is located at number 3 on the pedestrianized street, Calle Póstigo de San Martín, in the area between Puerta del Sol, Plaza Callao and Plaza de Isabel II. It has a surface area of 4,083 m2, spread over five floors, plus an attic and a basement.

In total, the building contains 19 apartments and 2 shops (which each have a basement) and it is partially occupied. The buyers intend to try to free up as much of the property as possible, so that they can completely renovate it and then sell it as separate units.

According to the agreement signed last year between Kennedy Wilson and Renta, the US fund will contribute 90% of the capital and the real estate company, chaired by Luis Hernández de Cabanyes, will finance the rest. Moreover, Renta will also be responsible for negotiating the departure of the current tenants and for renovating and marketing the building, which has always been its traditional business.

The owner of the property on Póstigo de San Martín was a local individual. It is expected that the number of homes will be retained but their distribution will vary. The property will continue to be used for residential purposes, although it may (legally) be converted for other uses, such as for public services or as a hotel.

Renta Corporación, which overcame a corporate bankruptcy last year to return to the stock exchange, has resumed its traditional business involving the purchase, renovation and sale of residential buildings.

Last year, the real estate company generated income of €79 million, compared with €10 million a year earlier and it turned its back on the losses of €13 million it had recorded in 2013, to generate a profit of 5.2 million. Its shares are trading at around €1.50 per share.

Original story: Expansión (by Marisa Anglés)

Transaction: Carmel Drake