Major Real Estate Projects in Madrid to Attract €10.5 Billion in Investments

21 August 2018

Some of the outsized projects for the coming years include the northern Madrid construction, the expansion of the Barajas airport and the Canalejas project.

Madrid will soon be the target of multi-billion euro investments in major real estate and urban development projects, upgrading the Spanish capital’s image in the coming years. The investments will lead to the construction of housing, skyscrapers, hotels, shopping centres, university campuses while also renovating some football stadiums and demolishing others.

Madrid Nuevo Norte, under development by DCN; Aena’s real estate project for Barajas; the Canalejas and Caleido project, along with the renovation of the Bernabeú stadium and the Mahou-Calderón development will involve total investments of €10.5 billion.

Four new skyscrapers

Madrid Nuevo Norte is the most ambitious project and the one that has been the longest in the making. Formerly known as Operation Chamartín, the project involves the construction of 365 new buildings in Madrid, including 10,500 flats and three skyscrapers in the vicinity of the Chamartín train station, in the north of the capital.

Construction of the project, which had been paralysed for a quarter of a century, is expected to begin in 2019. If the developer manages to keep to the announced deadlines, reparcelling and development will start by the end of next year or early 2020, and the first homes will be ready by 2021 or 2022.

Considering the sheer magnitude of the project, which will have a buildable area of 2.66 million square meters, construction is expected to last for more than two decades. Madrid Nuevo Norte will require €6 billion in investments and should create roughly 120,000 jobs during the construction phase and 94,000 posts after its completion.

A building known as the fifth tower will be erected in the area surrounding Madrid Nuevo Norte. The Caleido project will involve investments of €300 million and should be ready by the end of next year. Inmobiliaria Espacio, of the Villar Mir Group, was awarded the development and operationalisation of the project on public land in 2014 and is leading the development together with Megaworld, a conglomerate held by the Filipino billionaire Andrew Tan.

The project will include a 36-floor, 165-meter tower, which will house IE’s new, vertical campus, and a second building, 280 meters long and 60 meters wide, that will host a sports medicine centre operated by Quirónsalud.

Aena’s planned project for the land adjacent to the Barajas airport also stands out. The airport manager is forecasting a total investment of €2.997 billion over the next 40 years.

The project, with 2.7 million buildable square meters, will have logistics warehouses, offices, hotels and even a shopping centre. The company chaired by Maurici Lucena is searching for partners to develop its plans and, for now, the Blackstone fund and other major investors have demonstrated interest.

The Canalejas project, under development by OHL and Mohari Limited, a company owned by the Israeli executive Mark Scheinberg, is located in central Madrid. The venture, which will link seven historic buildings, will host Spain’s first Four Seasons hotel, along with luxury homes and a shopping area. The project is expected to involve €300 million in investments and is expected to be ready by 2019.

Madrid’s real estate and urban development plans will also affect the iconic Santiago Bernabéu stadium. In April, the city council gave the green light to a plan for reparcelling land for the new stadium, which will involve an investment of about €400 million.d

Housing at the Calderón

1,300 homes will be built on the grounds of another stadium, the Calderón, the former home of Atlético de Madrid. The sale of the land is expected to raise about €175 million in investments from any future buyers (developers), in addition to the more than €42 million stemming from the reparcelling project for the stadium and the grounds of the old Mahou factory.

Original Story: Expansion – Rebecca Arroyo

Translation: Richard Turner

 

Madrid’s Town Hall to Approve the Mahou-Calderón Project

18 July 2018 – Eje Prime

The Mahou-Calderón project is pushing ahead. Tomorrow (Thursday), the Town Hall of Madrid is going to approve the urban development plan for the land, one of the most sought-after plots in the Spanish capital. The roadmap for the site, which is still home to the Vicente Calderón stadium, the historical home of Atlético de Madrid, means that the construction work will begin after the summer and will be scheduled for completion within three years.

After the summer, Atlético de Madrid and Mahou, the owners of the batch of land, hope that the period of public consultation will be completed so that they can start to demolish the stadium, according to El Confidencial.

The building work will be divided into three phases, starting with the demolition of the Calderón. Next, and after modifying the traffic flow that passes under the pitch, the roads between Paseo de los Pontones, Paseo Imperial and Paseo de los Melancólicos are going to be urbanised.

The first phase of the project is also going to be the most expensive, with an investment of €22.7 million, half of the total budget established (€42.2 million) for this ambitious urban development plan. The Government of Madrid is going to contribute another €60 million to cover over the road.

The finalists: Solvia, Ibosa and Princeton 

Waiting to see what happens tomorrow in the Town Hall are Solvia, Ibosa and Princeton, the three finalist investors looking to buy the plots, which will expand Madrid’s residential stock by another 33,339 m2 of buildable land, located on a plot with a buildable surface area of 132,344 m2.

The objective of Atlético de Madrid with this project is to raise up to €200 million from the sale operation. The club is planning to use that extraordinary capital to repay Carlos Slim the €160 million loan that he granted the sporting entity to complete the building work on its current stadium, the Wanda Metropolitano.

Original story: Eje Prime 

Translation: Carmel Drake

Operación Mesena: Santander & Metrovacesa Prepare to Fight the Residents

24 November 2017 – Voz Pópuli

BBVA and Operación Chamartín have some competition on their hands in the form of Operación Mesena. Banco Santander and Metrovacesa are working on two simultaneous real estate operations, which could completely change the neighbourhood of Hortaleza in Madrid, located in the northeast of the city. If the plans go ahead, the entities will star in one of the largest real estate development in the Spanish capital, alongside Chamartín and the Calderón.

The operation revolves around the former Ciudad Banesto and the adjoining plots of land (Colonia Banesto), which have been used as housing for employees and sports facilities for half a century. On the one hand, Metrovacesa – in which Santander holds a 70% stake and which is the owner of La Colonia – has launched a plan for all of the residents to leave their homes.

On the other hand, Santander is working to move the staff that it currently has working at Banesto’s former offices to Popular’s new headquarters. Once that plan has been fulfilled, the entities intend to reclassify the land from offices and sports facilities to urban use. The Town Hall of Manuela Carmena will play a key role. In the past, the Town Hall approved two operations by Banesto-Santander to build some houses and a development of luxury apartments.

Sources consulted at Metrovacesa and Santander note that the two projects are still up in the air and that they are independent of each other. Even so, they will happen at the same time and will be located next to each other. Moreover, the bank controls the real estate company, given that it holds 70% of the share capital, and BBVA also holds a stake, of almost 30%.

The operation has entered controversial territory given that the homes in the former Colonia Banesto are subsidised housing properties (VPO), which were granted to employees of the group who are now retired. Of the 160 families who originally resided there, just 39 remain. Most of them are retired and aged between 70 and 80 years.

In the last few days, those residents have received a letter from Metrovacesa Suelo y Promoción, notifying them of “the termination of their lease contracts and granting them a period, until 31 January 2018, to hand over their homes”, according to the letter to which this newspaper has had access.

The real estate company wants to negotiate with the residents who still live in Colonia Banesto one by one, to find them a suitable exit. The current tenants are not going to make it easy for the entities; they are now seeking advice through the Federation of Neighbourhood Associations and several law firms.

In this way, several dozen former employees of Banesto and mayor Carmena are preparing to deal with what could become one of the largest real estate fights since the outbreak of the crisis. After the planning phase, come the negotiations.

Original story: Voz Pópuli (by Jorge Zuloaga)

Translation: Carmel Drake