Arcano Buys EFE’s Former HQ in Chamberí to Build Luxury Homes

1 April 2019 – El Confidencial

Arcano has just acquired the property at number 32 Calle Espronceda in Madrid, which previously housed the EFE Agency for several decades.

The firm’s new real estate fund has just purchased the building, which spans 8,000 m2, for more than €40 million from the fund Eurostone, where it plans to promote 50 luxury homes. The property is distributed over seven floors and has more than 200 parking spaces. Moreover, it has already been granted all of the licences necessary for the redevelopment work.

The operation has been advised by Colliers, Doble Dígito and TC Gabinete Inmobiliario and partially financed by CaixaBank.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

CBRE: RE Inv’t Amounted To €2,100M In Q1 2016

4 April 2016 – Expansión

After a record year in 2015, real estate investment in Spain has recorded its second best start to the year since 2008.

Real estate investment in Spain amounted to €2,100 million during the first quarter of 2016, which represents the second best start to the year since the start of the crisis in 2008, and exceeded only by 2015, when activity was “exceptionally” high and investment volumes exceeded €3,000 million, according to conclusions from preliminary data published by CBRE.

Of the total investment, 78% came from international investors, which confirms that Spain is continuing to generate interest as a destination for overseas investors, according to sources at the consultancy firm.

By sector, retail and residential led the ranking, with total investments of €750 million and €645 million, respectively. CBRE highlights major operations such as the purchase of the Festival Park shopping centre in Mallorca for €100 million, and the acquisition of a portfolio of supermarkets by Invesco for €350 million.

And in the residential segment, the operation involving Blackstone’s purchase of a portfolio of 4,500 homes from Banco Sabadell for €450 million alone exceeded investment in this business segment in 2015. Other highlights included the acquisition of assets for conversion into homes, such as the former headquarters of the news agency Efe, on the Madrilenian street of Calle Espronceda and the building located on the corner of Gran Vía and Balmes in Barcelona.

In total, €365 million was invested in the hotel segment, with the purchase of Hotel Villa Magna in Madrid for €180 million representing the most significant transaction. The logistics segment also performed well with investment of €142 million, which represents an increase of 39%. The most significant transaction was Neinver’s purchase of a portfolio comprising 23 assets for €87 million.

By contrast, investment in offices declined by 70% during the period, to €178 million, due to the scarcity of available products in the segment.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Eurostone Buys EFE’s Former HQ To Convert Into Luxury Homes

30 March 2016 – El Confidencial

Eurostone, a real estate company headquartered in Luxembourg, has purchased the building located on the Madrilenian street Calle Espronceda, 32-34 from BBVA, which until 2013 housed the headquarters of the new agency EFE, which occupied the property for 35 years. The consideration paid for the operation has not been disclosed, but BBVA acquired it in March 2007 from SEPI (la Sociedad Estatal de Participaciones Industriales) for €51.25 million. The consultancy firm CBRE has advised the vendor, whilst Gabinete Inmobiliario and J. Pueche have advised the buyer.

The property, located just 300 m from Paseo de la Castellana, has a surface area covering more than 8,000 m2 spread across seven floors and more than 200 parking spaces. Eurostone already owns one property in Madrid following its purchase of a building on Génova 7 and three buildings in Barcelona, all in good locations.

The fund plans to convert the building on Espronceda into a luxury residential project in a neighbourhood, namely Chamberí, that has a shortage of new, high quality homes, and so it is hoping to become one of the iconic developments in the capital. The project, which will involve collaboration with the architect studio Lamela, will comprise homes and duplex apartments containing up to four bedrooms, terraces, gardens, a swimming pool, gym, etc. In addition, it will have more than 230 parking spaces and 1,700 m2 of retail space.

The building forms part of Project Zafiro, whose sale is being managed exclusively by CBRE. The portfolio of assets owned by BBVA comprises 15 buildings of different types, located in major Spanish cities, as well as in Lisbon, with a total surface area of more than 100,000 m2 and 1,300 parking spaces. This process has sparked interest from several funds, both domestic and international, and is close to being finalised. (…).

In addition, the building in question is located just 100 m from the former block of tenement flats (arranged around a patio, typical in Madrid, known as a “corrala”) that Pontegadea, the investment arm of Amancio Ortega, sold less than a year ago to the Catalan property developer Uniq, which specialises in the development of luxury homes, and which will be responsible for leading the development of the project.

According to sources at the time, Uniq will construct the homes, but another company, an investment fund whose identity has not been revealed, put up the capital to close the deal. The price of that operation amounted to around €20 million.

In addition, less than a kilometre away, on Calle Claudio Coello, number 108, another international fund, in this case the German fund Patrizia, recently entered the neighbourhood of Salamanca, with the acquisition of a residential building from Grupo Lar and Pimco for €22 million, where it plans to construct 14 luxury homes measuring 300 m2, with two or three parking spaces per flat.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake