Merlin Offers 699 Bank Branches to BBVA in Return for Rights to Operación Chamartín

30 September 2019 – Merlin Properties has offered 699 offices that it currently leases to BBVA in return for the Spanish bank’s rights to the Operación Chamartín, a 3.3 million-square-meter new urban development in northern Madrid. Merlin is in the final stages of negotiations with BBVA to take over what will be the largest urban development in Spain and one of the largest in Europe. For the bank, the deal offers the possibility of acquiring its offices with no capital outlay and avoiding future rental payments.

Operación Chamartín encompasses land that is 5.6 kilometres in length and up to one kilometre in width. The development will consist of residences, offices, retail stores, parks, gardens and other amenities and facilities such as schools.

In November 2018, BBVA had already re-acquired 166 branches from Merlin for €252 million. Based on that sale, the remaining 699 bank branches could have an estimated total value of approximately €1.1 billion.

Original Story: El País – Íñigo de Barrón

Adaptation/Translation: Richard D. K. Turner

BBVA in Negotiations to Transfer Development Rights for Operación Chamartín to Merlin Properties

30 September 2019 – BBVA is finalising negotiations to transfer its rights to the Castellana Norte District (DCN) to Merlin Properties. The sale would be potentially the largest real estate operation in Spain and Europe, according to knowledgeable sources.

The two firms have been negotiating the details of the agreement for weeks and BBVA is likely to retain a small stake, about 2%, in the new company. At the moment, BBVA controls 75% of DCN’s capital, while the construction company San José controls the remaining 25%. The project, known as Operation Chamartín, will include residential areas on 25% of the land, with offices, commercial premises and green areas on the rest.

BBVA will supervise the development until its completion, which, due to the size and complexity of the project, is expected to take 25 years.

Original Story: El País – Íñigo de Barrón

Adaptation/Translation: Richard D. K. Turner