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19 February 2019 – El Economista
The infrastructure fund Brownfields is arriving in Spain with a new business for the country, which involves the purchase of contaminated land with the objective of rehabilitating the plots and giving them a new lease of life.
For its first operations, the international group is teaming up with the local firm AC Realty and Management, with which it is already working on three projects in Madrid. They will involve an investment of around €120 million, according to explanations provided by José María Carpio, CEO and founder of AC Realty and Management, together with Francisco Alba, speaking to El Economista.
The two directors launched the real estate service boutique a year and a half ago, and now they are backing this market with the creation of a new division specialising in contaminated assets, which is going to be led by Pedro Flores.
“Two of the operations that we are working on with Brownfields are going to be logistics projects, whilst the third will likely be a mixed office-residential development”, explains Carpio, who says that they are working with a minimum land transaction price of €5 million, “given that smaller figures do not justify all of the investment that is necessary for these types of projects. We have to manage a very intensive process involving decontamination, administrative and change of use processes (…).
The projects being launched by Brownfields and AC Realty provide a solution to one of the main problems that investors complain about: the lack of available land for construction. In Madrid alone, more than 130 contaminated plots have been detected, which could be given a new use, according to the inventory compiled by the Community of Madrid (…).
Original story: El Economista (by Alba Brualla)
Translation: Carmel Drake