The Sale of FC Valencia’s Mestalla Stadium Stalls Due to Divergent Price Expectations

6 March 2019 – Las Provincias

FC Valencia was hoping to close the sale of its Mestalla stadium by March of this year with the help of Deloitte, but a deal now seems a long way off after the comprehensive selection process undertaken by the audit firm failed to identify any bids that meet with the price expectations of the Mediterranean Club.

FC Valencia was hoping to obtain around €120 million for the plot, funds that it planned to use immediately to resume the construction of its new stadium, whose development has been suspended since February 2009 due to a lack of money. Three final round candidates were selected by Deloitte but none of their offers reached €100 million, let alone €120 million. In fact, all three bids fell well below, ranging between €70 million and €85 million.

Bankia is watching this process closely given that the football club still holds debt with the financial institution (mortgaged on the land). Time is running out for the football club. According to the timetable agreed with the Town Hall, the stadium on Cortes Valencianas must be finished by May 2021 and the former Mestalla demolished by 2023.

Original story: Las Provincias (by H.E. & C. V.)

Translation: Carmel Drake

Atlético de Madrid will Sell the Calderón Land in Q1 2019

2 February 2019 – Expansión

Following the demolition of the stadium, the club will be able to sell the plots where 600 homes are expected to be built.

The project to urbanise the Mahou-Calderón area, which will convert the surface area currently occupied by Atlético de Madrid’s former stadium into homes and tertiary use, has taken a step forward. Within the next few weeks, work is expected to start on the demolition of the Vicente Calderón, which will enable progress to take place with the reparcelling and subsequent sale of the land.

The Madrilenian club, owner of 50% of the surface area, will then be able to proceed with the sale of the land, which has a surface area of 14,866 m2 and a buildability of more than 63,000 m2. On this plot, between 550 and 600 homes may be built, with prices of around €6,000/m2.

Besides the Madrilenian club, the other owner of the land is Mahou San Miguel. The brewery company has not yet taken a decision regarding the sale of its share.

Candidates

Sources at the club have indicated to Expansión that several parties are interested in these plots, which constitute the last major stock of land left inside the M-30. The potential buyers of the plots include investment funds, property developers, joint ventures between the two and cooperatives. “We are holding very advanced negotiations with three of them with the idea of formalising the operation this quarter”, they state.

In terms of the timings, once work has started on the demolition of the stadium, which is expected to begin in the coming days, the reparceling project will continue, which will last for the months of February and March. Once the plots have been registered in the registry, they will be available for sale. The Project will carry out the urbanisation and building work at the same time in such a way that the homes could be ready within three or four years (…).

Original story: Expansión (by R. Arroyo & E. Santos)

Translation: Carmel Drake

Atlético de Madrid Expects to Close the Sale of the Calderón Plots in Early 2019

20 November 2018 – Eje Prime

Atlético de Madrid is proof of the importance that property can have when it comes to financing activity. The football club has decided to take out a mortgage backed by the Wanda Metropolitano stadium to secure its €200 million refinancing with Inbursa, the financial entity controlled by Carlos Slim, according to reports from Palco 23. The intention of the Board of Directors is to convert that debt into a long-term liability and obtain better conditions than those signed when the financing plan for the new stadium was modified. In parallel, the club is preparing the sale of the plots of land on the site of the Vicente Calderón, scheduled for the beginning of 2019.

The €200 million refinancing plan and the sale of the plots alongside the Manzanares River are closely linked. Two years ago, the Mexican bank offered the financing necessary to finish the building work at the Wanda Metropolitano, after FCC, the construction group that it also controls, refused to charge for its service through the delivery of units for urban development at the Vicente Calderón.

The contract allowed the parties to cancel the loan with the sale of the plot or with the payment of annual instalments for four seasons, which made the repayment of the loan very short term, in the middle of the expansion of the sports area. In the end, the club has committed to extend the term and so the liquidity injection that will result from the sale of the Calderón will not be used to repay the debt, but rather to make more resources available for the club’s daily operations, as well as for new projects and to access to the transfer market,  if necessary.

Sources at the club indicate that the second real estate operation will probably not be signed until next year, after the municipal government of Madrid failed to provide its definitive approval of the urban planning project until last week. “We think that the uses will be converted into plots and registered in the name of the club at the beginning of 2019, which is when we will proceed with the sale”, they said.

Obtaining all of the permits is the guarantee that the property developers will be able to undertake their projects without any problems. The definitive plan establishes 33,339 m2 for residential use, with a buildability of 132,344 m2; of that capacity, 13,234 m2 in total will be reserved for social housing properties. Tertiary use land will span 14,705 m2, with 13,893 m2 for public amenities and just over 73,000 m2 for green space and others.

The new owners will have to assume the urbanisation costs of €42.22 million, including the €22 million required for the demolition of the former Atléti stadium, without affecting the M-30 road, which passes under one of the stands. It is unknown whether the football club and the Mahou brewery or the future owners will assume that price, and what impact that will have on the final sales price (…).

Original story: Eje Prime (by M. Menchen)

Translation: Carmel Drake

Madrid’s Town Hall Definitively Approves the Mahou-Calderón Development

15 November 2018 – El Confidencial

The final piece of the puzzle has fallen into place. The Governing Board of the Town Hall of Madrid has definitively approved the urbanisation plans for the Mahou-Calderón project after the corresponding period of public consultation came to an end on Thursday. This means that the owners of the land can now start work. The plenary of the Town Hall will ratify the final project over the coming weeks, although the claims phase is not, in theory, expected to alter the plan initially approved in July: it involves a budget of €42.2 million, will see the transformation of 193,804 m2 of land in total and will be executed in three phases in just under three years. The first phase will involve the demolition of the stadium.

The demolition of the Atlético de Madrid’s temple, an operation that will cost €22.4 million, will be the first piece of work to be carried out, with the exception of the stand located above the M-30, which will remain in place to interfere as little as possible with the traffic on that road. Subsequently, the traffic from the motorway ring-road will be diverted so that the stand can be demolished. The first stage will also include the urbanisation of the roads between Paseo de los Pontones, Paseo Imperial and Paseo de los Melancólicos.

Once those first projects have been concluded, phase 2 will begin, which will see the reorganisation of Paseo de los Melancólicos and Calle Duque de Tovar, with a budget of €7.7 million. Finally, the third phase, with a final budget of more than €12 million, will include the creation of a new park by the river, which, in any case, will come after Calle-30 has been covered over, by the Town Hall. Specifically, the Town Hall has committed to providing €60 million to finance the work to cover over that road, a budget that is separate from the urbanisation project that has been approved today because it was agreed that it would be processed independently.

The Governing Board chaired by Manuela Carmena gave the final green light to this project today, which is going to be financed by the Compensation Board that comprises the landowners (Atlético and Mahou). The surface area of the space is broken down into two sections, one of which is dedicated to residential and tertiary use, and the other to roads, green areas and basic amenities.

The land dedicated to residential use occupies 33,339 m2 (with a buildability of 132,344 m2) of which 13,243 m2 will be for social housing properties, which represents more than 11% of the total. Meanwhile, tertiary use land will have a buildability of 14,705 m2. Finally, the land dedicated to social uses will span 13,893 m2 for public amenities. In addition, 73,099 m2 will be dedicated to green space and 73,469 m2 to roads .

In any case, this final procedure paves the way for the construction work to begin and for one of the major urban planning operations in the city to be unblocked. It has been in the hands of the Department for Sustainable Urban Development, led by José Manuel Calvo. As this newspaper published in the summer, the initial approval of the plan – which today received definitive approval – was a key step for the plans of Atlético de Madrid. The football club suspended the process to sell its urban planning rights in January, as it was waiting to be able to offer the three interested finalists – Solvia, Ibosa and Princeton – a series of guarantees, including the reparcelation and urbanisation project, amongst others.

With the sale of its urban planning rights, Atlético de Madrid is hoping to raise almost €200 million, an amount that it is hoping to use to repay the Mexican businessman Carlos Slim for the €160 million loan that he granted  to Enrique Cerezo’s club to finance the completion of the construction of the new stadium, the Wanda Metropolitano (…).

Original story: El Confidencial (by Paloma Esteban)

Translation: Carmel Drake

Madrid to Completely Rebuild La Paz Hospital Over Next 10 Years

7 March 2018 – El Confidencial

The Community of Madrid is going to carry out a comprehensive remodelling project of Hospital La Paz. Construction work will begin in 2019 and will involve the expansion of the hospital’s existing surface area by 25% or 50,000 m2, with four new buildings and a hotel for patients’ families. The construction work is going to be performed in four phases and will begin next year, according to the President of the Community of Madrid, Cristina Cifuentes, with the aim of ensuring that La Paz “continues to be the best hospital in Spain and one of the best in the world”. The forecast investment will amount to €359 million and will be paid for by the Community.

The size of the reference hospital in Madrid will thereby be increased from 190,842 m2 to 238,198 m2 following the remodelling project, of which 205,538 m2 will be newly built and another 32,660 m2 will be reformed. New green space spanning 10,250 m2 is also going to be created and new roads will be built. (…). The first phase of work is due to be awarded to the contractor(s) in January 2019. (…). La Paz will not reduce is patient activity at any point during the construction period.

The first phase will begin following the award of the construction work in January and will involve the demolition of the North Building, the Teaching building, generators, the parking lot and the Human Resources department (29,508 m2) to build the new General Hospital and a parking lot for employees (109,967 m2), which will be operational from 2022.

The second phase involves the demolition of the General Hospital (68,680 m2) to make space for ambulatory services, day hospitals, rehabilitation and dialysis services (59,428 m2), which will be completed in 2025.

For the third phase, the General Emergency area and the Traumatology Hospital will be demolished (21,884 m2) and the new Maternity-Children’s Hospital buildings will be constructed with an area for ancillary services (38,278 m2), which will be operational from 2027.

In the fourth and final phase, part of the former Maternity-Children’s Hospital will be demolished and other spaces, such as the Maternity Tower (24,267 m2) and a service area, will be reformed. That final phase will be completed in 2029 (…).

According to the regional Government, the new hospital will provide patients and families with “more comfort, privacy and security, with more individual rooms, larger waiting rooms and the creation of recreational spaces, amongst other benefits” (…).

The Investment Plan for Hospital Infrastructures in the Public Network of the Community of Madrid is going to allocate most of its €1 billion budget to reforming the seven largest hospitals in the region: 12 de Octubre, La Paz, Gregorio Marañón, Ramón y Cajal, Clínico San Carlos, La Princesa and Niño Jesús; on which more than €700 million will be spent.

The plan also includes forecast investment of €250 million to renovate another 14 hospitals: Móstoles, Príncipe de Asturias, Severo Ochoa, Getafe, Fuenlabrada, Alcorcón, Virgen de La Poveda, Virgen de la Fuenfría, Guadarrama, El Escorial, Hospital Central de la Cruz Roja, Santa Cristina, José Germain and Rodríguez Lafora. Moreover, it plans to invest approximately €42 million to convert the former Hospital Puerta de Hierro into a new and modern hospital centre for the care and functional recovery of patients.

Original story: El Confidencial (by I. G.)

Translation: Carmel Drake

Torre Caleido: Construction Begins of Madrid’s Fifth Tower

1 February 2018 – Expansión

After five months of preparations underground, the construction phase of the 35-storey skyscraper has finally begun. The 180 m tall tower is going to house the IE campus, as well as a horizontal building that will be home to sports facilities, a shopping centre and parking areas.

The starting gun has been fired for the above-ground work on what will become the fifth tower in Madrid. The future skyscraper, measuring 180 m2 tall and comprising 35 storeys, is going to house the new vertical IE campus, which will emerge from a second building, with a base that is going to be 280 m long and 60 m wide, which will form an inverted T-shaped complex, known as Project Caleido.

Inmobiliaria Espacio, the subsidiary of Grupo Villar Mir and Megaworld Corporation, the business conglomerate owned by the Philippine multimillionaire Andrew Tan, are the owners of the company responsible for the construction and operation of the project, with a planned investment of €300 million and which will result in the generation of more than 5,000 jobs during the construction and operation phases (…).

Caleido –designed by the architecture studios Fenwick & Iribarren and Serrano Suñer Arquitectos– will be located in the epicentre of the new financial district in Madrid and will serve to eliminate a blot on the landscape in the north of the capital by connecting Paseo de la Castellana and Avenida de Monforte de Lemos, as well as to revitalise the existing business complex, explains Fernando Serrano-Suñer, one of the architects behind the project (…).

“To date, we have completed the first two phases, involving the demolition work and the construction of the foundations, which are now complete. This week, we will award the construction work, which has been tendered for through a very transparent process, audited by Dypsa”, says José Antonio Fernández Gallar, Director General of Inmobiliaria Espacio.

Third phase

Now, the third phase of construction is going to be launched, involving the building of the tower and the base (…), where the campus sports facilities, a 600-seater auditorium, an indoor swimming pool, libraries, a dining room, a complete shopping floor and a hospital centre specialising in sports medicine run by Quirón will all live alongside 7,000 m2 of green space (…).

Leisure will also play an important role in the complex, with sports areas and events spaces. “We are studying the possibility of including a cinema of some kind, but it would not conform with the traditional style, it would include an e-gaming and e-sport element, something that doesn’t exist in Spain at the moment”.

Moreover, the base will include parking for students and professors, as well as parking for the retail space and another public parking lot, with a total surface area of 42,100 m2 spread over several floors and with capacity for 1,900 parking spaces (…).

In terms of the skyscraper, the 180 m tall building will house 70 classrooms, work and rest areas, as well as double-height spaces to replicate meeting places in traditional campuses (…).

“The project is progressing at a good pace. We have completed the first phase and we are moving forward with the idea that the work will be finished by 2020”, he said.

Original story: Expansión (by R. Arroyo and R. Ruiz)

Translation: Carmel Drake

KKH Gets Green Light to Convert Deutsche Bank Building into Super-Luxury Apartments

11 December 2017 – Expansión

The former Deutsche Bank building in Barcelona, which saw its plans to be turned into a five-star hotel fall by the wayside, has finally obtained the municipal licence it needs to execute its plan B. As such, the former office building is now going to be transformed into a super-luxury residential property.

Its owner, KKH Property Investors, is going to invest around €180 million in total, according to market sources, to carry out the complete renovation of the property and build 34 homes with high-end services. One of the features of the project approved recently is that part of the four-storey commercial building located opposite the tower will be sacrificed and a passage will be built to make the residential building independent, and it will be made lighter.

KKH, led by the former CEO of Renta Corporación, Josep Maria Farré, has set out to build the most exclusive residential property in Barcelona. That distinction is currently held by the former Barcelona headquarters of Winterthur, owned by Squircle Capital, whose homes, measuring 500 m2, are sold (unfinished) for around €6 million, equivalent to more than €12,000/m2.

The 34 homes in the Deutsche Bank building will have a surface area of 200 m2 each and, as well as their privileged location, on the corner of Paseo de Gràcia and Avenida Diagonal, are going to enjoy panoramic views over the city. The common areas will include private parking, a gym, a spa, communal terraces, a swimming pool and meeting rooms. One of the features that will distinguish this residential community from others in the city, and which will make it equivalent to the best buildings in London and New York, will be the team of 20 employees that will be on hand to perform maintenance, cleaning, concierge, security and general support services for residents.

Plans

The project’s design has been entrusted to the architect Carlos Ferrater, and the first phase of construction has been subcontracted to Copcisa. The retail building, where Casa Seat will open, is expected to be finished in 2019 and the residential area, which will house another retail store on the ground floor, measuring around 500m2, should be ready by the beginning of 2020.

KKH Property Investors, a vehicle in which KKH Capital Group and the NYC fund Perella Weinberg Real Estate Fund II LP hold stakes, paid €90 million for the property in 2014. It then spent another €20 million to ensure that the Town Hall of Barcelona, led at the time by the convergent Xavier Trias, gave it permission to demolish the property and construct a hotel in its place.

The €20 million was spent buying equipment to lend to the city, to acquire buildability rights, and to pay €10.5 million to the Town Hall. But, when the project had received the municipal green light, Ada Colau arrived in government and, with her, the moratorium and new urban development plan that prevented the construction of the hotel, in which chains such as Four Seasons had expressed an interest and which would have resulted in the creation of 400 jobs.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

Arcano Acquires Hotel La Moreleja In Madrid For €12.5M

20 November 2017 – Observatorio Inmobiliario

Arcano’s real estate fund, the Arcano Spanish Opportunity Real Estate Fund (ASOREF), has announced a new operation to purchase two assets in Madrid with a combined value of €12.15 million, which will be used as office space. With this acquisition, the fund is advancing with its strategy of investing in real estate value-added operations in the main cities in Spain.

The objective of the fund is to demolish the existing hotel and construct a state-of-the-art office building on the site, to be designed by the architecture studio Rafael de La-Hoz. The property will have an above ground gross leasable area of 8,100 m2. The new building will be very flexible in its design and will have very high efficiency ratios, as well as a Leed Gold certification to accredit its energy efficiency and construction quality.

The properties acquired in this operation, located on Avenida de Europa, in the La Moreleja Business Park, comprise an attractive real estate complex in a sub-market where several large corporations, such as Pfizer, Acciona and Telefónica have their main headquarters. It is one of the most important business centres in Madrid and one of the most sought-after for office space outside the M-30.

“This is a very significant operation within the capital’s real estate market given the scarcity of land and new build offices in Madrid and, more specifically, in the surrounding area. Meanwhile, the operation will allow us to provide new high-quality spaces at a time of intense demand”, said Pablo Gómez-Almansa, Director of Investments at ASOREF.

Arcano already has committed investments amounting to €173 million for its first real estate fund.

This operation follows the purchase of an office building for its corporate headquarters in Madrid on Calle Ríos Rosas, with an above ground buildable surface area of 3,517 m2; the acquisition of a plot of land with a buildable surface area of 6,029 m2 in Las Rozas (Madrid) for the development of high-end homes; the purchase of a residential building on Calle Divino Pastor, 5 in Madrid, for the construction of 28 new build homes; and the acquisition of a beachfront plot of land in Benalmádena, with a buildable surface area of 12,000 m² , amongst others.

The fund invests in value-added operations across all kinds of properties, with a clear focus towards residential assets in the main Spanish cities and also along the Costa del Sol, without forgetting other assets, including office buildings, logistics assets, retail premises and shopping centres, whenever they represent opportunities to generate value as part of the fund’s investment philosophy. Arcano whereby covers a gap in the real estate sector in Spain by targeting medium-sized value-added operations (between €5 million and €25 million in equity), with a clear local focus.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Abandoned Block Of 44 Flats In Silleda Left Uninhabitable

13 June 2017 – La Voz de Galicia

Silleda experienced the real estate boom with vigour. And so, what came next had equally dramatic consequences. Some of the effects are still being suffered by those who invested in and acquired flats in inhabitable skeletons and others are still being felt by society as a whole, because many of the real estate assets became economically harmful and, following bankruptcies and repossessions, ended up in the hands of Sareb (…), whose share capital is split between private and public ownership (55%: 45%).

In Silleda and Lalín, Sareb has around twenty flats for sale. But the toxic asset bank owns a lot more properties around the country that affect all of Spain’s citizens. (…) Silleda also has some significant examples of economic decline, although one stands out in particular: a block of 44 flats, located just a few hundred metres from O Castro on Avenida de la Estación.

The crisis left that building high and dry, even though its construction was almost finished by the time the bubble burst. As a reminder of the past, a sign still hangs on the ground floor, “Obras Técnicas de Galicia SL, Obratec, a company created in Silleda in 2003, constructs, develops and sells homes”.

The property has four floors, a ground floor and basement, with its corresponding 44 parking spaces. Outside, the block is clearly uninhabited, but it gives few indications of what really lies inside and fewer still of the real estate loss resulting from five years of abandonment (…).

The building has a stunning interior courtyard, like a typical Spanish tenement building, a residential structure that promotes community life. It has circular corridors on each of the four floors linking the doors of all of the flats, which have two or three bedrooms, two bathrooms, a lounge, a kitchen…But now this is squatter territory, and even the squatters only visit to dismantle things, add graffiti or make temporary use of the facilities. There are also pigeons and other beings that typically colonise anything left to rot by man.

The building was almost finished, some of the flats had been sold and with individual investments at the time, now it is collapsing amongst its own paint and plaster (…) with the help of the actions of predators who took all of the electrical equipment and other items of value.

From the outside, it has a certain presence, but inside, it is a cesspit with a side entrance in the garage that has been forced open and notches from attempts to enter the rickety front door (…). Its recovery still seems possible. But, as the days go by, its state means that it may soon only be worth demolishing (…).

Original story: La Voz de Galicia (by P. V.)

Translation: Carmel Drake

Andalucían Gov’t Will Invest €21M In 1,226 Homes In Cádiz

26 April 2017 – Inmodiario

The Junta de Andalucía has committed to investing €21.1 million in the city of Cádiz to build 1,226 social housing properties. Some of the construction work is already underway in the two Urban Regeneration and Renovation Areas (ARRU) that have been declared in Cádiz, in the historical city centre and the La Paz neighbourhood. €6.6 million is being invested there in the refurbishment of properties and buildings containing 1,057 homes.

In the presence of the mayor of Cáidz, José María González, the Councillor for Housing and Development, Felipe López, reiterated the commitment announced at the end of last year by the Ministry of Development, to continue allocating resources to housing in the city of Cádiz. Other projects are also now being resumed there, such as the second phase of Matadero and the seventh phase of Cerro del Moro. Those two initiatives will allow for the development of 169 new homes, with an estimated investment of around €14.5 million.

During the meeting, Felipe López highlighted that the decision, taken by the Ministry to resume the development of social housing in Cádiz capital, has been made possible thanks to the reactivation of residential land sales in the province. Specifically, between December 2016 and March 2017, the Agency for Housing and Refurbishments in Andalucía (AVRA) awarded two plots for private housing in Costa Ballena (Chipiona).

At the end of last year, the Ministry of Housing and Development announced the boost for projects in high demand in the city, as well as the second phase of Matadero, which is going to be executed in two phases. During the first phase, 60 rental homes will be constructed; the detailed plans for that project have already been submitted to the Town Hall for approval.

Once the first phase has been completed, the remaining 42 homes will be built, also under a lease framework. Matadero’s second phase will have an estimated cost of €5.7 million and construction work is expected to begin during the first quarter 2018.

Moreover, AVRA has resumed work to accelerate the execution of the seventh phase of the comprehensive refurbishment of Cerro del Moro. Currently, the Ministry is accelerating the signing of deeds in order to take ownership of the 47 properties that will have to be demolished to free up the land on which the 67 new homes that form part of the seventh phase of this development will be constructed.

The Junta proposes carrying out the demolition of the three buildings during the first quarter 2018, and continuing with the construction work thereafter. The estimated investment for the seventh phase, including the costs of acquiring the homes, demolishing them and building the new properties, is €8.8 million. The two initiatives, Matadero Sur and the seventh phase of Cerro del Moro, should take a year and a half to complete. (…).

Original story: Inmodiario

Translation: Carmel Drake