Tag: ECI

ECI Sells Building On Plaza Catalunya For €17M

9 February 2016 – Expansión

The department store group has ruled out the expansion of its store on Plaza Catalunya because it has been unable to buy the building next door and so it has sold its property on Calle Fontanella, number 9.

El Corte Inglés has abandoned its expansion plans for Plaza Catalunya. The building that the department store group acquired in 2004 on Calle Fontanella, with the aim of extending its store, has been sold for €17 million to a Russian investor who plans to convert it into a hotel.

The property, which has not been used for more than a decade, is located at number 9, Calle Fontanella and is separated from El Corte Inglés store on Plaza Catalunya by another building. The group chaired by Dimas Gimeno acquired it thinking that it would also be able to buy the property located at numbers 5-7 and adjoin the two buildings onto its department store. Nevertheless, following years of negotiations with the owner (then CatalunyaCaixa), the building was eventually acquired by Caboel, the property company of the former owners of Caprabo, who renovated it and converted into a hotel operated by Room Mate.

The location of this El Corte Inglés store, in the heart of Plaza Catalunya, means that it can only be expanded through the purchase of neighbouring properties. The expansion project began to take shape more than ten years ago, thanks to Catalunya’s Commercial Facilities Sector Territorial Plan for the period 2006-2009, which allowed it to increase its net sales area by 5,000 m2.

The building at number 9, Calle Fontanella was acquired from Banco Sabadell for €17 million, which means that, a decade later, and given the impossibility of adjoining it onto its existing store, the department store group has recovered its original spend.

The purchaser of the building is a conglomerate of investors, which, according to real estate sources, are Russian and intend to convert the property into a hotel.

Its surface area (3,200 m2), wide façade and central location make the conversion of the property into a tourist establishment an ideal option, but the operation has been signed in the middle of the hotel moratorium. As such, the investors will have to wait until the mayoress of Barcelona, Ada Colau, establishes the new urban planning rules for tourist accommodation, which will determine the neighbourhoods in which new establishments may be constructed.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

El Corte Inglés Sells Building In Sol To Thor For €65M

24 December 2015 – Expansión

The operation has been closed for almost €65 million and reflects ECI’s strategy to selectively divest real estate assets to reduce its debt.

El Corte Inglés is continuing with its policy to selectively sell its real estate assets to reduce its debt. The company led by Dimas Gimenos has sold one of its properties in the Puerta del Sol in Madrid to the US fund Thor Equities for almost €65 million, according to market sources.

The building, which houses a bookstore, is located in one of the most important retail areas in the capital (on the corner with Calle Preciados) and has a total surface area of 1,344 m2 spread over three floors. El Corte Inglés has agreed with the fund Thor that it will continue to occupy the building as the tenant for one more year.

The department store group has a large portfolio of properties, worth almost €15,800 million, according to appraisals performed by Tinsa in 2014. Two years ago, it begin its new policy to divest its non-strategic assets with the sale of a building located next to the Plaza de Cataluña to the fund IBA, which also acquired another property from ECI on Calle Preciados in Madrid a few months later.

But not all of its activity involves property sales. Last year, the company acquired a plot of land that Adif had put up for sale on the Paseo de la Castellana. The plan is to expand the shopping centre that the distribution group has in that area, which is the great jewel in its asset portfolio.

The fund Thor made its first investment in Spain in September, with the acquisition of a property, also in Puerta del Sol, worth €9.5 million, which was previously owned by Kutxabank. It has also purchased number 16 Calle Fuencarral. In all three operations, Thor has been advised by the real estate consultancy firm Knight Frank.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

EY Negotiates Move From Torre Picasso To Torre Titania

6 October 2015 – Cinco Días

El Corte Inglés completed the construction of the building more than two years ago, but until now, nobody knew who the tenant might be. But now, Torre Titania, one of the most futuristic and newly-constructed buildings in Madrid, has a clear candidate for its tenancy. The leading contender is the consultancy firm EY (formerly known as Ernst & Young), which is now negotiating the terms of its potential move with the retail giant, according to sources in the sector.

The Spanish headquarters of the consultancy firm is currently located in Torre Picasso, owned by Pontegadea, the investment vehicle controlled by Amancio Ortega, the founder of Inditex. EY occupies 10 floors in that building, covering around 15,000 m2, for its c. 2,000 employees based in Madrid (of the 3,000 people it employs in Spain). The British firm is looking for a larger space for its team based in the capital, as the company is hoping to continue to grow in response to the high demand for professional services.

JLL is acting as the RE advisor

The chosen destination for the move is the space owned by El Corte Inglés, although according to sources in the sector, the company is also evaluating other options. The move to Torre Titania is the most advanced of all the negotiations, but no contract has yet been signed. EY has engaged the consultancy JLL to coordinate its search process, but JLL refused to comment on the recent speculation.

Torre Titania has a surface area of 18,744 m2 for office use. EY is expected to fill the 22-floor tower, which is more than 100m tall and stands next to El Corte Inglés’ flagship store at Nuevos Ministerios.

The retail company, led by Dimas Gimeno, began construction of the property on the plot of the former Torre Windsor, which suffered irreparable fire damage in 2005 and was demolished. Six years later, the expanded shopping centre was inaugurated on this site and in 2013, the façade of the new skyscraper was finished completely.

Rents of more than €25/m2/month

El Corte Inglés itself has been marketing this new office space in the heart of Azca for the last few years. Only a few players in the real estate sector have had the opportunity to see inside Titania, and they say that the building is very modern, energy efficient and has a spectacular terraza on the roof of the building.

The rent charge for the building is expected to exceed €25/m2/month, according to market sources, somewhat higher than the average for the area, given that it is a brand new property.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake