Ibosa Offers €33.5M to Acquire Most Sought-After Plot in Madrid

20 November 2018 – El Confidencial

The cooperative managed by Grupo Ibosa, Residencial Shaula Sociedad Cooperativa, has fought off competition from 16 other contenders in the auction for the most sought-after plot of land in Madrid. On the table: €33,510,000, an amount that almost doubles the minimum price of €17 million that the Treasury had set for it.

The cooperative has fought off competition in a tight bid from Desarrollos Los Astros, constituted at the beginning of November, and backed by Grupo Nozar, which placed €32 million on the table, and Arcano, which bid €31.2 million. Nevertheless, those two high offers were unable to compete with Grupo Ibosa, which has a lot of experience in this type of auction.

Expectations were high at Calle Guzmán el Bueno 139, the headquarters of the Special Delegation of the Economy and Finance in Madrid, where the auction was held. At 10am, in a room full with more than 100 people, 17 envelopes were opened containing 17 bids for the most sought-after plot of the year in Madrid. The land was owned by the National Currency and Stamp Factory (Fábrica Nacional de Moneda y Timbre), which entrusted its sale to the Heritage Service. The cooperative members will have to make the first disbursement within the next few days, equivalent to 25% of the amount offered, in other words, almost €8.4 million, and then pay the remaining 75% over the coming months, after deducting the deposit paid in order to be able to bid, which amounts to €850,000.

Vía Célere also submitted an offer (€23.7 million), exactly two years after submitting the only offer for another plot of land owned by the Treasury, in the same place, on Avenida Santo Ángel de la Guarda. The company chaired by Juan Antonio Gómez-Pintado is a familiar face in this type of action. In fact, just a few days after that auction, it was awarded the Adif and Repsol plots in Méndez Álvaro. On that occasion, its bid was also the only one.

In terms of the other names called out in the room, they included traditional property developers such as Ebrosa (€20.53 million), which submitted the most conservative bid; Grupo Premier, which put €25.16 million on the table through the company Cajandral; and Grupo Lar, which bid €30.13 million through Desarrollos Residenciales Madrid Norte. Pryconsa, another of the real estate firms that typically participates in these types of procedures, offered €23.1 million through Cogein, and Renta Corporación, with €22.15 million.

The surprise bidders included Inmo Frieria, a company backed by Manuel Jove, the former President of Fadesa, with a bid amounting to €24.7 million. And the listed company Aedas Homes, which offered €25 million through the company SPV Reoco 1, in its first major auction in Madrid. The long list of interested parties was completed by Global Nostromo (€28.5 million), Golego ITG (€22.12 million), Taz Real Estate (owned by Alza Real Estate, €24 million), Misodi Rent (owned by the Huguet family, with €23.2 million), Torre Rioja Madrid (€25.1 million) and Denoti Investment, a company owned by Irvine Alan Stewart Laidlaw, a British businessman and one of the richest people in the United Kingdom, whose bid amounted to €31 million.

A cooperative wins again

Like happened exactly four years ago, in November 2014, with the auctions of the plots on Raimundo Fernández Villaverde (owned by the Ministry of Defence) and the former metro depots in Cuatro Caminos (owned by Metro de Madrid), it is a cooperative – which saves on the property developer margin – that has managed to put the most competitive offer on the table, to fight off seasoned property developers such as Premier, Pryconsa, Ebrosa and Aedas Homes in a bid that the experts are describing as the auction of the year in Madrid. Not because of its size or its features, but because of its location, just 500m from the Retiro Park, this was one of the most sought-after plots in the capital, and its new owner may build up to 100 homes on its 4,500 m2 – 9,000 m2 of buildable space (…).

The cooperative managed by Grupo Ibosa currently comprises 60 cooperative members and its plans involve the construction of 94 homes. The 4 bedroom homes with two parking spaces and a storeroom will cost between €806,000 and €1,175,000, whilst the 3-bedroom homes will cost between €670,000 and €688,000 (…). The 2-bedroom homes will cost between €490,000 and €498,000, and the 1-bedroom homes will cost between €309,000 and €354,000. The complex will also have a swimming pool, a padel court, a gastroteque, a mini-crossfit studio, a sports pitch, a gym, changing rooms, a spa, a sauna and a jacuzzi.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Pryconsa, Ibosa & Vía Célere Bid for Sought-After Plot in Madrid

7 November 2018 – El Confidencial

It is the most important land auction of the year in Madrid. Not because of its size or its characteristics, but because of its location: just 500 m from the most iconic park in Madrid, the Retiro, in the heart of the Spanish capital.

The star is the Fábrica Nacional de Moneda y Timbre (the National Currency and Stamp Factory), which is the owner of almost 4,500 m2 of buildable land, with a buildability of 9,000 m2, where almost one hundred homes may be built, and whose divestment has been entrusted to the services of the Ministry of Finance.

The minimum price that it expects to obtain for the land is €17 million, nevertheless, given its location, and in light of the huge shortage of buildable land in the centre of the Spanish capital, and therefore, of new build developments, the experts consulted by El Confidencial do not rule out that the final figure could reach twice that.

The plot, which has been in disuse for more than 30 years, has sparked enormous interest from buyers and has generated great excitement in the neighbourhood. According to information gathered by this newspaper, some of the interested parties that have participated in the auction – the deadline for the submission of bids ended on 6 November – include a cooperative managed by Grupo Ibosa, Pryconsa and Vía Célere – all of whom are typical players in this type of auction – although the same sources also talk of at least half a dozen offers. To be able to bid, the interested parties had to submit a bond amounting to €853,000 – equivalent to 5% of the asset value.

For the time being, Grupo Ibosa’s plans for the plot include the construction, on a cooperative basis, of 94 homes with between one and four bedrooms with a swimming pool, padel court, spa, and jacuzzi, as well as a multi-use sports pitch, gym, minibox or crossfit room and a Finnish sauna; all those facilities are lacking in the vast majority of developments in the neighbourhood.

In fact, the project that is constructed on this site will be the only new-build development in the area. Ibosa’s plans include prices of almost €5,500/m2 per home, above the prices that are currently being paid in the area in the second-hand market, which stand at around €4,500/m2. Thus, for example, a new-build home measuring 160 m2 would cost around €828,000.

Both Grupo Ibosa and Pryconsa have starred in some of the most high-profile operations in the capital over the last five years. The most recent, for example, was signed by Pryconsa. The property developer chaired by Marco Colomer, one of the survivors of the crisis with more than five decades of history under his belt, submitted the only bid – amounting to €19.7 million – for the former bus depots of the Municipal Transport Company (Empresa Municipal de Transportes or EMT) of Madrid in the Buenvista neighbourhood (Carabanchel). Moreover, just a year ago, Pryconsa and Realia Business were awarded two plots of land in Madrid by the Ministry of Defence.

Meanwhile, Vía Célere, just two years ago, was awarded a plot by the Ministry of Finance on Avenida Santo Ándel de la Guarda (…).

In this case, the bid envelopes will be opened within the next few days at the Madrid office of the Ministry of the Economy and Finance (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake