Tag: Hard Rock Café

Andalucían Family Office Buys the Oriza Building in Sevilla

30 December 2017 – Sevilla ABC

With the economic recovery, the Sevillan real estate market is enjoying a sweet moment once again with the signing of numerous operations on the city’s main streets. The latest deal has been closed this week and has seen the iconic building that houses the Oriza restaurant, on the corner of Calle San Fernando and Jardines de Murillo, change hands. An Andalucían family office – an instrument used by wealthy families to invest in different sectors – has purchased the property from the company SF 41, owned by a Basque investor based in Madrid, in an operation advised by the real estate consultancy firm CBRE.

The property has a total surface area of 1,100 m2 distributed over four storeys. The Oriza restaurant will continue to operate in the building as a rental tenant. Although the amount of the sale has not been disclosed officially, based on the recent operations undertaken in the area, the figure is thought to range between €3.5 million and €4 million.

In 2012, the company Mares Consultores de Negocios, owned by the Extremeñan Antonio Ignacio Martínez de Azcona, purchased the building that is now leased to Hard Rock Café from the Rodríguez de Quesada family for €6 million. In 2013, Mares Consultores de Negocios sold that same building, which dates back to the 18th century, to an investor group from Bilbao for less than the €6 million that it had paid for the property nine months earlier.

The main feature of this building is its location, at the start of the High Street area in Sevilla, where the city centre’s pedestrian area begins. Moreover, it has historical value given that it shares a wall with the Andalucían capital’s ‘Reales Alcázares’, according to sources at CBRE.

According to Rosa Madrid, Regional Director of CBRE in Andalucía, “this operation is an example of the great appeal that the Andalucían capital has for investors, especially when it comes to assets in strategic locations. In this case, the thoroughfare of Calle San Fernando is a key part of the Sevillan High Street aimed at Food & Beverage, an increasingly more popular trend in the city, which has been boosted by the recent opening of the Hard Rock Café”.

CBRE’s investment team in Andalucía – which comprises Rosa Madrid, Ramiro Moreno and Rafael González- has closed several important operations in recent times, including the sale of a building in Plaza Nueva to the British fund Shaftesbury for more than €20 million, which constituted one of the most high-profile transactions of last year (2016) in the city of Sevilla.

Original story: Sevilla ABC (by M. J. Pereira)

Translation: Carmel Drake

Baraka Wants To Double Edificio España’s Value In 3 Years

19 December 2016 – El País

The Murcian group Baraka, led by the businessman Trinitario Casanova, has completed its purchase of Edificio España from the Chinese group Wanda. The historical property, located in Plaza de España in Madrid, will be sold for €272 million, which is €7 million more than the Asian firm paid Banco Santander for the property back in 2014. Nevertheless, following the renovation work, the building is expected to be worth €532 million, according to a report by JLL filed with the Hong Kong stock exchange.

The owner of Baraka, Trinitario Casanova, will hand over a cheque amounting to €272 million, within the next three months (before 31 March) for the building, which the Chinese group Wanda is selling for almost the same price at which it purchased it from Banco Santander (€265 million). (…).

The President of the Chinese group, Wang Jianlin, who is the richest man in China, decided to sell the building to Baraka because the Murcian holding company promised that it would make a fast and secure payment to ensure the quick sale of the building, according to several sources.

Under the terms of the operation, Baraka has now paid Wanda €6 million by way of deposit and has made the commitment to pay another €14 million by way of guarantee when the public deed is signed before the notary. It will then pay the remaining €252 million.

Meanwhile, the consultancy firm Jones Lang Lasalle (JLL), which led the negotiations between the two companies, submitted a technical report to Wanda, which the Chinese Group has sent to the Hong Kong stock exchange. The report explains that, following the renovation work, the building will be worth €532.5 million. If this is the case, Baraka will earn almost twice as much as it spent to acquire the building in just three years, which will represent a profit of almost 100% of the capital employed for the purchase.

The Murcian businessman Casanova, who has been investigated for an alleged fraud of €6 million against the Tax Authorities and who was sentenced to one year in prison in 2008 for altering the value of shares in Banco Popular, is keen to renovate both the outside and inside of the building. Its architects have been working on the plans for months and the construction work will begin at the beginning of January, said Casanova in October.

The façades of Edificio España will remain in tact, as required by the Town Hall of Madrid, whilst the changes to the interior will serve to accommodate a large luxury hotel from 2019 onwards (probably operated by the Hard Rock Café chain). This hotel will have 600 rooms and a lease contract of 30 years. Those are Baraka’s intentions at least.

The first three floors and the basement (a space measuring up to 15,000 m2, of the building’s total surface area of 71,000 m2) will be let to retail groups.

Few changes

“The building will remain practically the same as it used to be. It will be cleaner, more beautiful and restored, but aesthetically it will be the same”, said the businessman in his most recent official appearance before the press. (…).

Original story: El País (by Luca Constantini)

Translation: Carmel Drake