Tag: Hard Rock hotel group

Baraka Teams Up With Riu To Promote Edificio España Hotel

13 January 2017 – Cinco Días

The Baraka group has taken a giant step forward in its acquisition of Edificio España from the Chinese holding company Wanda. The company, through which the Murcian businessman Trinitario Casanova is handling the operation, has announced the launch of a joint venture with the hotel chain Riu.

Through this joint company, Rui will hold a stake in the property amounting to between 25% and 30%. Sources close to the agreement indicate that the hotel chain will participate as an investor through the joint venture for the acquisition and renovation of the building, which is actually still owned by the Chinese group Wanda.

The Mallorcan hotel chain, founded by the Riu family, in which the tour operator giant Tui owns a 49% stake, will also manage the future five-star hotel in Edificio España, which will operate under its Riu Plaza brand under a long-term lease contract. It will be the first property to operate under the brand in Spain, which was created in 2010 and which specialises in urban destinations, such as New York and Miami in the USA, Guadalajara in Mexico and Berlin in Germany.

The future establishment, which may open its doors at the end of 2018, will have almost 700 rooms, spread over 22 floors and will have a surface area of just under 70,000 m2. It will join six other properties operated under the same brand across Europe and America. (…).

Riu operates more than 100 hotels across 18 counties and each year receives more than 4 million clients, which means that the future hotel in Edificio España will have a very international profile.

Meanwhile, Baraka also made a second payment for the historical building yesterday, amounting to €14 million….the final operation must be signed before 31 March 2017, at which point the Murcian businessman will have to pay the remaining balance to make up the figure of €272 million agreed with the Chinese group.

Casanova reached an agreement with Dalian Wanda to purchase the property in July. The Chinese investor Wang Jianlin had purchased the building from Santander in 2014 for €265 million, but his plans to demolish the building and reconstruct it were never approved by the Town Hall ruled by Manuela Carmena.

Casanova had been looking for a partner to deal with the renovation of the property, which will have an additional cost of around €200 million. The businessman was looking for an operator for the hotel with which he could sign a fixed lease contract, which caused the major international chains to withdraw their interest. And that, despite the fact that Baraka managed to negotiate a 30 year contract with the US group Hard Rock. (…).

Original story: Cinco Días (by A.S. and L.S.)

Translation: Carmel Drake

Baraka Makes A Second Payment To Wanda For Edificio España

3 November 2016 – Expansión

The Baraka Group, owned by the businessman Trinitario Casanova, has made another payment to the Chinese group Wanda for Edificio España. With this payment, which will be added to the amount that the Murcian group handed over in July, another step is taken in the negotiations. The transaction is expected to close at the end of 2016 or during the first few months of next year.

Wanda, which acquired Edificio España from Banco Santander for €265 million in July 2014, decided to abandon the project following disagreements with the Town Hall of Madrid regarding the conservation of the exterior façade. It signed an agreement in principle with the Baraka Group in July 2016 to sell the property for €272 million.

In July, Baraka paid a deposit of €1 million and so Wanda promised to not negotiate the sale of the property with any other candidate at least until the middle of October. Casanova’s offer for Edificio España specifies that the acquisition will be made using the group’s own funds, although Baraka is now looking for financing in order to undertake the subsequent renovation of the property.

In parallel, the Baraka Group’s holding company is making progress in its conversations with the Hard Rock hotel group, which has expressed interest in operating the hotel that will occupy most of the building. Specifically, the Baraka Group’s plans involve opening a retail space on the first few floors of the building, and using the rest of the property to house a luxury hotel with 600 rooms, which will open its doors between the end of 2018 and the middle of 2019.

The property has a surface area of 71,000 m2, of which 15,000 m2 will be used for the retail space between the first basement floor and the third floor, and the rest will converted into the five star hotel.

Casanova has promised to conserve the main façade and the rest of the building’s external structure and whereby comply with the demands imposed by Madrid’s Urban Development team.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake