Tag: Heredia-Spínola family

Bizcayan Investors Acquire the Café Iruña Building in Bilbao for €18M

11 September 2018 – El Correo

It seems that, sooner or later, everything that is put up for sale in the real estate market in Bilbao ends up being sold. No matter how big the operation. The latest example is the building that houses Café Iruña; an iconic property in the heart of the city, which the Heredia-Spínola family has sold for around €18 million. The entire operation, from when the property was put on the market, to the negotiations and finally the sale, have been conducted with the utmost discretion. In the end, according to sources speaking to El Correo, a Bizcayan investment fund has taken ownership of the building, although international funds also expressed interest.

Initially, the asking price was €20 million, but after a few weeks, that figure was reduced to €18 million (…) for several reasons. According to experts consulted, one of the main drawbacks of the building is that it comes “with tenants” (…). And, what’s worse, many of those tenants pay low rents.

Specifically, around twenty companies undertake their activity in this property, ranging from law firms and attorneys to advisors, massage salons, yoga and pilates studios, insurance brokers, psychologists, study centres and a nursing home for the elderly. Some have long-term long contracts, which will force the new owners to hold intense negotiations if they want to evict them and make a radical change to the operation of the building.

In this sense, there is already talk in social media about the upcoming closure of Café Iruña, an icon of Bilbao since 1903, although that information has been categorically denied by its owners, Grupo Iruña Servicios de Hostelería. They explain that the business will continue – its contract runs until 2020 – and that no closures are planned.

Bilbao as a safe haven

In addition to all of that, another of the problems that the experts associate with this building and which may have made its sale more difficult than expected are its internal features, “it does not have an internal patio”, which makes the central spaces “very dark”, above all if the plan is to convert the property into housing.

Even so, despite everything, the building has now been sold and is another example of the appeal of Bilbao’s property sector. In reality, the real estate market has been consolidating its position for a long time as a safe haven for many investors who, with interest rates at minimum levels, are looking for alternatives to invest their money, albeit with moderate returns (…).

This is happening across almost all of Spain. But in Bilbao, there are additional attractive features: rents are high and land is in short supply. A good combination for doing business in the housing market. On the other hand, the environment is stable, a far cry from the upheavals in Cataluña (…). Moreover, with the disappearance of ETA, Euskadi has shed its straitjacket (…).

Original story: El Correo (by Luis Gómez & Luis López)

Translation: Carmel Drake

Café Iruña Building in Bilbao Goes On The Market for €20M

28 February 2018 – El Correo

The Heredia-Spínola family, owner of the property that has been home to the popular Café Iruña since 1903, has the future of one of the large real estate operations in Bilbao in its hands, after putting the building up for sale for €20 million. In addition to the hostelry establishment, which has been operated by the businesswoman Alicia Garmendia since 1980, the building, which has one of the most spectacular chamfered street corners on the Ensanche, also houses more than twenty companies on its upper floors.

Offices for lawyers and attorneys as well as for business and tax advisors, massage salons, yoga and pilates studios, insurance broker desks, psychologist and psychiatric clinics, study and documentation centres and even a nursing home are some of the services that occupy the six storeys of one of the most iconic premises of the Vizcayan capital. The Chinese Institute also has its headquarters in this building with views over Colón de Larreátegui and Berastegi.

There have been lots of comings and goings in the property since its owners expressed their intention to put the building on the market a few months ago. The operation, which is being undertaken with the utmost secrecy, is keeping a large number of its tenants in suspense. Most companies have been paying old rents, which are well below current market prices, for several years. But some are now starting to move out as their contracts are expiring and the new rents, more in line with the prevailing prices in the centre of the town, are proving unviable, both in the office and retail segments.

One of the fashion stores located on the ground floor of the property closed its doors several weeks ago after its rental cost increased. The other – Quo Bilbao – dedicated to the sale of clothing and accessories for women, which has been selling off its stock at a discount for weeks with articles costing between €10 and €50, is still open and has no intention of shutting down (…).

A hotel or luxury homes

Those who are also clear that “under no circumstances” shall they move from the site that they have occupied for 115 years are the managers of Café Iruña, the most popular cafeteria in Bilbao. Coincidently, it will reopen its doors tomorrow after being closed since last Monday to undertake several maintenance and conservation jobs (…). The Iruña Servicios de Hostelería Group confirmed that (…) under no circumstances will the change of ownership affect the operation of the business, which was founded on 7 July 1903 by the Navarran property developer Severo Unzue and which has become famous for its Moorish pintxos, amongst other snacks.

“We employ almost 30 people and we are going to continue”, insisted Garmendia. With two years to go until the current contract expires, only an exorbitant increase in the rental price may call into question the survival of this establishment, which spans 300 m2 and whose décor is inspired by the Mudejars with polychrome ceilings and stunning tiles that captivate thousands of tourists, making it one of the main restaurants of choice  in the city (…).

The companies that enjoy this central location are under the impression that the new owners could convert the property into luxury homes or turn it into a hotel (…).

Original story: El Correo (by Luis Gómez)

Translation: Carmel Drake