Ibosa Acquires RC1 from Mahou for €70 Million

8 October 2019 – The real estate cooperative Ibosa has acquired the second of the three plots of land owned by Mahou by the former Vicente Calderón stadium for 70 million euros.

The plot of land, called RC1, has a buildable area of 18,266 square meters for residential use, enough for 200 new homes. The asset also has 3,741-m2 of commercial land.

After this, only one of the three plots of land owned by the brewery is still left for sale. Pryconsa acquired the first plot for 55 million euros.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Ibosa Bids for the DGT’s Former HQ in Madrid to Build Luxury Flats

22 May 2019 – Idealista

The cooperative manager Ibosa is one of the parties interested in acquiring the former headquarters of the Traffic Department (DGT) in Madrid, located at number 125 Calle Arturo Soria, where 43 luxury flats are going to be built.

The Socimi Jaba I Inversiones Inmobiliarias put the building up for sale recently after acquiring it in 2014 for €19.2 million. The property is currently vacant having been previously leased to the DGT and Vodafone.

The office building has a gross leasable area of 5,526 m2 and comprises a ground floor plus 4 upper floors. It has 148 underground parking spaces and is located in one of the most sought-after neighbourhoods of Madrid. The asking price reportedly amounts to less than €25 million and the sale is expected to close next month.

If it is successful, Ibosa plans to build 43 high-end homes with 2-, 3- or 4-bedrooms. Each property will have a garage and storeroom and the sales prices will start at €554,000, with an average price per m2 of €5,900. The urbanisation, known as Residencial Capella, will have common areas such as a swimming pool and gym.

Original story: Idealista (by P. Martínez-Almeida)

Translation/Summary: Carmel Drake

Operación Calderón: Mahou Puts First Plot Up for Sale

7 May 2019 – Eje Prime

Mahou has put the first plot of land up for sale on the site of Operación Calderón. The brewery has engaged Colliers to handle the sales process, which it hopes will close this year and generate proceeds of €60 million

Potential candidates for the purchase include the cooperative Ibosa, amongst others, which plans to build around 400 homes on two of the plots.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Ibosa Sells the 85 Flats on Madrid’s Most Sought-After Plot in Record Time

18 March 2019 – El Economista

Last year, Ibosa was awarded one of the most sought-after plots of land in Madrid following a closely fought battle. This year, the property developer is in the news again as it has managed to sell all of the future homes that are going to be built on the site in less than two months.

The cooperative manager was awarded the plot, located on the corner of Calle Doctor Esquerdo and Calle de los Astros, just 800m from the Retiro Park, in November 2018 after submitting the highest bid (€33.5 million) and fighting off competition from 16 other players.

The competition for the homes themselves has been just as fierce with all 85 being sold in just 50 days. That achievement is all the more impressive when you consider that the homes have an average price of €5,000/m2, including parking space and storeroom.

The development, known as Residencial Becrux, is going to comprise 85 homes with between one and four bedrooms, with constructed surface areas of between 52 m2 and 245 m2. The total budgeted investment amounts to €55 million and the homes are expected to be handed over during the first quarter of 2022.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Madrid’s Town Hall Definitively Approves the Mahou-Calderón Development

15 November 2018 – El Confidencial

The final piece of the puzzle has fallen into place. The Governing Board of the Town Hall of Madrid has definitively approved the urbanisation plans for the Mahou-Calderón project after the corresponding period of public consultation came to an end on Thursday. This means that the owners of the land can now start work. The plenary of the Town Hall will ratify the final project over the coming weeks, although the claims phase is not, in theory, expected to alter the plan initially approved in July: it involves a budget of €42.2 million, will see the transformation of 193,804 m2 of land in total and will be executed in three phases in just under three years. The first phase will involve the demolition of the stadium.

The demolition of the Atlético de Madrid’s temple, an operation that will cost €22.4 million, will be the first piece of work to be carried out, with the exception of the stand located above the M-30, which will remain in place to interfere as little as possible with the traffic on that road. Subsequently, the traffic from the motorway ring-road will be diverted so that the stand can be demolished. The first stage will also include the urbanisation of the roads between Paseo de los Pontones, Paseo Imperial and Paseo de los Melancólicos.

Once those first projects have been concluded, phase 2 will begin, which will see the reorganisation of Paseo de los Melancólicos and Calle Duque de Tovar, with a budget of €7.7 million. Finally, the third phase, with a final budget of more than €12 million, will include the creation of a new park by the river, which, in any case, will come after Calle-30 has been covered over, by the Town Hall. Specifically, the Town Hall has committed to providing €60 million to finance the work to cover over that road, a budget that is separate from the urbanisation project that has been approved today because it was agreed that it would be processed independently.

The Governing Board chaired by Manuela Carmena gave the final green light to this project today, which is going to be financed by the Compensation Board that comprises the landowners (Atlético and Mahou). The surface area of the space is broken down into two sections, one of which is dedicated to residential and tertiary use, and the other to roads, green areas and basic amenities.

The land dedicated to residential use occupies 33,339 m2 (with a buildability of 132,344 m2) of which 13,243 m2 will be for social housing properties, which represents more than 11% of the total. Meanwhile, tertiary use land will have a buildability of 14,705 m2. Finally, the land dedicated to social uses will span 13,893 m2 for public amenities. In addition, 73,099 m2 will be dedicated to green space and 73,469 m2 to roads .

In any case, this final procedure paves the way for the construction work to begin and for one of the major urban planning operations in the city to be unblocked. It has been in the hands of the Department for Sustainable Urban Development, led by José Manuel Calvo. As this newspaper published in the summer, the initial approval of the plan – which today received definitive approval – was a key step for the plans of Atlético de Madrid. The football club suspended the process to sell its urban planning rights in January, as it was waiting to be able to offer the three interested finalists – Solvia, Ibosa and Princeton – a series of guarantees, including the reparcelation and urbanisation project, amongst others.

With the sale of its urban planning rights, Atlético de Madrid is hoping to raise almost €200 million, an amount that it is hoping to use to repay the Mexican businessman Carlos Slim for the €160 million loan that he granted  to Enrique Cerezo’s club to finance the completion of the construction of the new stadium, the Wanda Metropolitano (…).

Original story: El Confidencial (by Paloma Esteban)

Translation: Carmel Drake

Madrid’s Town Hall to Approve the Mahou-Calderón Project

18 July 2018 – Eje Prime

The Mahou-Calderón project is pushing ahead. Tomorrow (Thursday), the Town Hall of Madrid is going to approve the urban development plan for the land, one of the most sought-after plots in the Spanish capital. The roadmap for the site, which is still home to the Vicente Calderón stadium, the historical home of Atlético de Madrid, means that the construction work will begin after the summer and will be scheduled for completion within three years.

After the summer, Atlético de Madrid and Mahou, the owners of the batch of land, hope that the period of public consultation will be completed so that they can start to demolish the stadium, according to El Confidencial.

The building work will be divided into three phases, starting with the demolition of the Calderón. Next, and after modifying the traffic flow that passes under the pitch, the roads between Paseo de los Pontones, Paseo Imperial and Paseo de los Melancólicos are going to be urbanised.

The first phase of the project is also going to be the most expensive, with an investment of €22.7 million, half of the total budget established (€42.2 million) for this ambitious urban development plan. The Government of Madrid is going to contribute another €60 million to cover over the road.

The finalists: Solvia, Ibosa and Princeton 

Waiting to see what happens tomorrow in the Town Hall are Solvia, Ibosa and Princeton, the three finalist investors looking to buy the plots, which will expand Madrid’s residential stock by another 33,339 m2 of buildable land, located on a plot with a buildable surface area of 132,344 m2.

The objective of Atlético de Madrid with this project is to raise up to €200 million from the sale operation. The club is planning to use that extraordinary capital to repay Carlos Slim the €160 million loan that he granted the sporting entity to complete the building work on its current stadium, the Wanda Metropolitano.

Original story: Eje Prime 

Translation: Carmel Drake

Arrasate & Ibosa: Favourites in the Bid to Build Bilbao’s Star Residential Project

28 May 2018 – Eje Prime

Up to eight property developers are willing to pay between €30 million and €50 million to build residential properties in Bilbao. The two favourites in the battle are Arrasate and Grupo Ibosa, which have submitted two of the highest offers for this housing plan, which forms part of Project Garellano and which is being managed by Bilbao Ría 2000.

One of the key factors behind Arrasate and Ibosa’s strong chances of winning the tender is that both have the architect Richard Rogers in their project, which gives them an extra 5% in their scores. The vast majority of the score (75%) in the auction corresponds to the economic offer, and the remaining 20% relates to the assessment of the business plan and the construction, according to El Confidencial.

The future tower will be 119 m tall and will comprise 36 storeys in which 200 homes will be constructed. The location of the residential property will be prime, given that it is being built right in the heart of the city.

The plot that the public company Bilbao Ría 2000 has put up for sale has a surface area of 2,247 m2 and a buildability of more than 25,000 m2. The building will also have five underground floors with 235 parking spaces and storerooms for its future inhabitants.

In addition to Arrasate, a Basque cooperative manager (…) and Ibosa, the company led by Juan José Perucho, other companies participating in the auction for this development include the listed company Neinor Homes, ACR and a JV between the Madrid-based property developer Pryconsa and the local firm Amenabar.

Original story: Eje Prime

Translation: Carmel Drake

Aelca, Ibosa, Amenabar, Pryconsa, Libra & Princeton Compete For Calderón Plots

18 November 2017 – El Economista

Atlético de Madrid has already received its first offers from investors interested in acquiring the plots of land adjacent to the Vicente Calderón stadium. The sale represents the largest land operation currently underway in the centre of Madrid and the football club is taking advantage of that fact to try to find a buyer willing to pay double the current prices in the area.

According to several sources in the sector, the companies that have bid to acquire these plots of land include the property developer Aelca, in which Värde holds a stake. It is the only one of the four large real estate companies still in the process, given that Neinor, Aedas and Vía Célere have all ruled out participating in the operation, due to its high price.

The same sources state that Grupo Ibosa is another one of the firms that is pushing ahead with the purchase process; and it is doing so with the backing of a fund. Similarly, the property developers Amenabar and Pryconsa have also submitted bids, as has the cooperative manager Libra Gestión.

The British family office Princeton is another name that appears on the list of investors interested in the Calderdón. That firm arrived in Spain at the beginning of 2015 and since then has closed several residential operations as well as a handful of others of a tertiary nature.

CBRE, which is advising the operation, will receive the binding offers at the end of November, with the aim of trying to close the sale before the end of the year. Atlético de Madrid wants to repay Carlos Slim on time for the more than €160 million that he loaned the Club, through the company Inbursa, to finance the works on the new stadium, Wanda Metropolitano.

The land up for sale is divided into three plots (RC-4, RC-7 and RC-8) and together cover more than 63,000 m2. The largest space corresponds to private residential use and the rest to tertiary use. The amount that Atlético de Madrid expects to receive for this operation, according to real estate sources in the know, comes to €200 million, which places the price per square metre in a very high range, of around €3,300/m2. In this way, the c. 480 homes that will be constructed on the site, will have to be sold for around €6,000/m2 if the operation is to be profitable for the buyer. It is precisely these figures that have deterred the large listed real estate companies, as well as those that have financial backing from funds, given that they must fulfil the returns they have promised to their shareholders and investors in every operation.

First obstacles

Although the project known as Mahou-Calderón, which encompasses the sale of these plots, has already received provisional approval from the Town Hall of Madrid, it is still awaiting definitive approval from the Community of Madrid’s Urban Planning Committee, which has four months to analyse the one-off amendment to the PGOU, and the Community of Madrid’s Governing Council, according to José Manuel Calvo, a Councillor for the Town Hall of Madrid, in an interview for the El Economista’s Inmobiliaria magazine.

Nevertheless, on Wednesday, it was revealed that the Ministry for the Environment and Land Planning had identified a “calculation error” in the buildability coefficients, and has urged the municipal technicians to correct the errors in order “to prevent the operation from being susceptible to being challenged in the courts in the future”, said sources from the Ministry to EP.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Baupost Finalises Purchase Of Luxury Property Developer Levitt

19 October 2017 – Expansión

The luxury real estate construction sector is retaining its shine. One of the property developers that survived the previous cycle, Levitt-Bosch Aymerich, is on the verge of changing hands. A consortium of American investors, led by the fund Baupost Group, is holding exclusive negotiations to purchase the property developer that specialises in luxury homes, which has a market capitalisation around €200 million.

Sources in the sector explained to Expansión that the operation is in the due diligence phase (the assets are being audited) and that, although no agreement has been reached yet, the operation may be closed soon if the negotiations continue.

Baupost will team up with a local operating partner, Alpine Grove, for the operation. The advisors on buyer include PwC and the law firm Garrigues, on the legal side. Meanwhile, Deloitte Legal is the legal advisor on the sell-side.

According to the latest available information from the Mercantile Register, Levitt-Bosch Aymerich’s net equity amounted to €162 million at the end of 2016. The company recorded a turnover of €61 million and an attributable net result of almost €6 million. Besides Baupost, several other US investment funds that are very active in Spain also submitted bids for Levitt. In this way, market sources indicate that Lone Star, Värde and Castlelake all expressed their interest in the company over the last 12 months.

Levitt, founded in 1929, with the construction of a luxury residential development in New York, arrived in Spain in 1971 with the help of José María Bosch Aymerich, who died in 2015.

In 1973, the company undertook its first development on the Monteclaro urbanisation on the outskirts of Madrid. Since then, it has constructed several high-end developments in Madrid and Barcelona, as well as some office complexes.

In this regard, in October 2014, the company sold five office buildings in Madrid to Merlin for €130 million in order to focus on its residential business.

The firm is currently working on some developments in Valdemarín (Aravaca), in one of the most exclusive areas of Madrid as well as on the El Juncal urbanisation in Alcobendas, amongst others.

Shopping fever

If this deal is closed in the end, it will join the fever of property developer sales that has been happening in Spain in recent years. Examples include Lone Star, which purchased Kutxabank’s real estate subsidiary Neinor in 2014 for €930 million. Also, in February, Värde acquired Vía Célere for €90 million and merged it with DosPuntos – the former real estate subsidiary of the SanJosé group -. In addition, that same fund purchased Aelca from Grupo Avintia for €50 million in June 2016.

Meanwhile, Castlelake, which started to back the Spanish housing market back in 2013 with the purchase of land, launched Aedas Homes just a year ago. Other investors are also backing the market through agreements with local groups to build homes, such as the case of Morgan Stanley and Gestilar, and Green Oak and Ibosa, amongst others.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Ibosa & GreenOak Invest €86M In Luxury Housing Tower

28 September 2017 – Expansión

The real estate group Ibosa and the fund Green Oak are promoting a 23-storey tower containing luxury homes in the north of Madrid. Construction work will start at the site at the beginning of 2018 and will involve an investment of €86 million.

The 77m tall ‘Torre Australis’ will be constructed in the north of the capital, in the so-called Isla de Chamartín area. It will be completed by two lower annexe buildings and in total, will house 208 homes, with between one and four bedrooms, with prices ranging between €227,000 and €805,000.

Ibosa and Green Oak have already started to market the homes, whose owners will enjoy some exclusive services.

Moreover, the complex will have shared facilities such as workspaces, a gym, a sports room with spa, a swimming pool, green areas, sports facilities and a children’s playground.

Original story: Expansión

Translation: Carmel Drake