Tag: Izquierda Unida

A Public Consultation Period Opens for Newly Approved Operación Chamartín

20 September 2018 – El Mundo

On Thursday, the Governing Board of the Town Hall of Madrid approved the modification to the General Urban Development Plan to develop the Madrid Nuevo Norte project, previously known as Operación Chamartín, 25 years after the first attempts were made to get the project off the ground and after long negotiations between the Ministry of Development, the property developer Distrito Castellana Norte (DCN), the entity awarded land by Adif, and the Town Hall.

Now, a period of public consultation has opened ahead of a debate in the Plenary, likely before the end of the year, in a meeting that is expected to be tense for the Ahora Madrid group, whose vote will be split, given that six councillors – three from Ganemos and three from Izquierda Unida – have expressed their opposition to the project. In fact, yesterday, Mauricio Valencia, the third deputy mayor, opposed the development at the meeting of the Governing Body after his party, Izquierda Unida asked Congress to suspend the new urban plans, which will completely change the northern face of the Spanish capital.

After it is approved in the Plenary, the plan will be sent to the Community of Madrid for its definitive approval, a mere formality, given that the Government of Ángel Garrido has already announced that it will give its approval provided all of the administrative requirements are fulfilled.

The councillor for Sustainable Urban Development, José Manuel Calvo, yesterday welcomed the fact that the project is going to be approved with “the support of the four groups” from the municipal body and with a different party leading each of the three administrations (…).

The new project has reduced the total permitted buildability of the project approved by the Town Hall of Ana Botella from 3,370,000 m2 in 2015 to 2,657,313 m2, which represents a decrease of 713,631 m2 (or 21%) (…).

In total, 10,500 new homes are planned, of which around 4,000 will be for social housing, owned by the Town Hall, within the 36% of land that corresponds to it according to the plans (…).

The councillor (for Sustainable Development) highlighted that one of the fundamental aspects of the operation will be the renovation of Chamartín train station, which “we want to turn into one of the best railway stations in Europe” (…).

The project, which is divided into four operating areas: Chamartín station, the Business Centre, Malmea-San Roque-Tres Olivos and Las Tablas Oeste, includes 390,700 m2 of green space, 252,094 m2 of facilities and 848,617 m2 for transportation. It will also have office space spanning 1 million m2 and the tallest tower in Spain, with 70 storeys.

The President of DCN, Antonio Béjar, said yesterday that he was “satisfied” with the approval of the plan, which in his opinion “proves that the regeneration of the north of Madrid is now a reality and that there is no turning back”, reports Efe. Meanwhile, Ecologists in Action and residents grouped into the FRAVM and North Zone Platform criticised the operation again for benefitting private interests and not those of citizens.

Original story: El Mundo (by Roberto Bécares)

Translation: Carmel Drake

Socimis Fear Rise Of Left-Wing Coalition, Unidos Podemos

26 May 2016 – El Economista

Since 9 May 2016, when the political leaders of Podemos, Pablo Iglesias (pictured above, right), and Izquierda Unida, Alberto Garzón (pictured above, left), announced their intention to stand together in the upcoming General Election on 26 June, the possibilities of them beating the Socialist Party and, even, forming a Government, have increased considerably (the D’Hondt electoral law penalises minority groups).

The fact that Unidos Podemos has become a real option, according to the latest polls, is being felt on the stock exchange in sectors such as real estate. The Socimis have seen an average decrease in their share prices of 1.5% since 10 May, which represents a difference of 3.6 percentage points with respect to the Ibex 35, which has risen by 1.6% during the same period.

In its election manifesto, the purple party – which now has the support of IU – proposes reforming the tax regime for Socimis (as well as for the Sicavs). The real estate vehicles are currently exempt from paying Corporation Tax, provided they fulfil certain requirements, such as distributing 80% of their net profits as dividends.

“What it (the regime) does is raise the taxation (liability) up to the shareholders. They bear the taxation through their remuneration in the form of capital income (provided their share stakes exceed 5%), says Ana Hernández, an expert in Socimis.

Merlin Properties, the largest Socimi in the market, with a market capitalisation of €3,100 million (more than twice the size of the second largest firm, Hispania), is suffering more than most from the downward trend. Within the last month, short positions of the company’s shares have almost tripled, from representing 0.4% to 1.15% on 13 May, according to data prepared by the CNMV. Meanwhile, its share value had decreased by 20% since the last General Election was held on 20 December, more than double the 8% drop that the Ibex 35 has seen during the same period.

Concern amongst investors

“There is noise (in the market)”, acknowledged sources in the sector, although “maybe it is excessive”. (…).

“Spain is an attractive country for real estate investment” said Jesús Amador, analyst at Bankinter, who recognises, nevertheless, that the latest “initiatives” motivated by Town Halls close to Podemos “may influence” the investments made by the Public Administration, following “the cuts to investment for Operación Chamartín, the controversy with Plaza de España and the problems in Barcelona”. (…).

The left-wing coalition proposes a minimum tax rate for Companies of 15%, which, in the absence of more data, would also become the future tax rate for the Socimis. “If they make the work more complicated”, said the President of one Spanish firm, “they will kill many of them off”.

Original story: El Economista (by Laura de la Quintana)

Translation: Carmel Drake