Rockefeller Family To Sell Luxury Homes In Madrid For €8,200/m2

6 October 2017 – El Confidencial

They won’t obtain the building permit from the Town Hall of Madrid until the end of this month, but they will start taking the first reservations from next week. The latest development of luxury homes to come onto the market in the heart of the Spanish capital is located on Calle General Martínez Campos 19 and it has a very special owner: The Rockefeller Group International. The company was founded by the magnate John Rockefeller, who created a genuine fortune thanks to his business in the oil sector at the end of the 19th and beginning of the 20th century, and whose youngest grandson, the magnate, banker and philanthropist David Rockefeller, died just a few months ago at the age of 101.

The building was acquired by the real estate fund Europa Capital last summer, in partnership with Richelieu Developments, for €25 million. This fund, which is headquartered in London, is the vehicle through which The Rockefeller Group – which also controls the Japanese company Mitsubishi Estate – undertakes its investments in Continental Europe.

The property, constructed in 1931 and completed refurbished, has a surface area of 6,5000 m2 spread over seven floors and is located just 500m from Paseo de la Castellana, in Chamberí, and very close to the sought-after neighbourhood of Salamanca. The property will contain 27 luxury homes, with all kinds of amenities – a 24-hour concierge service, an indoor swimming pool, a rooftop swimming pool, a gym and spa area, a car park and storerooms – and will include five penthouse apartments, of which three will be duplexes.

The average price of the homes will stand at €8,200/m2, according to Alexander Vaughan, founder together with Stijn Teeuwen of Lucas Fox, a real estate agency specialising in the sale of luxury homes and which has made a strong commitment to the high-end market in Madrid.

The properties will be three and four bedroom homes as well as two and three bedroom penthouses with terraces. The homes will range in size from 200 m2 to 457 m2, and so the price of the units will vary from €1.6 million to €3.9 million. The three duplex penthouses will also have their own private terrace, off of the living room, and an additional terrace on the rooftop. The homes are expected to be ready by the end of 2019.

As is often the case with investments by foreign companies, Europa Capital, has sought out a local partner to construct the development. In this case, it has teamed up with the Madrilenian property developer Richelieu Developments, which specialises in luxury projects (…).

Luxury homes in Madrid are booming

The luxury residential market in both Madrid and Barcelona is in full swing. In the Spanish capital alone, there are more than twenty projects underway. Not in vain, according to the real estate agency Lucas Fox, an enormous appetite exists for these types of properties, which are still a lot more affordable than similar assets in other European cities, with a clear potential to appreciate and with returns that range between 4% and 5% in both cities. The “independentista effect” has not been felt yet in Barcelona, according to Rod Jamieson, Partner at Lucas Fox Madrid, who also marketed José Abascal 48 (a project that the fund Shaftesbury built) and Fernando VI 19 (a project that has been completed by Gran Roque Capital, owned by the Venezuelan Capriles family).

The agency is seeing huge bullish potential in the luxury market in Madrid, where the firm has increased (its turnover) by 30% in one year and see a 170% rise in its transaction value. Moreover, Lucas Fox has detected increasingly more international investors in the market. In fact, Latin American buyers now account for almost one third (31%) of all of the company’s sales, compared with 11% in 2016, whilst just under half (46%) are domestic buyers. Moreover, 62% of sales are being closed for investment reasons (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Lar & Pimco Sell A Luxury Home In Lagasca 99 For €16,000/m2

15 December 2016 – El Confidencial

They have exceeded all expectations and broken a new record in the luxury residential market in Madrid. The Socimi Lar España and the US fund manager Pimco, which jointly own (50% each) the most exclusive housing project in the capital, Lagasca 99 (previously known as Juan Bravo 3), have already sold half of the 42 super-luxury homes that make up the development, where the average sales price stands at around €10,000/m2.

But that is not the most interesting part of the story. One of the homes, measuring 800 m2 (one of the largest in the development) has been sold for around €16,000/m2, bringing its final sales price to around €13 million, including the price of the parking spaces (four or five), according to sources close to the project.

Moreover, these same sources also confirm that the project has just received the green light from the Town Hall of Madrid for the last urban planning licence necessary, not only for the definitive launch of the project, but also so that the sales of the homes can be formalised. Until now, only reservations have been accepted.

The price of €16,000/m2 undoubtedly breaks all records in the high standing market in the capital, where, until a few weeks ago, a 600 m2 penthouse on Calle Serrano 7 boasted the honour of being the most expensive multi-family home ever sold in the heart of Madrid. It was sold for €9 million, equivalent to €15,000/m2.

The transaction signed now at Lagasca 99 has even exceeded Pimco and Lar’s initial expectations, given that they had fixed a price range of between €10,000/m2 and €14,000/m2 for the properties. (…).

The identify of the purchaser has not been revealed and the utmost secrecy is being maintained. Nevertheless, several sources indicate that the buyers of Lagasca 99 include some very wealthy Latin American and Spanish investors, primarily from outside of Madrid.

The homes will be ready in 2018

The plot of land on which this exclusive development, designed by the architect Rafael de la Hoz, is going to be constructed, was sold to Lar España and Pimco at the beginning of 2015, when the two companies joined forces to purchase Eurosazor. The property developer was previously owned by Rafael Ortiz and the businessman Fernando Fernández Tapias, and owned a 26,023m2 plot of land on Juan Bravo 3 and a 5,328 m2 plot of land on Claudio Coello 108. Lar and Pimco paid €120 million for the business and since then, this asset has appreciated in value by more than 10% – the building on Claudio Coello was sold to the German firm Patrizia Inmobilien for €22 million. (…).

The homes are expected to be finished during the first quarter of 2018.

Luxury homes gain momentum

The luxury residential market in Madrid is enjoying a real boom. At the beginning of October, the homes on José Abascal 48 went on sale, with the first luxury properties now ready for their owners to move in. The building contains 17 homes measuring between 100 m2 and 400 m2, whose prices range between €6,000/2 and just over €10,000/m2. But there are also several important renovation projects being carried out right in the heart of the capital, such as on Príncipe de Vergara 11, Recoletos 13 and 8, Salustiano Olózaga 12 and Lagasca 19. (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

The Alcaraz Family Buys Caja España’s Former HQ In Madrid

23 November 2016 – Expansión

Another new luxury housing development is going to be built in Madrid. The family office owned by the Alcaraz family has purchased the building located on Calle Velázquez 23 – which used to house the headquarters of Caja España – from Banco Ceiss, where it plans to construct luxury homes.

The financial entity, which was created as a result of the merger of Caja Duero and Caja España, has taken advantage of the increase in prices driven by the economic recovery in Spain and the lack of high quality products to sell this iconic asset, located in the heart of the Salamanca neighbourhood. The operation has been advised by Aguirre Newman.

The Alcaraz family plans to demolish the property and build a new residential development, but it will respect the façade and arquitectural value of the asset. Velázquez 23 has an above ground surface area of 2,548 m2, as well as 450 m2 of basement space, which may be used for retail purposes and parking.

This building is located on one of the most sought-after axes for the development of high quality residential properties, just a stone’s throw from the Retiro Park and Calle Serrano, which is home to lots of major luxury brands. The price of homes in this area exceeds €10,000/m2 in some cases.

Other developments

This project is the latest in a long line of luxury developments that are already on the market, such as the one on José Abascal 48, comprising 17 homes with a surface area of between 100m2 and 400 m2; as well as others that are underway at Juan Bravo 3 and Canalejas.

The former, now known as Lagasca 99, which is being promoted by the Lar Group, is located in the neighbourhood of Salamanca and is expected to be sold in 2018. Meanwhile, the group of seven properties in Canalejas, a project being undertaken by Inmobiliaria Espacio and OHL, is located between Calles Alcalá, Sevilla, Plaza de Canalejas and Carrera de San Jerónimo. In addition to a hotel and shopping arcade, the Canalejas plan includes 22 luxury residences, which will be operated by the Four Seasons chain, along with the hotel.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

17 Luxury Homes Go Up For Sale In Madrid

7 October 2016 – El Economista

The luxury housing market in Madrid is booming, however, the supply of newly built homes is very limited. In fact, José Abascal 48, located in the sought after Madrilenian neighbourhood of Chamberí is marketing itself as the only luxury development in the centre of the capital with an occupancy licence.

Knight Frank and Lucas Fox will be responsible for marketing the 17 homes that comprise this exclusive development. The properties will go on the market priced at between €600,000 and €5 million.

“Four units have already been reserved and we have 65 visits booked for the next few days”, explained Humphrey White, the CEO of Knight Frank in Spain. Given the product shortage and the high quality of these apartments, both consultancy firms expect that these homes will be sold very quickly.

The project, which comes onto the market today, is not what was originally designed for this nine-storey property, which was initially going to contain twice as many homes. “We have adapted the building to the current needs of the market, given that the previous plans were designed during the real estate boom”, explained Frédéric Mangeant, Director of Shaftesbury Asset Management in Spain. The fund is the owner of this property, which was constructed in the 1940s and will now set the bar for prime house prices in this area of Madrid.

The properties in José Abascal, 48 will be sold for between €6,000/sqm and €12,000/sqm following a comprehensive renovation, carried out by the architect firm Touza. It contains apartments ranging from 100 sqm properties with one bedroom to two- to five-bedroom attics and duplexes measuring more than 400 sqm in some cases, as well as some four-bedroom homes.

Behind the protected, neo-classical façade, which represents the bourgeois scenery of the street, the homes contain living rooms measuring between 70 sqm and 100 sqm, with large terraces, bedrooms with en suite bathrooms, dressing rooms and large kitchens with islands.

The common areas represent a particularly important part of this project. The building has a gym and 160 sqm of water, with a spa comprising a jacuzzi, sauna and Turkish bath. The new residents will also have a very large atrium with natural light, thanks to the skylight, and events may be held there on the ground floor.

The luxury of this development is also evident in the garage. With a robotised parking system, managed by the company Integral Park Systems (IPS), the residents of this building will not have to park their own vehicles and may also request their cars from their living rooms, because the homes are all automated.

(…). In this way, the software records the activity of each car and if several users tend to pick up their cars at 8am, the system will move the vehicles so that they are as close as possible to the pick up point at that time.

That is the icing on a cake that has already whetted the appetite of many potential buyers of luxury homes in Madrid.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake