KKH Capital Buys ‘Art Montfalcó’ Building In Barcelona For €24M

13 November 2017 – Eje Prime

New investment operation in the heart of Barcelona. In the midst of the political uncertainty, the real estate market is remaining active. The group KKH Capital has just acquired the Art Montfalcó building, located in the heart of the historical centre of Barcelona, for almost €24 million, according to market sources. The investment fund Medcap Real Estate and the real estate group Castmor had also submitted bids for the property.

The KKH Group has acquired the property through its parent company. Moreover, the company also operates in the real estate sector through KKH Property, a joint venture formed by KKH Capital, the investment group controlled by the former CEO of Renta Corporación, Josep María Farré, and Perella Weinberg, which participates in the partnership through one of its opportunistic funds.

The building, baptised as Palau Castañer in 1906, has been sold by the Güell family; it is currently leased to the Art Montfalcó souvenir shop. The surface area of the property is 2,000 m2. According to the same sources, the objective of KKH Capital is to renovate the retail premises and negotiate with a new operator (…).

KKH Capital, which specialises above all in residential assets, will add this property to its portfolio. The group, through KKH Property, has been acquiring assets over the last few years, including some as iconic as the Deutsche Bank tower in Barcelona, located at number 111 Paseo de Gràcia, which it bought from three Andorran families (the Reigs, the Ribas and the Cerquedas) for €90 million.

After negotiating with the hotel chain Four Seasons, the group has leased that building (the Deutsche Bank tower) to Seat. In total, it will comprise 2,600 m2 spread over four floors: a basement, ground floor and two upper floors. The store will not be a typical concession, but rather is looking to become a point of reference for the city. It will include a gastronomic space and a coworking area, whose features have not yet been defined.

The establishment will open at the end of 2018. KKR will undertake a major renovation of the building, for which it will engage the architecture firm OAB, led by Carlos Ferrater, author of the Olympic Village in Barcelona and the Catalunyan Palau de Congressos, amongst others.

One of its other most recent acquisitions is the Monte de Piedad building, located in Madrid. In that case, the group reached an agreement with the Fundación Montemadrid at the end of last year to buy the property for around €80 million. KKH’s plans for that property involve converting the asset into a luxury hotel.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

KKH Property Buys Monte de Piedad’s Former HQ For €80M

9 December 2016 – El Confidencial

A year after engaging Irea to organise an official sales process for its headquarters in Plaza del Celenque, the Fundación Montemadrid (the successor of the former Fundación Caja Madrid) has reached an agreement with KKH Property Investors to sell the property for around €80 million, according to sources consulted by El Confidencial.

This is a key operation both for the Fundación, which will raise funds through this divestment to allow it to ensure the continuation of its social work, as well as for the buyer, which is entering the sought-after real estate market in Madrid with a bang.

Headquartered in Barcelona, KKH Property is a joint venture between KKH Capital, the investment group controlled by the former CEO of Renta Corporación, Josep María Farré, and Perella Weinberg, which owns a stake in this partnership through one of its opportunistic funds.

The JV plans to convert the Monte de Piedad building in Madrid into a luxury hotel, with 180 rooms and suites, as well as an extensive range of restaurants and spaces for conferences and social events. The building has a surface area of 27,000 m2, spread over seven above ground floors and two basement floors, used for parking.

Located between Plaza de Celenque and Plaza de Las Descalzas, the property will continue to house the activities of the Fundación Montemadrid, which will continue to occupy approximately 2,000 m2 of the property. (…).

The building was constructed in 1975, on the site of the former Montepío, just opposite the Monastery of Las Descalzas Reales and only 200 m from the Puerta del Sol. (…).

The sale of the former headquarters of Fundación Montemadrid, whose offices are now located next door in La Casa de Las Alhajas, sparked interest amongst a large group of buyers. Nevertheless, the price expectations of the seller ended up whittling down the potential candidates to just two, KKH Property and Hispania, both of which submitted definitive offers in the summer, according to market sources.

In the end, KKH has emerged victorious. Although this is the company’s first major operation in Madrid, the vehicle led by Farré already owns several iconic buildings in Barcelona, most notably the former headquarters of Deutsche Bank, located at numbers 109 and 111 on Paseo de Gracia, which it acquired in July 2014. (…).

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake