Therus Will Invest €110M To Build New Office Complex In Madrid

22 September 2016 – Mis Oficinas

The building will be constructed on the last plot of land, measuring 21,000 sqm, that was available in this area in October 2015, when it was purchased from Unide. There is now no buildable land left in the area.

Construction at the site is due to begin in October. The project involves the design of a 33,123 sqm complex of offices and 800 parking spaces in the Vía Poblados area of Madrid. The real estate complex, which covers 56,000 sqm, of which 23,000 sqm will be underground, will comprise two office buildings, in a modern architectural style, linked by a covered pedestrian walkway. Each property will have its own entrance hall with lifts and access to the two underground car parks, which will allow the buildings to be divided perfectly as two independent properties or to be used together by a single tenant.

Building I will measure 13,000 sqm and be spread over six floors. It will have an open space of between 2,500 sqm and 3,200 sqm and as such will comply with one of the main demands of companies seeking new locations at the moment. Meanwhile, Building II, measuring 21,000 sqm, will be spread over seven floors. In total, both properties will have capacity for 3,00 employees. “It is an exceptional project due to its design and location, given that it has dual visibility over both the M-11 (airport) and the M-40 – the main ring road – and it is right next to the metro”, said Olivier Crambade, the CEO of Therus Invest.

The Campo de las Naciones area is home to more than 500,000 sqm of office space. The headquarters of many major multinational companies are located there, including Coca-Cola, Ericsson, Endesa and Iberdrola. (…). The search for a tenant for the new offices has already started.

In parallel, the firm is looking for an investor for the complex, where construction work is expected to be completed in September 2018. “The idea is to sell the property to an end investor and we are already in advanced negotiations; we expect to close the operation before the end of the year” (…).

“The ground floor is the key to this project, given that it is an open space that promotes the flow and use of its occupants. It is surrounded by gardens and restaurants, and there won’t be a single car in sight. The car park is in the basement. (…)”, said Crambade.

Crambade is proud of his new project. “At the moment, there are no new offices on the market in Madrid, and so a high quality project of this size in such a good location represents a very good opportunity for investors. There are not many products that can give you a return of 6% or 6.5%.

Original story: Mis Oficinas

Translation: Carmel Drake

Supply Of New Homes In Madrid Increases By 68%

6 May 2016 – Knight Frank

We are talking about a changing trend in the new build residential market in Madrid. The projected supply is increasing significantly – up to 68% more construction permits were granted in 2015, the third consecutive year of increases – but that volume is still insufficient to satisfy demand. This is the main finding from the latest report about new-builds from the real estate consultancy firm Knight Frank.

Currently, the municipality of Madrid has a stock of around 3,000 new homes. 30% are located inside the M-30 (ring road), where supply is limited due to the shortage of land. The area between the M-30 and M-40 ring roads is home to 20% of the supply, whilst the remaining 50% is located, for the most part, in the PAUs.

The average absorption rate of the product supplied over the last year has been 37%. Most of this absorption has happened in the PAUs (12%), which indicates very reasonable levels in areas that are continuing to establish themselves.

According to Ernesto Tarazona, Managing Partner for Residential and Land at Knight Frank, “the lack of stock, together with the increase in demand has resulted in the sale of new build homes that have been on the market for years”.

In 2015, we saw how auto-promotion and cooperative activity decreased by 8%, in favour of traditional property developers. “Although it is a small percentage, the future trend points to a continuation of the positive recovery, to the extent that access for financing for property developers is more flexible”, said Tarazona.

The number of new build transactions increased by 15% with respect to the previous year. 73% of transactions were bought off plan and the remaining 27% were turn-key projects.

By area, the PAUs lead in terms of demand, with 48% and there, Valdebebas (20%) and the Ensanche de Vallecas (10%) stand out, in part due to the concentration of more affordable supply. The area inside the M-30 ring road comes next in the ranking, accounting for 23% of demand. There, the neighbourhoods of Tetuán (6%), Centro (4%) and Chamberí (4%) are the most popular. Finally, the area between the M-30 and the M-40 receives 18% of demand and the area beyond the M-40 accounts for 11%.

Original story: Knight Frank

Translation: Carmel Drake