10 October 2018 – Eje Prime
ASG Homes is converting one of its assets in Madrid. The real estate group is investing €25 million to transform one of its municipal office buildings into a four-star hotel. For this operation, the group has joined forces with the Hard Rock International brand, which has a presence in more than 74 countries and which is now debuting with its first hotel in the Spanish capital.
The hotel will have 159 rooms and will be located in the Madrilenian district of Atocha, opposite the Reina Sofia National Art Centre Museum. ASG is also planning to build an urban garden on the rooftop.
For Brian Betel, Managing Partner of ASG Iberia Advisors, “this office building has a lot more potential as a hotel thanks to its proximity to the main tourist attractions in Madrid, as well as to the business centre and shopping district”.
ActivumSG in Spain (which operates under the brand ASG in the country) acquired the asset in 2015 for €15 million. The former owner of the building, which has a surface area of 7,800 m2, was the multinational AEW Europe.
The objective of the operation involves unblocking the asset for the group’s investors and taking a step forward in the company’s growth strategy in Spain. Similarly, sources at ASG Iberia indicate that they have opted for Hard Rock due to its “international reach”.
At present, the portfolio of ActivumSG in Spain comprises a dozen assets, with the exception of two, which were divested in recent months, located on c/Manuel de Falla and on c/Santa Leonor, both in Madrid. Even so, the operation that caused the fund to jump to the fore was its purchase of the Mercado de Fuencarral.
Original story: Eje Prime
Translation: Carmel Drake