Ibosa Acquires RC1 from Mahou for €70 Million

8 October 2019 – The real estate cooperative Ibosa has acquired the second of the three plots of land owned by Mahou by the former Vicente Calderón stadium for 70 million euros.

The plot of land, called RC1, has a buildable area of 18,266 square meters for residential use, enough for 200 new homes. The asset also has 3,741-m2 of commercial land.

After this, only one of the three plots of land owned by the brewery is still left for sale. Pryconsa acquired the first plot for 55 million euros.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Pryconsa Acquires RC5 in Madrid from Mahou

30 September 2019 – Pryconsa, the Colomer family’s real estate developer, has finalised its acquisition of the RC5 plot of land from the Mahou brewery in its Operación Calderón. Market sources state that the negotiated sales price was around 3,000 euros per square meter, for a total of more than 55 million euros.

Mahou opted to go with Pryconsa since its offer of payment was seen as better, though the cooperatives were able to pay slightly more.

Mahou is selling off three plots of land by the former stadium in Madrid: RC5, RC1 and RC2. Pryconsa acquired the first, which has a buildable area of 18,508 square meters. The developer plans to build houses for sale, not for rent.

Original Story: El Confidencial – Elena Sanz / Ruth Ugalde

Adaptation/Translation: Richard D. K. Turner

Pryconsa Close to Finalising Acquisition of RC5 from Mahou

27 September 2019 – Pryconsa, the Colomer family’s real estate developer, is close to finalising an agreement to acquire the last plot of land on sale by the Mahou brewery in Madrid.  The sale, part of the Operation Calderón, is expected to go more than 55 million euros.  

Pryconsa would thus take over the plot of land known as RC5, which has a buildable area of ​​18,805 square meters. The land that makes up Operation Calderón has a total area of ​​193,804 square meters and a building area of ​​147,000 square meters and is one of the last large plots of land left in central Madrid.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Pryconsa and SVPGlobal in Talks to Acquire Land from Atlético de Madrid

30 July 2019 – Richard D. K. Turner

Pryconsa, the Colomer family’s developer, and SVPGlobal, which owns the Benidorm highrise, are bidding to take the last of the three plots being sold by Atlético de Madrid’s Operación Calderón. The first two plots of land went to a joint venture by Azora and CBRE GI, in a deal worth just over 100 millions of euros.

Stoneweg’s partnership with Hines had been seen as likely to win the bidding for the last plot of land, but an unexpected offer from Vivenio and the Dutch fund APG surpassed their bid at the last moment. Talks with Vivenio subsequently broke down when the firm was unable to secure the necessary financing.

Somewhat late to the party, Strategic Value Partners (SVPGlobal) and Pryconsa have both also now also expressed interest in submitting bids. The firms are analysing the asset, which Atlético de Madrid is selling for €3,150/m2. Bids are expected this week.

If neither of the two manages to reach an agreement with the football club, Atlético de Madrid is expected to go back to Stoneweg-Hines and Vivenio for final proposals, looking to finalise a deal shortly.

Original Story: El Confidencial – Ruth Ugalde / Elena Sanz

Operación Calderón: Azora Set to Buy 2 of Atlético’s Plots for Rental Homes

23 May 2019 – El Confidencial

Azora, one of the largest rental home managers in the country, has made a surprise appearance in the home stretch of the process to sell the plots of land owned by Atlético de Madrid.

The company owned by Concha Osácar and Fernando Gumuzio has submitted a binding offer to the football club to buy two of the three plots that form part of Operación Calderón and, according to sources in the know, the bid fulfils all of the requirements of the team. As such, Azora looks set to take over the bulk of the land that the reds and whites are selling by the river.

The rental home specialist has declined to comment on the reports, but all indications are that it plans to build rental homes on the two plots, to boost the growing rental market in the Spanish capital. It would thereby follow in the footsteps on the fund Ares, which has just signed an agreement with Stoneweg to build a block of rental homes on a plot on Paseo de la Dirección, in the north of Madrid.

Indeed, the Spanish-Swiss firm is one of the favourites to acquire the third plot of land in Operación Calderón, which Azora did not bid for. The cooperative manager Concovi is also in the running for that site.

Atlético de Madrid expects to raise around €180 million from the sale of the three plots and 11% of the residential space will be dedicated to social housing properties.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Operación Calderón: Mahou Puts First Plot Up for Sale

7 May 2019 – Eje Prime

Mahou has put the first plot of land up for sale on the site of Operación Calderón. The brewery has engaged Colliers to handle the sales process, which it hopes will close this year and generate proceeds of €60 million

Potential candidates for the purchase include the cooperative Ibosa, amongst others, which plans to build around 400 homes on two of the plots.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Gran Roque Seeks Buyer for its 105-Home Residential Project Next to Operación Calderón

23 April 2019 – El Confidencial

Change is afoot in the real estate sector in Madrid. Several property developers have started to put whole developments up for sale ahead of an increasingly likely change in the cycle.

The phenomenon began on the Costa del Sol, where the experts say there is excess supply and where prices could be peaking; and it is now spreading to Madrid, where developers with plans, building permits and pre-sales in place are keen to divest promotions.

Such is the case of the Venezuelans Miguel Ángel and Áxel Capriles, owners of Gran Roque Capital, who have started to sound out the market regarding the sale of one of their residential projects in the capital: Acacias 51, next to the famous Operación Calderón.

The development comprises 105 homes, which have been on the market for a few weeks (initial phase), with asking prices of around €5,700/m2. Gran Roque purchased the site, which already had the necessary urban planning permission, in 2017, for €25 million, equivalent to around €2,900/m2. Now it wants to sell it for between €28 million and €29 million, with the plans and building permits, which would represent an increase of 16%.

The property developer denies the alleged motive but has chosen not to launch a high-profile competitive process or engage a large consultancy firm to coordinate the sale.

The development comprises four 5-storey buildings and one 4-storey building, containing two, three and four-bedroom homes. 20% of the first phase (55 units) has already been reserved.

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Madrid’s Town Hall to Approve the Mahou-Calderón Project

18 July 2018 – Eje Prime

The Mahou-Calderón project is pushing ahead. Tomorrow (Thursday), the Town Hall of Madrid is going to approve the urban development plan for the land, one of the most sought-after plots in the Spanish capital. The roadmap for the site, which is still home to the Vicente Calderón stadium, the historical home of Atlético de Madrid, means that the construction work will begin after the summer and will be scheduled for completion within three years.

After the summer, Atlético de Madrid and Mahou, the owners of the batch of land, hope that the period of public consultation will be completed so that they can start to demolish the stadium, according to El Confidencial.

The building work will be divided into three phases, starting with the demolition of the Calderón. Next, and after modifying the traffic flow that passes under the pitch, the roads between Paseo de los Pontones, Paseo Imperial and Paseo de los Melancólicos are going to be urbanised.

The first phase of the project is also going to be the most expensive, with an investment of €22.7 million, half of the total budget established (€42.2 million) for this ambitious urban development plan. The Government of Madrid is going to contribute another €60 million to cover over the road.

The finalists: Solvia, Ibosa and Princeton 

Waiting to see what happens tomorrow in the Town Hall are Solvia, Ibosa and Princeton, the three finalist investors looking to buy the plots, which will expand Madrid’s residential stock by another 33,339 m2 of buildable land, located on a plot with a buildable surface area of 132,344 m2.

The objective of Atlético de Madrid with this project is to raise up to €200 million from the sale operation. The club is planning to use that extraordinary capital to repay Carlos Slim the €160 million loan that he granted the sporting entity to complete the building work on its current stadium, the Wanda Metropolitano.

Original story: Eje Prime 

Translation: Carmel Drake

Adif Sells Plot in Madrid for 80% More than its Original Asking Price

2 January 2018 – El Confidencial

It has been, without a doubt, the clearest example of the overheating in the prices of buildable land in Madrid. Adif has just concluded the auction of several plots in Dehesa Vieja, San Sebastián de los Reyes, which it launched at the beginning of October. The asking price was set at €9 million and in the end, the state-owned firm has obtained proceeds amounting to €16.3 million, in other words, 80% more than initially expected.

The plots, which have a buildable surface area of 10,500 m2, sparked interest amongst much of the property development sector, given that they are located in one of the most sought-after and rapidly growing areas of the Community of Madrid. Up to 13 property developers participated in the first auction held on 3 October, including some of the industry stalwarts.

From Gestilar to Amenábar Promociones, and including the renewed Acciona Inmobiliaria and Pryconsa. Other participants also included Monthisa, Aelca, the listed firm Neinor Homes, Procisa and Solvia. And one cooperative: SS de los Reyes Sociedad Cooperativa, owned by the Asentis group, which after going head to head with the real estate company owned by the Entrecanales family over the last month, has ended up acquiring the sought-after plot. And the reality is that, after a couple of years on the back burner, cooperatives have returned to the market with a bang and are showing that they are capable of competing, economically speaking, in spaces where traditional property developers cannot or do not want to operate.

Adif’s auction is a clear example. SS de los Reyes Sociedad Cooperativa has won the bid with an offer of €16.3 million, compared to the figure of just over €16 million that Acciona Inmobiliaria was willing to pay and which represents a land (impact) price of €1,550/m2. Just too high, in the eyes of many of the interested parties who threw in the towel along the way and who marked a top price of around €1,200/m2.

To give us an idea, the price paid by the cooperative (…) means that the future homes that are going to be constructed on the site will have to be sold for around €2,400/m2, or around €2,900/m2 if the aforementioned offer had been presented by a property developer, since it would have to include its margin to sell the homes and ensure it did not make a loss (…).

“It is important to consider that the homes planned for the site are large, measuring between 130 m2 and 140 m2 and that if we exceed prices of €400,000 for a three-bedroom home, then no matter how much prices rise by, middle-class families start to have limitations in terms of financing, and, therefore,  problems when it comes to buying such homes”, according to sources at one of the property developers that participated in the bid.

And it is not the only land operation to have raised the alarm. For months now, the market has been seeing sales of buildable plots of land at prices that were unthinkable just a couple of years ago. Recently, the Mutualidad de la Policía (Mupol) managed to sell three plots of buildable urban land – in other words, ready to build on – for around €2,250/m2 to another cooperative manager, Gesvieco, which has placed between €40 million and €42 million on the table for the plots that span 5,500 m2. The traditional and conservative property developers such as Pryconsa and Vía Célere were not willing to pay that price (…).

To give us an idea, 24 months ago, according to data from Foro Consultores, buyers were paying €800/m2 for buildable land. In other words, in two years, land prices have doubled. This (impact) price means that the price of homes for end users has increased from around €2,300/m2 to €3,100/m2.

Operación Calderón, the next major operation

Nevertheless, if there is an operation that can break all records, it is the one involving the plots that Atlético de Madrid owns next to the Vicente Calderón Stadium. The club is asking around €200 million for that package of land, in other words, around €3,500/m2, which would give rise to homes with prices of €6,000/m2, well above the price for the area, which ranges between €3,000/m2 and €4,000/m2 (…). The interested parties have already submitted their binding offers, now the club just needs to choose the best suitor.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Operación Calderón: More Social Housing But No Skyscrapers

4 July 2016 – Expansión

The buildability ratio has been reduced by 16% / The new proposals reflect a lower buildability ratio, with an average building height of eight storeys, and a larger transfer of land to the town hall, which will be dedicated in tis entirety to social housing.

Operación Calderón is back on the public agenda once again. The Town Hall of Madrid, together with the owners of the land – Atlético de Madrid football club and the beer company Mahou San Miguel – have agreed new plans for the site, which include reducing the buildability ratio by 16%, decreasing the average height of the buildings, and transferring more land to the Town Hall, which will be used for the construction of social housing. The plan must be presented to the Town Hall before it is approved.

“We have managed to launch a project that has gone through a difficult period, thanks to a better system of working. This has included listening, collaboration and the capacity to yield and seek the common good”, said the mayoress of Madrid, Manuela Carmena.

According to the new proposal, the total buildability area has been decreased from 175,000 sqm to 147,000 sqm, i.e. 16.15% less, and the average height of the buildings has been reduced from 20 storeys to eight.

Of the total buildability, around 129,000 sqm will be dedicated to homes. The representative of the Town Hall of Madrid’s Sustainable Urban Development department, José Manuel Calvo, explained that all of the 10% of the land transferred to the Town Hall will be reserved for social housing, which will allow it to “carry out the social housing policies supported by the city’s Government”.

The new plans also increase the size of the green spaces from 54,600 sqm to 79,900 sqm, and of the new facilities from 10,00 sqm to 12,800 sqm. The Town Hall has explained that the plans reflect “most” of the demands made by the neighbourhood associations of Arganzuela and will be subjected to a process of “public consultation for citizens and entities to offer their suggestions”.

Costs

In terms of placing the M-30 underground, the Town Hall will bear the cost of the integration of this stretch by offering “alternative solutions with much lower costs”. The Town Hall plans to cover part of the motorway, which would cost between €50 million and €60 million, compared with the projected cost of €140 million or €150 million associated with the previous plans.

The presentation of the agreement – which had initially been planed for 22 June, but which was postponed until after the elections – was attended by the President of Atlético de Madrid, Enrique Cerezo and the Director of Mahou San Miguel’s land business unit, Paloma Boceta. Cerezo said that next season will be Atlético’s last playing at the Calderón, before the club moves to La Peineta. “We have been working on this project for ten years. I hope that we will be able to close the deal some time soon, so as to to enjoy our new stadium and so that Madrid can benefit from a wonderful area in the centre of the city”, he added.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake