Tag: Paseo de la Castellana

Three New Tenants Move into Torre Espacio

25 September 2018 – Eje Prime

Torre Espacio is almost completely full. The Spanish group Villar Mir has added three new tenants to its property on Paseo de la Castellana in Madrid. The companies have leased 3,019 m2 in the property.

Thanks to this operation, the Spanish group led by Juan Miguel Villar Mir has leased 94% of the total surface area of Torre Espacio, the fourth tallest skyscraper in all of Spain. The supermarket cooperative Coviran, the application design firm Mobetia and the fibre optic operator Ufinet are the three companies that will now carry out their activity in the building.

The property is distributed over 57 floors and is currently owned by the Philippine group Emperador. Its tenants include several embassies, such as those of Australia, Canada and the United Kingdom, as well as the Spanish Banking Association (AEB) and firms such as Red Bull and Equifax.

The arrival of the new companies in Torre Espacio comes in the middle of the divestment plan in which Villar Mir is immersed. A few months ago, it sold 12.2% of its shareholding in OHL, reducing its stake to 38.2%. The main reason for that move was to decrease the group’s debt.

In August, Villar Mir sold the 32.5% stake that it held in the share capital of Project Canalejas to OHL, the construction firm owned by the holding company, for €50 million, according to a statement filed by the company with Spain’s National Securities and Market Commission (CNMV).

Original story: Eje Prime

Translation: Carmel Drake

Grupo Ibosa Acquires 10,000m2 Plot on Paseo de la Habana for c. €70M

24 July 2018 – El Confidencial

It has undoubtedly become the most expensive land operation since the start of the real estate recovery. Paseo de la Habana, 147 has smashed all records, given that almost €70 million has been put on the table for its 10,000 m2, which represents a repercussion price of between €6,500/m2 and €7,000/m2. That figure is significantly higher than the expectations of the plot’s vendors, which had set a sales price range of between €60 million and €65 million.

Since the real estate bubble burst, no one has paid such a high repercussion price for a plot of land. The figure comfortably exceeds the €5,000/m2 that the builder Rafael Ortiz and the popular shipping entrepreneur Fernando Fernández Tapias paid in 2007, at the height of the boom for a plot located on Juan Bravo 3, where the Spanish capital’s largest luxury development is currently being constructed, Lagasca 99.

Since coming onto the market just three months ago, the plots have passed through the offices of more than a dozen property developers and private investors and, although many of them agree on the high price of the operation, the fact is that the plot has had half a dozen suitors in the end.

The companies that placed an offer on the table include Nozar, Grosvenor, Domo and Pryconsa, although the successful bidder in the end was Grupo Ibosa, according to some of the candidates that have been left out of the process, speaking to El Confidencial. Both JLL, the consultancy firm advising the sales process, and Ibosa declined to comment in this regard.

The plot in question is located in the heart of Madrid, opposite the Cuban consulate, just 700 m from Paseo de la Castellana and 1km away from the Santiago Bernabéu stadium, where the supply of buildable land for sale is very scarce. In fact, the vast majority of the projects in the area are being built in renovated properties.

Five detached homes are currently being constructed on the acquired plot, with surface areas of between 300 m2 and 400 m2 each, which will have to be demolished to make way for the buyer’s future project. All indications are that a luxury apartment development will be built on the plot, which will be added to the high-end projects that Ibosa currently has underway in Valdemarín – on some plots it acquired from Blackstone – and in Aravaca, and marketing of which has just been launched.

The lack of new build product in the area and the high demand explain this pressure on prices. The development will be built in the Chamartín district, which is home to some of the most sought-after residential areas in the centre of the city, such as El Viso, where the Venezuelan investors Miguel Ángel and Áxel Capriles arrived in April last year to purchase Villa San José on Pablo Aranda 3, just opposite Florentino Pérez’s real estate bunker.

In terms of benchmark prices, one example is the 11 homes that are being built on the plots of the former headquarters of RTVE. The Ministry of Finance put that plot up for auction at the end of 2015 and it was awarded to Martell Investment for €10.8 million, which represents a repercussion price of €4,800/m2. Construction of those homes has now begun and the prices fluctuate around €7,000/m2.

Boom in prices

In just two years, the prices in the most sought-after neighbourhoods of the Spanish capital have soared by more than 20% (…).

According to a recent report from Engel & Völkers, maximum prices in this Madrilenian neighbourhood amount to €6,000/m2, although, as sources specialising in the sale of luxury homes at the agency explain, “there are no new build properties in the area, and so the final prices depend a lot on the features of each project”.

In terms of the area, like in the most trendy areas of Madrid, prices have risen sharply over the last year. According to Engel & Völkers, prices have risen by 10% since 2017, “although, at the moment, more operations are being closed than last year because there is greater access to credit, but, nevertheless, prices are barely rising”.

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Catalana Occidente Finalises Purchase of Gaudí’s Torre Bellesguard for €30M

20 July 2018 – Idealista

Catalana Occidente is adding a new asset to its portfolio. The real estate investment arm of the insurance company Catalana Occidente is finalising the purchase of Torre Belleguard, constructed by Antoni Gaudí at the beginning of the 20th century, for €30 million. The Town Hall of Barcelona, the Generalitat and the Regional Council of Barcelona have declined to exercise their right of first refusal and preferential acquisition.

The Catalana Occidente Group, which is headquartered in Sant Cugat del Vallès, has expressed its interest and is willing to pay the owners €30.1 million, excluding taxes, such as the property transfer fee, which would increase the consideration to at least €33 million, according to El País.

The acquisition of this property (which has been classified as an Asset of National Cultural Interest since July 1969) is pending “a few finishing touches” and the intention is for the building “to continue to be open to the public because we are aware of its importance and great heritage value”, explain sources at the company.

Torre Bellesguard was threatened in 2008 when deteriorations caused by the passage of time forced its owners to undertake a comprehensive restoration project and invest €600,000 (a cost shared equally between the family, the Generalitat and the Town Hall).

The high cost of the renovation led the family owner of the property to open it to the public in 2013, organising guided tours inside the tower. It also opened its gardens for the celebration of cultural and social events.

Following this purchase, Catalana Occidente would increase its asset portfolio. The insurance group has invested up to €208 million in the purchase of properties in Spain over the last two years. In total, the company has acquired six offices buildings located in Madrid and Barcelona.

The largest purchase made by the company, which is itself controlled by the Serra family, was the acquisition last year of two properties (Luxa Silver and Luxa Gold) in the 22@ district of Barcelona for which it paid €90 million to the fund Stoneweg.

Moreover, at the end of 2016, the insurance company purchased the building at number 55 Paseo de la Castellana, in Madrid, for which it disbursed €60 million. The asset, which was sold by Standard Life with a 100% occupancy rate, has a surface area of 5,625 m2.

The €27 million that it paid for a second property in the Spanish capital, located in the Montecarmelo area (…) completes the number of acquisitions made by the group’s parent company since 2016.

With these investments, Catalana Occidente’s real estate portfolio in Spain amounted to €1.265 billion at the end of the first quarter of 2018. This line of business generates gains of €476.6 million for the group, in which the real estate component of the investment portfolio (€12.2 billion) amounts to 11.3%.

Original story: Idealista

Translation: Carmel Drake

Spain’s Popular Party May Sell its HQ in Central Madrid for €60M

12 July 2018 – Eje Prime

The Popular Party could receive a handsome cash injection for the national headquarters that it renovated using dirty money. The sale of the building located in central Madrid could generate up to €60 million for the PP in the event that it decides to sell it.

As one of the candidates to take over the leadership of the party, Soraya Sáenz de Santamaría, explained recently in an interview with La Cope, many grassroots members have told her that, the national headquarters, located at number 13 Calle Genova, was “too big” and that she should “given some consideration” to this matter, according to Cinco Días.

The property is located in the most prime office area of Madrid, which runs from Recoletos to Azca, along Paseo de la Castellana. It is an asset that will spark interest amongst international funds, the most active players at the moment in the Spanish real estate sector, and family offices with significant resources looking to take advantage of the few office spaces that remain available in the area.

Original story: Eje Prime

Translation: Carmel Drake

Intu Moves into New HQ in Madrid on Paseo de la Castellana

19 April 2018 – El Economista

The British giant Intu, owner of several shopping centres in Spain, including Xanadú in Madrid and Puerto Venecia in Zaragoza, is continuing to grow in our country with a new headquarters in the capital. The company, which until now had its offices in the Chamberí neighbourhood, has moved to a small palace on Paseo de la Castellana.

With this operation, which has been advised by the real estate consultancy firm Savills Aguirre Newman, the firm is expanding its office space and positioning itself in a strategic enclave in the city. Specifically, Intu is going to move to number 64 Paseo de la Castellana, into the iconic Palacete Moreno Benítez, which spans 1,350 m2, spread over five floors.

The building, constructed in 1904 by the architect Joaquín Saldaña, was inhabited for many years by the aristocracy of the time and is one of the few small palaces that has managed to survive of the 70 that used to dominate this major Madrilenian thoroughfare.

Its current owner, which will become Intu’s landlord in Madrid by virtue of this contract, is the real estate company Caboel, in which the Carbó, Bonet and Elías families hold stakes, all former owners of the Caprabo distribution group.

Caboel acquired the property in 2015 by making the best offer – €13.5 million – in a public auction organised by the State Company for the Management of Real Estate Assets (Segipsa). Until then, the building had been owned by the General State Administration, which acquired it in 1982.

The company has carried out a project to refurbish the building to subsequently obtain returns by leasing it out.

Caboel owns 30,000 m2 of office space in Madrid, Barcelona, Lisbon and Porto, according to information provided on its website. The company’s portfolio comprises 150 assets, diversified across different sectors such as commercial, with retail premises and out-of-town shopping parks, as well as hotels and logistics assets.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Tauro Real Estate Buys Torre Ámbar in Madrid

3 July 2018 – Eje Prime

The new Tauro Real Estate is rearing its head in the Spanish residential market. The fund, which is now under the mandate of Globe Invest, the Israeli company that acquired the firm in April by paying €180 million to its former shareholders, has recently purchased Torre Ámbar in the centre of Madrid.

In the middle of May, Globe Invest, owned by the multi-millionaire Teddy Sagi, acquired the rights to purchase the residential block from the Inveriplus group. The tower comprises 64 prime homes very close to Paseo de la Castellana, according to confirmation from sources involved in the operation. The amount of the transaction has not been revealed. The vendor in this operation, Inveriplus, is a group dedicated to investment in real estate assets for their subsequent management and value generation. The company, which is headquartered in Madrid, is led by Óscar Bellette.

The asset has been acquired after the clean-up that Inveriplus conducted of the tower. It, in turn, had purchased the homes during the crisis from several merchants of the Proinlasa real estate group. For the last few years, the manager has succeeded in leasing the block in its entirety.

Torre Ámbar is one of the skyscrapers that comprises the residential area of Isla Chamartín, located to the north of Madrid. The building, whose first homes were handed over in 2009, was designed for sale, but the change in economic cycle forced a change in the objectives and it was put up for rent in 2014.

The sale was signed “at market price”, according to sources close to the operation speaking to Eje Prime. “The returns that the property could generate are of much greater interest than the purchase opportunity”, say the same sources.

Torre Ámbar comprises luxury one and two bedroom homes, as well as several studios. The urbanisation is private and has security gates, a swimming pool, garages and storerooms, a padel court and private green spaces, according to Proinlasa’s corporate website.

The owner of the property has real estate assets for sale and rent in Madrid, Valladolid, Palma and Córdoba. In its property development plan, the group says that, in addition to residential land, it is also backing the tertiary and industrial market.

The owner of Camden Market’s commitment to Spain

Teddy Sagi is an Israeli multimillionaire and owner of the renowned Camden Market in London. The businessman, through Tauro Real Estate, has acquired 600 homes spread between Madrid and Barcelona.

Tauro has fattened up its portfolio in less than four years with the purchase of assets, primarily from banks, involving the investment of up to €160 million. In Madrid, it owns 350 homes and in Barcelona, it has another 250 properties. In the Catalan capital, it owns tourist apartments, which comprise 30% of the assets that Tauro owns in the city (…).

Original story: Eje Prime (by J. Izquierdo & P. Riaño)

Translation: Carmel Drake

CBRE GI Invests €10M in Star Project in Plaza de Colón (Madrid)

21 June 2018 – Eje Prime

CBRE Global Investors (CBRE GI) is increasing its commitment to Spain with its latest project. The investment arm of the CBRE group is going to invest €10 million in the project to renovate the building at number 1 Plaza de Colón and, to this end, the multinational firm has engaged one of the most sought-after architects in the world, Norman Foster. The new property, which is going to be constructed on the site of the former Barclays headquarters, will become the star of CBRE GI’s growth plan in Spain.

The asset manager acquired the former Barclays headquarters in 2017. In November of the previous year, the financial institution started to sound out the possibility of selling the building on Plaza de Colón (at the intersection of Paseo de la Castellana and Paseo de Recoletos) to move to another location and, three months later, in January, it sealed the deal.

Three years after the acquisition, CBRE GI is preparing to transform the building, a project that has formed part of its plans since it completed the operation. The former Barclays headquarters is now beginning a renovation that will convert it into Axis, where offices and a commercial area are going to be opened on the four floors that will comprise the new asset.

This project forms part of an investment plan that will amount to €800 million. The company has almost one hundred properties in its portfolio, spread across the retail, office, logistics and hall of residence markets.

Nevertheless, in May, the company announced that it is going to enter the residential sector in 2018. The consultancy firm’s investment fund wants to access that segment through the rental market (…).

The company’s objective for this year is to repeat or even exceed the investment figure recorded last year. In 2017, the manager closed transactions amounting to €1.3 billion.

In addition, CBRE GI, which works with eight investment funds in Spain, manages a portfolio of assets worth €3.2 billion (…).

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Meridia Capital Acquires an Office Building in Madrid for €26.5M

29 May 2018 – Eje Prime

Meridia Capital is entering the prime office area of Madrid. The Barcelona-based investment fund has purchased a building with a surface area of 7,500 m2 for €26.5 million, as revealed by Eje Prime. The firm, founded and led by the businessman Javier Faus (pictured below) has sealed the operation through its investment vehicle Meridia III.

The property is located close to Paseo de la Castellana, at number 4 Calle Juan Hurtado de Mendoza. The office was constructed in 1967 and underwent a renovation in 2005.

Following its purchase, Meridia plans to refurbish and improve the property with the renovation of its façade and technical facilities. In addition to offices, the property is also home to 54 parking spaces.

Original story: Eje Prime

Translation: Carmel Drake

Everis & AXA Sign The Largest Office Rental in Madrid Since 2013

17 May 2018 – Eje Prime

Everis and AXA have signed the largest office rental contract in Madrid since 2013. AXA’s real estate manager is going to lease almost all of Edificio Novus, located in the north of the Spanish capital, to the consultancy firm, which will occupy 37,800 m2, according to a statement issued by the insurance group.

Located close to Barajas airport, the building has six floors and spans a total surface area of 42,000 m2. It is also home to Hilti, the company that supplies technology to the construction sector. Everis is going to employ up to 4,000 people on the site, whereby centralising its workers in the capital into one building.

The asset has been owned by AXA Real Assets since 2015. Over the last three years, that group has renovated the common areas and has promoted the name Novus, the building’s new brand name since it passed into the hands of the multinational.

In addition to this contract, Everis already closed a rental contract with GMP for more than 5,000 m2 of space in the building at number 77 Paseo de la Castellana. A priori, the headquarters of the consultancy in Spain will be located there, with offices for directors and the most corporate areas of the company (…).

Original story: Eje Prime

Translation: Carmel Drake

Merlin Invests €55M to Reposition its Assets in Azca (Madrid)

24 May 2018 – Expansión

Merlin has launched an ambitious renovation plan for two of its buildings located in the heart of Madrid’s financial district, the Azca complex, one of the capital’s most important commercial and business areas.

Specifically, the Socimi led by Ismael Clemente is going to invest €55 million to refurbish the building located at number 83 and 85 Paseo de la Castellana and another property located in Plaza Ruiz Picasso. The company plans to start the renovation work in 2020.

In the property located at numbers 83 and 85 Paseo de la Castellana, the company is planning a complete renovation of the façade and entrance lobby, which will have a triple height ceiling. Similarly, the refurbishment of the building will include the common areas and other installations.

This building, the current headquarters of Sacyr, has a surface area of 15,254 m2 spread over the ground floor, 11 above ground floors and two underground floors. The aim of the Socimi is to strengthen the space dedicated to retail.

Comprehensive renovation

The Socimi will invest €25 million in that renovation project, which will require almost the entire building to be vacated. “It is one of the best buildings in Madrid and we hope that it will be the doorway to the future reconfigured Azca that we are working on”, said Ismael Clemente, CEO of Merlin, speaking a few days ago at the General Shareholders’ Meeting. In addition, Merlin will invest €30 million to reposition the property in Plaza Ruiz Picasso and to create a building with “the most extensive and best-equipped floor space in all of Azca”.

That asset, which has a surface area of 31,576 m2, will have dual access, from Calle Trías Bertrán and Plaza Ruíz Picasso, and will contain various retail spaces. “This building is almost invisible at the moment but that situation will change after the renovation. The location is crying out for it”, said Clemente.

The director explained that the property has an “exceptional” parking provision for an office building, given that, initially, it was conceived as a shopping centre. Merlin is working with the Spanish architecture studio Fenwick Iribarren to renovate this building (…)

These two buildings owned by Merlin live alongside Torre Titania, the skyscraper owner by El Corte Inglés (…). Meanwhile, Castellana 81 and Torre Ederra, located at number 77 Paseo de la Castellana, are owned by the Socimi GMP; Torre Europe is controlled by Infinorsa; whilst Torre Picasso belongs to Pontegadea, the investment vehicle owned by Amancio Ortega (…).

The Landmark I Plan

The renovation of these two properties forms part of a larger project, the Landmark I Plan, which comprises a total investment of €250 million in office buildings over the next four years.

Within the framework of the Landmark I Plan, Merlin is going to handover Torre Glòries in Barcelona and Torre Chamartín. Over the next few years, the Socimi is also going to renovate the properties located at numbers 38 and 40 Calle Alcalá, Castellana 93, Alfonso XI and Princesa 5-7 in Madrid;  as well as Diagonal 605 in Barcelona; and Monumental and Marqués de Pombal 3 in Lisbon.

“Over the next 12 to 18 months, there is going to be more demand than supply in the market due to the volume of obsolete products. At that point, rents will enjoy a sweet moment, and will move significantly upwards”, say sources at the Socimi.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake