A Private Healthcare Tycoon Buys Can Oleza for €10 Million

19 August 2018

The Asturian millionaire and developer Víctor Madera finalised the transaction last month, returning the property to Spanish hands. Madera is acquiring ruined palaces and castles throughout the country and already owns six estates in Menorca.

The historic manor in Palma Can Oleza is changing hands. Moreover, it is doing so for millions of euros. The Spanish private healthcare magnate Víctor Madera, the Quirón Group’s non-executive president for hospitals, has acquired the property for approximately 10 million euros, as El Mundo/El Día de Baleares learned from sources familiar with the operation. The purchase agreement was finalised at the beginning of July in the Balearic capital and constitutes the acquisition of one of the last of the city’s iconic buildings.

Secrecy has been high for one of the year’s most important real estate transactions in the Balearic Islands. Negotiations were conducted very discretely, and the transaction has returned the ownership of Palma to Spanish hands after it was acquired by Swedish investors in 2013. At the time, those investors paid about six million for the property and have now sold it for a 50% markup, a fairly good return on their investment.

Sources in the premium Mallorcan real estate sector were not surprised. Mr Madera has been acquiring ruined palaces and castles throughout Spain in recent months. The Baleares were not left out of his investment strategy. Last spring brought the news that the wealthy entrepreneur and developer from Oviedo had acquired six important estates in Menorca in the last year.

Now it seems like it is Mallorca’s turn. Can Oleza, foreign-owned since 2013, when it was sold to a Swedish investor by the Oleza family, which had owned the manor since the seventeenth century – is located on Morey Street and was declared a Historic-Artistic Monument in 1973. It received development protections when it was declared to be an Asset of Cultural Interest (BIC) and received additional protections from Patrimonio three years later.

Thus, the movable assets, which are also of great value, also benefited from the measure, since they have remained largely intact to date. The modification by Patrimonio affected the decoration of the building’s main rooms, which enjoy special protection. The reason for this is simple. Can Oleza was declared a national monument, obliging authorities to grant the maximum level of protection to the property.

What has not been revealed, at least so far, are the Asturian developer’s intentions for the property. Some sources referred to the possibility of developing a high-end boutique hotel on the site, although the current regulations would make that difficult.

What is known is that Víctor Madera has been attempting to restore the forgotten jewels of Spanish architecture. His passion for rebuilding ruined palaces has a long history and has been a well-known fact for years in Asturias. People there first began hearing about Paisajes Asturias S.L. (Asturian Landscapes), one of Madera’s real estate companies. With a social capital of 53.69 million euros, it is specialised in rescuing ruined, iconic buildings and converting them into hotels.

Original Story: El Mundo – Hugo Sáenz

Photo: Jordi Avellà

Translation: Richard Turner

 

Baraka Group Agrees To Buy Edificio España For c. €265M

20 July 2016 – Expansión

The Baraka group, controlled by the businessman Trinitario Casanova, has reached an agreement with the Chinese group Dalian Wanda to acquire Edificio España in Madrid, according to reports by the El Mundo newspaper.

The holding company is finalising the details of the operation, which is expected to be completed after the summer. Casanova’s offer, which is understood to amount to around €265 million, reportedly exceeded the bids made by the other interested parties, including the Chinese firm Fosun, Hemisferio and Platinum Estates.

According to reports, Baraka is undertaking a significant expansion program. It recently acquired a plot of land measuring more than 10 million sqm in Valdebebas (Madrid) for around €75 million.

The “for sale” sign went up over the iconic Edificio España building in January, when Wanda engaged the real estate consultancy JLL, which has not confirmed the operation, to find a buyer.

The Chinese group, controlled by Wang Jianlin, the richest man in China, opened the door to the possible sale of the building after discrepancies arose with the Town Hall of Madrid regarding the renovation of the building. Wanda’s plans, which included the construction of a luxury hotel, a shopping centre and homes, clashed with the demands of the Town Hall, which insisted on the conservation of the front and side façades of the building, as established by the law governing the protection of historical buildings. In any case, Wanda has maintained contact with Madrid’s Town Planning team, in parallel with the sales process, and last met with them on 14 June.

The Chinese group paid Banco Santander €265 million in June 2014 for the building. Now, it is on the verge of selling it for a similar amount.

Wanda’s future divestment of Edificio España comes shortly after the Asian holding company announced its purchase of the UCI Odeon group – which owns the largest cinema chain in Spain.

After several years trying to sell the British Odeon cinema chain to AMC Theatres, Wanda’s subsidiary in the USA, the private equity firm Terra Firma announced the deal on 12 July. The price of that transaction amounts to GBP 921 million (around €1,100 million), of which GBP 407 million relates to the debt held by UCI Odeon, which the buyer will take on.

One of UCI Odeon’s main assets, to be taken over by Dalian Wanda, is the chain Cinesa, which is the largest film company in Spain with 535 screens across the country. In total, the chain owns 2,236 screens in 242 cinemas in Spain, the UK, Italy, Austria, Portugal and Germany. (…).

Original story: Expansión

Translation: Carmel Drake