Allianz Acquires the Castellana 200 Complex for €250M

12 April 2019 – Expansión

Allianz is going to be the new owner of the Castellana 200 office and retail complex located just a stone’s throw from Plaza Castilla in Madrid. The Socimi Silvercode, in which the Canadian pension fund manager PSP and Drago Capital both hold stakes, is going to sell the property to Allianz Real Estate for €250 million, five years after buying it from Reyal Urbis for €144 million.

The complex, which was developed by Reyal Urbis in 2009, comprises 20,295 m2 of office space, 6,415 m2 for commercial use and 844 parking spaces. It has additional buildability of 14,000 m2 for a hotel or residential project, which is currently suspended, although that space is excluded from the operation. Castellana 200 is currently managed by Drago Capital.

Original story: Expansión (by R. A.)

Translation/Summary: Carmel Drake

Allianz RE Negotiates the Purchase of Castellana 200 for c. €250M

2 April 2019 – El Economista

The office and retail complex Castellana 200 in Madrid is on the verge of changing hands once again. Its owner, the pension fund of the Canadian armed forces, PSP, is negotiating its sale with Allianz Real Estate in a deal that could amount to €250 million.

The property is listed on the MAB through the Socimi Silvercode, which made its debut on the stock market in 2016. The company’s majority shareholder is Java International, (97.51%), which is in turn owned by PSP Britannia (87.76%) and Enavap Investments (9.75%). The latter is controlled by Luis Iglesias, founder of Drago Capital, which is the current manager of the complex.

Castellana 200 was last sold in July 2014 for €144 million, after opening its doors in April 2013. It is located on Paseo de la Castellana, just 300 m from Plaza de Castilla, and comprises two office buildings, spanning more than 20,000 m2, plus a shopping centre measuring 6,416 m2 and 817 parking spaces. There are also plans for a hotel in the pipeline with a surface area of 18,000 m2.

Through this deal, Allianz Real Estate, the strategic real estate division of the Allianz Group, would strengthen its position in Spain, a market it first entered in 2016.

Original story: El Economista (by Alba Brualla)

Translation/Summary: Carmel Drake

Ortega Purchases Gran Vía, 32

27 January 2015 – Cinco Días

Amancio Ortega will be the landlord of one of Inditex’s competitors, the Primark Group. The founder of Zara has acquired Gran Vía, 32, the building in Madrid where the Irish company will open its flagship store in Spain.

A consortium of funds comprising PSP, APG, Phoenix Group and Sun Capital, led by Drago Capital, has announced the sale of Gran Vía 32 to Pontegadea, the real estate company owned by Amancio Ortega. PSP Investments – the public pension fund of the Canadian armed forces and one of the largest pension managers in this country – holds a 50% stake in Longshore (the company that currently owns the building); the management team of Drago Capital, the company that manages the assets, also holds a minority stake. The remaining 50% is owned by the real estate investment fund Drago Real Estate Partners, in which a number of companies hold stakes, including the Dutch firm APG (the largest pension fund in Europe), the British insurance group Phoenix Group (formerly Pearl Assurance) and the British investment company Sun Capital Partners.

Previously, the building was owned by Grupo Prisa, which sold the property to Drago Real Estate in 2008.

Spokemen of the various companies involved in the sale were not willing to disclose the amount paid, but sector sources estimate that the price would be around €400 million.

The building on Gran Vía 32 has a total floor space area of 36,376 square metres, divided into nine floors above ground, plus the ground floor and basement.

Four of the largest fashion companies in the world will share the building, and its new landlord, in Madrid. Gran Vía 32 already houses H&M, Mango and Lefties (Inditex) stores. The Irish chain Primark plans to open its largest store in Spain in the building at the end of this year, where it will have 9,000 square metres of retail space across three floors.

Primark is owned by the Associated British Foods group and now has 41 stores in Spain, after entering the market in 2006.

Madrid, Barcelona, London

Pontegadea, a company that also receives dividend income that Amancio Ortega earns from Inditex, recorded a profit of €93.3 million in 2013, an increase of 32% compared with 2012, according to information published in the El País newspaper last August, based on data extracted from the company’s accounts filed at the Commercial Registry.

The company recorded rental income of €98.5 million, an increase of €4.3 million. The volume of assets on its balance sheet amounted to €4,519.5 million. The company reduced its bank debt by €73.8 million down to €325.1 million.

In recent years, Amancio Ortega has invested in property in Madrid, Barcelona and London, although he has also done business in New York.

Pontegadea owns several landmark properties, including the Torre Picasso in Madrid, which it acquired at the end of 2011 from the FCC group for €400 million; and a building located on Manhattan’s West Side, which it bought at the end of 2013 for €69 million.

Last year, Pontegadea purchased two buildings from Sareb – the property that used to house the headquarters of Banesto, in Plaza Cataluyna, Barcelona, for €44 million and the building that houses the Apple store in Valencia, for €23.5 million.

Recently, it also purchased Rio Tinto’s headquarters in London. At the beginning of 2013, it completed the purchase of Devonshire House, in London, a building that houses 16,000 square metres of offices and retail space. In 2006, it bought another building in London, 100 Wood Street, for GBP 140 million and in 2011, it acquired an office building on Oxford Street for GBP 220 million.

Original story: Cinco Días (by Alberto Ortín Ramón)

Translation: Carmel Drake

Sony & Discovery Move to Castellana 200

17/07/2014 – Expansion

Madrid´s office market has not seen many moves over the first six months of the ongoing year. During that time, lease contracts totalling 173.500 square meters were signed.

There have been few operations involving more than 1.000 square meter areas with the average of 500-600 square meters, as BNP Paribas Real Estate tells. To compare, in the golden age of Spanish economics, the mean post 900-1.000 square meters. But two companies picked the same building: the Castellana 200, also known as “Business Center 200”.

The property was acquired by Canadian fund PSP two months ago. Now, TV channel Discovery Networks and electronics manufacturer Sony want to make the place their headquarters. The first leases 1.071 square meters on the fourth floor, whereas the other rents 2.047 square meters on the seventh. “Discovery already moved last month and Sony is planning to do so in September”, informs CBRE that manages the unit and occupies the eighth and the ninth floors itself.

Another well-known company leasing some office space in the complex is Orangina Schweppes that occupies two stories of joint area of 3.600 square meters. CBRE assures “we get plenty of calls with inquiries about the available space every day and there are only two floors and a half of the ninth left”.

More Offices

The complex disposes of another office building, constructed by (now bankrupt) Reyal Urbis with view to settling down in there. For this reason, the property had been designed to be occupied by only one tenant, however this issue remains negotiable.

Apart from that, the complex offers a commercial Gross Lettable Area of 6.500 square meters, presently 100% occupied. Moreover, this part has got 844 parking spaces. The third building of 18.000 square meters, originally planned as a hotel, remains in hands of the insolvent company´s lenders.


Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

Canadian PSP & Drago Capital Buy Castellana 200

21/05/2014 – Expansion

The Castellana 200 office and shopping complex developed by Reyal Urbis and now controlled by the real estate firm´s lenders, has finally changed hands after one of the most dramatic sale processes witnessed over the past years.

Santander, BBVA, Sabadell and Sareb put up the complex for sale to recover at least a part of the amount lent to Reyal Urbis at the end of 2013.

As the name suggests, the property is situated at 200 Castellana street and consists of two office buildings, a 6.500 square meter shopping area and a plot for hotel use to develop.

Among the funds seriously interested in purchase of the complex, there have been such big name investors as Pimco, Perella and Anchorage which also made it to the final bidding. The latter was announced the winner, however a month after being awarded the project, Anchorage and its partner Rodex still did not provide the pledged sum. The two remaining final bidders withdrew their offers and the sale started from the scratch again.

Finally, a consortium led by Spanish Drago Capital, the owner of such buildings as the Miguel Yuste and the number 32 on the Gran Vía Street (both in Madrid) and Canadian fund PSP have acquired the property for €140 million. Altogether, they will invest €400 million in the Spanish market.


Original article: Expansión (by R. Ruiz)

Translation: AURA REE