Tag: Puerta del Sol

The Mexican Díaz-Estrada Family to Sell the Apple Store in Puerta del Sol

7 March 2019 – El Confidencial

The Mexican Díaz-Estrada family has decided to divest the building located at number 1 Puerta del Sol in Madrid, which houses one of the Spanish capital’s most sought-after tenants, the Apple Store. They are asking around €150 million for the property, which would represent a yield of just 2-2.5%.

According to sources consulted, an Israeli investor may have already reached an agreement to acquire the iconic building from Exacorp, the investment arm of the Díaz-Estradas, but the final details of the operation have yet to be confirmed.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Marco Aldany Founder Seeks Financial Partner for his Coliving Business

26 February 2019 – Idealista

(…). One of the founders of the chain of hairdressers Marco Aldany is strengthening his commitment to the real estate sector and, following the success of his student residence business, MiCasaInn, is raising the stakes with a search for financial partners to develop a coliving company in Madrid. According to explanations provided by Alejandro Fernández-Luengo to Idealista, the company already has three buildings in the centre of the capital that it could dedicate to this segment, although it wants a financial partner to help its growth across the rest of Spain.

This new venture into the coliving sector will arrive in the form of a spin-off. “After positioning ourselves as one of the main companies specialising in students housing in Spain through MiCasaInn, we believe that the natural step is to pilot a project for young people who have finished studying and who are joining the work place, so that they can continue with us”, said Fernández-Luengo.

Currently, the company has a portfolio of assets in which it has invested more than €50 million, in the hope of launching this project. It has one building in Plaza de Canalejas, measuring 4,500 m2, another in Puerta del Sol, spanning 7,000 m2 and a third in Chueca, which could become the group’s first coliving spaces once its new brand has been launched (…).

Original story: Idealista (by Custodio Pareja)

Translation: Carmel Drake

Apple’s Landlord to Build a 20,000 m2 Hotel in Central Madrid

27 June 2018 – El Economista

The Mexican Díaz Estrada family, owner of the Apple store in Madrid’s Puerta del Sol, has decided to launch a new hotel project in the heart of the Spanish capital. It will be a large complex, spanning almost 20,000 m2, which is going to be built on Calle Montera, in two adjacent buildings, one of which used to house the former Acteón cinemas for many years.

According to several sources in the sector, speaking to El Economista, the Latin American group has decided to re-launch this development now, although it has been working on it for several years. In this way, the family acquired numbers 25-27 Calle Montera in 2013 through its company Exacorp One. That building had been owned by the public company Madrid Espacios y Congresos, which purchased it in 2007 for €55.4 million during the reign of Alberto Ruíz Gallardón. The intention of the Administration was to renovate the property and give it a new lease of life as a hotel, but that operation was thwarted by the arrival of the crisis and the plummeting prices. In the end, it sold it for €34 million to Exacorp One, which, in 2015, also acquired the adjacent building (Montera 29-31) where the Acteón cinemas used to be located.

Now the group is going to convert both buildings into a 173-room hotel complex, according to the project plans to which this newspaper has had access. Thus, the company obtained the permits to carry out this project last summer and according to the same sources, may have already reached an agreement with a chain to operate the hotel. According to the experts, this project has sparked interest amongst all operators, especially those who still don’t have a presence in Spain. “It is a very iconic project in the heart of Madrid, where there are few developments of this size underway. Moreover, Calle Montera has undergone a very significant transformation in recent times, to improve its retail and restaurant offer”.

The construction of the new hotel will involve the complete demolition of the building at number 29-31 (the Acteón cinemas) in order to build a new building connected to the adjoining one. The 12-storey establishment will have one of the best terraces in the centre, spanning 654 m2 – housing a restaurant – with a swimming pool (…). The initial plans also include the installation of a gym, a bar, meeting and banquet rooms, as well as a function room for the hotel. In addition, the building will house five commercial premises.

This is not the first hotel project from the Díaz Estrada family, which is also the owner of the new Hyatt Centric, at number 31 Gran Vía. With that opening, the chain returned to Madrid in December 2017 after leaving the management of the Villa Magna nine years ago. The Hyatt name is precisely one that is being suggested as a possible contender to operate the hotel on Calle Montera, under one of the chain’s other brands, given that it could do so by reaching a double agreement with the owners.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Thor Equities Buys Gran Vía, 30 in Madrid for €75M

18 April 2018 – Mis Oficinas

The US firm Thor has purchased the building located at number 30 Gran Vía, in the heart of Madrid, for €75 million. The property, which was constructed between 1919 and 1924 to house the Teatro Fontalba, was converted into offices, over time, for Telefónica.

The US firm already owns four other properties in Madrid. It purchased the first one in August 2015, specifically, number 9 Puerta del Sol. That same year, in December, it successfully acquired number 11 on the same square. In February 2017, it also purchased number 5 for around €50 million. Its most recent purchase was number 16 Calle Fuencarral.

The strategy of the US firm is to look for properties in the best areas of Madrid and to convert them into flagship stores for major brands.

Original story: Mis Oficinas

Translation: Carmel Drake

Invesco Invests €80M in Madrid Logistics Park to be Built by Pavasal

19 March 2018 – Expansión

The Valencian construction company Pavasal and the investment fund manager Invesco have reached an agreement to develop the largest available area of logistics space for rent in the city of Madrid, with an investment of €80 million.

The project will involve the construction, by Pavasal, of a logistics park spanning 90,000 m2, just 8km from the centre of the Spanish capital, which Invesco will subsequently purchase. The operation has been advised by the consultancy firm BNP Paribas Real Estate.

The Madrid M-40 Logistics Park (PAL-40), which is going to be located alongside the M-40, will be built in two phases. The first phase will involve the construction of a building measuring more than 45,000 m2. This property may be leased in modules upwards of 2,500 m2 to several tenants or be occupied by a single logistics operator.

Work on the first phase is scheduled to begin during the second half of 2018 and the keys are expected to be handed over during the third quarter of next year.

Meanwhile, the second phase of the project will include another 45,000 m2 of logistics space, which may be used for turn-key projects adapted to the needs of operators.

Last mile delivery

The park is going to be constructed on the basis of a ratio of more than 2,000 delivery operations per day and will optimise delivery times thanks to its location with respect to the large population nuclei and logistics activity centres. Moreover, it will receive an energy efficiency certificate, according to those responsible for the project.

Specifically, the platform will have a 336-metre long façade overlooking the motorway and will be accessible by vehicle from Avenida de Andalucía, which the logistics sector call the last mile.

In this way, the new logistics park is going to be located less than 8km from Puerta del Sol, close to the Atocha AVE station and 19km from the airport.

The logistics sector was one of the segments that performed the best last year, as shown by the large volume of land that was bought and sold thanks to the growing demand for logistics space by companies dedicated to e-commerce.

Thus, the level of uptake in the sector in the market of Madrid and its area of influence reached historical highs in 2017, with 886,405 m2 of space leased, according to data compiled by BNP Paribas Real Estate.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

IBA Capital & CBRE GI Sell Preciados 9 to Generali

15 March 2018 – Eje Prime

A new prime retail operation has been closed in the capital. The fund manager IBA Capital, together with CBRE Global Investment, has closed the sale of number 9 Calle Preciados in Madrid to the real estate vehicle of the insurance company Generali, Generali Real Estate. The Italian group has paid €100 million for the asset, which is going to be home to the future Pull&Bear store on that street, one of the most expensive in Spain for opening a store.

The property, which has a surface area of more than 3,000 m2, was the first building that El Corte Inglés sold in the Spanish capital and fired the starting gun for the policy of real estate divestments by the distribution group.

The asset, located in the so-called Golden Triangle of Madrid, was built in the 1940s. The building overlooks the confluence of the areas of Sol, Preciados and Gran Vía, and has a commercial surface area of more than 2,100 m2, distributed over six floors.

The operation, which has been brokered by the real estate consultancy Colliers, has been in the pipeline for six months, but the parties have not signed the agreement until now. In this way, IBA Capital is continuing to transform its asset portfolio in Spain.

Founded in 2013, IBA Capital is headed by Thierry Julienne and Jesús Valderrama, founders of the investment vehicle. The group has the capacity to manage all kinds of real estate assets and, currently, manages assets with a value of approximately €1 billion.

IBA Capital’s activity is divided into three lines of business. The company is continuing to acquire new assets following a phase of “prior selection of opportunities and a process of internal analysis”, according to sources at the company. IBA Capital also manages and sells assets, as well as controls the Socimi Zambal.

Its current portfolio comprises more than a dozen assets situated in prime locations of Madrid and Barcelona for the most part. They include number 18 Gran Vía and the ABC Serrano shopping centre, which have been acquired for their subsequent renovation and enhancement.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Deka Completes Purchase of 16 Inditex Stores in Spain & Portugal for €400M

31 January 2018 – Eje Prime

An agreement has now been reached between Deka and Inditex. The investment fund has purchased 16 retail stores in Spain and Portugal from the Inditex Group for €400 million. Fourteen of the premises are located in Spain. The company founded by Amancio Ortega will continue as the tenant in all of the establishments, which include several Zara shops.

The German company is whereby acquiring a package of stores located all over Spain: from Madrid (on c/Preciados and in Puerta del Sol) and Barcelona (c/Pelayo) to Palencia, Córdoba, Albacete and Málaga.

Through this operation, Inditex is reaffirming its strategy to operate almost all of its stores under rental contracts. Currently, 98% of its establishments are managed in that way.

It is worth highlighting that the retail assets sold do not belong to Pontegadea, the real estate arm of Amancio Ortega, which has been involved in several operations in recent weeks. Highlights include the segregation of its rental activity and a €100 million capital increase, as well as the appointment of Iñigo Bengoechea as the legal representative of several of the companies that make up the family office.

Original story: Eje Prime

Translation: Carmel Drake

OHL Pre-Sells Half of the Luxury Apartments in Canalejas

28 December 2017 – El Independiente

The pre-sales of luxury apartments in the Madrilenian Canalejas complex, the only one in Spain – and one of just a few in Europe – to be serviced by the hotel chain Four Seasons, is going from strength to strength. Knight Frank and Colliers, the two firms that have been exclusively appointed to manage their sale, have already placed almost half of the homes with their contacts and clients during the private launch, in other words, before the For Sale sign has been officially put up, according to sources speaking to El Independiente.

Even the penthouse, the jewel in the crown of the building promoted by Juan Miguel Villar Mir, together with his construction firm OHL, has an owner: a European millionaire, who is going to pay more than €9 million for a 500 m2  home in one of the most iconic areas of Madrid.

To date, most of the homes on this block of prime Madrilenian real estate in Canalejas – next to the Puerta del Sol – have been sold to wealthy Spanish families even though, initially, they were expected to attract interest from foreign millionaires, specifically, Latin Americans. “Wealthy families from Latin America prefer the traditional and exclusive Salamanca neighbourhood, whilst Spaniards are more interested this concept, which is going to revolutionise the centre of Madrid”, explain sources in the real estate sector.

The 22 most expensive new build homes currently available in Madrid have a minimum surface area of 130 m2 and a minimum asking price of €2.5 million, which means that buyers paying more than €13,000/m2. The combined value of all of the homes amounts to around €90 million.

The apartments are located on the 5th, 6th, 7th and 8th floors of the Canalejas Complex, have between one and three bedrooms each, have independent access (as well as through the Four Seasons hotel) and will be handed over completely finished and equipped, with the exception of furniture.

The homes form part of a complex that comprises seven historical buildings, which in recent decades housed the former headquarters of Banesto, Central Hispano and Zaragozano.

For the time being, most of the homes have been reserved by Spanish millionaires.

The complex spans a surface area of 50,000 m2 in total and in addition to the twenty homes, is going to house a five-star Four Seasons hotel with 200 rooms, an underground parking lot with 400 spaces, a retail outlet for bank use and a 15,000 m2 shopping arcade.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

JD Sports to Open Spanish Flagship Store in Thor Equities’ Puerta del Sol Property

27 November 2017 – Eje Prime

JD Sports is going to open its Spanish flagship store between Puerta del Sol and Calle Preciados. The British sports equipment retailer has reached an agreement with the US fund Thor Equities to lease the building at number 11 on the Madrilenian square, which has a surface area of 1,129 m2. Two years ago, Thor acquired the property from El Corte Inglés for €65 million.

The formal agreement is expected to be signed within the next few weeks so that JD Sports can move into the new store as soon as possible, according to El Confidencial. This operation represents an accolade for Puerta del Sol,  the kilometre zero of Spain’s streets, which has aspirations to become the retail hub of the domestic market. In recent times, the square has undergone some radical changes with the arrival of powerful retail franchises; they are investing in an area that is becoming more expensive by the day.

The British group will occupy its new space under a long-term lease contract, after beating off several important rivals in the negotiation phases, including the multinational sports equipment firm Nike.

Until 2015, the building housed the bookshop of El Corte Inglés. Spread over three floors, it is one of the most sought-after buildings in Puerta del Sol due to its location.

With this operation, Thor will see its asset value rise ahead of a future sale, such as the deal it is already negotiating for number 9 in the same square, where it hopes to build a large shopping centre. In recent years, the commercial value of the centre of Madrid has risen, as shown by the arrival of Primark in Gran Vía and the conversion of the former El Corte Inglés toyshop on Calle Preciados into a Pull&Bear store.

Rents for premises in the area have increased since 2015, now amounting to €300/m2/month in the central core, making it one of the most expensive places to lease a store in Madrid.

Moreover, Thor Equities is the owner of number 5 Puerta del Sol, for which it paid almost €50 million in February, as EjePrime revealed. The New York-based fund owns a portfolio of assets worth more than €9,000 million, spanning more than 20 million m2, in the United States (it owns several assets on New York’s Fifth Avenue), as well as in Canada, Mexico, the Caribbean and Europe, in France and the United Kingdom.

Original story: Eje Prime

Translation: Carmel Drake

Centro Canalejas’ Luxury Apartments Will Be Sold For c. €13,000/m2

4 November 2017 – Expansión

Centro Canalejas, located just a stone’s throw from Puerta del Sol, in the heart of Madrid, will open its doors at the beginning of 2019. It will house the first hotel to be operated by the Canadian luxury chain Four Seasons in Spain, as well as high-end homes, which will be sold for an average price of €13,000/m2. Moreover, it will include a shopping arcade on the lower floors and a 400-space parking lot.

The complex, promoted by OHL Desarrollos, Grupo Villar Mir and Mohari Limited – a company controlled by the Israeli businessman Mark Scheinberg– will unify seven historical buildings, some of which were constructed at the beginning of the nineteenth century, into a single unit, involving an investment of €525 million.

A luxury hotel operated by Four Seasons will occupy the majority of the space in the centre. Specifically, the hotel will have 200 rooms, whose surface areas will range from 45 m2 to 400 m2. They will occupy the entirety of the second, third, fourth and fifth floors, although the hotel will have a presence throughout the whole building. It will have 4,200 m2 of common areas as well as a spa, banquet halls and meeting rooms, one of which will have capacity for 600 people. Moreover, it will have two restaurants, one on the first floor, measuring 400 m2, and another on the seventh floor, measuring 425 m2.

Exclusive homes

The complex will also contain 22 exclusive homes with surface areas of between 150 m2 and 700 m2 for one of the penthouses, which will include a 350 m2 terrace. The homes, which will be located on the upper floors of the building, will be sold for an average price of €13,000 /m2.

“We have not started to market them yet. We obtained the definitive licence in July and we expect to start work in November, but several interested parties have already approached us”, explained Francisco J. Meliá, CEO of Centro Canalejas Madrid and Director General at OHL Desarrollos, the company responsible for developing the project.

Flagship development

Moreover, the centre will have a shopping arcade, measuring 15,000 m2, spread over three floors. The retail space will house luxury fashion and accessories brands, as well as gastronomic offerings.

The property developers and those responsible for the development have highlighted the architectural challenges involved in adapting the buildings to their new uses whilst respecting their heritage value and they underlined that more than €7 million has been invested in the conservation of 16,700 pieces.

“Centro Canalejas is going to be a flagship development in Madrid and not only because of its ocean liner shape”, explained the architect Carlos Lamela, Director of Estudio Lamela and author of this architectural project.

Original story: Expansión (by Artur Zanón and Rebeca Arroyo)

Translation: Carmel Drake