Ibosa Bids for the DGT’s Former HQ in Madrid to Build Luxury Flats

22 May 2019 – Idealista

The cooperative manager Ibosa is one of the parties interested in acquiring the former headquarters of the Traffic Department (DGT) in Madrid, located at number 125 Calle Arturo Soria, where 43 luxury flats are going to be built.

The Socimi Jaba I Inversiones Inmobiliarias put the building up for sale recently after acquiring it in 2014 for €19.2 million. The property is currently vacant having been previously leased to the DGT and Vodafone.

The office building has a gross leasable area of 5,526 m2 and comprises a ground floor plus 4 upper floors. It has 148 underground parking spaces and is located in one of the most sought-after neighbourhoods of Madrid. The asking price reportedly amounts to less than €25 million and the sale is expected to close next month.

If it is successful, Ibosa plans to build 43 high-end homes with 2-, 3- or 4-bedrooms. Each property will have a garage and storeroom and the sales prices will start at €554,000, with an average price per m2 of €5,900. The urbanisation, known as Residencial Capella, will have common areas such as a swimming pool and gym.

Original story: Idealista (by P. Martínez-Almeida)

Translation/Summary: Carmel Drake

Arcano Buys EFE’s Former HQ in Chamberí to Build Luxury Homes

1 April 2019 – El Confidencial

Arcano has just acquired the property at number 32 Calle Espronceda in Madrid, which previously housed the EFE Agency for several decades.

The firm’s new real estate fund has just purchased the building, which spans 8,000 m2, for more than €40 million from the fund Eurostone, where it plans to promote 50 luxury homes. The property is distributed over seven floors and has more than 200 parking spaces. Moreover, it has already been granted all of the licences necessary for the redevelopment work.

The operation has been advised by Colliers, Doble Dígito and TC Gabinete Inmobiliario and partially financed by CaixaBank.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

The Plans Progress for Málaga’s La Térmica Site

9 January 2018 – Málaga Hoy

The real estate operation that is going to transform the plot of land that used to house the thermal power plant in Málaga capital is advancing through all of the administrative procedures that need to be resolved for the organisation of the 874 homes, office buildings, hotel and retail spaces that are being planned for one of the most strategic blocks of land in the city.

So much so that sources close to the initiative, boosted by the international investment fund Ginkgo, have reported that the final proposal for the Special Plan for the Internal Renovation (Peri), the document that will form the basis of the future development, has already been sent to the Urban Planning Department.

That is a critical step after the previous plans were blocked by the courts. Even before receiving a definitive legal ruling, the property developer, which shares ownership of almost half of the urban development of the sector with Espacio (the other half is in the hands of the Town Hall), opted to activate a comprehensive review of Peri, in an attempt to accelerate the process.

Once in the hands of the municipal technicians, the Town Hall will have to validate the proposed plans initially, before subsequently opening up the analysis to a series of sector bodies, such as the General Directorate of Coasts, Civil Aviation, the Environment, amongst others.

The design of the buildings was awarded by Ginkgo to the French architecture studio Francois Leclercq. Unlike the model for the towers that are going to be constructed on an adjoining plot (…), the vision proposed by the French designers involves low-rise properties and a sustainable model in terms of the environment.

The studio itself highlights the strategic value of the space on which the buildings will be constructed, describing it as “an area that is in full mutation and which is marked by an industrial past”, which is reflected in the maintenance of the chimney (…).

Original story: Málaga Hoy (by Sebastián Sánchez)

Translation: Carmel Drake

Hayfin & Atitlán Buy Land from Sareb to Lock Down Plan for Valencia’s Former Formula 1 Circuit

21 August 2018 – El Confidencial

The British fund Hayfin Capital and the Valencian investor Atitlán Grupo Empresarial are continuing to take steps to launch the most iconic urban development project and the one still pending execution in the city of Valencia with the greatest chances of generating gains.

At the end of July, a joint venture held by the two investment specialists completed the purchase of plots still owned by Sareb in the so-called PAI del Grao, a developable sector that occupies land on the former Formula 1 urban circuit in the regional capital. Hayfin and Atitlán acquired 14,000 m2 of land in total, with 8,100 m2 corresponding to residential use and 2,700 m2 to commercial use, according to market sources speaking to El Confidencial. The buildability is defined by the current urban plan of the Town Hall of Valencia, although it is finalising a new plan that will modify the distribution of that buildability. The expectation is that the final use of this land will amount to around 16,000 m2.

The investors paid €4 million in an operation that appears to have a low economic value but significant strategic potential. The sale of the assets by the bad bank chaired by Jaime Echegoyen (…) will allow the Spanish-British consortium to increase its percentage stake in the plan as a whole, which occupies a surface area of more than 300,000 m2 and will involve the construction of a new neighbourhood that will connect the Ciudad de las Ciencias and Avenida de Francia with Valencia’s maritime seafront. The area is set to become one of the most sought-after parts of the city if its developers decide to build high-quality residential properties (…).

Nevertheless, it will be a while before the new Valencian neighbourhood takes shape. As a result of the administrative and bureaucratic processes still pending, the real estate sector estimates that it will take between three and five years before developments in the PAI del Grao can start to be marketed. Nevertheless, if Hayfin and Atitlán are patient and manage to overcome the pitfalls, they may obtain juicy profits from an urban planning operation in which they have already invested more than €30 million but which could generate up to €300 million in property sales, according to the most optimistic estimates.

The plan for the former Valencia Street Circuit is the most ambitious project to be launched by the Atitlan Grupo Empresarial’s real estate division, which according to its own official data already has 100 homes under development, 200,000 m2 of surface area for rent and 1.5 million m2 of land under management, including its operations in Portugal.

With its olive-growing subsidiary Elaia the largest generator of current income, an aquaculture division (Sea8) and the service and construction company Mosaiq (formerly Obinesa-Lubasa), Atitlán generated sales amounting to €437 million last year and an EBITDA of €92 million. According to official figures, it employs 2,500 people across the group (…).

Original story: El Confidencial (by Víctor Romero)

Translation: Carmel Drake

Grupo Baraka to Invest €20M in Casa Cerdá in Murcia

25 May 2018 – Expansión

Grupo Baraka is continuing to grow its portfolio of properties. The real estate group chaired by Trinitario Casanova has purchased Casa Cerdá, located in Murcia, from a group of individual investors. The plan is to convert the property into luxury homes for rent.

The investment by the Murcian firm in the property will amount to €20 million, including both the purchase and renovation of the asset. The Casa Cerdá building, with a surface area of 3,500 m2, is one of the most iconic properties in the city. The asset, which is almost ninety years old, is located in Plaza de Santo Domingo.

The property is going to be remodelled to house 24 premium homes for the rental market. The first homes will be available for rent from the beginning of 2019.

Moreover, the lower part of the property is going to be converted into a flagship store for a “large company”, which will occupy around 1,000 m2.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Town Hall of Barcelona to Build 150 Social Housing Flats in Former Urban Prison

7 May 2018 – Eje Prime

La Modelo is going to change its colour: it will turn from the grey of its former railings to the green of its new parks and family homes. That is the plan that the Town Hall of Barcelona wants to carry out with the urban prison that said goodbye to its last inmates last June. Since then, the Town Hall has been holding regular meetings with local residents and entities to build social housing properties on the land that has been left in disuse, amongst other aspects. The Town Hall’s current idea is to build 150 flats on a plot of land measuring 15,000 m2.

In total, the prison used to cover a plot measuring 27,657 m2, of which the Town Hall plans to use almost half, 14,000 m2 to develop a park that will add some much needed green space to the Eixample area in which it is located.

The first draft of the plans that the municipal government presented in the most recent meeting is one of three possible plans that the Town Hall is considering. It is the preferred option of the Town Hall led by Ada Colau, who will provide more details about the project in July, according to Idealista.

The work to urbanise the plot is not expected to begin until 2020, and so the plans may well undergo several iterations yet, although all three plans involve building public housing, green space and a section that will serve to preserve the historical memory of the 100-year old prison. What is known at this stage for certain is the amount of investment that the Town Hall is going to allocate to the project: €4.9 million, which has already been included in the current mandate, which ends in 2019.

Original story: Eje Prime

Translation: Carmel Drake

HFF Announces €110M Financing for Acquisition and Redevelopment of Ikos Andalucía

19 March 2018 – Business Wire

HFF Real Estate Limited (HFF) announces the €110 million first mortgage financing for the acquisition and redevelopment of Ikos Andalucía, a 400-room, luxury seafront resort in Andalucía’s coastal area of Estepona.

The HFF team has worked on behalf of the borrower, Ikos International, to place the five-year, floating-rate loan with Starwood European Finance Partners Limited, an affiliate of Starwood Capital Group. The loan proceeds will be used to acquire an existing hotel and institute a property improvement plan that includes reconstructing and refurbishing all existing hotel rooms, enhancing the arrival and lobby experience, expanding and repurposing the public spaces and rebranding the asset to the Infinite Lifestyle concept of the Ikos Resorts brand.

Created only three years ago, Ikos Resorts is an innovative owner-operator of luxury all-inclusive resorts throughout the Mediterranean that currently manages two operating properties in Greece with two others being delivered in May 2018 and May 2019, respectively (…) Ikos Andalucía, which will be the fifth hotel within the Ikos Resorts’ platform, is the venture’s inaugural resort in Spain (…).

Ikos International 

Ikos International, established in 2018, by main shareholders Andreas Andreadis, Mathieu Guillemin, Oaktree Capital Management LP, Goldman Sachs Asset Management, Hermes GPE and two family offices is responsible for the international expansion of Ikos Resorts, a leading European luxury hospitality company with in excess of 1,800 rooms being owned and operated or under development (…).

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry (…).

Original story: Business Wire

Edited by: Carmel Drake