Regeneration in Madrid: the City’s Office Supply is Set to Increase by 25%

25 February 2019 – Eje Prime

The major urban development projects underway in Madrid are going to multiply the availability of office space in the capital. Madrid Nuevo Norte, the real estate plan from Aena and the work being planned in Las Tablas, Valdebebas and Pegaso will add 3.3 million m2 of office space to the existing supply in the capital. In this way, an increase of 25% is expected, according to a report compiled by Deloitte and reported by Expansión.

Currently, Madrid has an office surface area spanning 13 million m2, of which 9.5% is unoccupied. The average rent in the financial district amounts to €33/m2/month. Together with Barcelona, the city accounts for 85% of all office inventory in Spain, and is the largest business centre in the country by surface area, with more than twice as much space on offer than the Catalan capital.

In the short and medium term, 400,000 m2 of new space will be handed over in Madrid and almost 375,000 m2 in Barcelona, according to Deloitte. For the owners, it is not only important to create new supply, but also to attract new tenants, as well as to increase rents and the valuation of buildings through the transformation of spaces.

Of the major urban development projects underway in Madrid, Valdebebas is probably the most ambitious. It constitutes a business district, called Valdebebas Fintech District, spanning more than 1 million m2, which is also going to include hotel services. Besides that program, there is also a business centre being planned in Madrid Nuevo Norte, with three skyscrapers measuring 250m, 230m and 190m tall, respectively.

The renovation of the space also forms part of the regeneration project. Over the next four years, more than 300,000 m2 of office space in Madrid will be restored. In parallel, the owners of offices in Barcelona are planning to replace buildings with a surface area of more than 58,000 m2.

Original story: Eje Prime

Translation: Carmel Drake

Bilbao’s Municipal Housing Company Buys 40 Flats for Social Housing in Bolueta

23 January 2019 – Cadena Ser

‘Viviendas Municipales de Bilbao’ has purchased 40 flats for social housing from the public company Visesa in one of the buildings that forms part of the urban regeneration project that is being constructed in the Bolueta neighbourhood for €2.7 million.

The operation forms part of the collaboration agreement between the two entities to promote social housing, according to comments made by the Town Hall of Bilbao in a statement.

The building comprises a 28-storey tower, containing 108 homes, and a 9-storey block containing 63 homes. The flats purchased are located in block 9, in doorways 1 and 3.

Eight homes will be used to house people relocated from the urban planning operation and the rest will be awarded to people registered on the housing list in Etxebide who fulfil the housing need requirements, on the basis of the number of members, income, number of years registered in the area and number of years on the register itself.

The homes will be assigned to different pre-established groups: those over 65, young people under 35, victims of gender violence, and those over 35 who have been on the list for more than 10 years, plus a general allocation.

Original story: Cadena Ser

Translation: Carmel Drake

VP Finalises Opening of Flagship Hotel in Madrid’s Plaza de España

24 November 2017 – Expansión

The hotel chain, VP, which is going to debut its Design brand in Madrid in Plaza de España in January, is looking to export its model to other European capitals.

Five years after its arrival in Madrid’s Plaza de España, with the purchase of the buildings at numbers 3, 4 and 5, VP is putting the finishing touches ahead of the inauguration of what will be its flagship property in the capital: the VP Plaza España Design.

“Design is the new collection that VP is launching with Hotel Plaza España in Madrid and we hope to expand it to other European capitals soon”, explains Pedro José Alonso, the Director of the Hotel, speaking to Expansión.

This establishment has been built on the foundations of several buildings that were illegally occupied for years and which once housed offices, an aparthotel and the headquarters of Telefónica. VP purchased the assets in 2015, from the liquidated real estate company Monteverde, for €22 million.

After demolishing the old buildings and constructing the new property, work that was carried out by the construction company Tilmón, the family group is now preparing to unveil its flagship hotel, planned for the middle of January, to coincide with the tourism fair (Fitur). “It has been a pharaonic project. We have incorporated some very exclusive designs that we have had to import from other countries and as a result, the construction work has been delayed by a few months”.

The Hotel VP Plaza España Design will have 214 rooms of different kinds spread over 17 floors, as well as a spa, gym, its own car park and a sky bar with 360º views. Moreover, it will have a restaurant on the ground floor leased to Grupo Larrumba. Both the sky bar, Ginkgo, and the restaurant, Botania, will be independently accessible to facilitate entry for clients not staying at the hotel.

This hotel wants to become a benchmark for MICE tourism (meetings, incentives, conventions and exhibitions) and will have 1,400 m2 of space for events. “Madrid needs infrastructure in the heart of the centre for this kind of tourism. The existing supply is located on the outskirts”.

Alonso explains that the hotel, which will employ 150 people, will provide a distinctive artistic and decorative offer with works from Pere Grife and Jan Hendrix.

Regeneration of the area

A few months after the debut of the hotel, the Town Hall of Madrid will begin work to regenerate Plaza de España, which is expected to start in the spring of 2018. “Plaza de España has been a black mark (on the landscape) for several years. I am delighted about the project and we form part of this regeneration work”, he says.

Moreover, the facelift of the central square will happen at the same time as the arrival of large domestic groups such as RIU and international players such as Hyatt and Four Seasons: “Their arrival is excellent news for Madrid. Those brands attract their own tourism; they help us to specialise and raise the bar”.

In terms of prices, Alonso says that rooms will be offered from €220 up to “as much as the client is willing to pay”. And he adds; “Madrid is a city that deserves to have different prices to those on offer until now, which were beneath it. In our case, we have a great building, an excellent location and a commitment to service and people. That will allow us to charge prices commensurate with those of a five-star hotel.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Ministry Of Development: Renovation Permits Rose By 5.6%

10 May 2016 – El Mundo

The number of permits granted for the refurbishment or renovation of homes in Spain amounted to 3,867 in January and February 2016, which represents an increase of 5.6% with respect to the same period last year (3,663 permits), according to data published by the Ministry of Development.

In this way, the number of permits granted for home renovation recovered its positive trend in the second month of 2016, after decreasing in January (-8.3%). Permits for home renovations recorded positive growth in February, after closing 2015 up by 13.4%.

In 2014, the number of permits granted for home renovations recorded four consecutive years of decreases and hit a low in the historical series prepared by the Ministry of Development, however that trend was broken with the aforementioned increase in 2015. Meanwhile, the number of approvals granted for property extensions decreased by 4.3% during the two months to February 2016, to 223 units.

The drive towards renovations was one of the strategic initiatives proposed by Mariano Rajoy’s Government for the housing sector. The acting Executive approved the Law for the Refurbishment, Regeneration and Renovation of Urban Properties, as well as the State Plan for Rental Housing and Refurbishments 2013-2016, which provide aid for this activity.

Original story: El Mundo

Translation: Carmel Drake

Drago Buys Banco de Andalucía’s HQ For €25M

31 March 2016 – Expansión

Banco Popular has handed over the keys to Banco de Andalucía’s former headquarters to Drago Capital and a private Spanish investor. Yesterday, the parties signed the acquisition of the property, which had been up for sale for several years, for €25 million.

With a surface area of almost 8,300 m2, the building is located in the heart of the city, next to Avenida de la Constitución and Plaza Nueva.

Drago Capital will manage the renovation of the building itself to convert it into a hotel, which will open on the upper floors. It will also create a retail space with approximately 2,000 m2 of gross leasable space on the ground floor and mezzanine level.

According to sources at the company “the operation will contribute to the on-going regeneration of the area, one of the most iconic in the Andalucían capital”.

MacPherson Consultores will handle the marketing of the retail outlets, after “observing a great deal of interest for this location from major fashion brands and restaurants”, they added.

Original story: Expansión

Translation: Carmel Drake