The Grifols Family Buys a Sought-After Property on c/Velázquez in Madrid

7 June 2019 – El Confidencial

The Grifols family, the main shareholder of the pharmaceutical group of the same name, has purchased a sought-after building on Calle Velázquez, 21 in Madrid through its Socimi Centurion Real Estate.

Until now, the property had been jointly owned by the Gancedo family, which has occupied the commercial space on the ground and first floors for more than 70 years, and another family, comprising around 20 interested members, who owned the upper four residential floors.

According to various sources, last year, the Grifols family reached an agreement with the Gancedo family to purchase its share of the property for €20 million, in a deal brokered by Savills Aguirre Newman. The sale of the residential floors of the building is now being brokered by CBRE and is expected to close in September for €32 million, taking the total purchase price to €52 million, equivalent to €8,000/m2.

Created in 2014, Centurion has been famous until now as the landlord of the pharmaceutical company, given that it owns the four buildings that house the company’s offices in Barcelona, on Calle Jesús y María, and in Sant Cugat del Vallès. This represents the Socimi’s first major purchase in Madrid and sees its entry into the luxury home market in the heart of the Spanish capital.

Original story: El Confidencial (by R. Ugalde & E. Sanz)

Translation/Summary: Carmel Drake

Atlético de Madrid will Sell the Calderón Land in Q1 2019

2 February 2019 – Expansión

Following the demolition of the stadium, the club will be able to sell the plots where 600 homes are expected to be built.

The project to urbanise the Mahou-Calderón area, which will convert the surface area currently occupied by Atlético de Madrid’s former stadium into homes and tertiary use, has taken a step forward. Within the next few weeks, work is expected to start on the demolition of the Vicente Calderón, which will enable progress to take place with the reparcelling and subsequent sale of the land.

The Madrilenian club, owner of 50% of the surface area, will then be able to proceed with the sale of the land, which has a surface area of 14,866 m2 and a buildability of more than 63,000 m2. On this plot, between 550 and 600 homes may be built, with prices of around €6,000/m2.

Besides the Madrilenian club, the other owner of the land is Mahou San Miguel. The brewery company has not yet taken a decision regarding the sale of its share.

Candidates

Sources at the club have indicated to Expansión that several parties are interested in these plots, which constitute the last major stock of land left inside the M-30. The potential buyers of the plots include investment funds, property developers, joint ventures between the two and cooperatives. “We are holding very advanced negotiations with three of them with the idea of formalising the operation this quarter”, they state.

In terms of the timings, once work has started on the demolition of the stadium, which is expected to begin in the coming days, the reparceling project will continue, which will last for the months of February and March. Once the plots have been registered in the registry, they will be available for sale. The Project will carry out the urbanisation and building work at the same time in such a way that the homes could be ready within three or four years (…).

Original story: Expansión (by R. Arroyo & E. Santos)

Translation: Carmel Drake

Metrovacesa will Invest €400M to Build a New 550-Home Neighbourhood in Palma

30 November 2018 – Eje Prime

Metrovacesa is going to expand the city of Palma. The listed property developer is going to construct a new neighbourhood comprising 550 homes in the Balearic capital with an investment that will exceed €400 million. The company is going to build five developments in the Nou Llevant area, which is expected to be completed in 2023.

The real estate company has already started marketing the first phase of the project with Jardins del Llevant, a development comprising 91 multi-family homes with between one and four bedrooms and eleven duplex homes with four bedrooms.

Construction of the complex will begin during the second quarter of 2019 to be ready by the end of the following year. In the common areas, the enclosure will have gardens and two panoramic, outdoor swimming pools on the roof.

Through this commitment to Palma, Metrovacesa is going to develop more than 160,000 m2 of land, of which 110,000 m2 will be for tertiary use and the remaining 56,000 m2 will be for residential use.

Currently, the property developer owns a portfolio of land for the development of 38,000 homes across the country. The company is going to put sixty developments and 5,000 new units on the market next year, as Eje Prime reported. Metrovacesa expects to close the year “with double-digit growth”, according to explanations provided recently by Juan Núñez, Operations Director at the real estate firm. The objective of the company for 2019 is to be the number one property developer in Spain and to reach an annual turnover of €1 billion in 2020.

Original story: Eje Prime

Translation: Carmel Drake

Madrid’s Town Hall Definitively Approves the Mahou-Calderón Development

15 November 2018 – El Confidencial

The final piece of the puzzle has fallen into place. The Governing Board of the Town Hall of Madrid has definitively approved the urbanisation plans for the Mahou-Calderón project after the corresponding period of public consultation came to an end on Thursday. This means that the owners of the land can now start work. The plenary of the Town Hall will ratify the final project over the coming weeks, although the claims phase is not, in theory, expected to alter the plan initially approved in July: it involves a budget of €42.2 million, will see the transformation of 193,804 m2 of land in total and will be executed in three phases in just under three years. The first phase will involve the demolition of the stadium.

The demolition of the Atlético de Madrid’s temple, an operation that will cost €22.4 million, will be the first piece of work to be carried out, with the exception of the stand located above the M-30, which will remain in place to interfere as little as possible with the traffic on that road. Subsequently, the traffic from the motorway ring-road will be diverted so that the stand can be demolished. The first stage will also include the urbanisation of the roads between Paseo de los Pontones, Paseo Imperial and Paseo de los Melancólicos.

Once those first projects have been concluded, phase 2 will begin, which will see the reorganisation of Paseo de los Melancólicos and Calle Duque de Tovar, with a budget of €7.7 million. Finally, the third phase, with a final budget of more than €12 million, will include the creation of a new park by the river, which, in any case, will come after Calle-30 has been covered over, by the Town Hall. Specifically, the Town Hall has committed to providing €60 million to finance the work to cover over that road, a budget that is separate from the urbanisation project that has been approved today because it was agreed that it would be processed independently.

The Governing Board chaired by Manuela Carmena gave the final green light to this project today, which is going to be financed by the Compensation Board that comprises the landowners (Atlético and Mahou). The surface area of the space is broken down into two sections, one of which is dedicated to residential and tertiary use, and the other to roads, green areas and basic amenities.

The land dedicated to residential use occupies 33,339 m2 (with a buildability of 132,344 m2) of which 13,243 m2 will be for social housing properties, which represents more than 11% of the total. Meanwhile, tertiary use land will have a buildability of 14,705 m2. Finally, the land dedicated to social uses will span 13,893 m2 for public amenities. In addition, 73,099 m2 will be dedicated to green space and 73,469 m2 to roads .

In any case, this final procedure paves the way for the construction work to begin and for one of the major urban planning operations in the city to be unblocked. It has been in the hands of the Department for Sustainable Urban Development, led by José Manuel Calvo. As this newspaper published in the summer, the initial approval of the plan – which today received definitive approval – was a key step for the plans of Atlético de Madrid. The football club suspended the process to sell its urban planning rights in January, as it was waiting to be able to offer the three interested finalists – Solvia, Ibosa and Princeton – a series of guarantees, including the reparcelation and urbanisation project, amongst others.

With the sale of its urban planning rights, Atlético de Madrid is hoping to raise almost €200 million, an amount that it is hoping to use to repay the Mexican businessman Carlos Slim for the €160 million loan that he granted  to Enrique Cerezo’s club to finance the completion of the construction of the new stadium, the Wanda Metropolitano (…).

Original story: El Confidencial (by Paloma Esteban)

Translation: Carmel Drake

Neinor & Ática Pull Out of the Bidding for the Mestalla Plots

14 November 2018 – Eje Prime

Neinor and Ática have pulled out of the bidding for the Mestalla plots. The two property developers have decided not to formalise their interest in the land that Valencia Football Club has put up for sale during the period for the presentation of non-binding offers, which terminated on Tuesday.

In the case of the property developer led by Juan Velayos, the listed company has decided not to formalise its interest due to the high percentage of land assigned for tertiary use that VFC has put on the market; it is not offering the option for interested parties to bid for each use separately. Of the 100,000 m2 in total, approximately 40% will have to be used for commercial purposes or as offices or hotel rooms.

The withdrawal of Grupo Ática, by contrast, is based on the complexity of the operation. In its case, the candidates, which were thought to include a fund as a financial partner for the Valencia-based property developer, have considered the transaction to be too high risk, according to sources speaking to València Plaza.

The candidates that are still aspiring to take over the land include the Valencian investor group Atitlán, the fund Cerberus, the property developer Aedas and the Valencian construction company Bertolín. Nevertheless, Deloitte is planning a new bidding period during which the candidates who want to continue in the process will have to convert their bids into binding offers, a commitment that they will have to make before the end of the year, on the basis of what has been seen to date.

Until now, the club has not set a price for its plots, but it estimates that the land is worth around €120 million.

Original story: Eje Prime

Translation: Carmel Drake

Ministry of Development: Housing Permits Rose by 12% in August

2 November 2018 – Eje Prime

The residential sector is driving the new build segment in Spain. In August, a total of 1,620 permits were granted to build homes across the country, 7.8% more than during the same month in 2017. Of those, 1,389 were allocated to assets for residential use, which saw an increase of 12%, according to the latest data published by the Ministry of Development.

In August, the bulk of the new build permits granted for residential use were made for the construction of 1,387 family homes, specifically: 938 detached single-family units, 205 terraced single-family units and 244 flats in apartment blocks.

So far this year, a total of 17,151 permits have been processed for the construction of residential use assets, up by 10.2% compared to the first eight months of 2017, when those types of permits amounted to 15,562.

Meanwhile, during the eighth month of 2017, 231 permits were granted for the construction of non-residential use buildings, down by 1.5% compared to the same period last year. In that caption, there were three new permits for the construction of offices, another 21 for the development of industrial spaces and 83 more for assets dedicated to commercial services and warehouses.

Licences and budgets also recover

In terms of the concession of licences, last Wednesday, the Ministry of Development published figures corresponding to May. According to the body, 4,449 new permits for residential buildings dedicated to family homes were registered during the fifth month of the year (1,606 single-family units and 2,843 multi-family units), down by 0.8% compared to the same period in 2017.

Similarly, the number of licences processed for rehabilitation works doubled in May in YoY terms, to reach 825 concessions. The budget dedicated to the execution of labour also rose during the fifth month of the year, up from €493,095 in 2017 to €4989,264 in 2018.

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

Dragados is Asking for c. €180M for 88,000 m2 Buildable Plot in Tetuán (Madrid)

6 August 2018 – El Confidencial

A new and powerful land operation is taking shape in the centre of the Spanish capital. The star is Dragados, one of the heavyweights in the construction sector in Spain. The subsidiary of ACS has been trying to sell several plots, which together span a buildable surface area of just over 80,000 m2, on Paseo de la Dirección in the Tetuán district in the north of Madrid and just 2 km from the Cuatro Torres, for almost a year. And this area has just received the green light from the Town Hall of Madrid, which approved a Partial Plan on Tuesday that will undoubtedly favour land transactions since it means the urban planning risk has disappeared.

According to the sources consulted, the plots have been on the market for a year, but the high price expectations of Dragados – which amount to around €180 million – have prevented the sale from being closed, until now. Large property developers, investment funds and family offices have all expressed their interest. The construction company is being advised by Colliers International, which declined to comment on the deal.

On the table is a real gem, given that the plots are all finalist, in other words, ready to be built on. Such assets are in very short supply inside the M-30. Specifically, the site comprises two plots for the construction of private housing and two other plots for the construction of social housing properties (VPPL) and mixed-use assets (offices and tertiary).

For the former, which have a buildability of around 40,000 m2, Dragados is asking for around €2,500/m2 (…), in other words, around €100 million, which would make it one of the largest land operations in the capital in recent months. “That price would mean selling the future homes at prices of around €5,000/m2, which is way above current market prices in the area”, say the same sources. House prices in the area amount to around €2,400/m2 – €3,000/m2, depending on the types of homes.

For the plots to be used for social housing and offices – which also have a buildability of approximately 40,000 0m2 – the vendor’s price expectations amount to around €80 million. Despite the boom in the capital, these figures exceed the prices that the potentially interested parties are willing to pay.

Ten years in the making

With the approval this Tuesday from the Town Hall of the new planning order for the area, it seems that finally, and after more than a decade, work is going to begin on this ambitious urban remodelling project. It will involve the construction of around 2,000 new homes, most of which will be protected in some way (VPPB and VPPL), including two rehousing buildings and several 25-storey towers. To put that into context, the Cuatro Torres have between 45 and 58 floors (…).

Historically, Paseo de la Dirección has been a downtrodden area in the north of Madrid with numerous substandard homes that would benefit greatly from the definitive launch of Madrid Nuevo Norte – formerly Operación Chamartín – just 2km away. What’s more, the site is very close to the capital’s financial district par excellence, Azca, as well as to Plaza Castilla, the hub for much of Madrid’s land transport network (…).

Original story: El Confidencial (by E. Sanz & R. Ugalde)

Translation: Carmel Drake

Valencia Protects Residential Use of 2,250 Buildings in the Special Plan for Ciutat Vella

26 July 2018 – Inmodiario

The Special Protection Plan (PEP) for Ciutat Vella, in Valencia, is going to protect more than 2,250 properties that constitute the predominantly residential area in which “the compatibility of hotel use and residential use is not admissible. The professional use of tourist apartments is not permitted in any of them”.

That is according to the Councillor for Sustainable Urban Development, Vicent Sarrià, who was speaking at an information session aimed at local residents to share with them the document that is currently in its public consultation phase. Sarrià highlighted that it is the first plan that has involved active participation workshops, in which different groups from the district have intervened.

“One of the most important of the many challenges that the PEP for Ciutat Vella was meant to respond to was to maintain the residential fabric and recover the population, limiting the “tertiarisation” of the district and containing the expansion of tourist apartments”, said Sarrià, who explained that whilst the plan was being drafted and processed, “the granting of new licences was suspended, which stopped new requests in their tracks; that situation will continue until the definitive approval of the plan”.

Moreover, he added that the PEP “has responded by protecting the residential use of the majority of the buildings in the Carme neighbourhood, and most of the El Pilar (Velluters), Mercat and Seu Xerea districts”.

In this vein, he recalled that with the plan in force, “any residential building was susceptible to being converted into a hotel or tourist apartments”. “By contrast”, he continued, “the PEP removes that urban planning compatibility, except for in the Sant Francesc area, prohibiting its implementation and whereby ensuring the maintenance of its existing use and with it, the population of the historical centre” (…).

Original story: Inmodiario 

Translation: Carmel Drake

Iberdrola Inmobiliaria Buys Esteve’s Former HQ in Barcelona

27 June 2018 – Eje Prime

Iberdrola Inmobiliaria is acquiring space in the heart of Barcelona for new homes. The company has acquired the former headquarters of the pharmaceutical group Esteve, where it plans to promote residential properties and facilities.

The amount of the operation has not been revealed, according to Expansión. The building is located on Avenida Mare de Déu de Montserrat and has a surface area of 15,000 m2, part of which is dedicated to residential use and part to social use.

The pharmaceutical group has just moved all of its staff to a new headquarters in the Zona Franca area – that property is owned by Iberdrola Inmobiliaria and the group now occupies 12,000 m2 there.

Iberdrola Inmobiliaria is the parent company of the Iberdrola group’s real estate business. Currently, the company has a real estate portfolio in operation that has a gross leasable area of more than 200,000 m2.

Original story: Eje Prime 

Translation: Carmel Drake

Eurostone Buys 2 Mixed-Used Buildings in Barcelona

21 May 2018 – Eje Prime

Major operation in the prime area of Barcelona. The Luxembourg-based fund Eurostone, managed by Grupo Mina, has purchased two entire buildings in the Sarrià-Sant Gervasi district of the city from a local family office for €50 million. The properties span a combined surface area of more than 12,000 m2.

The larger asset is located on Calle Aribau and measures 7,461 m2. Constructed in 1918, the property is designated for residential use, for living in as well as for tourist rental. In the internal patio, there is also an office building called La Farinera.

Meanwhile, the second building acquired by Eurostone, which has been advised in this operation by the consultancy firm BNP Paribas Real Estate, is located on Calle Tuset. The asset, constructed in 1944, has a surface area of 4,786 m2 and a commercial premise on the ground floor. The rest of the property is made up of homes.

“This operation highlights the interest that the Catalan real estate sector is sparking amongst the funds and other international players, who still see Barcelona as a priority market in which to invest”, says Francisco López, Director of BNP Paribas Real Estate in Cataluña.

Original story: Eje Prime

Translation: Carmel Drake