Ministry Of Employment Sells 2 Plots Of Land In Málaga

16 December 2016 – Real Estate Press

The Ministry of Employment has managed to sell off two plots of lands located in Málaga capital, which it no longer requires after it rules out an operation to construct the new headquarters for the Comisiones Obreras and UGT trade unions on one site and a building for the Malagan Confederation of Entreprenuers (CEM) on the other.

On Tuesday, the auction called by the Government to award these plots of land was tentatively resolved, after a first attempt in April 2015 was abandoned because no offers were received. On this occasion, the plots of land were awarded to two provisional buyers. One of the plots, located on Calle Padre Jorge Lamothe, behind the Ibis Hotel, which was previously going to house the new headquarters for local businessmen, was put up for auction for €406,366 and has been awarded to the Malagan-based construction group Rivervial for €610,005, according to sources at the Ministry of Employment.

The other, located on Calle Mesonero Romanos, in the Teatinos neighbourhood, and which had been initially reserved for a new building for the trade unions, is going to be sold to the company Resa, Encampus Residencias de Estudiantes, for €1,752,000, which represents an increase of €184,050 above its original asking price. In this way, the central Government will pocket €2,362,005 from the sale of both plots of land.

High demand for halls of residence in Málaga

In both cases, the plots of land will house halls of residence for students, a real estate product that, according to sources consulted, is in high demand in Málaga at the moment. Sources close to Rivervial agreed; the construction group is seeking to diversify its current business portfolio through this project. In this case, the land is located in the heart of the city’s Historical Centre, next to the Guadalmedina River.

The site on Mesonero Romanos will allow Resa to build its third hall of residence for students in Andalucía; it already owns one in each of Sevilla and Granada. Its Commercial Director, Carlos Cano, explained that the hall of residence in Málaga will have 300 beds in a nine-storey building that will have a constructed surface area of 8,500 m2. “The idea is to start processing the construction licence as soon as the Ministry confirms that we have been awarded the plot, so that the hall of residence can open its doors in September 2019”, explained the Head of Resa, which currently owns 33 properties of this kind, containing 9,000 beds in 19 cities. The building in Málaga will offer air-conditioned rooms, equipped with their own kitchen, study rooms, classrooms, a swimming pool, cafeteria and car park, amongst other facilities.

Original story: Real Estate Press

Translation: Carmel Drake

HMC & Momentum REIM Buy Plot Of Residential Land In Málaga

14 December 2016 – Real Estate Press

HMC and Momentum REIM are redoubling their commitment to Málaga with the acquisition of a plot of land measuring 16,163 m2 in the Teatinos neighbourhood, Málaga, where it plans to construct 340 homes (known as the Teatinos Sky Garden development)

With this new investment, the firms will have 57,000 m2 of roofs under development within 6 months, making them one of the main residential investors in the city.

The alliance formed between the institutional investor HMC, which has more than €4,400 million under management, and the property developer Momentum REIM, is currently constructing six primary home residential developments in Spain, in which they are investing more than €231 million. The developments currently under construction are located in the most sought-after areas of Madrid and Málaga capital, focusing on middle-upper class families and are characterised by a differential value in terms of design, common area facilities, customisation and customer focus.

In 2017, Momentum REIM plans to expand its investments to other cities in Spain and to double its current investment volume during the course of the year. The outlook for the residential market in Spain is still positive, given the structural demand for housing, although in general terms, significant price increases are not expected.

Original story: Real Estate Press

Translation: Carmel Drake