Tag: Teatro Albéniz

Mazabi Invests €170M In Several Projects In Central Madrid

16 March 2017 – Mis Locales

Following its acquisition of Hotel Madrid and Teatro Albéniz for refurbishment, Mazabi has launched several other renovation projects in the area.

The first involves 3 residential buildings on Calle Los Madrazo. They are all classic buildings, constructed at the beginning of the 20th century, with protected façades and typical doorways. They house 25 homes in total, plus 4 retail premises measuring 1,600 m2 and a large, exclusive tertiary-use pavilion, located in the courtyard between the buildings. The buildings are situated in a very sought-after location in the centre of Madrid.

Meanwhile, Mazabi has also invested in two assets located close to La Plaza Mayor, where it will spend €50 million on the renovation and then put the properties up for long-term rent.

According to comments made by Juan Antonio Gutiérrez (CEO at Mazabi) “At Mazabi, we are continuing with our policy of combining business with aesthetics and traditional locations”. Hotel Madrid and Teatro Albéniz are clear examples, with the latter being declared a Property of Heritage Interest by the Community of Madrid. Mazabi is ensuring its survival and is thereby avoiding the loss of one of the most iconic spaces in the area.

The consideration paid was not disclosed, however, on the basis of market rental income that will be generated by these properties once the renovation work has been completed, they could be worth between €70 million and €80 million, according to one expert in the real estate sector.

Another one of Mazabi’s project involves a building in La Plaza Mayor in Madrid. There, it is going to refurbish the homes with the goal of long-term heritage. The existing tenant, so representative of the Plaza, will continue to occupy the building’s retail premises.

Moreover, in September, the firm is expected to start the refurbishment work at another of its projects, located on Calle Santa Catalina, 4, next to the Congress of Deputies, to reposition that asset in the market.

Mazabi closed 2016 with assets under management amounting to more than €1,050 million, with a presence in 14 countries and a team of 22 professionals located in Madrid, Bilbao, Barcelona and Marbella.

Currently, Mazabi has the “aim” of investing more than €300 million during 2017, focusing on these kinds of management projects, through investment vehicles with domestic and international partners. One of its projects includes a Socimi constituted through the contribution of long-term rental assets (retail premises, out-of-town retail stores, offices and hotels in Spain). The value of the assets in its current portfolios and the pipeline of expected purchases exceeds €100 million.

Original story: Mis Locales

Translation: Carmel Drake

Mazabi Acquires Hotel Madrid & Teatro Albéniz

29 January 2016 – El Confidencial

Knowing how to combine business with respect for our national heritage. That has been the key that has enabled Mazabi to acquire Hotel Madrid and the historical Teatro Albéniz, an asset that the Community of Madrid had decided to protect as a Property of National Interest (“Bien de Interés Patrimonial”or BIP) and which the family office has acquired from Neinor, after resolving the associated urban planning problems.

Last Friday marked the closure of the period for public claims that the regional Government, led by Cristina Cifuentes, had opened to declare the historical building a BIP. The proposal was undertaken to ensure the survival of the property and avoid its demolition, something that several citizens’ groups had been demanding for some time. Following that deadline, the last great uncertainty surrounding the building was lifted and that has paved the way for the definitive agreement between Mazabi and Neinor.

The real estate company, which is controlled by Lone Star, inherited both the hotel and the theatre from their former owner, Kutxabank, after it had previously foreclosed both assets. The company has been in exclusive negotiations with Mazabi for four months. To seal the deal, a solution for the Teatro Albéniz needed to be guaranteed, and that option was resolved on Friday, when the period for claims came to an end. Sources at the family office have confirmed the deal, but have declined to make any further comments.

Sources close to the transaction say that Mazabi’s plans now involve returning the two buildings to their former splendour, and leasing them in their entirety to a luxury hotel chain. The growing interest from these types of operators in locating themselves in the centre of Madrid will certainly play into the hands of the family office; and the development may include the renovation of a theatre annex as a means of allowing (the chosen hotel chain) to offer a differential value proposition.

The theatre’s future

In total, the operation involves a surface area of 13,000 m2, which have been assigned various uses. In the case of the Hotel Madrid, besides tourism, it has a 1,000 m2 retail outlet on Calle Carretas, the street that links Puerta del Sol with Calle Atocha. Meanwhile, the upper floors of Teatro Albéniz may be used for residential or hotel purposes, and the three underground floors, which were destroyed by fire five years ago, have a surface area of 2,000 m2 and may be used as a nightclub.

Given the level of protection announced by Cifuentes, the survival of the entire stage house is guaranteed, and the door is also opened to “all other uses that are compatible with the space and its layout, in other words, plays, shows, concerts, conventions…, in other words, all activities that need a stage and a public…” said the regional government in December.

Having acquired the two buildings, which share a plot of land that used to house the Royal Press in the 18th Century, Mazabi will now begin two years of construction work to completely refurbish them. Although the consideration paid has not been revealed, the valuation of these properties may reach between €70 million and €80 million, on the basis of market rents and once the restoration work has been completed, according to one real estate expert.

Both the hotel and theatre have been closed since 2008. The former was occupied by hundreds of squatters for a time, before the police evicted them at the end of 2011, just after the fire in the basement of the Teatro Albéniz. (…)

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake