The ‘Palacio de la Música’ on Gran Vía will Become a Theatre again and not a Megastore

The building work that has been approved by the Urban Planning department will affect a total of 6,650 square metres and will take 24 months.

The project backed by the Fundación Montemadrid to reopen the ‘Palacio de la Música’ (Music Palace), located on Madrid’s Gran Vía, has obtained the necessary license for the renovation work that will allow it to reopen as a theatre, after being closed for almost 12 years. During the crisis, the capital’s main thoroughfare went from having 13 cinemas and theatres in operation to just three in only a few years.

The Activities’ Agency granted the licence last Friday 24 April, so that, when the situation permits, work can begin on the “restructuring, refurbishment and restoration of the interiors and exteriors” of the property located on Gran Vía 35, which is a listed building.

Pedro Trapote Puts Teatro Barceló in Madrid up For Sale

23 April 2019 – Expansión

The businessman Pedro Trapote has put the “for sale” sign up over Teatro Barceló in Madrid. The former Pachá nightclub was an important meeting point during Madrid’s “movida” era (in the 1980s).

The asset, located at number 11 Calle Barceló, was constructed in the 1930s and comprises six storeys with a useful surface area of 3,200 m2. The asking price for the property is reported to amount to around €25 million and the Spanish consultancy firm TC Gabinete Inmobiliario is advising the sale.

It is thought that the transaction will be formulated as a sale and leaseback deal with a long-term rental contract that will allow the property to continue as a nightclub.

The property was originally a theatre and cinema, but has been a nightclub for almost forty years. Some of the building’s installations have been renovated in recent years.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: 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