Tag: Torre de Cristal

Espacio Caleido to Build up to 80 Commercial Premises in Madrid’s Fifth Tower Complex

4 June 2018 – Eje Prime

More retail space in Madrid. Espacio Caleido, controlled by the company Inmobiliaria Espacio, is going to build between seventy and eighty retail premises in the fifth tower complex in Madrid. Together, all of the establishments will have a combined commercial area of more than 13,000 m2.

The commercial premises will be destined to retail, restaurant and service operators, which will be located in a zone divided into several areas (some next to the tower) and which will include gardens and rest spaces next to the shops and restaurants.

One of the areas that will be most representative will be formed “by ten cubes that will be located parallel to Paseo de la Castellana and which may be customised by each operator”, said Espacio Caleido. To market the premises available in the complex, Espacio Caleido has already opened an office to show the plans to companies interested in moving there.

The Torre Caleido project, which is being built alongside the four tallest skyscrapers in Madrid, will involve an investment of €300 million. It will span 70,000 m2 in total, stand 165 m tall and contain 36 storeys.

The fifth tower is going to be the shortest of the five skyscrapers and its neighbour, Torre de Cristal, will continue to be the tallest in Madrid, and in Spain, at 249 m tall.

The new complex, which is being built in the Cuatro Torres Business District, will have Instituto de Empresa (IE) as its main tenant, which will create its university campus IE University there, and the Quirón Salud Group, which is going to install an advanced medicine centre in an annexed building that will be four-storeys tall and 20 m high.

The project is being promoted by the company Espacio Caleido, owned by Inmobiliaria Espacio, of the Villar Mir Group, the main shareholder of OHL, with a 51% stake, and by the Philippine company Megaworld Corporation with the remaining 49%.

Original story: Eje Prime 

Translation: Carmel Drake

Rents In Azca’s Towers Exceed Those In The Cuatro Torres

12 September 2017 – El Economista

The Cuatro Torres skyscrapers, to the north of Madrid, are no longer casting a shadow over Azca, which is establishing itself as the iconic business district in the city. With views overlooking the Paseo de la Castellana and just a stone’s throw from the Santiago Bernabéu Stadium and the Nuevos Ministerios transport hub, this business centre has managed to renew itself, to avoid being left behind compared with other areas of Madrid. So much so, that the rents for its recently renovated skyscrapers are 16.6% higher per square metre than the most expensive space in the Cuatro Torres, to the north of the city.

Castellana 81, the historical headquarters of BBVA, leads the ranking in terms of rental prices in Madrid, given that its empty space is being marketed for between €27 and €35 per square metre per month. This tower, designed by the prestigious architect Sáenz de Oiza, has been subjected to a comprehensive renovation by its owner, the Socimi GMP, which spent €30 million renovating one of its most iconic properties in Azca and on Madrid’s skyline.

The asset, which became a multi-tenant property when it first came onto the market, has already managed to conquer new companies following the departure of the banking entity, which moved to its own financial city, in Las Tablas, to the north of Madrid. Thus, in the last few months, rental contracts have been signed with Teka and Hays.

At the forefront of design

Castellana 77, which is also owned by the Montoro family’s real estate company and the Singapore sovereign fund, GIC, has been the subject of another of the major renovation projects that has been carried out in Azca and which has positioned the business district at the forefront of design. Its façade is covered with slats that protect it from direct sunlight and which are lit up at night in a diverse range of colours.

The tenant that decides to lease the office space in this building, which spans 16,200 m2 over 18 floors, will be able to choose the colour of the tower, which has more than 200 parking spaces as well as charging points for electric cars. With these features, this property has the second highest rents in Azca, which range between €28 and €33 per square metre per month.

And it is followed closely by Torre Europa, which housed the headquarters of the professional services firm KPMG for many years. Following the move of that consultancy firm to the Cuatro Torres, the tower has been renovated to turn it into the first intelligent and connected office building in Spain. Infinorsa, the majority owner of this skyscraper, which overlooks the Santiago Bernabéu, has invested €20 million on a facelift of the façade, which had not been changed for 30 years, and above all, on the renovation of the interior, which has given a radical about-turn to the essence of this 121m-tall tower (…).

Rents in this tower now range between €27 and €32 per square metre per month. Its renovation has already captivated one of the large international law firms, Freshfields (…). The US firm AOL has also decided to move its Spanish corporate headquarters to Torre Europa, as well as a pharmaceutical company (…).

Torre Picasso, the tallest skyscraper in Azca, at 156m, has not undergone such a comprehensive renovation as its neighbours, but following the departure of the consultancy firm EY to Torre Titania, 15,000 m2 of space there was left vacant. Some of that space in the tower owned by Pontegadea – the investment arm of Amancio Ortega – will be leased to Deloitte, which will thereby become its largest tenant. After several improvements to the property, the highest floors are now being marketed for €31/m2/month (…).

Rents in the Cuatro Torres barely reach €30/m2/month

Nevertheless, in the new financial district located in the north of Madrid and known as Las Cuatro Torres, only one of the towers manages to charge a rent of €30/m2/month, even though the buildings are much younger, given that they were inaugurated between the years 2008 and 2009.

Office space in Torre Espacio ranges between €29 and €30 per square metre per month. The Philippine group Emperador, which owns this skyscraper (…) renewed the image of the tower at the end of last year and launched a new marketing plan with the aim of finding tenants for the 8,800 m2 that were vacant in the building at that time.

Next in the ranking is Torre Cepsa, for which Amancio Ortega (…) paid €490 million last year. It is occupied almost in its entirety by the oil and gas company whose name it bears; the cost of the 15,000 m2 of space that is available ranges between €23 and €28 per square metre per month.

Meanwhile, Torre de Cristal, the tallest skyscraper in Spain, at 210m, is the most affordable of its neighbours, since its available space is being marketed for between €25 and €27 per square metre per month. Last year, KPMG left the Azca area and moved to this property, where it leases around 23,000 m2 (…).

Next door is Torre PwC, leased to the consultancy firm whose name it bears and the five-star hotel Eurostars. Its owner is the Socimi Merlin Properties (…) and PwC reportedly pays €19/m2/month.

The Cuatro Torres complex is now getting ready to receive a fifth tower, Torre Caleido. That property, which is currently being constructed (…), will be leased to IE Business School and Grupo Quirón-Salud (…), who will reportedly pay between €15 and €18 per square metre per month (…).

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Deloitte: Spain’s Office Sector Gets A Makeover

3 March 2017 – Expansión

The office markets in Madrid and Barcelona are getting ready to unveil their new image. They are preparing themselves to attract tenants that want not only good locations, but also new, high-quality products that meet the demands of today’s professionals.

At the end of 2016, the stock of offices in Madrid had a combined surface area of 12.9 million m2, whilst in Barcelona, the stock amounted to 5.9 million m2. Although still below the peaks seen before the crisis, the volume of new supply registered in Madrid and Barcelona grew by 56% during 2016 and the market is expected to recover over the next few years.

In this way, the office market will see more than 420,000 m2 of new office space opening up in these two cities between now and 2018, in addition to the 155,000 m2 of space that was added in 2016, thanks to new builds and renovations, according to a report compiled by Deloitte.

Projects underway

Specifically, this year, 180,000 m2 of new office space is expected to become available in Madrid, almost twice as much as last year. For example, Infinorsa, the main owner of Torre Europa, launched a complete overhaul of the building last year, following KPMG’s departure, which, until it moved to Torre de Cristal in March 2016, was the property’s main tenant.

The building – constructed in 1985 – is joining the league of smart skyscrapers, which are tailored to suit the needs of clients in the 21st century.

And just few metres away, on Paseo de la Castellana 77, the real estate group GMP is working on the complete renovation of Torre Ederra, with the renewal of its facilities and the transformation of all 18 of its floors.

What’s more, Madrid is not only renewing its existing supply, it is also welcoming new developments. One of the projects under construction is the property located on c/Estébanez Calderon, which is owned by Colonial. The building, which will have a surface area of just over 10,000 m2, is due be completed in the second half of 2017.

Colonial has also launched another construction project in the business district of Madrid, Specifically, the property located on Príncipe de Vergara will have a surface area of 11,300 m2 and 109 parking spaces.

Also in the capital, the family office Mazabi is restoring a building. The property located on Calle Velázquez 123 has a surface area of 2,346 m2 and benefits from a prime location in the heart of the Salamanca neighbourhood. Meanwhile, Mapfre is renovating a property on Plaza de la Independencia. The building, acquired in July 2015 from the Mutualidad Notarial for €82 million, has a total surface area of 12,000 m2, of which 4,000 m2 corresponds to three underground parking floors with more than 100 parking spaces.

In the same way, Barcelona is also reactivating its new office supply in response to the lack of available space.

According to Deloitte’s report, in addition to the six construction and renovation projects that were launched in 2016, the Catalan Capital expects to see two new projects in 2017, covering a surface area of 37,000 m2 and eight new projects in 2018, covering a surface area of 93,000 m2.

Amongst the new developments underway, the Castellví Group has initiated the construction of a new business complex on the corner of Calles Tánger and Badajoz in the 22@ district. (…).

Also in Barcelona, Colonial has launched a project next to Plaza de las Glòries and adjacent to Avenida Diagonal. (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Mutua Madrileña Buys Office Building In Madrid For €30.8M

27 July 2016 – Expansión

The insurance company Mutua Madrileña has acquired the former headquarters of Fórum Filatélico from Credit Suisse’s real estate fund for €30.8 million. The operation has been performed entirely using its own funds.

The property in question is an office building in the heart of Madrid’s financial district. Located at number 51 on Calle José Abascal, next to Paseo de la Castellana, the building has a surface area of 3,600 sqm spread over seven floors, and 62 parking spaces.

According to the company, the operation forms part of its strategy to dynamically manage its assets, which also includes the possibility of making acquisitions as and when attractive opportunities arise. On the buy side, Mutua Madrileña has been advised by the law firm Pérez-Llorca and, on the sell side, Credit Suisse has worked with CBRE as real estate advisor and Eversheds Nicea as legal advisor.

The real estate market

The building will be rented out in its entirety and, in order to increase its value, the company will undertake renovation work, to equip it with the latest technology in terms of efficiency and sustainability.

Mutua Inmobiliaria , which includes the company’s property investment area, considers that the office rental market in Madrid is in full recovery.

The insurance company has not acquired any new properties for almost 10 years. The last purchases it made for its real estate portfolio were the so-called Pirámide and the Torre de Cristal, also on Paseo de la Castellana. (…).

Original story: Expansión (by Inma Benedito)

Translation: Carmel Drake

Plans For The 5th Tower Begin To Take Shape

1 April 2016 – Expansión

The skyscraper, located in the heart of the capital’s financial district, will house the new headquarters of the IE University, as well as a clinic and shopping centre.

The plans for the fifth skyscraper in the Cuatro Torres complex – the new financial district in the capital, which currently comprises the Torre de Cristal, Torre Caja Madrid, Torre Sacyr Vallehermoso and Torre Espacio – are taking shape and a date has been set for the inauguration of the tower: the end of 2019, according to the IE University, one of its future tenants.

The business school will expand its facilities and open its new headquarters in the north of Madrid.

Specifically, the fifth tower will house the IE Campus in a building that will be 165 m tall and have a surface area of 50,000 m2 on the Paseo de la Castellana. In addition, this site will also be home to a clinic and a shopping centre.

The plot of land belongs to the Town Hall of Madrid, which has granted its use to Inmobiliaria Espacio. In parallel, the subsidiary of the Villar Mir Group has reached an agreement with the IE University to offer it this space under a 20-year rental agreement, which may be renewed for additional 55 years.

Details of the project

“From now on, the Town Hall of Madrid, Inmobiliaria Espacio and IE University will work together to ensure that the project meets the needs of the city of Madrid in the best possible way”, explain sources at IE. According to these sources, work will be carried out over the next three months to determine the “details” of the project.

OHL Desarrollos will be responsible for the construction of the new infrastructure, which will include auditoriums, sports facilities, green spaces and a 35-storey tower with classrooms and educational areas. Meanwhile, the studios Fenwick Iribarren and Serrano-Suñer Arquitectura will lead the design of the project.

At the new IE Campus, university degree training will be delivered in areas such as Business Administration, Architecture, Technology, International Relations, Law, Communication and Psychology.

In parallel, the IE University, which has been located on María de Molina in Madrid since it was first founded, will continue to perform activities for the business school and other post-graduate programs at its current facilities.

According to the institution, the IE Campus will have a “new, cutting-edge” design for its educational space, offering open areas dedicated to teaching, teamwork and networking between the university and business communities. The Campus will also have a vertical space, which will reproduce the working environment of companies and organisations from all over the world, as well as a horizontal space with sports facilities, large auditoriums and green areas for exclusive use by the institution’s educational community.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Knight Frank: Demand For Offices Soared By 30% In 2015

11 January 2016 – Cinco Días

The city of Madrid exceeded the real estate sector’s expectations with respect to the leasing of office space in 2015, as the volume of office space rented by companies grew by almost 30%, representing the best figure since 2008. In Barcelona, on the basis of data as at Q3, the increase was even greater, at 91%.

The real estate market is recovering at the same time as companies are starting to forecast their own growth. Unlike in recent years, during which time many companies have been delaying the decision to move offices or lease more space – because many of them have been involved in processes to reduce their workforces – last year there was a recovery, showing confidence in the future.

In Madrid, office rental agreements were signed for a total surface area of 480,000 m2 in 2015, the highest figure since the start of the crisis in 2007. The data was published last week by the real estate consultancy Knight Frank, which compiles industry information. The most optimistic forecasts predicted that the year would close with a figure of around 420,000 m2. The actual volume represents an increase of 27% with respect to the previous year. In 2014, 358,000 m2 of office space was leased out.

The minimum in the historic series was recorded in 2012, when 261,000 m2 of office space was leased out, at the height of the storm over sovereign debt in the countries in Southern Europe and when doubts over the economy were at their peak. By contrast, the best year was recorded in 2007, when 828,000 m2 of office space was leased.

This shows the positive behaviour of the market in recent months, which, in turn, has resulted from the strong macroeconomic outlook. At the end of the year, BNP Paribas Real Estate forecast that the volume of office rental operations would increase by 100,000 m2 in 2015 and by a further 84,000 m2 in the case of Barcelona.

In the Catalan capital, where full year data for 2015 is still pending, the volume of office space leased almost doubled during the first three quarters. During the 9 months to September, operations relating to 297,000 m2 of office space were closed, an increase of 91% according to the data provided by the consultancy firm CBRE.

The second half of the year has performed even more strongly in terms of new demand in Madrid. During the six months to June, office space measuring 198,000 m2 was leased; and from June to December, that figure amounted to 282,000 m2, i.e. 42% higher.

The most sought-after areas in Madrid are located inside the M-30, where there is a shortage of high quality buildings. In the case of Barcelona, demand is highest on Avenida Diagonal, el Paseo Gracia, the 22@ district and Plaza Europa. (…).

Moreover, the lack of high quality space, combined with the greater volume of demand, drove rental prices up by 6% in the best buildings in Madrid in 2015, to reach €27/m2/month. Even so, that rental figure is still one of the lowest in the historic series, well below the figure of €45/m2/month that tenants paid in 2008.

The main operations

One of the most important office rental operations in the capital involved the agency WPP, which took over a 36,000 m2 building on Calle Ríos Rosas. Another highlight was KPMG’s expected move to the 20,000 m2 Torre de Cristal, owned by Mutua Madrileña. Meanwhile, the bank BNP Paribas leased offices measuring 19,100 m2 in a building owned by Torre Rioja. Also, the consultancy EY signed an agreement to move into Torre Titania, owned by El Corte Inglés.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

CaixaBank Sells The ‘Torre Norte’ To SegurCaixa

15 April 2015 – Expansión

Barcelona / SegurCaixa has acquired the ‘Torre Norte’, valued at €14.5 million, as part of the strategic alliance between the bank and the insurance company.

SegurCaixa Adeslas, owned by CaixaBank and controlled by Mutua Madrileña, has purchased the Torre Norte (one of the three Nissan Towers in Barcelona) from CaixaBank. The transaction was valued at €14.5 million.

The sale forms part of the insurance sector alliance between Mutua and CaixaBank. The agreement made resulted in the segregation of the business between VidaCaixa, a fully owned subsidiary of CaixaBank, and SegurCaixa Adeslas. The latter was granted the option to buy the building, which it has (now) decided to exercise.

Following this transaction, the employees of SegurCaixa will occupy the Torre Norte and those of VidaCaixa will be housed in the Torre Sur. Microbank, another subsidiary of CaixaBank will occupy the top floor of the Torre Centro.

Mutua Madrileña hereby adds another building to its growing list of properties, worth €1.2 billion, which generated unrealised gains of €357 million last year.

The flagship building of the company, chaired by Ignacio Garralda, is the Torre de Cristal in Madrid, which has an appraisal value of €504 million, and therefore accounted for 41% of the insurance company’s total property portfolio at the end of 2014. The unrealised gain on that property amounted to €59 million. Then, the building located on Paseo de la Castellana, 33 in Madrid, where Mutua has its headquarters, is the second largest in the company’s portfolio by value. It has an appraisal value of €115 million, compared with a book value of €69.8 million.

The third building in the ranking is the Alfredo Mahou property in Madrid, which has a market value of €104 million and a book value of €29 million, i.e. has unrealised gains of €75 million.

Investment plan

Last year, Mutua Madrileña completed the investment plan it launched in 2008, which sought to modernise its properties to “convert them into flagship properties in the market. Through this, we created the distinctive Mutua Building”, explains the company in its annual accounts for 2014. The company also sought to reduce operating expenses (through this plan) to increase the appeal (of its properties) to clients.

The leased buildings generated revenues of €32.8 million for Mutua in 2014 and the company made investments amounting to €13.6 million during the year. Its occupancy rate last year was 90%, up from 88% in 2013.

Real estate investments accounted for 20% of the company’s total investments during the year, which had a market value of €6,654 million.

Original story: Expansión (by E. del Pozo)

Translation: Carmel Drake

CaixaBank Will Be S&P’s New Neighbour On The Castellana

9 March 2015 – Expansión

Lease Agreement / The bank is going to rent 2,800 square metres of office space in Banesto’s former headquarters. It will share the premises with the credit ratings agency, S&P, amongst others.

After a record year for investment in offices (Socimis and large international funds spent more than €1,000 million on acquisitions in 2014), the buildings in Madrid are also beginning to observe an increase in their occupancy rates, especially those located on the city’s main thoroughfare.

That is the case of the office building located on Paseo de la Castellana, 7. The former headquarters of Banesto will soon house another well known tenant. CaixaBank had agreed to rent out 2,800 square metres in the building. The bank will pay around €70,000 per month for the space, according to real estate sources.

In the last quarter of 2014, rents in the prime office areas of Madrid amounted to around €25.50 per square metre per month, the highest figure in the last three years, according to JLL.

Tenants

CaixaBank will join companies such as the ratings agency Standard & Poor’s (S&P), the Swiss bank Julius Baer, the law firm White & Case and the firms Munich Real Estate and FTI Consulting, which already have offices in the property. Until the arrival of the entity, chaired by Isidro Fainé, the most recent addition (to the property) was the Japanese business group Mitsui, which leases 1,500 square metres over two floors.

Castellana, 7 is owned by the Aragonese group Samca, which also owns the (property) developer Ebrosa. The building offers 12,869 square metres of office space in total and for years it housed the headquarters of Banesto. In 1997, the owner of Samca, the businessman Ángel Luengo, paid the entity 8,000 million pesetas (around €48 million), after failing to reach a preliminary agreement with Telefónica.

In 2011, the building was refurbished by the team at Aguirre Newman Arquitectura. Following the deal with CaixaBank, the building will have less than 5,000 square metres unoccupied.

Transactions

The rental of 2,800 square metres of office space on the Paseo de la Castellana by CaixaBank comes just two weeks after the first major office lease agreement of 2015 was signed in Madrid.

The professional services firm KPMG has reached an agreement with Mutua Madrileña to move its corporate headquarters in Madrid to the Torre de Cristal skyscraper, in the Cuatro Torres business district. KPMG has leased 20,000 square metres in the tower.

In 2014, office space occupying a surface area of 365,000 square metres (of the total 15.1 million sqm) was leased in Madrid. The most significant transactions included the move by Havas to the building on Eloy Gonzalo, 10, which had been acquired by the real estate group GMP a month before. The multi-media group will occupy the office space, which covers around 12,000 square metres. In Barcelona, the law firm Cuatrecasas signed an agreement to lease 19,900 square metres at the end of the year.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake