Tag: Torre Espacio

Asian Funds Seek Local Allies to Enter Spanish Real Estate Sector

19 January 2019 – Expansión

Asian investors are joining forces with firms such as UBS, AXA and Savills IM to gain weight in the office, logistics and retail segments, where they still have a limited presence.

Spain has become a key destination for international investors interested in real estate assets, and Asian capital is no stranger to this buying fever that has boosted the sector in the country over the last five years. These investors, who are used to large volume operations, are now trying to gain a foothold in Spain through alliances with large European managers, such as UBS, Rockspring, AXA and Savills Investment Management, which will allow them to participate in smaller-sized operations and enter other sectors such as the office, logistics and retail segments.

The incorporation of new investors, capital funds and Chinese, Japanese and Korean family offices, amongst others, at the hand of the large European managers that are already present in Spain and know the local market well, offers them the possibility of arriving in the country by assuming less risk.

One of the most recent examples is that of the Korean fund manager Igis Asset Management, which, through Savills Investment Management, closed the purchase of Nestlé’s headquarters in Esplugues de Llobregat (Barcelona) last October for €87 million. That operation followed others such as the purchase of the Madrilenian Zielo Shopping Pozuelo and that of the office building located at number 2 Calle Santa Bárbara, both through funds managed by UBS, in turn, financed by Asian capital, amongst others.

Indirect investment

(…). These alliances followed the trickle of mega-operations undertaken in Spain in recent years. The most significant include the deal involving the Philippine group Emperador, which purchased the Torre Espacio building in Madrid, one of the skyscrapers that forms part of the Cuatro Torres complex, from Villar Mir, for €558 million.

Another operation that revolutionised the market involved the Chinese holding company Wanda, albeit ephemerally, as it had to abandon the project just three years later. The group purchased Edificio España (Madrid) from Banco Santander in 2014 for €265 million and sold it in the summer of 2017 to RIU, its current owner (…).

Those two Asian investors were joined by the sovereign fund of Singapore GIC, which, through the Socimi P3 Logistics Parks, acquired a foothold in the logistics market in Spain, one of the segments with the most potential.

Investors from Asia are therefore one group of overseas players who are committed to the country, but they are not the only ones. According to a report compiled by Savills Aguirre Newman, international capital was the major star in 2018, accounting for 70% of the €10.8 billion transacted, the largest percentage since the start of the market recovery five years ago (…).

By origin, investors from Europe and the USA account for almost 57% of the domestic and international investment total and 85% of the volume of operations from overseas. Asia is ranked in third place (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Three New Tenants Move into Torre Espacio

25 September 2018 – Eje Prime

Torre Espacio is almost completely full. The Spanish group Villar Mir has added three new tenants to its property on Paseo de la Castellana in Madrid. The companies have leased 3,019 m2 in the property.

Thanks to this operation, the Spanish group led by Juan Miguel Villar Mir has leased 94% of the total surface area of Torre Espacio, the fourth tallest skyscraper in all of Spain. The supermarket cooperative Coviran, the application design firm Mobetia and the fibre optic operator Ufinet are the three companies that will now carry out their activity in the building.

The property is distributed over 57 floors and is currently owned by the Philippine group Emperador. Its tenants include several embassies, such as those of Australia, Canada and the United Kingdom, as well as the Spanish Banking Association (AEB) and firms such as Red Bull and Equifax.

The arrival of the new companies in Torre Espacio comes in the middle of the divestment plan in which Villar Mir is immersed. A few months ago, it sold 12.2% of its shareholding in OHL, reducing its stake to 38.2%. The main reason for that move was to decrease the group’s debt.

In August, Villar Mir sold the 32.5% stake that it held in the share capital of Project Canalejas to OHL, the construction firm owned by the holding company, for €50 million, according to a statement filed by the company with Spain’s National Securities and Market Commission (CNMV).

Original story: Eje Prime

Translation: Carmel Drake

Deloitte: Tertiary Real Estate Inv’t Amounts to €9.7bn in 2017

27 December 2017 – Expansión

An increase in property prices has led to a 22% reduction in the purchase of non-residential assets in 2017 with respect to 2016.

The boom that has marked the real estate investment sector in Spain since 2014 is starting to show signs of slowing. That is according to the most recent non-residential investment figures, which, with just a few days to go before year-end, are reflecting a decrease of 22% with respect to 2016.

According to a market study performed by Deloitte Real Estate, investors spent €9.7 billion this year on tertiary properties (offices, hotels, commercial and logistics assets) compared with €12.4 billion in 2016 and €11.8 billion in 2015.

“With just a few operations still left to close before 31 December, which will amount to between €0.5 billion and €0.6 billion, tertiary investment has fallen by 22%. This decrease in activity is a sign that we have crossed the equator of the bullish cycle and that we are possibly starting a period of greater stability”, explained Javier García-Mateo, Partner in Financial Advisory at Deloitte.

The 22% decrease is due to a weaker second half of the year in terms of the rate of investment (…). During the third quarter, investment fell from €6.6 billion in 2016 to €1.6 billion this year, says Deloitte in its report. During the fourth quarter, the difference was a decrease of 42% (€2.8 billion compared with €1.8 billion). The decrease is more pronounced in the property segments that tend to lead absolute investment, namely, offices and retail assets. In the case of the former, investors have spent €2.3 billion in 2017, less than half the amount recorded in 2016 (€4.9 billion) and 2015 (€5.3 billion) (…). “Offices tends to be the segment that traditionally leads investment, but this year it has decreased by 55%. This is not due to a lack of supply, but rather the gap between the expectations of sellers and the offers from buyers. Moreover, some operations have been abandoned, such as the sale of Hispania’s portfolio”, said García-Mateo.

In this way, unlike in previous years, where large operations were closed during the final quarter of the year, such as Torre Foster – sold for €490 million at the end of 2016-, Torre Espacio – sold in November 2015 for €550 million – and Torre Picasso – sold for €400 million in December 2011 – this year, the most significant operation has been the sale of 50% of Torre Caleido on Paseo de la Castellana, for around €150 million, closed during the first quarter of the year.

In the case of retail assets, investment in shopping centres fell by 29% to €2.7 billion, despite record operations such as the one involving Xanadú, whilst the purchase of shops fell by 36% to €421 million.

“After 4 years of increases in valuations and the consequent decrease in yields, investment in offices and retail property is significantly less attractive than in the hotel and logistics segments, where there are up to 3 points of differential per year”, say the sources at Deloitte. The large hotel operations this year have included the purchase of Edificio España by the Riu Group and the sale of HI Partners, along with its 14 establishments, by Banco Sabadell to Blackstone for €630.73 million.

Cataluña

The 22% decrease comes at a time that is being characterised by the independentist challenge in Cataluña, although the uncertainty being generated in that region does not seem to have had an impact on real estate investment, at least not yet, according to García-Mateo. “In Cataluña, the absorption of office space has fallen and sales in shopping centres have also decreased, by around 10% with respect to Q4 2016, but investment has not been hit, as evidenced by Meridia Capital’s recent purchase of the Barnasud shopping centre and Invesco’s acquisition of the Mango facilities in Palau de Plegamans (Barcelona)”, he added.

In this way, the experts justify that the decrease in investment is due to a change in the cycle, following four years of rapid growth (…).

Nevertheless, the €9.7 billion spent during 2017 represents the fourth-highest figure in the historical series (dating back 13 years).

It was only in the last two years, as well as in the record year for the sector (2007), when investment amounted to €12.6 billion, that investment in non-residential assets exceeded the €10 billion threshold, according to Deloitte.

Original story: Expansión (by Rocío Ruiz)

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

Villar Mir Sells 49% Of Fifth Tower To Andrew Tan

27 March 2017 – Inmodiario

Making money to reduce OHL’s mounting debt is still imperative for Grupo Villar Mir. And it was in this context that the latest operation was signed between the holding company controlled by the 80-year old civil engineer and the real estate company Megaworld, owned by the Philippine businessman Andrew Tan. The businessman has become the new partner in the project to develop Caleido, the fifth tower in the Castellana complex. In 2015, the construction group sold Torre Espacio to Tan for €550 million.

The agreement will turn the Philippine businessman into one of Villar Mir’s partners, as owner of 49% of the company that is running the project, which includes the construction of a skyscraper measuring more than 180 m tall and an underground shopping area with a surface area of around 12,000 m2. Tan will spend around €150 million on the purchase. PwC has acted as legal advisors to Espacio during the operation and the law firm Pérez-Lorca has represented Megaworld.

In January, the Chairman of the Villar Mir group, Juan Miguel Villar Mir Fuentes, unveiled so-called project Caleido, together with the Mayor of Madrid, Manuela Carmena. This complex, in which around €300 million is expected to be invested, includes a high-rise building, which will house a university campus to be operated by Instituto de Empresa and a medical research centre to be managed by Grupo Quirón.

In addition, the plans include an underground shopping area, covering around 12,000 m2, a park measuring 33,000 m2 where concerts and other cultural activities will be held, and 2,000 parking spaces.

Villar Mir was awarded this plot of land in 2014 under a 75-year concession, after he agreed to pay the Town Hall of Madrid an annual fee of €4 million (after an initial four-year grace period). Initially, a conference centre was going to be constructed on the site. (…).

The future architectural complex, designed by the architectural studio Fenwick & Iribarren, in conjunction with the Serrano Suñer Arquitectos studio, will comprise two separate spaces: a 160 m tall building with 36 floors, and a four-storey base building measuring 20 m tall (…).

Original story: Inmodiario

Translation: Carmel Drake

ING Granted €1,000M In Loans To RE Sector In 2016

21 March 2017 – El Confidencial

ING has returned to the Spanish real estate market with a bang. The Dutch bank, which was one of the main foreign players in the years before the bubble, has become one of the most active entities in terms of financing in this market, which has taken an about-turn over the last two years.

Last year alone, ING Real Estate Finance granted financing amounting to more than €1,000 million to 13 different real estate operations, ranging from the purchase of offices, shopping centres and logistics assets to corporate refinancing agreements.

The most high-profile deal was the acquisition of Torre Espacio by Grupo Emperador, the Philippine holding company to which ING granted a syndicated loan amounting to €280 million in February last year. That loan has a 7-year term and represented a turning point in the entity’s commitment to this market.

A few months later, the bank, which is now led by César González-Bueno, also participated in the most important corporate operation ever recorded in the sector, the merger between Merlin and Metrovacesa, by granting €170 million to the Socimi and €200 million to the real estate firm.

By the time that merger happened, ING had already financed several operations for Merlin, such as, for example, the acquisition of a portfolio comprising seven logistics assets with a €67.9 million loan over five years, which was signed in January 2016.

Other giants in the sector that have also received support from ING over the last year include GMP, with corporate financing amounting to €75 million, and Axiare, to which the Dutch bank granted a €75 million loan to acquire the building located on Calle Almagro, 9 in Madrid.

The entity’s commitment to the real estate market spans the whole Iberian Peninsula, including Portugal, as the bank showed when it granted €50 million to the Vasco de Gama shopping centre, in Lisbon, which is owned by Sonae Sierra and CBRE GI.

And it was specifically in the shopping centre segment where the entity has closed its first major operation of 2017, granting a €57.5 million syndicated loan over 7 years to Trajano Iberia, funds that have been used almost in their entirety (€55 million) to finance the acquisition of Alcalá Magna.

“This operation strengthens the position of the Real Estate Finance area in the core asset segment, such as high quality offices, shopping centres and logistic assets. Our intense level of activity has allowed us to start 2017 as market leaders”, said Julián Bravo, Head of Real Estate Finance for Spain and Portugal.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

AEB Sells Its HQ For €10M & Moves To Torrespacio

21 September 2016 – Expansión

The change in AEB’s headquarters represents the final milestone in the transformation and modernisation process that the banking association began a year ago.

The banking association AEB will move out of its traditional headquarters (two and a half floors in a property on the Madrilenian Calle Velázquez) to move, under a lease contract, to one of the floors in Torre Espacio. The skyscraper was constructed by the group OHL and was sold to the Philippine group Emperador at the end of last year. AEB will move at the end of this year or in January 2017.

The economic operation involves the sale of the property in which the headquarters of the banking association has been located since it was founded, for an amount that market sources estimate to be in the vicinity of €10 million. AEB occupies a surface area of 2,400 sqm in that building, therefore, the sales price will amount to around €4,200/sqm. The buyer is a mutual insurance company, whose name has not been revealed, and it will have to modernise the property before leasing it out given that, although it is in good condition, it does not meet the requirements of the new tenants.

In the new location, AEB will occupy most of the 30th floor of Torrespacio, one of the towers that comprises the most modern office complex in the north of Madrid. There, AEB will occupy a surface area of 1,000 sqm, which is significantly smaller that its current headquarters, because, amongst other reasons, the office there is going to be open-plan for all employees, with the exception of the Secretary General and the Chairman, José María Roldón. This move follows a wider trend (towards open-plan offices) in the sector, implemented by BBVA at its new headquarters and a format that Santander is also planning to adopt – it wants to extend the pilot scheme that it has been trialling in its compliance department until now across the whole of its Boadilla del Monte complex. The rest of the floor in Torrespacio, approximately one third of it, will be leased for other activities, completely unrelated to the sector. (…).

Original story: Expansión (by Salvador Arancibia)

Translation: Carmel Drake

Emperador Wants To Completely Fill Torrespacio

19 September 2016 – Expansión

Take advantage of the improvement that the Spanish real estate sector is enjoying to increase the value of its Spanish jewel. That is the objective that the Philippine group Emperador has set itself. The company, which specialises in the sale of alcoholic drinks, erupted onto the real estate market in November with its purchase of the Torre Espacio skyscraper, measuring 235m tall and with a surface area of 60,000 sqm, located in the Cuatro Torres complex in Madrid.

Emperador fought off other candidates that have more experience in the Spanish property market, by offering Grupo Villar Mir €558 million. Ten months later, the Philippine group has launched an ambitious marketing campaign, which includes a new name (Torrespacio versus the original Torre Espacio), with the aim of achieving a 100% occupancy rate in the tower (it is currently around 85% full).

“We want to boost the campaign launched in 2015 when we saw an upturn in office rental prices in Madrid”, explains Eduardo Corral, the CEO of Torre Espacio Gestión, the company (belonging to Grupo Villar Mir) that has been responsible for managing the skyscraper since it was constructed. Its role has not changed as a result of the change in ownership. “The Emperador Group has not asked us to do anything new and although it was not included in the sale and purchase contract, our long-term management contract remains in place”, said Corral.

Prices

The managers of Torrespacio are looking for new tenants to occupy the available space, measuring 8,800 sqm, at a time when office rental prices in Madrid are experiencing a slight increase; they amount to €27.50/sqm/month in the prime office area (CBD) of the city. “We are reviewing our rents, but we are in line with market prices”, says the CEO of Torre Espacio Gestión.

The prices are well below €45/sqm/month that the first tenants paid for the same skyscraper, which is 57-storeys high. “In 2009, we started to fill the building, and we achieved a 70% occupancy rate, but in 2008, we already had preliminary rental agreements, and, despite the crisis, we have achieved an 85% occupancy rate”.

Since it was opened, the main tenant of Torrespacio has been Grupo Villar Mir, something that has not been affected by the change of owner. “Villar Mir continues its commitment to lease the property and, so do the other tenants. The next lease contract is not due to expire for three years”.

Tenants

The future tenants will not only be neighbours of Villar Mir, but also of the British, Dutch, Canadian and Australian embassies, the tobacco company BAT, Red Bull, Ubi and the Emperador group itself, which has opened its Madrilenian offices on the 28th floor of the skyscraper. “They are just finishing their move”, confirms Corral. Before the arrival of Emperador, the most recent tenant to move into the tower was the Chinese group Qbao, who moved in at the beginning of the year.

Of the available space, there is just one floor left in the top third of the building (the 44th floor), four floors in the middle section (floors 31, 29, 27 and 23) and two half floors. “We have one of the best buildings in Madrid and Europe, and the companies that move in will enjoy services such as a gym, a hairdresser, facility services, three restaurants and a chapel”.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Amancio Ortega Offers €490M For Torre Cepsa

28 June 2016 – El Confidencial

Amancio Ortega has entered the bidding, through Pontegadea, to acquire Cepsa’s skyscraper, by placing an offer on the table worth €490 million, according to sources familiar with the operation.

The owner of Inditex is thereby setting himself up to undertake his largest operation in the country to date, in a deal that would rank well above the figure of €400 million that he paid for the iconic Torre Picasso, the building he acquired from Esther Koplowitz almost five years ago.

Then, like now, the businessman approached the operation without the need to request financing from the banks – he has a wealth that differentiates him from the other candidates and enables him to bid slightly below the other interested parties.

In addition to Pontegadea, two other funds have expressed their interest in putting €530 million on the table, according to sources. Clearly, those bids are higher than Ortega’s, but they are linked to certain financial and payment structures that are a long way from offering the guarantees that Pontegadea provides to all vendors.

The hunt

Thanks to his dividend from Inditex, the businessman receives an annual cheque amounting to €1,100 million, which he uses, almost entirely, to acquire properties. This policy has converted Pontegadea into one of the largest real estate owners in Spain, comparable only with the newly created Merlin-Metrovacesa and Colonial.

Nevertheless, the dimensions of this remuneration mean that it is becoming increasingly difficult for the second richest man in the world to find opportunities in Spain. His interests focus on operations with at least eight zeros in the price, and as a result he has multiplied the number of operations undertaken overseas in recent years. (…)

Despite his financial prowess and the increasing challenge of finding desirable properties, Pontegadea remains faithful to its conservative policy and avoids processes that involve increasing the price in the final stretch.

In fact, its offer for Cepsa falls a long way below the €550 million asking price that the Sheik Khadem al Qubaisi hopes to obtain. The Sheik owns the purchase option over the Madrilenian skyscraper and has until September to exercise it if he wants to stop Bankia from taking over the asset once again. (…).

Nevertheless, Pontegadea is remaining firm in its valuation of the building, a figure that, if they end up closing the operation, will be significantly lower than the €558 million paid by the Philippine Group Emperador to acquire Torre Espacio. Nevertheless, according to several experts in the sector, there are important differences between the two operations, not least the higher risk of having OHL as a tenant rather than Cepsa.

The 248 metre tall skyscraper, designed by Norman Foster, has a leasable surface area of 56,000 sqm, spread over 34 floors. The sale has sparked interest from large institutional investors, such as Invesco, AEW, Deka, Hines, Patrizia, Etoile Properties and Axa.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Domo Submits Bid To Wanda For Edificio España

31 May 2016 – Cinco Días

Domo Gestora has submitted an offer to acquire the historical Edificio España as part of the sale process that the Chinese group Dalian Wanda currently has underway. Three sources close to the operation have confirmed the bid, but it is expected that the company will have to compete with other interested parties.

The sale of Edificio España is being managed by the consultancy firm JLL, which declined to comment on the process. The intermediary closed the first deadline for the presentation of non-binding offers last Friday, 27 May 2016. Over the next few weeks, the Chinese group will analyse the offers it has received for the building, in which Wanda had planned to open a hotel and luxury homes, as well as a shopping arcade. The plan is to finalise the sale before August. Domo is one of the possible candidates to take over the property and is expected to form an alliance with a hotel partner or other investor, whose identity has not been revealed.

Domo is a medium-sized company that specialises in the management of housing cooperatives. According to the sources familiar with the transaction, it could become the perfect local partner to take over the renovation and marketing of the apartments. The management firm has been in the news recently for its involvement in Residencial Maravillas, a luxury housing development on Calle Raimundo Fernández Villaverde (in Madrid), where work has not started yet and whose approval divided the municipal Ahora Madrid government.

The sources consulted understand that Wanda lost interest in this Madrilenian project after it was unable to carry out its renovation plans, which involved demolishing the property to rebuild it from scratch in keeping with the original style. After the plans were rejected by the Administration, the company decided to withdraw its complex renovation plans. The group purchased the 1950s building from Santander for €265 million in 2014. Domo is thought to have been inspired by a proposal put forward by the architect Carlos Rubio Carvajal, who submitted a more respectful design to the financial institution.

In addition to Domo’s offer, sources in the sector indicate that other investors, who were potentially interested in the building initially, have also analysed this operation, however, it is not known whether they have submitted bids in the end or not. The other parties include the Chinese fund Fosum, the Hong Kong-based firm Platinum Estates, the Philippine group Emperador – which recently acquired Torre Espacio from the Villar Mir Group -, the US fund Hines and the insurance company Axa, which declined to comment on its involvement in the sale. Both Wanda and JLL are maintaining the utmost confidentiality surrounding this transaction.

Experts in the sector indicate that Wanda will only be interested in selling the property if the consideration offered exceeds the €265 million it paid in 2014. Meanwhile, the Asian group is continuing its negotiations with the Town Hall regarding the handling of the renovation work, given that the property would be worth more if the group manages to obtain the necessary building permits.

Original story: Cinco Días (by Alfonso Simón)

Translation: Carmel Drake