Tag: Valdebebas

The Auction Opens For 2 Residential Plots In Valdebebas

1 July 2015 – El Confidencial

The countdown has begun. The Valdebebas Compensation Board has approved the terms and conditions for the auction of two plots of land destined for residential use measuring 18,000 m2 in this urban development, where 190 social housing homes will be built. The Board expects to receive at least €14 million for both plots, i.e. around €700 per square metre.

The plots, which will be auctioned individually, are located next to the site that will house the future Valdebebas shopping centre. One of them, which the Compensation Board has set an asking price for of at least €5.6 million, contains 7,400 m2 of land for residential use, whilst the other measures 10,200 m2 and will have an initial auction price of €8.3 million. (…).

In order to participate in the auction, interested parties must pay a deposit of €300,000 – before the first week of September – which will be deducted from the final auction price in the case of the winning bidder and returned upon completion of the process to all other bidders.

The interested parties, expressly invited by the Compensation Board, will have access to all of the legal, economic and environmental information about the plots and must submit their bids before 12:00 (midday) on 30 September, when all of the envelopes will be opened. On 1 October, the Advisory Council of the Compensation Board will award the plots and one day later, the sale and purchase deeds will be signed. All of the auction details are available on the Valdebebas website.

The plots owned by the Compensation Board have aroused interest from the cooperative manager Ibosa, which was hoping to offer €70 million for all of the land owned by the Compensation Board – with the exception of one of the plots up for auction that has been promised to FCC -. An agreement that has not yet been finalised, although discussions are continuing with the Board for the purchase of the remaining land that will not be auctioned.

Payment options: in cash, deferred or by instalment

The terms and conditions stipulate three possible forms of payment: in cash, deferred or by instalment. Cash offers will prevail over deferred payments, unless the latter exceeds the former by 2.5%. Cash offers will also prevail over payments by instalment, except when the latter exceeds the former by 5.5%. Finally, deferred payments will prevail over payments by instalment, provided the party that chooses the latter option does not present an offer that exceeds the former by more 3%.

If any bidders choose the deferred payment option, then they must pay the total amount, i.e. 100%, five months after the plot of land is awarded, i.e. by 2 March 2016. Meanwhile, 70% of any payment by instalment must be paid by March 2016 and the remaining 30% by September 2016. (…).

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake

Ibosa emerges as ‘Queen of Valdebebas’ — purchasing land for 1,000 homes

21 May 2015 – El Confidencial

The co-op management group has presented to Spain’s Compensation Board an offer of 70 million euros for 40,000 square meters of land

Ibosa is about to become one of the largest owners and managers of residential land in Valdebebas. The co-op management group is buying slightly over 40,000 square meters of land in this urban development project, where about 1,000 homes – both subsidized and unsubsidized housing – are to be raised.

As far as El Confidencial has been able to report, the company has likely made an initial offer for around 70 million euros – about 700 euros per square meter – for land currently owned by the Compensation Board, with  permission to build over an area of ​​113,000 square meters.  Sources claim the company will have a ‘fellow traveler’ in this project.

The offer is currently pending for final approval by the governing council of the Compensation Board, which is expected to meet in the coming days.  If it goes through, Ibosa Group will became one of the major real estate players in Valdebebas. In addition to the 1,000 homes it will be able to build in the area, the company has already built or ‘has in the works’ another 500 properties – almost 200 unsubsidized luxury homes and the remaining with some type of ‘social housing’ status – as part of nine projects. Overall, 1,500 homes are to be built in Valdebebas, on top of the approximately 12,500 planned ones, i.e. 12% of the total.

This deal highlights the growing appetite for purchasing land over recent months in Madrid, even, according to some experts, causing prices to start soaring.

Ibosa has made a 70-million-euro offer for the land currently owned by the Compensation Board

In the past two years, Ibosa Group has been one of the most active players in Madrid’s residential housing market. In November 2014, the company signed the second largest land transaction in Madrid, when it acquired  train depots at  Cuatro Caminos, owned by the Metro de Madrid, for 88.3 million euros. The company was also interested in a  land lot, owned the Ministry of Defence, in Raimundo Fernandez-Villaverde but never made a bid. It ended up in the hands of another co-op management company, Domo, for 11 million euros.

In Valdebebas, Ibosa is currently working on the first projects it launched in this new neighborhood, with a clear commitment to providing quality subsidized social housing. Residential Caelum is a case in point, as it is comprised of 30 exclusive luxury housing units (VPPL, subsidized housing at limited price). In fact, seven of the nine projects in this new neighborhood in Madrid feature homes with some sort of social subsidies available. If the company ends up acquiring the lands of the Compensation Board, 900 out of the 1,000 homes that are  to be built in the area will also have some kind of social housing status.

In October 2014, the Madrid City Council finally approved the plan for urban redevelopment of the area (called ‘la pastilla comercial’ in Spanish) in Valdebebas, including four fields located in the northwest, covering an area of ​​145,906 square meters. A huge shopping mall over three land lots was expected to be built in addition to a public green area. Commercial space will still be available after this amendment, but over a much smaller terrain.

“The original idea was to develop a regional shopping mall. However, the market trend in shopping malls has led us to reconsider our plans and reduce its size. As a result of this process of realignment, there is going to be a mall servicing only the district of Valdebebas and nearby areas,” explained the Compensation Board in a statement back then.

The ​​104,328-square-meter area that comprises three plots, at first meant entirely for tertiary and commercial use, has been redistributed: commercial space (44,571 square meters, about 56,000 building area); private and non-residential  facilities (20,778) – a private school; social subsidized housing (37,492) as well as unsubsidized housing (3,250). In total, there will be 113,000 square meters of land to build homes on. In addition, 14,097 square meters will be allocated for building three new streets and a public square.

Original story: El Confidencial (by E. Sanz)

Translation: James Leahu

Green Light Given to ‘La Ciudad de la Justicia’: Madrid Needs €771m For Its ‘Megaproject’

17 February 2015 – El Confidencial

The Official Bulletin of the Community of Madrid reflects the economic conditions that the Government requires of the concession companies that want to bid to construct the future judicial offices in Valdebebas.

On Monday, the Official Bulletin of the Community of Madrid reflected the economic conditions that the Government of Ignacio González is imposing on the companies that want to construct the new judicial offices in Valdebebas. Two months before the regional elections, the Community of Madrid calls for a €771.7 million contract for a “megaproject” that will not see the light until 2019. The initial bidding budget for the works to be built in the North of Madrid will exceed €1,700 million, according to estimates reflected in the public document. The companies that are interested in “bidding” for the project have until 1 April to submit their bids to the Presidential Council, led by Salvador Victoria.

The total estimated cost of the project is divided into two parts. The Community of Madrid has already invested €288 million in the site: on the land, the tunnels that have now been constructed and the Institute of Legal Medicine, which has already been built. Therefore, the chosen companies would only have to contribute the remaining €483 million to take the total to €771 million. Construction of this project is expected to begin in July next year and the site will be operational from summer 2019.

The Community of Madrid will grant a 30-year administrative concession to the winning firm, to whom it will pay a fee of around €45 million, which is the amount it currently pays for the rental of the 28 judicial offices around Madrid and their associated services. The concession will begin from the day that the building work contracts are awarded, which will be in July, and not from its completion date (scheduled for four years later), as is usually the case, which means that the Community will have a four-year grace period and the fee will be paid on a linear basis over 26 years.

(….)

New jobs

With an area of 200,000 square metres, the Ciudad de la Justicia (City of Justice) will be located in the Parque de Valdebebas and will house the 356 courts of the Judicial District of Madrid, 554 judges and magistrates, 202 prosecutors, 362 court clerks, more than 5,000 people in the service of the Administration of Justice, more than 42,000 lawyers and 1,719 barristers, in addition to the citizens. According to the Community of Madrid’s calculations, the building work at the Ciudad de la Justicia will result in the creation of 2,200 jobs and a minimal improvement in Madrid’s GDP.

Original story: El Confidencial (by Ana I. Gracia)

Translation: Carmel Drake

Construction To Resume In Valdebebas

30 January 2015 – Cinco Días

The Governing Board of Madrid’s City Council has finally approved the “Project for the Economic Redistribution of Plots in Valdebebas”, once all of the necessary administrative processes have been completed. “This is a particularly important milestone for Valdebebas, since it will allow not only for new building permits to be granted once more, but also for a return to normality for the first occupancy licences and building permits that have been already granted; the latter have been affected by litigation claims”, said the team responsible for the complex, located to the North of central Madrid.

Following the administrative decision, construction of almost 1,000 new homes (mostly non-subsidised dwellings) will begin in the next few months, adding to the stock of more than 4,000 homes that have already been built. “In terms of social housing, and once the existing supply of land has been used up, around 350 of the 1,000 new homes will be subsidised”. In addition to this new supply of housing, the urban restructuring will be completed with a shopping centre, comprising 56,000 constructible square metres, and a plot of land destined for private educational use, where the Joyfe Valdebebas College will be built. The parks in the area, which will occupy 1,000 hectares, are due to be opened between March and April.

The plans permit the construction of 12,500 homes, of which almost 4,200 have already been build and a further 800 are in the final phase of construction. Around 5,000 people currently live in Valdebebas, but it is estimated that the neighbourhood will have a residential population of between 30,000 and 40,000 people once the project has been completed. If we add the people that are expected to work in the nearby offices and shops, then estimates indicate that more than 100,000 people will pass through Valdebebas on a daily basis. The average price of non-subsidised housing in the new neighbourhood amounts to around €2,550 per square metre.

Original story: Cinco Días (by Alberto Ortín Ramón)

Translation: Carmel Drake