BBVA, Merlin and San José will invest €216M on Madrid Nuevo Norte project

BBVA, Merlin and San José will invest €216M on Madrid Nuevo Norte project

The three shareholders of Distrito Castellana Norte (DCN) are ready to begin the construction works in the urban project that covers more than 300 hectares. The works will begin on the metro tracks in a few months, but the payment of 216 million euros by DCN to Adif for the purchase of land that will allow the urban development of the "new cit"' is still pending.

The amount to start up the machinery will be distributed among the shareholders in proportion to the weight of the company they hold. So far, BBVA has 75.5% of DCN in its hands; the Socimi Merlin Properties, 14.5%; and Grupo San José, the remaining 10%. The specific date to start removing the land on that plot has not been set because the company obtained approval of the urban plan last year, but it has not formalized the general agreement for the work with the administrations involved that enables it to finalize the purchase. However, according to the newspaper La Informatíon, the process will be sealed before the end of 2021.

Project areas

The urban development covers an area of more than three million sqm and four areas of action: the Chamartín station; the Business Center; Malmea-San Roque-Tres Olivos and Las Tablas Oeste. However, most of the investment is destined to this new business hub. The economic crisis unleashed by Covid -19 and the rise of teleworking can raise doubts about the decision to put the accent on offices.

Regarding the residential part of the project, the parties have agreed to build 10,500 homes, of which 20% will be protected by the State. This fact puts the rulers in their sights before the developments in the Housing Law that are to come. On the business side, the last known operation in this matter is the purchase of 30,000 sqm of land by Merlin Properties in Malmea-San Roque-Fuencarral, in an effort to safeguard the stability of the project and reinforce its weight in area.

This private investment project seeks to be a before and after in the capital and represents the largest urban regeneration intervention in the continent. The goal is to create a modern space with different uses, but, above all, sustainable. The company is going to give the city a new residential offer, an office park and a station that will improve the connectivity of the area, without emptying the State's accounts. The president of DCN, Álvaro Aresti, has described Madrid Nuevo Norte as «the city of the future».

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