Centro Canalejas Madrid: 22 apartments sold for more than €100M

Centro Canalejas Madrid: 22 apartments sold for more than €100M

Centro Canalejas Madrid | Photo: Four Sesons

These luxury housing units, which have between 170 and 700 sqm, are under the management of Four Seasons, the same chain which operates the 5-star hotel integrated within Centro Canalejas Madrid with 200 rooms, being the first Four Seasons hotel in Spain.

Developer Centro Canalejas Madrid should have received 93.5 million euro for this transaction, but when the 10% VAT is added, the total amount paid by the buyers rises to 102.8 million euro, which represents an average of 4.67 million euro per unit.

According to the information released by Colliers International, the units were sold in the second quarter of 2020 to 22 different investors: 80% of them for private residential use and 20% for investment purposes. The consultant further added that 38% of the investors are from Mexico, 27% from Spain, 9% from Jordan, 5% from Turkey, 5% from Portugal, 5% from China, 5% from EEUU, 4% from Nicaragua and 4% from Argentina. For other words, 73% of investors are foreigners. 

The detailed information concerning this transaction can be found in the complex’s developer’s end of year statements concerning to 2019, which were recently issued at the commercial register. This document, which newspaper Cinco Días had access to, revealed that the most expensive dwelling was one of the penthouses which cost 11 million euro (around 16.600€/sqm). The second most expensive dwelling was traded for 8.5 million euro and the third most expensive for 3.2 million euro. The same document also revealed that this last operation was pending the conclusion of the money laundering verification process. The amounts paid for these units increased the average price to 15.100€/sqm.

This operation was advised by consultants Colliers International and Knight Frank on behalf of the developer and it was not first to be carried out in this complex. Last July, management company Nuveen Real Estate acquired a 1.000 sqm retail space for around 30 million euro on behalf of German bank Warburg-HIH Invest Real Estate. This unit should be occupied by bank Santander.

Construction company OHL took the first steps to build project Centro Canalejas Madrid in 2012, with the acquisition of 7 buildings, located between streets Alcalá, Sevilla, Plaza de Canalejas and Carrera de San Jerónimo in Madrid, for a total 215 million euro to bank Santander. Since then, the construction company initiated the rehabilitation of the building which will be destined for hotel, residential and commercial use. The total surface of the property will reach, approximately, 50.000 sqm, of which 15.000 sqm are destined for retail spaces.

This complex, estimated at 550 million euro, is currently shared by OHL with 50% of its shares and society Mohari with remaining 50% for which it paid around 225 million euro to enter the project in 2017.

Pandemic delays opening of the shopping gallery

Although the hotel integrated within Centro Canalejas Madrid opened its doors last September, the inauguration of the shopping gallery was postponed. The initial schedule pointed towards opening it last Summer, but the pandemic delayed the construction works. In its latest documents, the company advanced that the opening was delayed to the start of 2021 and now «the new predictions point towards the beginning of the second semester».

Last Update at 3:47 p.m. with new information released by Colliers

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