Crea Madrid Nuevo Norte (CreaMNN), the developer comprising BBVA, Merlin Properties and San José, has formalised the acquisition of the land at the Chamartín and Fuencarral railway sites from Adif and Renfe, signalling the eagerly awaited start of Operation Chamartín. The agreement includes both the land and the urban development rights necessary for the development of Madrid Nuevo Norte, which envisages the construction of offices, housing and shops in an area of more than one million sqm.
The price of the transaction amounts to 1,245 million euros, with an initial payment of 210 million euros at the time of signing and the remainder to be paid over a period of 20 years. To secure this obligation, the developer has established a mortgage on part of the land acquired. In addition, the agreement includes a payment in kind through the delivery of developed plots, with a buildable area of 100,000 sqm for subsidised housing.
Madrid Nuevo Norte, the largest urban regeneration project in Europe, envisages the construction of 10,500 homes, 38% of which will be subsidised. It will also include a new Business Centre, with ten skyscrapers that will transform the skyline of the capital, including what will be the tallest building in Spain, at more than 300 metres high.
The development will integrate ground floor retail on most blocks and ensure that 95% of the residential and office areas are within 10 minutes of a public transport station. In addition, 400,000 sqm of green space will be created, including a 13-hectare Central Park and a green axis connecting to the Cuenca Alta del Manzanares Regional Park.
The economic impact of Madrid Nuevo Norte will be significant, with an estimated investment of 11,069 million euros and an additional 14,128 million euros derived from real estate transactions. According to the promoters, the project will generate 350,000 jobs, distributed between the construction phase and the full activity phase, and will contribute 15.2 billion euros to the national GDP.
The planned infrastructures include the renovation of the Chamartín-Clara Campoamor station, a new metro line, a regional interchange, a Cercanías station and 13 kilometres of bicycle lanes. Several bridges, a tunnel and a pedestrian walkway will also be built to connect historically separated areas of the city.
Crea Madrid Nuevo Norte president, Álvaro Aresti, stated that the closing of the transaction represents ‘the best example of how collaboration between public administrations and private initiative makes it possible to tackle the major processes of transformation and modernisation of our cities, to make them more sustainable, prosperous and competitive’.