French asset manager Ardian and Lamar Development, a real estate developer based in Dubai, have purchased an office building from Merlin located in the heart of Madrid, at 38-40 Calle Alcalá, to convert it into luxury homes.
The property, built in 1880, has a total floor area of approximately 10,000 sqm spread over seven floors, with a private landscaped courtyard on the ground floor and a roof terrace. The property is located at the intersection with Gran Vía, directly opposite the iconic Metropolis Building and within walking distance of the Four Seasons Hotel and Galería Canalejas, Plaza de Cibeles and the Banco de España.
Ardian and Lamar intend to undertake a comprehensive refurbishment of the property, creating between 25 and 30 luxury homes, with the project aiming for a high-level environmental certification. Refurbishment work will begin once the General Secretariat of Penitentiary Institutions, the current tenant, vacates the building.
“This project reflects our trust in the local real estate market and our dedication to developing best-in-class real estate in major European cities. We are firm believers in Madrid's potential as a dynamic and growing city and look forward to contributing to the development of the city with innovative and sustainable projects”, said Edmund Eggins, Head of Real Estate at Ardian in Spain.
This is not the first change-of-use transaction Ardian has completed. In 2024, the fund manager purchased the Quirón offices at 28 Zurbarán Street to convert them into luxury flats. Wynrock bought the asset from Ardian last year.
For Lamar, this acquisition marks its second investment in the area following the one on Calle Cedaceros. “With Casa Lamar, at 9 Cedaceros, we began to build our vision for this part of the city, and 38-40 Alcalá represents a natural continuation of that commitment”, noted Henri Hottinger, European partner at Lamar Development.
Uría Menéndez and Ashurst advised Ardian, while Cuatrecasas, Linklaters and Knight Frank acted as advisers to Lamar Development.
