Grupo Lar and funds managed by BlackRock have closed approximately €306 million in financing with Banco Santander for the development of the Torre Castelló project, an urban redevelopment project that will transform the former office building located at María de Molina 50, in Madrid's Salamanca district, into a new residential and educational complex.
The project envisages the construction of a 20-storey tower that will house 158 flats and a student residence with a capacity of 400 beds, distributed in single rooms. According to the planned schedule, construction will start in 2025. The total estimated investment for the transformation of the asset exceeds €500 million.
In addition to Grupo Lar and BlackRock, the project has the participation of Inbest GPF SOCIMI, which at the end of April announced the acquisition of approximately 30% of the development. This incorporation reinforces the structure of the development and is part of Inbest's strategy to expand its presence in the prime residential segment. The building was acquired by the main partners in August 2024 and its conversion is one of the largest real estate operations currently underway in the city of Madrid.
The new complex will be located at the intersection of Calle Castelló and Calle María de Molina, an established area of the city centre. According to the developers, the design will include common areas such as a gymnasium, wellness centre, elevated gardens, coworking spaces and other shared services, with panoramic views over the city. Both the residential tower and the university residence will have BREEAM Excellent, WIREDScore and FITWEL certification, which accredits sustainability, digital connectivity and wellbeing criteria.
Miguel Ángel Peña, CEO of Living at Grupo Lar, underlined that "the backing of Banco Santander validates the solidity of the project and brings us closer to the goal of delivering a unique asset to the market in terms of location, quality and concept".
The financing process has been advised by Pérez-Llorca for the developers and CMS Albiñana & Suárez de Lezo for Banco Santander.
