Merlin swaps offices for residential in Madrid's centre

Merlin swaps offices for residential in Madrid's centre

Merlin Properties is changing course on a real estate project at number 22 Calle Velázquez in Madrid. The socimi has decided to put the property up for sale due to the high interest in luxury residential projects in this area of the Salamanca neighbourhood, close to El Retiro Park and one of the most expensive housing areas in the city. The asset could reach up to 40 million euros.

The socimi bought more than two years ago, in the midst of the Covid-19 pandemic crisis, a majority share of a 'proindiviso' of the property, which had been in mixed use (offices and housing) and which currently remains empty. The company's initial intention was to undertake an office project there, but in view of the high level of interest from potential buyers to convert the building into housing, Merlin has decided to divest itself of an asset that it considers non-strategic, according to sources in the real estate sector.

This area is one of the most expensive in the city, with few new projects of refurbished residential buildings, so it is difficult to know the possible prices of houses located there. In the best flats in this neighbourhood, known as Recoletos within the Barrio de Salamanca district, the best dwellings can rise up to more than 10,000 euros per square metre.

The sale of the property will be carried out by judicial auction as it is a joint ownership of Merlin and a private individual. The judge will have to proceed to divide what is legally known as the "common thing". From there, the highest bidder will get the property. According to this proportional distribution, Merlin could receive around 30 million.

Merlin has thus begun to reconsider some specific office projects that could be converted into residential. In addition to the one on Calle Velázquez (corner with Jorge Juan), it is listening to offers for one of the buildings that make up the Ática XIX business park, located in Pozuelo de Alarcón, one of the municipalities with the highest per capita income in Spain.

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