Grupo IBOSA has outbid competitors in the auction to buy one of Madrid’s most coveted plots of land available within the M-30 ring road. The Spanish property developer was shortlisted on Friday by vendor, Iberdrola, and granted exclusivity on Monday according elEconomista newspaper.
The property, which was previously used by the energy giant as an electrical substation, is located on the corner between Madrid’s Calle Alcalde Sáinz de Baranda and Calle Juan Esplandiú, in the sought after Retiro district. The asset has traded for approximately €24 million which translates to just over 3,000 euros per square metre of buildable space.
The buyer will employ a cooperative formula to develop an 80-home building on the plot which has a surface area of 1,337m2 and a buildable area of 8,500m2. Sale prices are expected to be in the region of €5,000 euros per m2. Grupo Ibosa has opted for a mixed financing formula partly financed by their pre-sale volume of 60% and partly financed by an investment fund which provides the rest of the capital
The planned residential project has been given the name of Naktam Residential and will include 1 to 4-bedroom homes all including garage and storage rooms and distributed over 14 floors. The project’s seven one-bedroom homes have been sold off-plan for c. €283,000 and given the high demand for smaller flats, IBOSA is considering converting some of the larger flats into new one-bedroom units.
Grupo IBOSA was founded in 2001 with the objective of developing the landbank owned by the entity and then branched out into development of new projects and refurbishments. Recently, the firm has become specialised in the management of housing cooperatives. It is controlled by the Moreno Manso brothers and has 1,070 homes under management.
The vendor was advised by Knight Frank.