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JP Morgan breaks into final phase of El Corte Inglés Titania Tower purchase

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The sale process of Torre Titania, owned by El Corte Inglés and current EY headquarters, has attracted investor interest and is progressing rapidly. Several potential buyers have already expressed interest to the department store group in acquiring this property, which is located next to the department store group’s Nuevos Ministerios store in Madrid.

Among those interested in purchasing the property is JP Morgan, through one of his real estate funds and a family investor, according to real estate sources. The bank also investigated the operation CreditSuissein this case in conjunction with the colonial sozimi who would act as investment and wealth managers.

The first non-binding bids received by El Corte Inglés are around 230 million euros, although it is foreseeable that they can be improved at the time a binding offer is submitted. These latest bids are expected to arrive in the coming weeks and there may be other potential buyers for the property.

This sale is part of the sales process initiated by the group, chaired by Marta Álvarez, to divest non-strategic assets for around 700 million. as advanced Five days In February, El Corte Inglés mobilized several real estate agents to look for buyers. Among these properties, it also intends to dispose of an asset retail trade on the Puerta del Sol; another in Portal de l’Àngel (the most expensive shopping street in Barcelona); a shop on Calle Orense in Madrid; a property on Calle Alfonso Gómez in the Julián Camarillo district of the capital and an office building in Alberto Bosch (near the Prado Museum) where Viajes El Corte Inglés offices are located. The Titania transaction counts as advisors with real estate advisors CBRE and Cushman & Wakefield.

One of the peculiarities of the transfer of this tower is that it is part of a joint venture with the department store Nuevos Ministerios of El Corte Inglés. In fact, the first six floors correspond to department stores. For this reason, the group commissioned the office Uriah Menendez to be entrusted with the drafting of a legal pact for the formation of a community of owners. This could, for example, regulate facades (advertising use) or independent access to office floors.

After the first signs of interest, El Corte Inglés expects binding offers in the coming weeks. From JP Morgan they reply to this newspaper that they do not comment on the information, and a spokesman for Colonial in turn replies that the Sozimi have not made an offer.

Titania was built on the site of the missing Windsor building that burned down in 2005. Since 2017, it has been the corporate headquarters of the consultancy EY, occupying its 11 floors and 20,000 square meters. The US company has a lease until 2025. Investors’ appetites are whetted because Titania is located in Azca, one of the capital’s prime office areas with very few assets for sale, and is also the newest property in the area.

first offers

This is one of the jewels in the crown of El Corte Inglés real estate heritage. The group excluded it from previous real estate sales processes, but already examined its transfer in the autumn. Then companies like Generali, Alba Financial Corporation and Emperor (Andre L. Tan) all showed interest, according to real estate industry sources. Eventually, El Corte Inglés hired Cushman & Wakefield and CBRE to structure the process.

Torre Titania is included in the balance sheet of Asón Inmobiliaria de Arremientos, one of the real estate subsidiaries of El Corte Inglés. The entry of EY as the sole tenant marked a before and after in the books of this company. In 2016, his income was 3.8 million. It surpassed 10 million in 2017, the year EY opened its offices. In 2018 it was 12 million, in 2019 almost 13. The market estimates the price paid by EY at around 34 euros per square meter, which would correspond to annual sales of almost eight million.

Among other things, the next owner of the Torre Titania will have to negotiate the lease with EY, which expires in 2025. In addition, a few meters away, it faces competition in the office market, with El Corte Inglés as the protagonist.

By then, the sales group expects to have completed the construction of Castellana 69, the building designed by London architects Heatherwick, which will be built on the old Nuevos Ministerios station car park, the plot of which it has acquired from Adif for 136 million. This will have an area of ​​15,000 square meters and El Corte Inglés will act as a promoter to rent these offices to third parties. Barely 200 meters separate Torre Titania from Castellana 69.

Source elpais.com

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