9 February 2015 – Expansión
Madrid / The railway management company is looking for a tenant to manage the property, which measures more than 6,000 square metres, for 50 years
The railway management company, Adif, is continuing with the optimisation process of its real estate assets and has decided to put one of its most emblematic buildings in Madrid on the market. The building, located next to the Estación del Norte – known locally as Príncipe Pío – has been empty for years. Adif has decided to confer the management of the building and surrounding area for a term of 50 years. During this period, the new tenant shall pay a fixed annual rent of no less than €150,000 per year, whereby the public company will receive at least €7.5 million from the arrangement.
The railway management company will grant both the main building, with has a surface area of more than 6,530 square metres, as well as the free spaces around the building, which have a surface area of approximately 3,429 square metres. The building has “great architectural value and its origins date back to the beginning of the 20th century”, with a large central hall and two towers, according to the terms of reference prepared by Adif.
Nevertheless, the main building is in a “poor condition” and so the tenant will have to undertake a comprehensive renovation project, which will be a key condition of the contract. The cost of the restoration and renovation work may not amount to less than €7 million.
Interested parties have until 2 March to submit their bids and the period for the submission of financial bids will open on 13 March.
This is the second time that Adif has put the Príncipe Pío building on the market. In December 2013, it launched a similar process to award the operation of the property. However, the two bids it received did not meet the conditions established in the terms of reference. To avoid a repetition of this problem, Adif has simplified the conditions, which should facilitate their agreement. The property, which is listed as a Property of Cultural Interest, was renovated in 1999 to house a recreational, cultural and retail centre. Last year, the Community of Madrid extended its permitted use to include offices.
Original story: Expansión (by Rocío Ruiz))
Translation: Carmel Drake
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Source:: AURA Real Estate Experts