[Anonymous]

Santander set up the fund Santander Global Properties to help sell some of its most emblematic buildings inside and outside Spain, like Edificio España (pictured), but it appears the fund has not achieved its objectives and Botín has decided to close it down. It seems that international investors weren’t tempted by the prices – a familiar story.

There is speculation that this will mean Santander gets more serious about disposing of these buildings…..

[Chopera]

That building is now full of homeless people roughing it. Ground floor boarded up. Another building just across Plaza España is derelict as well. Absolutely incredible. I used to have the occasional lunch on the first floor of that building, looking out over Plaza España to Casa de Campo. Fantastic views. Just next to it is Torre Madrid which has been developed into luxury apartments (I think Metrovecesa developed them) but I always thought Edificio España was a much better building. It really should be prime – but there’s no market right now. Hotel maybe? Apparently Four Seasons hotels will be moving into another part of Madrid.

[Anonymous]

Wow. I did not know that 😯 . This is another reason why the banks have been so foolish in hanging onto repossessed properties rather than selling at any price. It costs money to keep the robbers and squatters out, and if they get in, it costs a fortune to clean up after them.

A bank recently explained to me that when they repossess a half finished development, say 80pc built, it goes onto their books at 80pc built. But the first thing that happens is that the developer, contractors, and everyone else goes in a strips the place down to 40pc built (leaving just the structure). So the bank has it an asset valued at 80pc, but the real value is immediately 40pc or less. Great ❗

[Chopera]

Apparently a hotel chain is going to take over the other derelict buildings in Plaza España:

http://ccaa.elpais.com/ccaa/2013/04/04/madrid/1365076431_277327.html

http://ccaa.elpais.com/ccaa/2012/05/26/madrid/1338047868_371890.html

Empty buildings in Plaza España:

The building at the bottom is the senate. Rather ironic that it’s next door to all these empty buildings.

[Anonymous]

Heavens. Looks like some sort of inner-city sink estate. I had no idea things had got so bad.

[Anonymous]

Edificio España (pictured at star of thread) is reported to have lost 100 million Euros in value. Santander paid €400m in 2005, now valued at €309m, and I guess someone would actually pay cash something like €200m….

[Author]

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