The Popular Party advances in the sale of its historic headquarters located at number 13 Calle de Génova in Madrid. The political formation chaired by Pablo Casado has chosen the consultants KPMG Y CBRE as advisers to find a buyer, who should also propose building options as a new headquarters, according to sources from the real estate sector to Five days. The sale amount may approach 60 million euros, although it is one of the aspects that has not yet been specified.
Casado announced in February the sale of the property, a possibility that had been debated within the party since 2018. “I believe that we should not continue in a building whose reform is being investigated this week in the courts,” the popular president pointed out as a way symbolic of breaking with the past and in reference to the indications that the rehabilitation of the property was paid with box B.
At the time the contract is formalized by the popular, KPMG and CBRE will act as real estate advisers to advise on all possible options, since the PP can even consider not getting rid of the property, but renting it. The search for a new representative building for training also falls on his task.
A PP spokesman assures that at the moment no contract has been signed with these companies and they clarify that they cannot confirm that these two consultants are the ones finally chosen because they have studied various options.
The participation of this type of advisory firms is usually common in real estate transactions to advise the seller or the buyer and because of the knowledge of the market to find bids. It is less common for the seller to hire two consultants at the same time, but the PP has wanted to give in this way more guarantees and transparency to the process, according to sources in the sector.
KPMG is an international consulting and auditing firm commonly known as one of the big four. In Spain, its real estate manager is Javier López Torres, senior advisor from real estate. For its part, the American CBRE is one of the large real estate consultancies, which has Adolfo Ramírez-Escudero as president. Both CBRE and KPMG did not comment on this information.
The experts consulted calculate between 50 and 60 million euros the amount that the PP can pocket for the transfer. At the moment, the sale process has not started and it is unknown how much potential investors will be able to offer.
The property has a surface area of 6,800 m² on nine floors and another four for parking. It was renovated, with the controversial works, in 2010. It is located in the most expensive office area of the capital, which goes from Plaza de Colón to Azca.
It is an asset considered prime for which investors with low cost of capital and who can afford higher prices such as insurance companies and pension funds, as well as real estate funds and also some family office. These types of investors would add the building to their asset portfolio to rent the offices to another company or institution. However, there are real estate companies that renounce the purchase of Genoa 13 due to media exposure.
The transaction is likely to attract the interest of buyers due to the shortage of office properties for sale in the area prime and the high flow of capital that is flowing into real estate. This type of property can have low returns (yield less than 4%) for the investor, as it offers a high purchase price in exchange for very secure and stable long-term rental income. Although the question remains of knowing who may be the tenant who occupies the property when the popular ones leave.
In case of renting, the Idealista portal reflected in February that the conservative formation could pocket between 140,000 and 160,000 euros per month.
The political formation moved to its historic headquarters in 1983, looking for a larger space, from a smaller one on Silva Street. At that time its name was still Alianza Popular and in the 1982 elections it had taken a considerable leap by becoming the first force in the field of the right after the practical disappearance of the UCD. Since then it has been the epicenter of Spanish politics and the venue for numerous electoral victories, such as the recent one by Isabel Díaz Ayuso in the Community of Madrid.
The PP acquired the property in 2007 from Mapfre for 37 million with a loan from Banesto. The insurer erected the current building in the 1970s.