Spanish real estate is once again favored by major conglomerates. It was recently revealed that Wang Jianlin, the richest man in China, intends to purchase the Edificio España, a historic landmark in Madrid located opposite the Plaza de España, for 260 million euros.
Banco Santander acquired this Madrid landmark from Metrovacesa in 2005 for 389 million euros. Banco Santander had planned to preserve the building's facade and structure while re-planning and renovating the interior space. The renovation project was intended to convert the building into a 28-story five-star hotel, with the top floors designated as ultra-luxury large residences. The renowned architectural firms Foster and Partners and Lamela were previously the main leads on this project. However, due to the massive scale of the renovation, the building has remained vacant, and Banco Santander, weary of managing it, is now searching for a suitable buyer.
Currently, in addition to Wang Jianlin, president of China's Dalian Wanda Group, Banco Santander has received "bids" from wealthy businessmen from Brazil and Mexico. Banco Santander has stated publicly that Wang Jianlin is not the only Chinese investor interested in the building, as other Chinese conglomerates have also expressed interest.
Based on current real estate market conditions, Banco Santander values the building at approximately 300 million euros, with an expected sale price between 270 and 280 million euros. Although many international investors have expressed interest and several have submitted specific offers, Banco Santander has not yet made a final decision regarding the ultimate ownership of the building.
Banco Santander has also clearly stated that price is the deciding factor, and the bank will only sell the building if the price meets its expectations. If the price is not suitable, the bank will choose to continue managing this historic Madrid landmark.