Grupo Lar and funds managed by BlackRock, through a joint venture, have formalised the purchase of an office building in Madrid formerly occupied by the Ministry of Finance, where they will build 153 luxury homes and a 400-bed student residence. This is the building located at Calle María de Molina 50, in the capital, which Lar and BlackRock were awarded last year in a public auction for 204.7 million euros.
Grupo Lar won the bidding for the building by offering 204.7 million euros for the asset, the highest figure of all the proposals. This was the third attempt to sell the Administration's real estate jewel in the capital. In fact, the Ministry of Finance had lowered the starting price of the auction on three occasions, which was ultimately set at 156 million euros. Kronos, Dunas Capital and Ibosa also bid for this property, but without success.
The purchase of the property was finally made through the joint venture Barnaby Investment and the project will be financed by Banco Santander. Following the deed, the partners plan to apply for the licence immediately and start the refurbishment works in the coming months. Completion is expected in the summer of 2027, although the flats will start to be marketed in the last quarter of this year.
The remodelling of the building will be carried out by the Martín de Lucio Arquitectos studio, which already worked on the Borealis tower, and it is expected that Dragados will be involved in the construction work.
