July 29, 2021

Santander is considering increasing the offer to recover its macrosede in Madrid | Economy

Santander is considering increasing the offer to recover its macrosede in Madrid | Economy

The brothers Simon and David Reuben, real estate entrepreneurs settled in London but of Indian origin, have made the largest purchase offer by the Financial City of Santander, in the Madrid municipality of Boadilla del Monte. The bank itself has made the second best, according to sources of the operation, which point out that it studies raising it if the difference is not relevant, since it has the right of first refusal. Now it must be the judge who validates the two offers and allows Santander to exercise that right and equalize Reuben's offer. Santander sold its headquarters in Boadilla del Monte to the Marme Inmobiliario group at the beginning of 2008 for 1,900 million euros. This sale came a few months before the real estate bubble burst in Spain.

The owner of the property, Marme Inversiones, is in bankruptcy proceedings, the old suspension of payments, and the commercial court number 9 of Madrid is in charge of liquidating its assets, so it will have the last word in the auction.

Reuben Brothers is an investment group with properties in various sectors, industrial, real estate, luxury and food. Among its properties is Arena Racing Company, the largest racetrack company in the United Kingdom; The chain of pubs British Wellington Pub Company; the Curtain Hotel, one of the most luxurious hotels in London; the Italian marina Portosole Sanremo; GC Partecipazioni (GCP), with the largest greenhouse in Europe, in the Italian region of Apulia, according to Vozpópuli, which advanced the position of Reuben.

The bidding also involved a Kuwaiti fund (AGC) and, according to various reports, also the British investor of Iranian origin Robert Tchenguiz, all of them willing to offer more than 2,000 million, although the figure could rise to 3,000 million because Marme accumulates 800 millions in liquidity in your box.

The repurchase of the Financial City would make sense for Santander simply because with it it would save the little more than 100 million annual pays to occupy the property and that are updated according to the lease signed for 40 years to be counted since 2008, when he sold the facilities.

Financial sources point out that Reuben funds have acquired Marme's debt, in suspension of payments, at a very low price, so they would benefit from Santander's acquisition. However, if they have put a high price and the bank does not match the offer, they should assume it. The profitability of the Financial City is questioned by some investors because they argue that it is a disused headquarters model.


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