Global asset manager BlackRock has teamed up with Spanish real estate developer Grupo Lar on a high-end residential project in Madrid.
The project involves converting the former tax offices of the Ministry of Finance in the Salamanca district into 153 luxury apartments and a student residence with 400 beds.
The development, valued at €400 mln, is expected to be completed by 2027. The apartments will offer premium amenities, while the student residence will accommodate 400 students.
In 2019, the Spanish government put up the 41,132 m2 building with 396 parking spaces on Calle María de Molina 50 up for sale. It tried to sell the building twice at lower prices, €196 mln and €185 mln, but both auctions failed to attract any buyers.
Grupo Lar acquired the asset in 2025 for around €205 mln through a joint venture and secured financing from Banco Santander.
Grupo Lar and Blackrock plan to expedite the licensing process and begin the redevelopment project within the next few months.
The remodeling work will be carried out by architects Martín de Lucio Arquitectos, with construction expected to be handled by Dragados.
This partnership marks BlackRock's entry into the Spanish residential market. The company has been actively seeking opportunities in housing, student residences, and co-living spaces.
