Pimco, Lar bag Madrid luxury resi project for €120m

US asset manager Pimco and Spanish REIT Lar España Real Estate have snapped up the Juan Bravo Plaza luxury residential project in Madrid's Salamanca district for €120 mln.

According to a filing with Spanish market watchdog CNMV, Lar and Pimco have formed a 50-50 partnership to acquire the troubled development from Rafael Ortiz's Eurosazor development firm and businessman Fernando Fernández Tapias.

US-based Pimco is also a major shareholder in Lar with a 12.5% stake.

The project, which launched in 2009, entered administration four years later and remained frozen for the past 18 months. It involves a total of 26,200 m2 over 60 luxury apartments in a central area of the Spanish capital. The purchase also includes an adjacent building at Claudio Coello offering 5,320 m2.

Proceeds from the sale will be used by the previous owners to repay creditors. Bank Santander will remain the financier of the project.

Eurosazor was advised by law firm Bazarra Abogados and Cuatrecasas. Freshfields acted for Lar España.