Princeton Investments has completed the sale of a building on Calle Fomento in Plaza de Santo Domingo, Madrid to Boissée Finances, a French hotel group, which plans to convert the asset into a 155-room upscale design hotel.
Financial details were not disclosed.
The building is located a stone’s throw away from Gran Via in the tourist and commercial heart of Madrid and comprises of 10,700 m2.
The proposed development is set to include one of the largest rooftop swimming pools and terrace spaces in Madrid, with views over the Palacio Real and the Sierra de Madrid.
Princeton purchased the building on a sale and leaseback basis from Telefonica in 2015 which expires in 2022. During their four years of ownership, Princeton developed plans to transform the building’s use, and the disposal marks the completion of their business plan.
Princeton has been active in the Spanish market over the past five years, acquiring a number of high-profile residential developments and refurbishments, office investments in Madrid as well as several student housing developments. The completed value of its Spanish investment programme is in excess of €200 mln. CBRE and Uría Menéndez advised Princeton.
'The building has all the characteristics to become one of Madrid's most iconic hotels,' said Miguel Casas Albandor, head of hotel investment properties, Continental Europe at CBRE. 'It stands out by its location and layout, with more than 500 sqm of rooftop terrace that has amazing views over Madrid's historic centre. The positive hotel trading and investment environment in the city is positioning Madrid as one of the top European capitals within the Hotel Investment market.'
