Spanish developer Reyal Urbis is re-starting the development of its flagship Castellana 200 mixed-use project in Madrid after receiving backing from its creditor banks.
Spanish developer Reyal Urbis is re-starting the development of its flagship Castellana 200 mixed-use project in Madrid after receiving backing from its creditor banks.
In a statement to the Spanish stock market regulator CNMV, Reyal Urbis said it has signed an agreement with its banks which envisages the transfer of the project to a new company, named Complejo Inmobiliario Castellana 200, which will be 92%-controlled by Reyal Urbis.
Creditor banks including BBVA, Sabadell, Santander and Bancaja have agreed to finance Phase I of the development project, which consists of 21,500 m2 of office space, an 8,500 m2 shopping centre and 829 parking spaces. Reyal Urbis will retail the project management, while developer San Jose has received the construction mandate. The lenders have taken 51% of voting rights.
Phase I, representing an investment of EUR 47 mln, is due to be completed in 18 months.
Reyal Urbis froze the development of the EUR 240 mln scheme in September last year amid difficulties in refinancing EUR 4.8 bn of debt.
