RENTA CORPORACION SELLS ITS FIRST BUILDING IN NEW YORK TO AN AMERICAN DEVELOPER
Real estate group’s first sale in Manhattan
. Project for transforming the building occupancy
. Prominent Tribeca architect George Boyle commissioned by Renta Corporación to plan the project
. Clear example of the Company’s value creation cycle
Renta Corporación makes its first sale in New York. The real estate group has reached an agreement for the sale of one of the buildings it acquired last October, in the Tribeca district of downtown Manhattan, to a local American developer with solid experience in New York State and California. The transaction is valued at between 20 and 25 million dollars.
The interest that the building has created in the area is due not only to its superb location, at number 12, Warren Street in the Tribeca district, just round the corner from Broadway and a few minutes’ walk from the Financial District, but also because of the complete transformation accomplished by Renta Corporación involving varying levels of complexity.
The first step was to have all the tenants move out of the building, a necessary pre-condition for developing and implementing the comprehensive refurbishing process. In addition, the building occupancy was converted from offices to residential and all the relevant local authority (DOB) licences were obtained for approval of the project and the building permit, in accordance with current law. Renta Corporación commissioned prominent architect George Boyle to draw up the detailed plan, based on the current prospects of the local market, which has become one of the most popular residential areas for high income professionals. “This triple operation is a very clear example of the value creation process that we bring to buildings”, said César Bardají, Renta Corporación’s CEO. “In a market like America there is a huge demand for value creation and this transaction reflects the Company’s ability to convert an obviously underutilised building into a profitable and efficient one, perfectly suited to local demand.”
The building has a total surface area of 5,000 square metres, with 11 above-ground floors. The plan includes the creation of 15 prestige made-to-measure residential units; i.e. designed in such a way that the eventual buyer can opt, among other factors, for a duplex apartment, with or without a private garden. Spectacular views of the Brooklyn Bridge and avant-garde design in George Boyle’s trademark style will make these dwellings highly sought after.
Renta Corporación initiated its New York business last October and has so far carried out five building acquisitions, currently at various stages of completion. Opening up this market is a particularly significant step for the Company in its internationalisation process, in view of the stature of New York as a worldwide benchmark for real estate investments.
“This transaction demonstrates how our business model fits the dynamics of each individual local market. Although we still have a long way to go, we have managed to identify projects and adapt them to local demand. We are especially proud of the fact that the purchaser of the project is a highly experienced American developer who is very familiar with the market”, added Bardají.
Renta Corporación’s business activity is giving priority to investment abroad with the aim of making its international operations account for 75% of the Company’s business within two years. Renta Corporación operates in Madrid, Barcelona, Paris, London, Berlin and New York, all of which are large and highly liquid markets, key features for the Company’s business model.
Barcelona, 29 April 2008 .