Spain puts property on block in bid to replenish its coffers
Some 15,000 properties, from office buildings to agricultural land, will be put up for sale over the next seven years.
The measure is the latest in a series of moves to bring Spain's budget deficit to within the EU target of 3 per cent by 2016 from 7.1 per cent of GDP last year.
Spain's government has introduced a number of unpopular austerity measures as the nation struggles with its sixth quarter of negative growth and an unemployment rate of nearly 27 per cent.
A parliamentary commission has drawn up an extensive list of assets that will be sold to private investors.
They include disused army barracks, an airfield on the island of Minorca, a military shooting range and thousands of office buildings.
The government said the portfolio would include about 10 buildings, considered unique, that it hoped would be snapped up by potential investors.
Among those is a mansion on Madrid's central avenue, the Paseo de la Castellana, that used to house the secretary of state for security, and a country estate in Andalusia comprising 14,164 hectares of natural parkland planted with cork trees.
Mariano Rajoy's conservative government announced plans last year to set up a commission to draw up an inventory of all state-owned property and identify those that could be sold.
The first properties to go under the hammer include the former headquarters of RTVE, Spain's state television and radio channel in Madrid and Galicia, and a disused army barracks in Seville.
"There will be some real gems in the portfolio, I am sure, but also a lot of dross," said Mark Stucklin, founder of Spanish Property Insight, an independent website.
"Those properties that will be sought after are those of historical or architectural interest in the most sought-after areas of cities. But it will boil down to the price. There will always be interest in good real estate by foreign investors if it is sold at a bargain."
The government is yet to release the full portfolio of properties for sale and has not said how much money it hopes to raise.
Much of the rural property that will be put on the market will be offered with the opportunity for development to create local jobs.
La Almoraima, a country estate in the Natural Park of Alcornocales, which has been managed by the ministry of environment since 1983, is being sold with the option to develop a resort with two golf courses and a five-star hotel.
"We will wait for a reasonable offer - we are not going to sell it off for peanuts," a spokesman said.
"Our best hope is that we can generate foreign interest as there are few in Spain right now who could afford it."
Frequently Asked Questions about this Article…
The Spanish government has approved a plan to sell about a quarter of its state-owned properties — roughly 15,000 assets — over the next seven years. The move aims to raise hundreds of millions and refill the government's coffers as part of efforts to reduce Spain’s budget deficit to the EU target of 3% of GDP by 2016.
The portfolio covers a wide range of assets from office buildings and agricultural land to disused army barracks, an airfield on Minorca, a military shooting range and thousands of other office buildings. It also includes about 10 unique or historic buildings and high-profile assets such as former RTVE headquarters and large country estates.
Around 15,000 properties will be put up for sale over the next seven years as part of the government’s plan to dispose of roughly one quarter of state-owned property.
Officials say the plan is intended to raise hundreds of millions, but the government has not released the full portfolio or specified an exact total they hope to raise.
Notable assets mentioned include a mansion on Madrid’s Paseo de la Castellana that formerly housed the secretary of state for security, the La Almoraima country estate in Andalusia (about 14,164 hectares planted with cork trees), and former RTVE headquarters in Madrid and Galicia. La Almoraima is being sold with an option to develop a resort with two golf courses and a five-star hotel.
The properties will be sold to private investors. The government hopes to attract foreign interest — especially for high-value historic or well-located real estate — and commentators say foreign buyers are likely if assets are offered at attractive prices. The government also noted there are few domestic buyers able to afford some large assets right now.
Yes. Much of the rural property will be offered with the opportunity for development to create local jobs. For example, La Almoraima is being sold with development options for a resort with golf courses and a five-star hotel, which the government says could help generate local employment.
Mariano Rajoy’s government set up a commission to inventory state-owned property and a parliamentary commission has drawn up an extensive list of assets to be sold. The full portfolio has not yet been released to the public.
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