The drastic price decline in Spanish real estate has garnered the attention of two of the biggest international investment companies. According to Bloomberg, Blackstone and Goldman Sachs are competing for 1,500 properties in the Autonomous Community of Madrid.
The news agency, which cited three well-informed sources, stated that the two American companies are contending for 1,458 homes and 1,588 garages located both in the Spanish capital and in surrounding areas.
The starting price of these homes, with 94% percent of them being currently occupied, is 67.2 million Euros.
Bloomberg reports that Blackstone´s intention, which is one of the largest venture capital funds in the world, is to replicate their current U.S. real estate business in Spain, while also taking advantage of the fact that asset prices in Spain have dropped around 40% in recent years.
Finally, the American bank and the Spanish real estate firm Azora won the bidding war by offering 201 million Euros for the entire lot of real estate assets, which ultimately was 20% more than the original asking price of 168 million Euros.
Blackstone and Goldman will once again compete for a coveted place in the Spanish real estate market that boasts the benefits of lower asset prices and high occupancy buildings.