The government of the Community of Madrid recently announced the public auction of five properties in prime locations. This move aims to raise funds for public projects but has also drawn attention due to the background of one of the properties.
Details of the Two Asset Lots
The auction is being managed by Planifica Madrid, the Community of Madrid’s public company, and is presented to the market in two separate lots:
- Lot One: A penthouse on General Martínez Campos avenue in the Chamberí district. Built in 1957 and located near the Sorolla Museum, the property has a floor area of 481 square meters and a starting price set at €6.7 million.
- Lot Two: Four properties at number 6 Gran Vía in the city center. Located in a protected historic building from 1925, these properties total 1,231.62 square meters and are being sold as a bundle with a starting price of €11.8 million.
The total valuation for both lots is approximately €18.5 million (excluding taxes). Potential bidders can submit offers for either lot or both, with a deadline of September 7. The buyer will be determined solely on the principle of the ‘highest economic offer’.
Auction Proceeds to Fund Post-Disaster Reconstruction
According to the official announcement, the funds raised from this asset sale will have a specific purpose: to finance the post-fire reconstruction efforts in the Sierra Oeste region. The core objective of this auction is to liquidate non-strategic government assets to fund projects for the public good.
The Core of the Controversy: The Penthouse’s Acquisition and Resale
The most noteworthy item in this auction is the penthouse in Chamberí. Just days before listing it for sale, the Community of Madrid’s government had just completed its purchase. The government explained at the time that buying the property was to provide a temporary office space for the Presidency during the comprehensive renovation of its headquarters at the Real Casa de Correos in Puerta del Sol.
However, this transaction was quickly and fiercely criticized by the left-wing opposition. Critics accused Regional President Isabel Díaz Ayuso of intending to use the luxury apartment as her ‘official residence’ rather than for office needs and have filed a lawsuit. Ayuso’s side has firmly denied these claims, calling them political attacks designed to ‘cause harm’.
Headquarters Renovation Plan Moves Forward Simultaneously
While the properties are being sold, the renovation plan for the Real Casa de Correos headquarters is also proceeding as scheduled. The Community of Madrid has awarded the interior design contract to Pombo Estudio S.L. through a private negotiation, with the contract valued at €59,377 (including tax).
This design contract covers the renovation design for the ground-floor courtyard and the north wing of the second floor. It does not include the subsequent construction work, for which a contractor will be selected through a separate bidding process. The estimated timeline for the entire renovation project is: 3 months for design, 4 months for bidding, and 1 year for construction. The simultaneous asset sale and headquarters renovation demonstrate the regional government’s parallel strategy to address funding needs and improve office facilities.
