After 30 years of blockage, the definitive step has just been taken for the largest urban development in Spain and Europe to become a reality. Crea Madrid Nuevo Norte (CreaMNN, the project developer, participated by BBVA, Merlin, and Sanjose) and the public railway entities (Adif, Adif Alta Velocidad, Renfe Operadora, and Renfe Ingeniería y Mantenimiento) have formalized before a notary the transfer of the lands of the railway facilities in Chamartín and Fuencarral.
The company participated by BBVA, Merlin, and Sanjose has acquired approximately 50% of the lands and urban development rights (over one million square meters) that will be transformed to create Madrid Nuevo Norte, a new neighborhood that will build 10,500 homes, 400,000 m² of green areas, and a new business center that will change the city’s skyline with 10 new skyscrapers and a large amount of commercial space on the ground floors of the buildings. The acquisition price in terms of monetary canon amounts to a total of €1.245 billion, including interest, of which €210 million have been paid at the time of signing. Additionally, CreaMNN will provide the railway entities with several urbanized plots with a buildable area of 100,000 square meters for residential use, which will be allocated to homes subject to some form of public protection. The rest of the payment will be deferred and will be paid over a period of 20 years.
The project spans an area of 5.6 kilometers in length and up to one kilometer in width from Plaza de Castilla to the M-40, directly connecting the city with Monte de El Pardo. With an area of over 2.3 million square meters of land, Madrid Nuevo Norte will allow for the transformation of degraded lands currently found in this part of the city into a new neighborhood with 10,500 new homes, of which 38% will be affordable (almost 4,000 units). Thus, 20% will be protected housing and another 18% will be under the control of the City Council of Madrid to develop affordable housing. The project includes a business center, with new towers, among which will be the tallest in Spain, exceeding 300 meters in height.
Madrid Nuevo Norte is expected to create 350,000 jobs over 25 years: 200,000 during the construction phase and another 150,000 later due to the activity generated in the offices and shops of the new neighborhoods. The total investment required for the complete development (including land transactions, urbanization, infrastructure construction, and all buildings) of Madrid Nuevo Norte will be €11 billion (83% private investment). In addition to this figure, there will be €14 billion in private capital mobilized for real estate operations during this period. In total, this represents an investment movement of €25 billion.
