Mestalla Football Ground Valencia Sold for a Whopping €90 Million

First Parcel of the Mestalla Football Ground Sold for a Whopping €90 Million

Added: (Oct 2 2007)

The 19th of September was a truly historic day in the history of the Valencian Residential Property Market with the president and majority shareholder in Valencia F.C. paying €90 million for the first parcel of the city's much loved Mestalla football ground. The purchase was the most valuable in the history of the Valencian Residential Property Market. In 2009 the club will move from its present location off Avenida Aragon to the outskirts of the city close to Norman Foster's Palacio de Congresos to what will be the most state of the art football stadium in the world. Mestalla is situated in the city's most expensive area for residential property. In it's place a total of 9 towers will be built to a height of 17 stories in a mixed development of 660 luxury apartments, offices and commercial units on the ground floors of the towers.

Mr. Soler has let it be known that he is willing to pay the reserve price on the 4 remaining parcels of property belonging to the club if the reserve price isn't reached at auction. He has therefore laid down a €90 million marker to all other interested parties that if needs be he will buy the 80% of the Mestalla site that belongs to the club. The other 20% belongs to the local government. Mr. Soler's intervention should guarantee strong capital appreciation in the mid term in the Mestalla area. At present property prices in the area are approaching €4,000 per sqm. The site that Mr. Soler has bought is 2,295 sqm in size with planning permission for 2 tower blocks of 18,400 sqm. He therefore paid just under €5,000 per sqm for the 2 tower blocks that he intends building on the site. With building costs in the region of €1,000 per sqm and associated fees of €500 per sqm plus an appropriate profit margin which would see properties released to the public off the plans going for in the region of €8,000 per sqm with a likely finishing date of 2012 since Mestalla will have to be demolished before any building work can commence.

This is great news for those property owners who have bought quality second hand properties in the Mestalla area.On these figures it would be reasonable to see a 100% increase in property values over the next 5 years. Quality second hand properties can still be found in and around the Mestalla area for €240,000.Mestalla as well as being home to some of the city's most valuable blue chip companies such as Movistar as well as numerous government offices and accounting firms such as Deloitte has also its own Metro stop as well as being a mere 5 minute drive to the America's Cup marina and future Formula 1 circuit. There is also a metro/tram connection to the beach.

Valencia continues to go from strength to strength now being among Europe's top 15 city destinations.The arrival of a Ryanair base in the city is also indicative of the growing confidence among operators such as Ryanair in the city's continuing prosperity. Sailing's prestigious America's Cup returns to the city in 2009 with the arrival of Formula 1 next August for a minimum of 7 years as well as the possibility of the Champions League Final in the city's new Mestalla football stadium in 2010.

All the more important therefore for serious non resident property buyers to engage the services of the city's premier property search and property investment company, Valencia Property Hound.

Article by Dermot Quinn, Valencia Property Hound Ltd