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An Italian fund will turn an abandoned building in Madrid into luxury homes

A former hostel in the famous Letras neighborhood in Madrid has been transformed into an impressive luxury apartment building thanks to its acquisition by the Italian fund Almyra. Built in 1880, this 1,763 square meter building has a level of protection from the City Council. Unfortunately, it has been abandoned since 2016, in terribly deteriorating conditions, until Italian investors set their sights on it.

Currently, the property has 14 homes ranging from 100 to 175 square meters, including five penthouses, two apartments on the ground floor for hotel use and a 100-square-meter commercial space. According to Almyra's plan, the renovation will transform all these units into 14 exquisite homes, including the ground floor apartments.

According to Almyra's website, this reform will be carried out using the highest quality materials and finishes. In addition, this new residence will have centralized air conditioning systems, radiant floor heating, acoustic and thermal insulation, elevator, integrated communication systems, a new goal and facilitated access.

However, according to the information of El Periódico, the total budget for this project, which the Italian developer intends to carry out, amounts to 500,000 euros. This figure has generated doubts among construction experts due to the magnitude of the necessary rehabilitation. However, the prices of this new luxury development are in line with the exclusivity of this central district of Madrid, where there are hardly any new construction projects and most of the available homes are large in size.

The cost per square meter of the most expensive homes ranges from 7,300 to 8,700 euros, while the most economical apartment, located on the ground floor, is priced at around 810,000 euros. The two most expensive homes, located on the third and fourth floors, are priced at 1.44 and 1.43 million euros, respectively.

Almyra Investment is a real estate investment management company based in Milan, specializing in the rehabilitation of properties with a high net return potential of more than 15%. In Italy, they have developed nine projects, one of which has had a 100% return on investment. Most of its projects have a development period of between 3 and 5 years and a cost of between 30 and 100 million euros. This promotion in Madrid is the Milanese fund's first project abroad.