Bruce Dear, head of London real estate at Eversheds, has commented on what could potentially be Europe’s largest property initial public offering (IPO).
Dear said: ‘The Spanish market is where the UK was 18 months ago, albeit they have better footballers. Investors suspect the country’s economic pain has peaked and is ready to generate gains.
‘Prime Spanish assets are rare as an Iniesta miscue, and yielding 5.5 to six per cent. With Madrid prices down 60 per cent since 2008, many properties also offer strong upside potential. Merlin wants to capitalise on this cyclical magic.’