Centro Canalejas stands at the heart of Madrid as an ultraluxury complex that continues to draw intense market scrutiny. Owned by OHLA and Mohari Hospitality, the investment arm linked to Mark Scheinberg, the Israeli founder of PokerStars, it hosts Spain’s lone Four Seasons hotel and a substantial shopping gallery featuring top-tier fashion and accessories brands.
The Canalejas saga traces back to 2012 when Juan Miguel Villar Mir acquired the asset from Banco Santander for 215 million euros. The fragility of his vast business empire and OHLA’s finances eventually prompted Mohari to acquire a 50% stake for 225 million euros in 2017. Today, the asset operates fully, yet its trajectory remains tied to the broader financial pressures facing the construction group, which has signaled a sale to reduce debt. Bond maturities exceeding 400 million euros are due in 2025 and 2026, and the group has already sought creditor relief while pursuing a 150 million euro capital injection to stabilize affairs. [Citation: Canary real estate market brief]
Uneasy valuation
Debt-driven uncertainty about any potential sale is pronounced. Local outlets estimate asking prices ranging from 800 to 1,000 million euros, a level acknowledged as steep by insiders. An audit conducted for the property-holding entity, signed by a major accounting firm, places the net accounting value around 539 million. Market sources indicate that, based on projected 2024 revenues, the asset’s fair value may not exceed roughly 650 million, calculated by applying a target yield around 4% to 4.5% after deducting 176.1 million euros of debt disclosed in the company accounts filed with the official registry accessed by this publication through Insight View. [Citation: property valuation consensus]
The debt, originally issued in December 2014 and renewed three times, matures on December 31, 2025, with 17.01 million due in 2024 and 159.68 million in 2025. The group has requested a three-month extension on three mortgage installments due December 25 next year. If OHLA and Mohari wish to refinance ahead of the due date, discussions with creditor banks should start soon. Some sources say Santander and CaixaBank, leading a bank syndicate that once included nine lenders and the now-defunct Banco Popular, have begun informal talks to assemble interested off-market buyers for the asset. The intensity of the situation has led insiders to suggest Canalejas could be worth only between 200 and 400 million after leverage is accounted for. [Citation: capital markets chatter]
The Four Seasons contract
A further factor tempering Canalejas’ reputation as a trophy asset is the long-term agreement with Four Seasons to operate the five-star hotel. The arrangement spans 80 years and is revisable only by Four Seasons within three twenty-year windows, limiting potential negotiating leverage for current or future owners—an element that tempers the sponsors’ bargaining power as things stand. [Citation: long-term hotel agreement analysis]
Additionally, the contract places a substantial share of operating burden on the property. OHLA and Mohari are responsible for 474 employees, a cost that last year totaled nearly 22 million euros. Even the marketing arm of Four Seasons charges a 25% commission on reservations booked through its channels for the Madrid complex. [Citation: operational cost breakdown]
Delinquent tenants and distress
The adjacent shopping gallery has earned the moniker of the “ugly duckling.” When it opened, occupancy was limited, though improvement has been noted in recent months. The complex’s accounts show revenue rising from 3.83 million euros in 2022 to 8.91 million in 2023, with marquee brands such as Cartier, Dior, Hermès, Giorgio Armani, Louis Vuitton, Omega, Rolex, and Saint Laurent anchored there. [Citation: shopping gallery performance]
Even with higher occupancy, the gallery’s food hall remains a pressure point. Located on the basement level, it hosts about 30 bars and restaurants. Multiple sources confirm rents are steep, prompting some tenants to relocate or pursue bankruptcy protection. Accounts reveal that tenants owe 2.266 million euros, a figure the owners label as “doubtful collectability,” having risen markedly over the past year. [Citation: tenant arrears assessment]
The gallery’s location near Puerta del Sol and Canalejas square places it outside Madrid’s primary luxury corridors, which center on Serrano Street and adjacent avenues. Achieving the desired footfall would likely require around 70% international visitors, a demanding benchmark for the asset in its current configuration. [Citation: foot traffic analysis]
Partner conflicts
Beyond market metrics, the Canalejas story involves ongoing disputes between the two partners and several national and international lawsuits. Their sole recent agreement has been to appoint Santander’s investment banking division and Rothschild to oversee a sale of the entire asset, though progress remains slow and insiders describe the process as still in its early stages. [Citation: partnership dispute summary]
At stake is whether OHLA exits alone or the entire partnership. A full buyout would grant a buyer greater leverage and potential influence over pricing. Meanwhile, Mohari and OHLA have two disputes before the Paris International Chamber of Arbitration dating to mid last year. One concerns Mohari and a response from the construction group, now majority-owned by the Amodio brothers, over the shareholder pact and costs associated with managing the asset. [Citation: arbitration notes]
According to Canalejas’ accounts, OHLA has sued Mohari in Spain and launched a nullity action against the holding company of the property. The filings emphasize that the action will not directly affect the asset or its operations, nor is any direct impact anticipated on its functioning. [Citation: legal filings overview]