The transaction, which is pending the completion of certain conditions, will be formalised “as soon as possible”, according to the CEO of OHL, José Antonio Fernández Galler, at the presentation of the group’s results. OHL declined to quantify the amount that it will obtain from the sale of its 49% stake in the Old War Office, but it has made a €47.6 million adjustment to its valuation of the asset to cover the possible ‘Brexit effect’.
Despite considering that it is an “excellent Project”, Fernández Galler justified its sale on the basis of the scarce maturity of the asset and on the group’s demand for resources, the fact that it is not responsible for the construction work and that the United Kingdom is not a strategic market.
The Old War Office project is being carried out on a building that OHL purchased at the end of 2014 in a consortium with Hinduja, a property that will house a luxury hotel and around fifty high-end homes. The development is similar to Project Canalejas, which the group is constructing in the centre of Madrid, in a 50% alliance with the Israeli businessman Mark Scheinberg, founder of the online poker firm Poker Stars.