The Owner of Ramses Launches a Crowdfunding to Convert a Bookstore into a Cafeteria with a Spa

New real estate operation by Jorge Ramsés, the ‘king’ of the hospitality industry in Madrid’s Puerta de Alcalá. The owner of Grupo Ramses will buy the premises where the old Hiperión bookstore was located, at number 14 Salustiano Olózaga Street, next to the Plaza de la Independencia and in front of the French Embassy, ​​to transform it into a cafeteria with a spa.

However, on this occasion, they have asked for help from external capital: Ramsés will finance the acquisition and renovation of the establishment with crowdfunding , through the Wecity platform, from which he requests 2.2 million euros.

The old Hyperion, closed for months and known for the sale of poetry books, will have a second life. According to the documentation accessed by activos, the premises, which have a gross leasable area of ​​204 square meters and a façade of nine and a half meters, will be operated by Six Harmonies , the spa and wellness brand of the Ramsés Group, and will include a cafeteria focused on personal care and an event room .

This establishment joins the empire that Jorge Ramsés has created in the Plaza de la Independencia and its surroundings

That includes restaurants such as Ramses, Patio de Leones (Spanish food tavern), Lady Bongo (karaoke with a marine atmosphere), The Kave (cocktail bar ) or Flamenco de Leones (tablao flamenco), and hotels , such as Casa Faraona, which he describes as “Flamenco Membersclub & Hotel for those who like to live life in a flamenco way.”

The street of the property, Salustiano Olózaga, is one of the arteries that connect with the Plaza de la Independencia , in the heart of the Salamanca neighborhood, a few minutes walk from the National Library, Plaza Cibeles or El Retiro, and next to the shops of important luxury brands on Serrano, Ortega y Gasset, Claudio Coello, Lagasca or Ayala streets.

Jorge Ramsés’ businesses have not been exempt from controversy in the neighborhood . Without going any further, in July 2022, he was involved in a confrontation with José Fernández Sánchez, currently a PP councilor in the Madrid City Council, for expanding the terrace of one of his premises by invading public roads. Previously, Manuela Carmena closed the Ramsés terrace for failing to comply with the regulations and occupying more space than allowed, to which the restaurant workers chained themselves in protest.

The numbers of the operation

This is how the email that Wecity crowdfunding sent to its investors began, inviting them to participate in a new project, which will accept capital starting next Thursday, May 16th at 12 in the morning. Behind this opportunity is the sole proprietorship limited company Residencial Plaza de Independencia 2, controlled by Ramses District and, in turn, by Circus Group, which will use the money to buy and rehabilitate the aforementioned commercial premises. Garrigues, Pinsent Masons and Lawgic participate in the operation as advisors.

This money will be given as a loan, with a duration of nine months, at an annual interest rate of 12% : an investor who lends 10,000 euros will obtain 900 euros in interest, which will be satisfied once the term ends, if the project comes to fruition. This profitability can even be increased: the credit has a minimum duration of six months and the possibility of an extension of half a year, which will accrue interest of 15%. The repayment of the loan will be closed when a bank provides traditional financing to the asset.

As collateral, in case of non-payment, Ramses offers numerous assets

The first, the acquired premises itself , which has been valued at 2.09 million euros by the appraiser of the consulting firm CBRE. The hospitality group has contributed 445,000 euros, which, together with the 2.2 million requested from Wecity investors, add up to the 2.64 million necessary for the execution of the project.

In addition, it will mortgage as a second rank the commercial premises located at number 11 Salustiano Olózaga Street, valued at 2.05 million by Savills, 18 parking spaces at number 12 of the same artery , valued at 1.25 million, and the premises adjacent to the purchased one, number 14 center, whose value amounts to over 160,000 euros. In total, once all charges have been deducted, the guarantee provided by the developer is 3.85 million.

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(Featured image by hoahoa111 via Pixabay)

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First published in activos. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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