Real Madrid have been granted a loan of € 575 million ($ 650 mn) to redevelop their Santiago Bernabeu home.
The loan is jointly cleared by a consortium of Bank of America, Merrill Lynch, Caixa Bank and JP Morgan. The investment will result in Real Madrid’s 81,044-seater home undergo a major revamp.
The upgradation will help Real Madrid generate an additional revenue of €150 million per annum, according to Soccerex.com.
Club president Florentino Perez has previously said that Madrid’s debt from the project will be paid off at a fixed rate over 35 years. El Confidencial’s latest report says that the club is estimated to pay for financing over a period of 30 years, with a maximum interest of 2.5%.
Perez had been gunning to redevelop the Bernabeu facility. The club had singed sponsorship sales agency Legends in November last year to facilitate the loan deal.
The club was earlier also looking for a naming rights partner to help fund the project. However, potential investors were reportedly put off by the historic status of the venue, expressing that the situation would be different if the club was building a new ground, rather than renaming and redeveloping the existing arena.
On the pitch, Real Madrid beat Ajax 2-1 in the first leg of their UEFA Champions League round of 16 tie on Wednesday. They return to LaLiga action at home to Girona on Sunday.