Built by Ramón de la Sota, shipping magnate and founder of Euskalduna company, whom the British government granted a knighthood to for his assistance with ships for the Allied cause after the First World War, the Ibaigane Palace is the best example of the aristocratic mansions of the era that bore some resemblance to Basque farmhouses.

It is also the headquarters of Athletic Club of Bilbao, a team which is more than a century old, one of the most established and traditional in Europe and unique in world, as it trains and plays only with Basque football players.