Crossword Genius

In Madrid, keeps unrealistic plans (7,2,5)

Ross

I believe the answer is:

castles in spain

I'm a little stuck... Click here to teach me more about this clue!

'unrealistic plans' is the definition.
(I've seen this before)

'in madrid keeps' is the wordplay.
I cannot quite see how this works, but
'in' is present in the answer.
'keeps' could be 'castles' (I've seen this before) and 'castles' is found within the answer.
The remaining letters 'spain' is a valid word which might be clued in a way I don't understand.
This explanation may well be incorrect...

Can you help me to learn more?

(Other definitions for castles in spain that I've seen before include "Unrealistic hopes involving" , "Continental chessmen?" , "Iberian keeps" , "daydreaming" , "Daydreams" .)

I've seen this clue in the Sydney Morning Herald.
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