AEW has acquired a 25,000sqm Spanish office portfolio for its latest European value-add property fund.
The manager’s AEW Europe Value Investors II (EVI II) acquired the four office assets located in Madrid and Barcelona for an undisclosed amount.
Two of the four properties are located in Claudio Coello 124 in Madrid and in Comte d’Urgell 143 in Barcelona. Both these assets are core assets with an average occupancy of over 87%.
The remaining two assets are located in the Barcelona submarkets of Mas Blau and Sant Joan Despí with average occupancy at of 50.3%.
This latest investment is the second acquisition for the fund following the recent acquisition of a Munich office building in May 2019.
Backed by German institutions, the EVI II fund raised €210m at its first close in April this year.
The fund is targeting total equity of €500m, which will provide a total investment capacity of €1bn with leverage.
AEW said the fund, which focuses primarily on identifying office properties with upside potential in established and developing locations in Europe’s most liquid markets, has a strong pipeline of potential investments.
Carsten Czarnetzki, fund manager of EVI II, said: “The acquisition of this portfolio is a unique investment opportunity for EVI II comprising two core central business district assets in Madrid and Barcelona as well as two value-add assets in decentralized areas.
“AEW will now deploy an active asset management plan and an intensive leasing strategy in order to add value and attract new tenants to increase the occupancy rate.”