Spanish property group Metrovacesa has partnered with Tishman Speyer to develop a €87.6m project in Madrid known as Monteburgos Project.
Metrovacesa said it will hold a 24% stake in the project, with the US investment manager, which comprises of 56,652sqm of land.
Metrovacesa said it plans to sell parts of the land, as part of its strategy to divest its commercial land portfolio.
As part of the agreement, the duo will develop an office complex in Las Tablas. Metrovacesa will act as the local developer of the project and will actively participate in its management.
Jorge Pérez de Leza, Metrovacesa’s CEO, said: “This new agreement demonstrates Metrovacesa’s potential to engage internationally-renowned partners thereby proving our professional skill, trustworthiness and technical ability to develop differential projects with high added value.”
Bernard Penaud, the head of Europe for Tishman Speyer, said: “This, our first investment in Spain for over a decade, represents an important further step in the growth of our business here in Europe.
“We’ve also identified Madrid as having an acute shortage of grade A office space, and the core of our business platform is to develop and own the highest quality assets in the world’s great cities.”
Tishman Speyer is making the investment on behalf of its eighth value-add fund TSEV VIII.