AEW has acquired an office building in Madrid for €30 mln on behalf of its Europe Value Investors Fund (EVI).
Located at Calle de Francisco Silvela 106, it represents the third acquisition in Spain for EVI, a value add fund focusing on European manage-to-core office assets, following the purchase of two assets in Madrid last year.
'This most recent acquisition in Madrid is a strong sign of our confidence in the city’s occupier market and the underlying fundamentals of the asset. Having acquired the property fully vacant, we shall now undertake a thorough refurbishment programme to deliver an attractive and competitive office in the city’s CBD,' commented Carsten Czarnetzki, fund manager of EVI and country head of Spain.
Situated in Madrid’s CBD, the asset comprises 6,300 m2 of space across 9 floors. Built in 2001, the property has been recently vacated and offers the potential for significant uplift following a refurbishment programme to modernise the floor plates and deliver Grade A office space into an undersupplied market.
'The Spanish market presents some compelling investment opportunities, particularly for managers with an active approach to asset management. Spain’s economy has been growing in recent years and office take up is increasing, while office completions have fallen to pre–crisis levels,' said Nikos Koulouras, investment director at AEW. 'As a result, Madrid’s prime rents are beginning to grow, yet are still at a level that we believe makes Madrid look relatively affordable to occupiers.'
AEW’s EVI targets value-add offices throughout Europe and has committed over €700 mln across 20 assets, of which two have been disposed of this year following realisation of the business plans.
AEW was advised by Fabregat Perulles Sales and Cushman & Wakefield, and the vendor by HF Legal and Aguirre Newman.
