AEW Europe snaps up Madrid office building for €37m

AEW Europe has purchased the Edifico Amura office building on the outskirts of Madrid for €37 mln.

The asset was acquired by AEW Europe on behalf of the Europe Value Investors fund (EVI) from Union Investment Real Estate.

Developed in 2002, Amura is a 18,178 m2 BREEAM-certified building comprising five floors of office space and two basement parking levels. The building is currently 67% let to seven tenants, including Euronet Business and GEA Process Engineering.

'Amura is a well-located, good quality asset that offers us the opportunity to add value and grow income through the lease up of vacant space and the deployment of modest capital expenditure,' said
Carsten Czarnetzki, portfolio manager for EVI. 'The Madrid office market, including this sub-market, has a shortage of high quality office accommodation and also therefore offers potential capital value upside as the Spanish economic recovery continues.'

Philip La Pierre, head of Investment Management Europe at Union Investment Real Estate, commented: 'The office markets in Madrid and Barcelona offer interesting opportunities to renew and increase our Spanish portfolio. We could therefore very well imagine reinvesting the profit from the sale of Amura in Spain.'

AEW Europe Value Investors targets value-add offices throughout Europe and has now deployed over €375 mln across 12 assets.

Herbert Smith Freehills acted for AEW Europe.