Fund manager AEW has forward purchased an office building being constructed at the Rio 55 business park development in Madrid for €43 mln on behalf of the AEW Europe Value Investors Fund.
The 14,000 m2 property is being developed by Insur and will have a BREEAM Very Good environmental certification. It will provide around 13,000 m2 of office space over seven floors, around 1,000 m2 of retail space across five ground floor units and more than 200 parking spaces. In addition, the building will be surrounded by 8,000 m2 of landscaped gardens.
Rio 55 is located in the Madrid Sur area close to the Manzanares River and the M30 highway leading directly to Madrid’s Central Business District and the Palacio Real.
Commenting on the acquisition, Carsten Czarnetzki, country head for Spain and fund manager of the acquiring fund at AEW, said: ‘This acquisition of Rio 55 is completely in line with the strategy of the AEW Europe Value Investors fund. This high-quality development is in a strong location where the outlook for rental growth continues to strengthen as a result of an increasingly supply constrained market inside the M30 ring road. We continue to explore opportunities to grow our investment in Spain which is experiencing strong economic growth prospects.’
AEW Europe Value Investors fund targets assets in need of active asset management. It has raised €410 mln so far of which 93% has already been invested across Europe.
Insur Group is a leading developer in the Andalusian office market with more than 115,000 m2 of lettable office space. The firm listed on the stock exchange in 1984 and has been present in the Madrid market since 2007.
AEW was advised on the transaction by Herbert Smith Freehills and the sale process was conducted by Savills-Aguirre Newman. The seller was advised by Simmons & Simmons.
The deal comes just weeks after AEW acquired the Planetocio retail and leisure centre in Madrid for €20 mln from Spanish REIT Axiare.
