Spanish REIT Axiare Patrimonio has purchased the Cedro Building, the headquarters of the consultancy firm Capgemini in Spain, for €43.5 mln.

cedro

Cedro

The office building, located in the Arroyo de la Vega business district of Madrid, comprises a gross lettable area of 17,032 m2 and 381 parking spaces.

'With this acquisition, Axiare Patrimonio is setting the pace for its investment strategy in 2017. We continue to acquire high-quality properties at competitive prices and with significant potential for improvement under our expert management,' commented Axiare CEO López de Herrera-Oria. 'The Cedro building is a very institutional product, thanks to its location, main tenant and its construction quality. This was an acquisition of a strategic property with very strong value uplift potential.'

Axiare said that the single-tenant Cedro property was close to a 90% occupancy level, providing the company with an immediate income stream.

Following the deal, Axiare's total portfolio stands at €1.3 bn, comprising 74% office assets - almost half of which are in the CBDs of Madrid and Barcelona - 16% logistics warehouses, and 10% retail warehouses.

The Madrid-based REIT has also signed two new financing agreements with Banco Santander worth €34.2 mln, to be used for further investments. The deal brings the total financing received since its initial listing on the Madrid stock exchange to €572 mln.

'Axiare Patrimonio's financing structure is one of the most stable and competitive in the market. Since we first listed on the Madrid Stock Exchange two and a half years ago, we have signed financing agreements with various banks, primarily Banco Santander, ING and CaixaBank, which demonstrates their confidence in our portfolio and the company’s management,' said de Herrera-Oria.

For the asset purchase, Axiare Patrimonio was advised by EY on the legal, technical and commercial side. The seller was advised by Garrigues on the legal side and Aguirre Newman and JLL on the brokerage side.

For the financing agreement, Axiare Patrimonio received legal advisory services from Gómez-Acebo y Pombo, while Banco Santander was advised by Watson Farley & Williams.