Spanish REIT Axiare Patrimonio has announced its first disposal in three years with the sale of the Fernando el Santo historic office building in central Madrid to a local investor.
The sales price of €30 mln is nearly double the amount the REIT paid for the asset (€16.5 mln) back in September 2014. The price increase reflects the asset's improved rental profile, as Axiare was able to lift rental income by 43% during its ownership period.
The price also represents a 5% premium on the asset's latest appraised value per June 2017.
The building is occupied in full and currently houses the Argentinian Embassy and Consulate. It provides 3,250 m2 over six floors and 42 parking spaces in the Spanish capital's central business district.
The vendor was advised by CBRE and EY.
