CBRE Global Investors, in a joint venture with IBA Capital Partners, has acquired a prime freehold asset in the centre of Madrid from a fund managed by TPG Sixth Street Partners.
The transaction volume for the 5,500 m2 asset, which comprises a basement and seven floors above ground, was not disclosed. Its locatation, Gran Via, is one of the busiest high street retail locations in Spain, according to CBRE GI.
'The business plan for Gran Via 18 is in line with our value add program’s strategy to reposition assets to create prime space in supply constrained locations which will attract the best occupiers,' commented Charles Baigler, fund manager of CBRE GI's value add programme. 'We will be working in a joint venture with IBA Capital Partners to deliver the business plan. This will be our third high street retail transaction in Madrid so it is a market we understand well.'
The early 1900s property will be refurbished to provide retail on four levels and modern office premises on the highest floors. The refurbishment, with a target completion date of 2018, will be certified LEED Gold.
CBRE Global Investors and IBA Capital Partners are currently developing two prime retail assets in Madrid, ABC Serrano Shopping Centre and a 2,100 m2 GLA retail flagship store on Preciados, pre-leased to an Inditex brand.
TPG Sixth Street Partners was advised by Clifford Chance and JLL.
CBRE Global Investors and IBA Capital were advised by E&Y, Jones Day, Arcadis and PWC.
