Spanish listed property firm Inmobiliaria Colonial has disposed of seven office buildings and a turnkey project in Madrid for €441 mln.
According to the Spanish REIT, the sales were executed with a +12% premium on the lastest appraisal value.
The divested portfolio has a gross lettable area of 106.574 m2 and is mainly located outside CBD (91%). Colonial said that the divestments represented non-strategic assets outside the CBD and mature assets.
EPISO 4, a value value-add fund advised by pan-European real estate investment manager Tristan Capital Partners, together with local operating partner Savills Investment Management, acquired six of the assets, covering 78,000 m2 of space.
'Years of strong economic growth and job creation and limited new developments have created a supply-demand imbalance in the Madrid office market, resulting in significant net absorption and robust occupational growth,' said Nikolay Velev, executive director at Tristan Capital Partners.
'These assets are ideally placed to capture growing demand for quality space outside of the main CBD, proving attractive to a broad range of occupiers.'
Tristan's local operating partner will be Savills Investment Management. Tristan Capital and Savills Investment Management were advised by Savills Aguirre Newman, Uria Menendez, Currie & Brown and PwC.
The local operating partner will be Savills Investment Management, with whom CCP 5 LL (Tristan’s long-life core-plus fund) successfully completed the €103 million acquisition of a business park in Manoteras, Madrid in 2017.
Colonial also sold the 90,000 m2 project Castellana Sur / Mendez Álvaro (pictured) in a turnkey deal with Catalana Occidente Group.
'These disposals have been implemented in the framework on a strategy focused on prime assets with maximum added value where office demand and and value creation are outstanding. This transaction enhances Colonial’s flexibility and capacity to further implement its growth strategy focused on projects with maximum value creation potential and returns,' said Pere Viñolas, Colonial’s CEO.
The proceeds from the divestments will be mainly used to finance Colonial's project pipeline covering 320,000 m2, as well as the company’s acquisition programme. Colonial said that the disposals would push the firm's LTV well below 40%.
Earlier this year, Colonial merged with peer Axiare Patrimonio to create a property giant worth €11.1 bn.
