Spanish listed property firm Colonial has signed the purchase of an office building at Príncipe de Vergara, Madrid and said it plans to renovate the asset in the coming months.
Spanish listed property firm Colonial has signed the purchase of an office building at Príncipe de Vergara, Madrid and said it plans to renovate the asset in the coming months.
Barcelona-based Colonial has closed the off-market purchase for €31 mln and will invest a further €14 mln to redevelop the asset, which will provide around 11,400 m2 of space.
The €6 bn property landlord will target a Leed Gold environmental rating for the building, it added.
The transaction is part of the group's new value-add expansion strategy aimed at investing up to €500 mln in the Spanish property market this year.
'We will not passively invest in stock. There is a lack of investment product in Spain and the market is going through a yield compression so we prefer to focus on the value-add segment and on the creation of value through redevelopments and repositionings,’ CEO Pere Vinolas recently told PropertyEU in an interview.
