A German real estate fund managed by DWS has closed the sale of an emblematic office building at number 2 Avinguda de Josep Tarradellas in Barcelona to the real estate manager Franklin Real Asset Advisors, which has acquired it on behalf of Franklin Templeton's social infrastructure strategy.
Financial details were not disclosed, but Spanish press reports put the deal price at around €100 mln.
The building has 17,500 m2 and was acquired by DWS in 2015. It is currently leased to the Generalitat de Catalunya on a long-term lease. It houses the Department of Territory and Sustainability headquarters, which plays a key role in the region's management, modernization and conservation.
Manuel Ibáñez, head of Real Estate Iberia, commented: ‘This transaction demonstrates DWS’ capacity to successfully close the lifecycle of a good acquisition and asset management deal, leading to an attractive return for its investors.’
Raymond Jacobs, managing director of Franklin Real Asset Advisors, added: ‘We are delighted to acquire this asset, which allows us to further strengthen our existing relationship with the Government of Catalonia. In line with the objectives of our social infrastructure strategy, we will work with the Government to explore social stakeholder partnerships and deliver environmental upgrades to the building.’
Michel Lim, vice president at Franklin Real Asset Advisors, commented: ‘This deal is the largest investment to date and the sixth acquisition for our social infrastructure strategy in Spain. It originates from an off-market sale process, allowing us to acquire the building at attractive terms for our investors. Thanks to our extensive network of lenders, we secured favourable financing terms, benefitting from a reduced margin when certain green certification levels are achieved.’
