Spanish real estate investment firm Elcano IM has acquired a prime commercial property at Puerta del Sol 5 in Madrid from Thor Equities for €25 mln.
The 1,000 m2 Sol 5 property comprises a 522 m2 ground floor and a 470 m2 lower level. Currently, approximately 200 m2 is leased to the Community of Madrid on a long-term contract. Elcano IM is actively seeking a high-profile tenant for the remaining space, one of the last available commercial spots on Puerta del Sol.
The property has been vacant since Thor purchased it in 2017 for €45 mln. The US fund struggled to find a tenant due to the challenges of obtaining commercial licenses in the heart of Madrid.
Elcano IM has a strong presence in Madrid's commercial district, with properties on Fuencarral, Mayor, Arenal, and Salamanca. The company is also redeveloping a nearly 600 m2 property on Gran Vía 36.
The purchase comes as Puerta del Sol undergoes a major transformation, with several high-profile commercial deals completed in recent years. Numerous international retailers have set up flagship stores on Puerta del Sol over the last few years including Apple Store, Top Shop, and Sephora.
The operation was financed by Banco Santander, while Knight Frank advised Elcano IM on this transaction.
The latest acquisition aligns with Elcano IM's growth strategy to increase its commercial real estate portfolio value to €1 bn within the next five years. The company has already doubled its assets under management since its inception two years ago, reaching €400 mln.
