Inditex founder Amancio Ortega has paid €400 mln through his investment company Pontegadea to acquire the base for a Primark megastore in Madrid.
Inditex founder Amancio Ortega has paid €400 mln through his investment company Pontegadea to acquire the base for a Primark megastore in Madrid.
Designed by architect Teodoro de Anasagasti, the building dates back to the early 1920s and offers a total of 36,400 m2 of office and retail space. The nine-storey, mixed-use complex is due to house a new megastore occupied by Irish fashion retailer Primark - the group's first in Spain comprising 9,000 m2. Other tenants include H&M, Mango and Lefties.
Ortega is the founder of Spain's Inditex fashion group, known internationally for retail chains such as Zara, Pull and Bear, and Massimo Dutti.
Drago bought a half share in the asset from major Spanish media group Prisa for €315 mln in 2008 on behalf of a consortium including Dutch pension fund APG, UK insurer Phoenix Group and UK investor Sun Capital. The asset was acquired together with the office at Miguel Yuste 40 and the headquarters of Cadena Ser in Calle Caspe, Barcelona.
In 2009, the investor bought the remaining interest in partnership with Canada's PSP Investments.
According to Spanish press reports, Drago put the asset back on the market in late 2014 for a price of €400 mln.
'The sale of Gran Vía 32, together with other significant deals such as Castellana 77, the BMW building and Gran Vía 14 are a clear example of the strength of the market. We believe 2015 will set a record year in terms of investment volume,' commented Adolfo Ramirez-Escudero, head of Spain at CBRE.
Cushman & Wakefield and law firm Gómez-Acebo & Pombo advised the vendor on the deal, while the buyer was advised by Aguirre Newman and Broseta.
In mid-2014 the investor, backed by capital provided by PSP Investment, sealed the acquisition of a prime mixed-use asset on Castellana, Madrid's main avenue.
Drago Capital and Canada's Public Sector Pension Investment Board bought the Castellana 200 asset for €140 mln, reflecting a yield of 6%.