German investment manager KGAL Investment Management has made its debut in the Spanish real estate market with the purchase of the Torre Esteve office tower in Barcelona.
Financial details were not disclosed.
The asset has been acquired on behalf of a pan-European real estate alternative investment fund from Iberdrola Inmobiliaria, a wholly owned subsidiary of the Spanish power generation company Iberdrola.
André Zücker, managing director of KGAL with responsibility for real estate said: 'Barcelona has developed into a high-tech location in recent years. With the change in economic structures, Barcelona has also become more attractive to us as a foreign investor.
'Due to the lack of available modern office space in the central districts, we also expect rents to rise.'
Built in 2017, Torre Esteve is a multi-tenant property with a total area of 19,400 m2 of office and restaurant space over 14 upper floors. More than 60% of the space is leased to Esteve, the Spanish international pharmaceutical company, while the second largest tenant is the Spanish Registry Office.
The property was awarded a BREEAM Very Good rating.
Colliers (brokerage and rental appraisal), Hill International (technical appraisal) and DLA Piper Spain and NOMOS (legal and tax advice) acted as advisers in the transaction.
