Real IS, the property arm of German lender BayernLB, has acquired a retail and office property in central Barcelona from Spain's KKH Property Investors.
The deal was executed on behalf of an individual mandate from a German insurance company and financial details were not disclosed.
Las Ramblas 124, comprising around 4,000 m2, was erected in 1910 on what is today Barcelona's prime shopping street. It is divided into equal parts of retail and office space and is fully let. The retail space is leased to FC Barcelona’s flagship store, while the offices are home to Seat Metropolis Lab Barcelona, a company specialised in software development for networks and mobility solutions in the Seat Group.
'Barcelona’s office market has meanwhile become one of the most attractive in Europe. Rising demand in recent years has led to significant excess demand. The fundamental drivers of Barcelona’s office market will remain intact also after the Corona epidemic,' said Axel Schulz, global head of investmentmanagement of Real IS.
'In buying Las Ramblas 124, we have been able to acquire a fully let building steeped in history in the heart of Barcelona. Good connections to public transport and its central location make the building a desirable retail and office property. The new lease agreement agreed with Seat during the pandemic also demonstrates the sustainability of the location,' said Juan Jiménez Hevia, Real IS's country head for Spain.
With six floors, an additional underground floor and an additional roof terrace, the property formerly housed the Hotel Montecarlo. Its historical façade was preserved during extensive renovation, which obtained Leed Gold certification.
Savills Aguirre Newman acted as commercial and technical advisor during the acquisition, while BDO and Linklaters provided tax and legal advice to Real IS.
CBRE and Cushman & Wakefield were commercial advisors to KKH Property Investors on this project.
