Spanish REIT Merlin Properties has acquired an office building and a logistics warehouse asset in Madrid for a total of €58 mln.
Spanish REIT Merlin Properties has acquired an office building and a logistics warehouse asset in Madrid for a total of €58 mln.
The office building is located in Madrid's central Alcalá street. It provides 9,315 m2 and is fully let to the Ministry of Justice until 31 December 2016, with a renewal option for one additional year. It was bought for €38 mln, or a net initial yield of 5%.
The logistics warehouse is located in the Logistics Transport Centre in Coslada, one of the main logistics hubs in Madrid. It provides 28,500 m2 and is let to Azkar under a five-year unexpired lease contract. The price of €20 mln reflects a net initial yield of 7.1%.
Merlin Properties went public last summer with the largest listing ever of a European real estate investment trust (REIT).
The size of the IPO was set at 125 million shares, representing a market capitalisation of €1.25 bn, excluding the over-allotment option that was set at a maximum 8 million shares.
