UBS Asset Management has increased the volume of its Iberian real estate portfolio to €772 mln following the acquisition of an office asset in Madrid.
UBS AM's real estate & private markets (REPM) business for the Iberian peninsula acquired the office scheme for €38.5 mln.
Located at Ribera del Loira 56-58 in Campo de las Naciones business park, the property comprises 11,550 m2 of multi-let office space divided over modules connected by a central atrium. There are 300 parking spaces.
The space is fully let to dental health centre Dentix and Accor Hotels on leases of varying lengths. As the current rental levels are low, there is an opportunity to increase the income generated by the building, UBS AM said.
The asset manager said the property is 'regarded as one of the best buildings' of the Phase 2 area of Campo de las Naciones, one of the main office sub-markets in Madrid.
The area is home to a number of large, well-known international companies including Endesa, Roche, Total, Ferrovial, Coca-Cola, Hugo Boss and Santa Lucia. Other advantages include good connections with the public transport network and direct access to the nearby motorway and Madrid airport.
Jesús Silva, head of REPM – Iberia at UBS-AM, commented: 'This is a high-quality office building in an excellent micro location which continues to see strong occupier demand as the Spanish economy strengthens. Furthermore, the multi-let tenant structure will provide us with a number of more near term opportunities to benefit from rental growth, improving the income profile of the asset.'
The acquisition brings REPM's assets under management across the Iberian peninsula to €772 mln.
REPM has operated in Spain and Portugal since 2003 and currently manages seven funds or separate account mandates with a portfolio of Iberian assets spanning the office (57%), logistics (6%) and retail (37%) sectors.
