UBS Asset Management's real estate & private markets (UBS-AM REPM) business has acquired a prime office building in Madrid, Spain for €52 mln from real estate funds managed by Blackstone.
The deal was struck on behalf of the UBS Zurich Italy – Real Estate Fund (UBS-ZIREF) and marks the first investment undertaken in the Spanish market as part of UBS-ZIREF’s European diversification strategy.
Calle Principe de Vergara 108 is a grade A office building with 7,000 m2 of space across 12 floors, with an additional four basement levels providing 69 parking spaces. This asset is currently fully occupied by a well-diversified tenant mix, comprising different sectors. The tower is part of the skyline of Salamanca Office District.
Gaetano Lepore, portfolio manager for UBS-ZIREF REPM commented: 'This acquisition, perfectly in line with our investment strategy of targeting well-located high quality assets in major European cities, allows us to build on our successful track with seven acquisitions in the last 18 months and to reach €570 mln AUM.'
In recent months, UBS-ZIREF has completed three acquisitions in three different locations in Paris, Lyon and Madrid, for an overall investment amount of €130 mln.
The pan-European core fund is managed by UBS-AM and reserved to Zurich Investments Life, an Italian fully-owned subsidiary of Zurich Insurance Group.
Giorgio Pieralli, Head of Illiquid Asset di Zurich Italia, commented: 'The effects of the pandemic will not be penalising office buildings that can offer adequate distribution of space and cognitive and emotional well-being to final users.'
UBS-AM was advised on this transaction by Cushman & Wakefield, Linklaters and Deerns. Blackstone was advised by JLL.
