Swiss asset manager UBS has announced the acquisition of the Titán 8 office tower in Madrid on behalf of its UBS (D) Euroinvest Immobilien fund.
The purchase of the 18-storey scheme to the south of the Spanish capital represents the fund's first acquisition following a repositioning of the vehicle which currently owns €820 mln of assets with a focus on core real estate properties across Europe.
Financial details were not disclosed. However, market experts estimate the value of the deal at over €50 mln.
The asset is one of the two towers delivered in 2008 by developer Nozar and subsequently sold to its current landlord, Banco Ceiss for €55 mln. It provides 10,600 m2 of leasable area and 228 underground parking spaces in the Méndez Álvaro business district. It is multi let to Banco Ceiss, Nozar and Enagás.
The other tower of 10,300 m2 is owned by Invesco Real Estate which bought it in 2011 for €40 mln, or a yield of 6.5%. It is let to the Spanish railway infrastructure manager Adif.
'This first acquisition since the repositioning of the fund is a very good example of the location and property quality we are looking for,' said Alexander Isak, UBS's portfolio manager Euroinvest Immobilien. 'The excellent location with demonstrably high tenant demand promises additional growth in a still positive market environment. We are delighted to be able to invest in new, attractive real estate investments for our investors through proceeds from the sale of non-strategic properties, thereby further developing our European core real estate portfolio.'
