REAL ESTATE - Retail real estate fund VastNed has acquired two properties in a top location in Madrid, it announced.
In a €10m transaction, VastNed purchased shop-premises of 256m2 and 120m2 respectively in the Calle de Fuencarral, a shopping street leading to Gran Via, it said.
One property has been let to a fashion chain. Although the other is empty at the moment, because of its location, VastNed expects to find a tenant soon, it indicated.
"A full let will generate a rent of €0.5m a year. After tax, the start return will be 5%," it added.
The acquisition will bring VastNed’s Spanish portfolio up to over €500m.
"We are delighted that we have been able to extend our Spanish portfolio. Like our properties along the Calle de Serrano and Calle Carmen in Madrid, the new assets are in a very strong shopping area with healthy prospects on rental growth," Hans Pars, CIO of VastNed commented.
VastNed is a listed real estate fund, which focuses on retail properties on excellent and top locations in mainly the Netherlands, France, Belgium and Spain. Its €1.5bn portfolio consists of almost 600 objects.