Purchased from a private investor, the property is EVI’s third acquisition in Spain, following two further assets purchased in Madrid last year.
Located in the central business district (CBD), Calle de Francisco Silvela 106 comprises 6,300 square metres over nine storeys, and is well connected to the Madrid underground network and the city’s central railway station.
According to AEW, the acquisition is part of EVI’s strategy of adding value to core office assets. Built in 2001, a significant renovation has been planned for the building, to deliver grade-A office space.
The deal means EVI has committed €700 million over 20 assets, two of which have been sold this year.
Carsten Czarnetzki, fund manager of EVI, said: “This most recent acquisition in Madrid is a strong sign of our confidence in the city’s occupier market and the underlying fundamentals of the asset. Having acquired the property fully vacant, we shall now undertake a thorough refurbishment programme to deliver an attractive and competitive office in the city’s CBD.”
Nikos Koulouras, investment director at AEW, said: “The Spanish market presents some compelling investment opportunities, particularly for managers with an active approach to asset management. Spain’s economy has been growing in recent years and office take up is increasing, while office completions have fallen to pre–crisis levels.”
He added: “As a result, Madrid’s prime rents are beginning to grow, yet are still at a level that we believe makes Madrid look relatively affordable to occupiers.”