25 September 2017
Madrid
Reporter: Theo Andrew

AEW strengthens Madrid portfolio


AEW has acquired an office in Madrid on behalf of its European Value Investors fund (EVI), for €30 million.

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.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Standard Chartered boosts CRE team
11 December 2017 | Singapore | Reporter: Stephanie Palmer
Standard Chartered has named Steven Cranwell as global head of commercial real estate for its global banking business
SoftBank and Compass in ‘largest ever’ US real estate tech investment
08 December 2017 | New York | Reporter: Stephanie Palmer
Real estate technology firm Compass has won $450 million in investment from the SoftBank Vision Fund, in what Compass has called the largest ever real estate technology investment deal in US history
Tristan fund makes first foray into Germany
07 December 2017 | Bonn | Reporter: Stephanie Palmer
The CCP 5 long-life fund, a core-plus fund advised by Tristan Capital Partners, has made its first investment in Germany, acquiring an office complex in Bonn for €35 million
JLL develops UK corporate solutions team
07 December 2017 | London | Reporter: Stephanie Palmer
JLL has named Sue Asprey Price as lead director of its corporate solutions business in the UK, with immediate effect
Link Asset Services appointed as real estate fund administrator
06 December 2017 | London | Reporter: Stephanie Palmer
Warehouse REIT, a specialist warehouse investor managed by Tilstone Partners, has selected Link Asset Services for fund administration
Dutch portfolio sold for €200 million
05 December 2017 | Amsterdam | Reporter: Stephanie Palmer
Patrizia Immobilien AG has sold a portfolio of 61 residential properties in the Netherlands, for around €200 million
Allianz tops off bumper 2017 with Broadway acquisition
04 December 2017 | New York | Reporter: Stephanie Palmer
Allianz Real Estate has acquired a 43 percent stake in 1515 Broadway, New York, a class-A building valued at $1.95 billion