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
BMO adds nine assets to UK portfolio
23 October 2017 | London | Reporter: Theo Andrew
The properties are spread across the office (35.9 percent), industrial (34.5 percent), retail warehousing (22.5 percent) and retail sectors (7.1 percent), reflecting an initial yield of 4.8 percent
Kennedy Wilson Holdings completes $8 billion merger with European arm
20 October 2017 | California | Reporter: Theo Andrew
The $1.98 billion (£1.5 billion) deal equated to an offer of $15.49 (£11.74) per KWE share, a 20 percent premium on the $12.91 (£9.79) per share closing price on 21 April
Aviva acquires Bristol redevelopment
20 October 2017 | Bristol | Reporter: Becky Butcher
Aviva Investors has purchased the first phase of a redevelopment business park in Bristol for £30 million
Coyote names Rob Bould as non-executive director
19 October 2017 | London | Reporter: Theo Andrew
Rob Bould, who has 40 years of real estate experience, will help grow the data platform, which will track, manage and report the performance of real estate assets in real-time
Hammerson expands flagship Parisian shopping centre
19 October 2017 | Paris | Reporter: Theo Andrew
The 11,000-square metre property adjoins its Les Trois Fontaines centre, the firm’s recently refurbished flagship asset in Paris
SELF II reaches €500 million on third close
19 October 2017 | Paris | Reporter: Theo Andrew
The pan-European debt fund achieved the equity through institutional investors from France, Germany and Italy
Encore+ adds Dutch office for €50 million
18 October 2017 | Eindhoven | Reporter: Theo Andrew
The the pan-European open ended core-plus fund is co-managed by Aviva Investors and LaSalle IM, as fund manager and asset and transition manager, respectively