AEW, acting on behalf of the AEW Europe Value Investors Fund, has agreed to forward purchase an office building at the Paseo de la Virgen de Puerto (“Rio 55”) in Madrid, Spain for €43m.
The ca. 14,000 m² property is being developed by Insur and will have a BREEAM Very Good certification. Once complete, the asset will provide ca. 13,000 m² of office space spread across seven floors, ca. 1,000 sqm of retail space across five ground floor units and more than 200 parking spaces.
The scheme has been designed to cater for both single tenant and multi-let occupation with individual floorplates at a minimum of between 400 and 800 m². In addition, the building will be surrounded by 8,000 m² of landscaped gardens, of which approximately half will be opened to the public.
Rio 55 is located in the Madrid Sur area close to the Manzanares River and the M30 highway leading directly to Madrid’s Central Business District and the famous Palacio Real.
Commenting on the acquisition Carsten Czarnetzki, Country Head for Spain and Fund Manager of the acquiring fund at AEW, said: “This acquisition of Rio 55 is completely in line with the strategy of the AEW Europe Value Investors fund. This high-quality development is in a strong location where the outlook for rental growth continues to strengthen as a result of an increasingly supply constrained market inside the M30 ring road. We continue to explore opportunities to grow our investment in Spain which is experiencing strong economic growth prospects.”
AEW was advised by Herbert Smith Freehills and the sale process was conducted by Savills-Aguirre Newman. The Seller was advised by Simmons & Simmons.
