Barings Real Estate has acquired five office buildings within Avalon Business Park, Madrid, Spain, as part of a Pan European value-add investment strategy on behalf of an institutional investor. The seller is Meridia Capital. The purchase price was not disclosed.
The office buildings comprise 24,495m² and are 97% occupied with more than 20 tenants mainly from the IT/technology and engineering sectors. The properties also feature 1,291m² of retail space and 421 underground parking spaces.
The Avalon Business Park comprises in total nine office buildings with 46,952m². The business park is located in Julian Camarillo, a 950,000m², consolidated office sub-market within the city of Madrid, one of the largest submarkets in terms of take-up in 2018. Formerly an industrial area, Avalon Business Park has already undergone big changes in the past years and is becoming a well-sought after office destination for technological companies. It is easily accessible via public transport and enjoys close proximity to both the city centre and the airport.
Adolfo Favieres, Country Head Real Estate, Spain at Barings, said: “We are delighted to announce our seventh acquisition in Spain and our first investment in the Madrid office market, where we see significant rental and value growth over the coming years. This is a new milestone in the development of our investment strategy in the Iberian Peninsula after a significant capital deployment in both the retail and the logistics markets. As our local team grows, we continue broadening our investment horizon, not only across different asset classes but also in terms of risk profile, from core product to value-add and opportunistic transactions.”
Barings was advised by Dentons, Deloitte, Arcadis and Knight Frank. Meridia Capital was advised by Garrigues and Savills Aguirre Newman.
