GE Real Estate Iberia and GMP, through a 90-10 joint venture partnership called Renta Gestion Fuencarral S.L., have acquired the Barajas 1 office building in Madrid's Airport District for aproximately 50 million from IBERDROLA Inmobiliaria S.A.U.
The property is leased at 90% and located in an area which has seen the highest take-up rates in the periphery of Madrid over the last one and a half years.
Barajas 1 has a total surface area of 27,000 m² over ground and 4 upper floors, as well as 210 parking spaces above ground level. This building exhibits great asset management potential due to its high visibility from the main access ways, the proximity to Barajas Airport and the improvement of services in the area, as well as the new underground station scheduled for 2007.
Commenting on this transaction, Marcelo Horcel, Managing Director of GE Real Estate Iberia, said: "The purchase of Barajas 1, a prime office property, is part of GE Real Estate's strategy for growth in Spain and complements the range of different products acquired during the course of this year. With this acquisition, GE Real Estate's total investment in Spain in 2006 reaches 500 million, representing investments in the retail, office and logistics sectors."
Diego Valiente, Director, Property Investment at Grupo GMP, said: "This deal is a result of GMP's determination to roll out a business strategy based on selective acquisitions of real estate products in joint venture with our strategic partner General Electric. The outstanding features of Barajas 1 in terms of location and accessibility make this property a promising investment looking forward."
Jones Lang LaSalle Madrid acted for IBERDROLA Inmobiliaria S.A.U. in this transaction; upon completion of the deal, Vanessa Gevers, Director, Office Investment at Jones Lang LaSalle Madrid, said: "The transaction was particularly attractive for Renta Gestion Fuencarral, due the size and the fact that this asset requires active management to realise its improvement and growth potential".
Source: GE Real Estate