CBRE has advised GLL Real Estate Partners GmbH (GLL), the Munich-based real estate funds management group, on the acquisition of Territoria El Bosque, a landmark office building in Santiago, Chile.
The class-A office building was acquired by GLL from a consortium of Chilean firms consisting of Territoria, IM Trust and Viviendas 2000. The 314,343 ft² (approx. 29,200 m²) building was delivered to the market in November of 2012 and has an important tenant roster, including JP Morgan, H&M, BBVA, ITAU, and Embassy of South Africa. The building is located along Santiago’s principal office corridor at the intersection of Apoquindo and El Bosque.
CBRE Global Capital Markets professional Tim Gifford, along with Marc Royer of CBRE Chile, managed the acquisition that cements the firm’s market-leading share of significant cross-border commercial real estate investment transactions in Latin America.
Tim Gifford, Senior Vice President of CBRE’s Global Capital Markets group, commented: “This acquisition is evidence of the continued importance of Chile as an attractive global destination for institutional real estate investors. With one of the most liquid and attractive property investment markets in Latin America we expect to see investment activity to remain strong in Chile over the coming months.”
The acquisition follows the CBRE-advised sale in Chile of a single-owner office portfolio by German investment fund Union Investment Real Estate (UIR) to local property fund Aurus Renta Immobiliaria for US $225 million (approx. €170 million). The portfolio of five properties all located in Santiago, comprised 55,725 m² of rentable office, retail and leisure space, with tenants including international banks and government agencies, multinational corporations and major companies in technology, communications, pharmaceuticals and mining.
Global investors are increasingly attracted to Chile’s dynamic business culture, solid macro-economic indicators and full integration into international markets. Chile offers both the lowest cost of capital in the region and the lowest risk premiums in Latin America, with office vacancy rates below 1.5%. Low lending rates (typically between 4.3% and 4.5%), increasing market rents and the highly liquid real estate investment market are also key factors attracting global investment.
Source: FTI Consulting