Rodamco Europe sold two office buildings, one in Spain for an amount of EUR 84 million and one in France for an amount of EUR 29 million. The sale comes one month after Rodamco Europeâ€™s acquisition of Stadshart Almere in the Netherlands and three shopping centres in Spain, reflecting a notable rebalance from offices to retail.
Rodamco EspaÃ±a, part of Rodamco Europe, has sold the 18,300 m2 Egeo office building to German property fund manager Meag. Rodamco EspaÃ±a acquired Egeo, located in Madridâ€™s Business Park, from Ferrovial in December 1997 at the start of the upswing in the Madrid office market. Rodamco EspaÃ±a has doubled the buildingâ€™s rental income during its period of ownership, and has realised a profit of over EUR 40 million on its initial investment.
Simon Orchard, managing director of Rodamco EspaÃ±a, comments:
'This investment has been a remarkably profitable operation, which demonstrates our local teamâ€™s ability to target opportunities for enhancing our overall performance. At the same time we have built the largest investment portfolio in the retail sector in Spain.'
Rodamco France, part of Rodamco Europe, has sold its 4,400 m2 office building on Boulevard Haussman in the heart of the Paris central business district, also to German property fund manager Meag. The building has been part of Rodamcoâ€™s portfolio since December 1989. The transaction generated a book profit of EUR 2 million.
General comment by Rodamco EuropeÂ's CEO Maarten Hulshoff:
'These further divestments in the Spanish and French office sectors reflect our strategic focus on retail. Moreover, the proceeds of these sales will be reinvested in retail, thereby reinforcing our position as the largest investor and manager in the European retail sector.'
(source: Rodamco Europe)