The Carlyle Group has announced it has made its first real estate acquisition in Spain. This marks the launch of Carlyle Real Estate Partners II into the Spanish market. The investment is the acquisition of Gran Via 68, a landmark building situated only two blocks from Plaza de Espana in the heart of the historical and commercial center of Madrid. The location offers the most recreational and leisure facilities per square metre in the capital, including cinemas, theatres, and restaurants.
"We see great potential in the real estate market across Europe. We have invested extensively in France, Germany, Italy and the UK, and are pleased to be now entering the Spanish market. There are many opportunities for investing in Spain, both in Madrid and Barcelona, as well as other cities such as Valencia and Seville and we look forward to further activity in the country,â said Eric Sasson, Managing Director, The Carlyle Group, who leads the European real estate team.
The Carlyle Group has acquired Gran Via 68 from Grupo Urconsa. Gran Via 68 consists of 7,600 mÂ² including three floors of retail space and 11 floors of residential space, which is currently empty. Carlyle will preserve the buildingâs unique architecture and faÃ§ade and intends to carry out internal refurbishment works on the 11 floors of residential space to convert them into luxury apartments with an innovative design concept that will blend the traditional aspects of the listed building with the highest quality modern design. Carlyle expects the works on the apartments to be completed within 24 months.
âWe are delighted to have made our first investment in Spain. The residential and retail markets in Madrid are buoyant, and we believe there will be strong demand for the new apartments in such an architecturally impressive building. We hope this will be the first of several investments in Spain." said Rachel Lupiani, The Carlyle Group, who led the transaction.
This is the first real estate acquisition in Spain to be completed by The Carlyle Group. Carlyle recently raised a â¬760 million fund, dedicated to European real estate investments and expects to invest at least 10% of this fund in Spain.
Carlyle was advised by CBRE, who will also manage the sales and marketing of the building, and legal advice was provided by Clifford Chance. The financing was provided by Hypo Real Estate Bank International.