AEW's Europe Value Investors Fund (EVI) has acquired the Calle de Francisco Silvela 106 office building in Madrid, from a private investor for €30m. This is the third acquisition in Spain for EVI, a value add fund focusing on European manage-to-core office assets, following the purchase of two assets in Madrid last year.
Located in Madrid’s CBD, the asset comprises 6,300m² of space across 9 floors and benefits from good transport links to the Madrid underground network, providing easy access to the central Madrid railway station and the Parque de El Retiro. Built in 2001, the property has been recently vacated and offers the potential for significant uplift following a refurbishment programme to modernise the floor plates and deliver Grade A office space into an undersupplied market.
Carsten Czarnetzki, Fund Manager of EVI and Country Head of Spain said: “This most recent acquisition in Madrid is a strong sign of our confidence in the city’s occupier market and the underlying fundamentals of the asset. Having acquired the property fully vacant, we shall now undertake a thorough refurbishment programme to deliver an attractive and competitive office in the city’s CBD.”
Nikos Koulouras, Investment Director at AEW said: “The Spanish market presents some compelling investment opportunities, particularly for managers with an active approach to asset management. Spain’s economy has been growing in recent years and office take up is increasing, while office completions have fallen to pre–crisis levels. As a result, Madrid’s prime rents are beginning to grow, yet are still at a level that we believe makes Madrid look relatively affordable to occupiers.”
AEW’s EVI targets value-add offices throughout Europe and has committed over €700m across 20 assets, of which two have been disposed of this year following realisation of the business plans. AEW was advised by Fabregat Perulles Sales and Cushman & Wakefield, and the vendor by HF Legal and Aguirre Newman.
