AEW has acquired Joan d'Austria 39-47, a major office refurbishment opportunity in the @22 district of Barcelona, Spain, on behalf of AEW Europe Value Investors II. The vendor is Eurostone. The acquisition increases EVI II’s assets under management to over €350m with 13 assets in the portfolio. The asset comprises c. 8,500m² of vacant office space, which will be transformed over the next 15 months into a Grade A, state-of-the-art building with best-in-class technologies and connectivity. AEW will undertake a comprehensive refurbishment of the asset, involving the redesign of the rooftop terrace, ground floor reception area and office space, as well as improvements to the external façade. A c.840m² ground floor retail unit will remain let to the Generalitat de Catalunya on a lease with c.10 years remaining. Sustainability features will include the installation of new energy-efficient windows and an LED lighting system. The building is expected to target LEED ‘Gold’ in addition to WiredScore or WELL accreditation.
Situated in the La Vila Olímpica del Poblenou neighbourhood, the asset is located east of the city centre in an attractive position close to the seafront. The @22 district is undergoing a rapid transformation, establishing itself as the office location of choice for local and international businesses, particularly those in the technology sector. The area also offers excellent public transport links via the Metro, regional train, tram and bus networks.
Carsten Czarnetzki, Fund Manager at AEW, commented: “This investment offers an attractive entry price for an exciting repositioning opportunity in one of Barcelona’s most sought-after office locations, and is aligned to the Fund’s return profile. Spain’s economy is forecast to outpace the Eurozone average with 6% GDP growth expected in 2021. Due to be delivered in 2023, Joan d'Austria 39-47 is also perfectly positioned to take advantage of growing occupier demand in @22, which is seen as the city’s new business district, particularly amongst international business and the booming technology industry. We remain committed to the office industry and believe occupiers and their employees will want to continue experiencing high-quality office environments in prominent locations.”