AEW Europe has purchased 240 Serrano, a 7,550m² mixed-use building in central Madrid for approximately €26m. The asset, which is the second acquisition for the Europe Value Investors fund (‘EVI’ or the ‘fund’) in Madrid in as many months, was acquired from Continental Property Investment, and brings the total value of assets in EVI to approximately €430m.
240 Serrano, which is currently 83% let, is a well-established asset in central Madrid, comprising eight floors above ground. There are seven floors worth of office space, as well as a café and restaurant on the lower ground floor, a small bar at ground level and a basement, currently let to a luxury gym operator. In addition, there is an underground car park with 70 spaces.
Located in the Hispanoamerica area of the Spanish capital, 240 Serrano is well-connected, situated just a short walk from two metro stations and bus stops servicing a number of lines, and Madrid International Barajas Airport and Chamartin Railway station accessible within 15 minutes. Hispanoamerica is an established office district, close to the AZCA business quarter and the main city artery of Paseo de la Castellana. Businesses in the immediate area include Sony, Canon, Aegon and Ferrovial, while Google, EY and Bloomberg are all also located nearby.
Carsten Czarnetzki, portfolio manager for EVI, said: “This is a strong asset in an excellent location that we are very pleased to have been able to secure off-market, demonstrating our growing presence in the Spanish market. The opportunity 240 Serrano presents plays well to our asset management strengths and skills. Spain’s economy has been growing for two years now and office take up is increasing, while office completions have fallen to their lowest levels since the mid-1990s. As a result, Madrid’s prime rents are beginning to grow, yet are still at a level which we believe makes Madrid look affordable.”
AEW Europe Value Investors targets value-add offices throughout Europe and has now deployed in excess of €430m across 13 assets.
