AEW Europe has acquired a high-end retail asset in central Madrid on behalf of the City Retail Fund, in a forward purchase agreement. This is the first Spanish acquisition undertaken by the Fund, which launched with a €125m first close in November 2015.
The property, a forward purchase from a joint venture between Rockspring Property Investment Managers and a local investor, is a 750m² flagship retail unit on Madrid’s ‘Golden Mile’ Calle Serrano and is scheduled for delivery in Q3 2017.
Calle Serrano is strategically located in the heart of Madrid and is home to a number of high-end international retailers and boutiques such as Prada, Cartier, Louis Vuitton and the Adolfo Dominguez.
Marc Langenbach, fund manager commented: "As the Fund’s first investment in Spain, this transaction is a welcome addition to the portfolio. We intend to let the unit to an international retailer during the construction period and have already had strong interest. Over the coming months we will continue expand our core high street retail portfolio in Europe’s leading city centres.”
Nikolas Koulouras, executive director in investment at AEW Europe said: “In line with the Fund’s strategy, Calle Serrano is a well-established retail destination that benefits from a high profile tenant mix, underpinned by the improving consumer confidence in the Spanish and wider European market, and demonstrates AEW Europe’s ability to source attractive opportunities across different geographies.”
