Allianz has entered into a 50/50 joint venture with US developer Tishman Speyer to develop a 56,652m² office complex located in Las Tablas in Madrid, Spain. The 50/50 joint venture with Tishman’s value-add fund TSEV VIII will acquire 76% of the shares of the project. The existing landowner Metrovacesa will retaining a 24% interest in the partnership and a key management role as local expert. The land will be divided into three plots to be developed in phases. The acquisition represents Allianz’s first value-add deal in Spain and is the latest deal in its pan-European value-add growth strategy leveraging its fund investments and its ability to deploy money through side-cars.
The district of Las Tablas is an established office submarket located immediately North of Madrid. It has been historically popular among large corporations, attracting such companies as BBVA, Telefonica, Phillips, Porsche and Tecnicas Reunidas. Upon completion, the asset will present one of the best business complexes in Madrid, providing easy access to the city centre and airport, as well as excellent visibility.
Olivier Teran, CIO Allianz Real Estate said: “We’re excited by the opportunity of investing alongside Tishman Speyer. We believe in the prospects of the Spanish office market especially for building with best-in-class specifications naturally designed to address tenants with the most stringent space requirements.”
Bernard Penaud, Head of Europe for Tishman Speyer commented: “This, our first investment in Spain for over a decade, represents an important further step in the growth of our business here in Europe. We’ve also identified Madrid as having an acute shortage of grade A office space, and the core of our business platform is to develop and own the highest quality assets in the world’s great cities. Spain’s continued strong economic growth and Madrid’s central place in that recovery makes Las Tablas, with its excellent transport links and established reputation as home to many high-quality tenant names, particularly attractive at this point in the cycle in terms of the value add returns targeted by our TSEV VIII fund. Working alongside our partners at Allianz Real Estate and Metrovacesa, Spain’s pre-eminent developer, we look forward to bringing Tishman Speyer’s unique approach and experience to one of Europe’s premier capitals.”
