CBRE Global Investors, in a joint venture with IBA Capital Partners, has acquired Gran Via 18, a 5,500 m² prime freehold asset in Madrid city centre. The vendor was a fund managed by TPG Sixth Street Partners. The purchase price was undisclosed.
The asset comprises a basement and seven floors above ground. Gran Via is dominant retail and tourist thoroughfare in the heart of the city centre and one of the busiest high street retail locations in Spain.
Dating back to the early 1900’s, Gran Via 18 will undergo an extensive refurbishment to be completed by the end of 2018, which will transform it into a flagship retail store on four levels. The upper levels will be refurbished to provide high-quality modern office premises. Upon completion, the property will achieve a LEED GOLD certification.
In order to further enhance footfall and improve the shopping experience, Gran Via is undergoing a pedestrianisation process consisting of expansion of the side-walks and reduction from six to four lanes, with traffic being limited to public transport, taxis and local residents.
Charles Baigler, Fund Manager of CBRE Global Investors value add program said: “The business plan for Gran Via 18 is in line with our value add program’s strategy to reposition assets to create prime space in supply constrained locations which will attract the best occupiers. We will be working in a joint venture with IBA Capital Partners to deliver the business plan. This will be our third high street retail transaction in Madrid so it is a market we understand well.”
CBRE Global Investors and IBA Capital Partners are currently developing two prime retail assets in Madrid, ABC Serrano Shopping Centre and a 2,100 m² GLA retail flagship store on Preciados pre-leased to an Inditex brand.
TPG Sixth Street Partners was advised by Clifford Chance and JLL.
CBRE Global Investors and IBA Capital were advised by E&Y, Jones Day, Arcadis and PWC.
