Hines has acquired a prime retail asset in Madrid from Spanish real estate company Grupo Baraka for €39.5m.
The Gran Via 44 property comprises 900m² and is located on Gran Via, opposite Callao Square, in the heart of Madrid’s most prominent commercial and retail area.
The building is single let to US-restaurant chain Five Guys, who recently signed a long-term lease on what will become their flagship outlet in Spain when they commence trading in summer 2016. Five Guys is the fastest growing restaurant business in the U.S. and has quickly built up a cult following. The opening in Madrid will represent their first outlet in continental Europe. Five Guys already has 27 locations across the UK, having opened its first in July 2013 in London.
Acquired on behalf the Hines Pan-European Core Fund (HECF), the asset represents Hines’ second acquisition in Spain for the HECF this year, closely following the recent purchase of the Arcs 10 asset in Barcelona for €38.5m. Further purchases in this market are expected to be completed in 2016.
Sebastian Huergo, managing director, Hines Spain, said: “Spain currently represents an attractive market, with continued economic growth and strong performance of retail sales. Consequently, we are seeing both existing retailers and newcomers committed to making a presence in the country’s major cities.”
Peter Epping, managing director, Hines Europe, and manager of the fund, said: “These two acquisitions in Barcelona and Madrid will increase the fund’s exposure to retail and expands its geographical reach across Spain. This is a market on which we will be placing considerable emphasis across our European platform this year, alongside further diversification of our asset class base.”
HECF is a euro-denominated, Luxembourg-based investment fund set up in 2007. Managed by the Hines group, its aim is to build a large portfolio of commercial real estate across Europe.
Hines was advised by legal firm Ashurst LLP, and specialist Spanish real estate consultancy, Aguirre Newman.
