The Peabody Fund, co-sponsored by O’Connor Capital Partners and JP Morgan, has acquired Rios Rosas 26, Madrid, Spain, with plans to reposition and redevelop the asset into a residential project.
The fund acquired the asset from Telefonica for €111.5 million subject to a short-term leaseback from Telefonica. The local partners of the Fund in the transaction are led by the Madrid based architecture and development firm Tiuna.
O’Connor plans to redevelop the 35,000 sqm building, located in prime central Madrid, into a predominantly residential project that will contain loft style residential units, retail and office space and below-ground parking. The project will take advantage of the outstanding floor to ceiling heights, excellent light, views and the property’s highly desirable location.
O’Connor’s Managing Director for Europe, Kevin Reid, comments: “We are pleased to be making a significant investment in central Madrid and believe that repositioning the property from office to residential use will be well received”.
Acquisition of Rios Rosas 26 marks O’Connor’s second property acquisition in Madrid. In October 2002, the fund acquired the former headquarters of Dresdner Bank, just off the Castellana, with plans to develop residential units on the site.
Ezequiel Rodriguez, responsible for O´Connor´s investments in the region, comments:
“With this investment we continue to expand our presence and confirm the strength of our growing business in Spain”.
Source: O´Connor Capital Partners