UBS Asset Management's Real Estate & Private Markets business has completed the acquisition of a core office building at Ribera del Loira 56-58, in Campo de las Naciones business park, Madrid, Spain for €38.5m.
The core 11,549 m² multi-let office scheme comprises twin modules divided by a central atrium, and more than 300 parking spaces. The property is fully let to dental health centre Dentix and Accor Hotels on leases of varying lengths and at a low rental level, providing opportunities for growth.
The property is regarded as one of the best buildings of the Phase 2 area of Campo de las Naciones, one of the main office sub-markets in Madrid, which is home to a number of large, well known international companies including Endesa, Roche, Total, Ferrovial, Coca-Cola, Hugo Boss and Santa Lucia. The location has excellent connectivity to the public transport network as well as direct access to the nearby motorway and Madrid airport. The Madrid office market continues to be characterised by low and falling levels of supply and little new development, which, when combined with growing tenant demand, means rents are currently trending upwards.
The acquisition brings REPM’s assets under management across the Iberian peninsula to circa €772m. REPM has operated in Iberia – including Spain and Portugal – since 2003 and currently manages seven funds or separate account mandates with a portfolio of Iberian assets spanning the office (57%), logistics (6%) and retail (37%) sectors.
Jesús Silva, Head of REPM – Iberia at UBS-AM, commented: “This is a high quality office building in an excellent micro location which continues to see strong occupier demand as the Spanish economy strengthens. Furthermore, the multi-let tenant structure will provide us with a number of more near term opportunities to benefit from rental growth, improving the income profile of the asset.”
