Zurich Insurance Group, acting through its real estate subsidiary Rex Spain ZDHL, has completed the acquisition of five office buildings in Madrid that will be added to the portfolio of properties that the insurance company manages in Spain. The assets were purchased from Hispania Activos Inmobiliarios, a real estate company belonging to the US investment bank Blackstone Group, for €163.5m. Together, the five buildings add up to 31,000m² of office space, and are currently fully occupied with long-term rental contracts. Four of the buildings purchased by Zurich were completely refurbished between 2011 and 2016, and are certified BREEAM for sustainability.
Riccardo Cobianchi, Regional Investment Manager for Southern Europe of Zurich Insurance Group, said: "This investment fits with our objective of acquiring core and high profile assets in established locations. It is also further proof of our confidence in the long-term prospects of the Spanish real estate market and especially that of Madrid, which is one of the most interesting cities for this type of asset.”
Salvador Perez Soto, Head of Real Estate for Iberia in Zurich Spain, commented: "This is a high-quality portfolio, which benefits from strong covenants, and offers the opportunity to generate added value through an active real estate management strategy. This acquisition demonstrates the importance of having a real estate team dedicated to identifying and acquiring outstanding properties in competitive markets in order to create value for our investments”.
