Allianz closes on Madrid asset for €250m

Allianz Real Estate, the property investment arm of the Allianz Group, has inked a deal to buy the Castellana 200 building in Madrid for a reported €250 mln.

The vendor of the building is the Madrid-listed REIT Silvercode, in which Canadian pension fund manager PSP and Drago Capital both hold stakes.

Situated near Madrid's Plaza Castilla, the asset comprises 20,295 m2 of office space, 6,415 m2 of retail and 844 parking spaces. Drago Capital currently manages the asset. Tenants include CBRE, LinkedIn, H&M, Schweppes and Sony.

Silvercode purchased the building in 2014 from developers Reyal Urbis for a reported €144 mln at the height of the financial crisis.

The asset was constructed in 2009 and has space for an additional project covering around 14,000 m2, which is excluded from the transaction. Silvercode is understood to be developing a hotel in partnership with other investors on this adjacent plot.

Allianz entered the Madrid office market in 2017 with a €155 mln loan to LaFinca Global Assets. Since then, it has closed four lending transactions exceeding €500 mln in total. In July 2018, it partnered with US developer Tishman Speyer in a 50/50 joint venture to develop a 56,652 m2 office complex located in Las Tablas Madrid, representing Allianz’s first value-add deal in Spain. 

The joint venture with Tishman’s value-add fund TSEV VIII acquired 76% of the shares of project Monteburgos, alongside existing landowner Metrovacesa, which retained a 24% interest in the partnership and the management role. 

Allianz was advised by Uría Menéndez.

Savills Aguirre Newman advised the vendor. 


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