Global real estate investment manager Barings Real Estate has announced the acquisition of five office buildings within the Avalon business park in Madrid from local property firm Meridia Capital.
The acquisition, which was made for a Pan European value add investment strategy on behalf of an institutional investor, is believed to have a value of nearly €73 mln.
The five office buildings comprise 24,495 m2 of office space and are 97% occupied by more than 20 tenants mainly from the IT/technology and engineering sectors. An additional 1,291 m2 of retail space and 421 underground parking spaces complete the portfolio.
Meridia originally bought the five assets in 2015 from the Fernández Fermoselle family for a price of €50 mln.
The Avalon Business Park comprises in total nine office buildings with 46,952 m2, with the remaining four assets owned by US group Oaktree Capital. The business park is located in Julian Camarillo, a consolidated office sub-market within the city.
'We are delighted to announce our seventh acquisition in Spain and our first investment in the Madrid office market, where we see significant rental and value growth over the coming years,' said Adolfo Favieres, country head real estate, Spain at Barings. 'This is a new milestone in the development of our investment strategy in the Iberian Peninsula after a significant capital deployment in both the retail and the logistic markets. As our local team grows, we continue broadening our investment horizon, not only across different asset classes but also in terms of risk profile, from core product to value-add and opportunistic transactions.'
Barings was advised by Dentons (legal), Deloitte (financial), Arcadis (technical) and Knight Frank (valuation). Meridia Capital was advised by Garrigues and Savills Aguirre Newman.