LaSalle Investment Management has announced the sale of General Lacy 23, a heritage building in Madrid which has become the first office building in the country to be given LEED Platinum green building status following a major refurbishment.
LaSalle has sold the former tobacco warehouse to CBRE Global Investors, having acquired the property in late 2018 on behalf of a German pension fund. Financial details were not disclosed but the asset is believed to have traded for €47 mln.
The property is located south of Madrid’s central business district, in the Méndez Álvaro district. It offers close to 7,000 m2 of office space and is fully occupied by Repsol Electricity and Gas HQ, part of the Spanish oil company. The sale was completed against a backdrop of rising demand for commercial real estate in Madrid, with vacancy rates having dropped 3% from their 2014 peak to 9.3%.
Uwe Rempis, head of Fund Management for Germany at LaSalle Investment Management, said: 'We’re delighted to have harvested a strong capital gain and delivered stellar investment performance for our client through the sale of the General Lacy 23 office building. While we had intended to hold this asset for a longer period, this world-class refurbishment has generated considerable interest from the market. The refurbishment project reflected the extent to which addressing environmental change is driving our thinking on the future of real estate and the types of property in which we invest.'