Oaktree and FREO eyeing €160m in Spanish office sale

EUROPROPERTY EXCLUSIVE: Oaktree Capital and FREO are bringing a portfolio of Spanish offices to the market, seeking to capitalise on interest from buyers in office locations with rental growth prospects.

PropertyEU’s weekly title EuroProperty reports the US fund manager and its local partner are selling four Madrid buildings and one in Barcelona from the ‘Boston’ portfolio which they acquired in 2017 from BBVA.

They hope to attract offers of around €160 mln and have appointed Cushman & Wakefield to handle the sale. After acquiring the Boston assets Oaktree and FREO quickly sold a handful of the very small properties. They have focused on refurbishing and releasing the others which are in good submarkets in the two main Spanish cities and in Valencia.

A growing number of private equity firms and other investors are seeking value-add opportunities to invest in secondary assets in submarkets of the main cities where they see the next wave of office rental growth.
‘We have seen value come back for prime offices and now we anticipate growth in the secondary locations where rents have been flat,’ said one Spanish broker.

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