Spanish ‘Project Tango’ office portfolio on the market for €100m

Blue Coast Capital has appointed JLL on an exclusive basis to coordinate the sales process for two office buildings in Madrid and Barcelona. 

The sales process, dubbed Project Tango, is for newly refurbished, Grade A offices Tanger 66 in Barcelona and Ancora 40 in Madrid.

Tanger 66 in Barcelona is a 7,211 m2 office fully let to computer giant Hewlett Packard which Blue Coast Capital developed alongside local firm, Urban Input. They acquired an industrial building in October 2016 before turning it into an office ready for occupation in June 2018. It is located in the 22@ district of Poblenou, a former industrial area that is one of Europe’s largest regeneration projects.

Ancora 40 in Madrid is a 7,215 m2 office in Mendez Alvaro, Madrid’s new central business hub where companies such as Amazon have their headquarters. Ancora 40 is opposite Madrid Atocha railway station, the main hub for high-speed trains and the regional railway network. and in February this year the building attracted Just Eat, the UK online food delivery company, as the major tenant providing the company with space for 600 people. On the letting deal, Just Eat was advised by JLL, while CBRE advised Blue Coast Capital and local real estate investment partner, Bwre.

Sources suggested bids were due in on Thursday this week (22 July) with a guide price of around €100 mln for the properties.

JLL declined to comment citing client confidentiality, while Blue Coast Capital – formerly known as UK & European Investments – did not respond.

According to a CBRE Spain Real Estate Market Outlook report published in February, the country is forecast to be on tarck for GDP growth of 4.4% in 2021, though it is likely it will not return to a pre-Covid 19 footing before late 2022.

The report states office occupiers are reluctant to take decisions pending greater clarity. CBRE’s study says that in 2020, vacancy rates rose by 1.9% in Madrid and 1.1% in Barcelona, to close the year on 10.9% and 7.8% respectively.

However, the office stock is set to expand throughout 2021, with the largest amount of new space being released to the market in a decade. The Madrid market will see the completion of approximately 360,000 m2 in 2021. Meanwhile, Barcelona will complete 269,000 m2 of which approximately 200,000 m2 is still to let. More than half of new projects are developed in the 22@ district.

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