UBS is selling a headquarters building at Campo de las Naciones in north east Madrid, close to Barajas Airport.
The global investor has appointed Savills to sell the circa 12,000 m2 office building on Ribera del Loira which was re-let last year in its entirety on a new seven-year lease to KKR-backed Dentix, the Spanish owner-operator of over 300 dental clinics.
The building is close to Helios, the new development pre-let to ING which Blackstone sold recently to Inmark Asset Management of South Korea, acting for an equity investor.
The Dentix building is guiding at approximately €60 mln, which would equate to an initial yield between 4%-4.25%. The lease includes guaranteed step up rents.
Investment into Spanish offices reached a decade-high last year, Savills said. The agent said twice as many assets were transacted in 2019 compared to 2018: 86 compared to 59 in Madrid and 48 compared to 17 in Barcelona.
In terms of origin of capital, domestic investment into Madrid was down 25% compared to last year, while it was up 47% in Barcelona. International investment now accounts for 73% of the total with European investors such as Allianz, KanAm and Commerz Real active in the sector.
Hipólito Sánchez, Head of Offices at Savills Aguirre Newman said : ‘The main novelty is the entry of new Asian capital that has been driven by the attractive interest rates compared to the USA. We expect to see more operations of the core plus type, that is to say, operations of mature buildings but with some travel in consolidated office areas, not necessarily in the city centre.’