Zurich Insurance Group has acquired five office buildings in Madrid from US investment bank Blackstone for €163.5 mln.
Zurich's real estate subsidiary Rex Spain ZDHL purchased the assets from Hispania Activos Inmobiliarios, a real estate company belonging to Blackstone.
Together, the five buildings comprise 31,000 m2 of office space, which are currently fully occupied with long-term rental contracts.
'This investment fits with our objective of acquiring core and high profile assets in established locations,' said Riccardo Cobianchi, Zurich's regional investment manager for Southern Europe.
'It is also further proof of our confidence in the long-term prospects of the Spanish real estate market and especially that of Madrid, which is one of the most interesting cities for this type of asset,' Cobianchi added.
Four of the buildings purchased by Zurich were completely refurbished between 2011 and 2016, and are BREEAM certified.
'This is a high quality portfolio, which benefits from strong covenants, and offers the opportunity to generate added value through an active real estate management strategy,' said Salvador Pérez Soto, head of real estate for Iberia at Zurich Spain.
The last major real estate transaction carried out by Zurich in Spain was the purchase of a 1,648 m2 office building in the center of Barcelona last October. With the five buildings now acquired in Madrid, Zurich Spain has a real estate portfolio in Spain and Portugal valued at €1 bn.
Real estate consultancy Cushman & Wakefield advised on the sale, while law firm Roca & Junyent provided legal advice.