29 November 2018 – Expansión
Foreign capital is raising its game in the office market in Madrid and has caused investment during the third quarter to soar to a record level: almost €800 million. That figure, which is the largest since 2007, is explained by three mega-operations, which had a combined total of €511 million and accounted for almost 65% of the total transaction volume, according to a report compiled by the real estate consultancy Savills Aguirre Newman.
By volume, the largest transaction closed in the period was the purchase by the British firm Tristan Capital of a portfolio of offices spanning 78,000 m2 in Madrid from Colonial for around €280 million; it was followed by the purchase by the French firm Amundi Immobilier of the Pórtico building in Campo de las Naciones; and the acquisition of FCC’s headquarters in Las Tablas by Safra Sarasin.
In Spain, during the first three quarters of the year, the cumulative investment in offices amounted to €2.1 billion, which almost equals the total amount transacted in the whole of 2017. Specifically, Madrid accounted for 70% of the total invested during the first nine months of the year, with €1.4 billion worth of transactions signed.
In terms of forecasts, the consultancy firm has identified that almost €1 billion of operations are under negotiation and could be closed within the coming months. “The dynamism in terms of demand and the increase in products for sale in open processes could mean that the annual volume closes at 2016 levels, exceeding the figure recorded in 2017 by more than 50%.
In terms of absorption, the total volume during the third quarter increased the cumulative figure to 440,000 m2, which represents a YoY increase of 4%. “The good behaviour of the market during the third quarter allows us to forecast an annual volume of more than 600,000 m2”, explain sources at the consultancy firm.
Original story: Expansión (by R. Arroyo)
Translation: Carmel Drake