• Transaction / Assets
  • Seller
  • Buyer
  • € MM

Axa Buys More Real Estate Assets; Tiffany & Escada Change Landlord in Milla de Oro

For the last few years, the month of December has been marked by frantic activity in the real estate sector. Thus, a businessman Amancio Ortega bought the Madrid skyscraper Torre Picasso from FCC in December 2011, a year later, a Mexican magnate Carlos Slim closed the acquisition of 439 branch offices of BBVA.

Awaiting a megatransacion before the year 2013 ends, investors carry out operations like the purchase of 1.000 square meters in the best Madrid´s commercial zone, known as Milla de Oro. Like it occured in the majority of the transactions in 2013, the buyer is an international investment fund, a real estate branch of the insurance company Axa. The company paid about 35 million Euros, divided between two establishments. The transaction has been advised by Aguirre Newman. Both locals are unbeatably situated and have tenants of proven solvency: fashion firm Escada and Tiffany jeweller´s shop, settled down in Spain in 2008.

The bought property is situated at 10 Ortega y Gasset Street in Madrid. The shops cover in total 1.000 square meters (500 square meters each). It was owned by a Spanish real estate company Neinver, the second outlet store manager in Europe chaired by José María Losantos, who acquired the building in 2006. Two years later Tiffany stood in for Versace on an exclusive artery of Madrid, where also bright such brands as Chanel, Gucci, Hermés, Dolce & Gabbana and Valentino.

Axa´s purchase is located on one of the highest earning power streets, reaching up to 6%. The tenants will pay 170 Euros per square meter per month, thus, the French investor will gain 2.04 million Euros per annum.

This is not the first operation that the company conducted in Spain. In June, the real estate manager bought a portfolio of 3 buildings from Generalitat de Catalunya for 172 million Euros. Through the acquisition, it manages a real estate portfolio in Spain worth 1.300 million Euros. At a global level, it holds assets valued at more than 45 million Euros (data from March).

Neinver is focused on development of its centers in Europe. This year it presented five projects in Spain, France, Germany and the Netherlands, with the management target by 2016 to control 19 outlet centers of 400.000 square meters.


Source: Expansión