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Axiare Buys Building In Madrid From Telefónica For €33M

14 October 2015 – Expansión

The Socimi Axiare Patrimonio has completed the purchase of a new office building. The Socimi has acquired the property located at number 84 on Calle Don Ramón de la Cruz, in the central business district of Madrid, from Telefónica.

The building, which has a surface area of 9,271 m2, is currently vacant, having housed various divisions of the Spanish telecommunications operator in recent years. As such, Axiare will have to look for a new tenant.

Axiare has paid €32.75 million for the property, which it will add to its growing portfolio of investments, amounting to more than €800 million since it first went public in July 2014.

The company invested the €360 million it raised from investors through its debut on the stock exchange in less than one year. And in June 2015, it closed a capital increase amounting to €395 million to finance the continuation of its purchases. Currently, its portfolio comprises 28 properties, with a combined surface area of more than 550,000 m2, of which the vast majority (73%) are office buildings, although it also owns logistics platforms and commercial assets.

Axiare, which made profits of €31.3 million during H1 2015, closed trading yesterday up 2.01%, taking its share price to €12.20. The company’s market capitalisation amounts to €876.9 million, having increased by 17.48% in one year.

The sale of the building by Telefónica forms part of the property divestment process that the operator is conducting for its non-strategic assets. Recent sales include two completed this summer involving properties in Madrid – one in the same street – Calle Don Ramón de la Cruz and the other in Plaza Santo Domingo, for €42 million.

In September, Telefónica also auctioned off five other buildings located in Madrid, Barcelona, Sevilla and Valencia. The group will continue to occupy all of the properties sold recently, with the exception of the latest one.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake