Axiare Seeks Tenant For Its Newly Renovated Office In Madrid

21 December 2016 – Expansión

The Socimi in which Colonial owns a stake has put the office building that it owns on c/Ramírez de Arellano up for rent. The property, which has a surface area of 10,515 m2, has been undergoing renovations for the last year.

The Socimi Axiare Patrimonio has accelerated its investments as 2016 draws to a close. The company, which has a significant cash balance after doubling in size last year, has closed acquisitions amounting to around €180 million in the last month and a half, including the purchase of the corporate headquarters of both Cuatrecasas and McKinsey. It is also negotiating the purchase of the Vocento group’s offices for another €35 million, say sources in the sector.

Besides expanding its real estate portfolio, which is worth more than €1,200 million, the Socimi is working to improve its assets and to that end, has invested tens of millions of euros over the last few months. These projects include the building on Ramírez de Arellano, 15. Axiare acquired the building last year for €16.5 million and in May 2016, the Socimi whose largest shareholder is the real estate company Colonial, engaged the consultancy firm Colliers to undertake the complete renovation of the property, which was completed just two weeks ago. “The complete renovation, which was designed and executed by Colliers International, has transformed Ramírez de Arellano, 15, into a modern and functional building, with high quality specifications that fulfil the most demanding requirements in terms of sustainability, energy efficiency and technology”, say sources at the consultancy.

After 8 months of construction work and an investment of around €3 million, the new office building has a surface area of 10,515 m2, spread over seven floors and 108 parking spaces, distributed over two underground parking floors”. There is a lot of interest for the office given its location, in the Arturo Soria neighbourhood, where the A-2 highway meets the M-30 ring-road”. The objective is to lease it in its entirety to a single company looking to locate its corporate headquarters there, according to the heads of the project.

During 2016, Axiare has signed 24 lease contracts covering a gross leasable area (GLA) of more than 100,000 m2. That figure that will soon increase by another 11,000 m2 (…).

The arrival onto the market of the office on c/Ramírez de Arellano comes at a time of shortage of office products in certain areas of Madrid, which has driven by rents in the prime area of the capital. In this way, prices in the CBD (central business district) increased by 6% YoY during the third quarter to amount to €27.5/m2/month, whilst theoretical prices in the prime areas outside of the M-30 ring-road and in secondary areas rose by 4% on average.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake