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Invesco Buys Property On c/Serrano 53 For €52M

14 December 2016 – Expansión

The German fun Invesco Real Estate is heading into the final stretch of the year as one of the most active funds in the Spanish real estate market, having invested more than €500 million in 2016. Its latest acquisition is Serrano 53. The building on the famous Madrilenian street was constructed in 1905. It is primarily a residential property, but it also houses a retail space, which has been vacant for some time. Its previous owners, a Spanish family office, searched for a tenant for several months following the departure of the accessories company Jota Ele. In the end, it sold the property to Invesco for €52 million.

The German fund will now be responsible for leasing the premises, along with the new homes. The latter represents a change in strategy for the fund. To this end, Invesco has engaged the firms Catella and Knight Frank, which will be responsible for searching for new tenants for the retail and residential premises, respectively, whilst Barba Grupo Inmobiliaria will lead the design of the new homes.

The German fund’s plans, which involve an investment of more than €3 million, will retain the nineteenth century character of the building, with a renovation that will allow the wrought-iron balconies to be conserved, along with the original entrance doorway and interior staircase. In total, Serrano 53 will contain nine homes measuring more than 200 m2. Invesco has already applied for the construction permit, with the aim of handing over the homes to their new owners in June 2018. Although the asking price for these properties has not been set yet, they are expected to fetch between €9,000/m2 and €10,000/m2.

Retail premises

The retail premises on Serrano 53 will be ready sooner. Just a few metres away from Chopard, Cartier and Gucci, this space is one of the largest premises available on the exclusive Madrilenian street. In total, it has a surface area of 1,800 m2 spread over three floors, which is unusual in an area characterised by much smaller stores. “This is a unique property due to its size, and because it shares its location with prestigious brands”, said Íñigo Gutiérrez, Senior Advisor at Catella. “The objective is to lease this store to a luxury brand”, he added.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake