28/04/2014 – Expansion
German fund manager KanAm Grund has decided to put the main premises of Enagas energy group in Madrid up for sale. The office building is located at number 19 of the Paseo de los Olmos Street. It has got 70.000 constructed square meters, 10.000 utilizable square meters and 200 parking spaces.
Although the property is found far away from the financial heart of the capital, the sale attracts attention of many prominent investors who have been scanning Spanish RE market over the past months due to the opportunity of obtaining a long-term lease contract with such secure tenant as Enegas.
The Technical Manager of the Spanish Gas System has been renting the building for last 12 years and its contract duration extends to another dozen of years. The property, known as the Edificio Princ, was built in 1989.
In 2005, KanAm Grund paid almost 46 million for the building to Metropolis real estate group.
At the moment, the headquarters has no asking price and is waiting for investors´proposals. However, according to sources from the market, its value may oscilate around 30-35 million euros.
Another eye-catching building sale in the market has been started by Morgan Stanley that is selling central premises of IBM in Madrid.
During the first quarter of 2014, total investment in offices crossed €200 million, while rentals showed an appreciation of 5% to 24.5 €/sqm/monthly in the financial area of the capital.
Original article: Expansión (by Rocío Ruiz)
Translation: AURA REE