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Lar Purchases An Office Building In Madrid For €12.7 Million

24/12/2014 – Expansión

The REIT, Lar Spain Real Estate, has closed the sale with the company, Bernal Brothers Pareja, of an office building located in the center of Madrid, on Calle de Eloy Gonzalo, number 27, for a total of €12.73 million.

Built in the 1960s’, the building boasts 6,232 square meters of gross leasable area (GLA) across nine stories, as indicated by Grupo Lar’s listed real estate investment company to Spain’s National Securities Market Commision (CNMV).

The first seven floors, which are currently being used as offices, can be converted for residential use, while the entire ground floor and basement, which represent 23% of the total leasable area with 715 square meters per floor, are leased exclusively as commercial premises.

Currently, the building — just one kilometer away from the Paseo de la Castellana and within the M-30 — has an occupancy rate exceeding 95%.

As pointed out by the director of the company, Miguel Pereda, the acquisition of the building is a strategic investment opportunity for Lar Spain Real Estate, as the property has a large potential for improvement in terms of management as well as overall revenue and capital value.

With this operation, the REIT has invested €330.900 million of the €400 million it raised in the IPO, of which 176.8 million were allocated to five malls; 90.9 million to four office buildings in Madrid; 44.9 million to eight logistics warehouses in Guadalajara; and 18.3 million to three medium-sized shopping centers in Madrid and Cantabria.

Original article: Expansión (by EFE)

Translation: Aura REE

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