• Transaction / Assets
    'Iberia' Building, Las Palmas
  • Seller
  • Buyer
  • € MM

Montebalito Buys Office Building In Las Palmas For €11.8M

2 August 2017 – Bolsa Mania

On Monday, Montebalito announced its latest operation, its largest investment for at least a decade: the acquisition of an office building in Las Palmas for €11.8 million. According to the real estate company, this operation fits into its new strategy to rotate its asset portfolio, selling properties located overseas to reinvest all of the proceeds it obtains in Spain.

The property acquired in Las Palmas is the ‘Iberia’ building, an office block located in the heart of the city’s administrative centre. It has a surface area of 3,931 m2, spread over six storeys, as well as 134 parking spaces. Moreover, the property, which was constructed in 2005, is fully occupied with “stable and high-quality” tenants, including PwC, Repsol and El Cabildo de Gran Canaria.

In terms of the amount paid for the asset, Montebalito will pay around €3.5 million in cash, using its own funds. Another €4.8 million will be financed through a mortgage subrogation and the payment of the remaining €3.4 million will be deferred, although that sum must be paid before the end of this year. Experts calculate that the building generates annual rental income of around €820,000. According to José Luis Rodríguez, Director General of Montebalito: “We are growing as a company. The purchase of this new property strengthens our asset portfolio with stable rental income of almost €1 million per year” (…).

Original story: Bolsa Mania

Translation: Carmel Drake