28 November 2017 – Eje Prime
Optimum III, the residential Socimi owned by BMB Investment Management and the US fund Bluemountain, is continuing to fatten up its asset portfolio with new purchases. The company has acquired part of an office building in Madrid. The purchase of this property has involved an investment of €10.2 million for the group.
The property is located at number 59 Calle José Abascal in the heart of the capital. The operation, according to the Socimi “involves the purchase of 950 m2 on the first floor; 976 m2 on the second floor; 546 m2 on the third floor; and another 546 m2 on the fifth floor”. In total, the company has acquired 3,000 m2.
The rest of the building is mixed use. The company’s plans involve leasing space to one or more companies that want to locate their offices in the property. To this end, the Socimi is planning “to undertake a small renovation to give the space a facelift”.
Optimum III is continuing to grow its asset portfolio. The Socimi’s most recent purchases include the acquisition of a residential building in the Sarrià-Sant Gervasi neighbourhood in the upper area of Barcelona, for €6.6 million. That property is located at number 46 Calle Calaf, in one of the most expensive districts in the Catalan capital.
The Socimi was created to take advantage of the decline in the real estate market in Barcelona. That was when BMB launched its third fund, Euro Re Optimum III Barcelona, focused on the residential market in the Catalan capital. BMB wanted to take advantage of its operational experience and its knowledge of the market in Barcelona to invest in residential properties for rent acquired at below market prices, contributing its experience in terms of optimisation and portfolio sales in the city. According to its backers, it is a tailor-made fund for private investors and family offices.
Optimum III’s business is different from the activity carried out by its predecessor Optimum Real Estate in several respects. Firstly, due to the reactivation of the real estate market, the average price of its acquisitions are now, approximately, €2,500/m2 in Barcelona and €2,800/m2 in Madrid, according to the group. Secondly, the capital of Spain is gaining greater weight in the portfolio; whereas Madrid accounted for 20% of the previous Socimi’s portfolio, it now accounts for 30%, compared with Barcelona’s 70%.
Moreover, leveraging the work already performed by BMB for Optimum Re Spain between December 2016 and February 2017, Optimum III has now acquired five properties in the two cities. In Barcelona, it has acquired buildings located at the intersection of Avenida Diagonal with Calle Girona; and at the junction of Calle Bruc and Calle Aragó, amongst others. BMB’s intention is to make a total investment of €100 million, between acquisitions and improvements. In this way, the portfolio of Optimum III will comprise more than twenty buildings.
Original story: Eje Prime (by C. Pareja)
Translation: Carmel Drake