• Transaction / Assets
    2 office buildings in Alicante
  • Seller
  • Buyer
    Spanish family office
  • € MM

Solvia Sells 2 Office Blocks in Alicante for €7.5M

30 December 2017 – Diario Información

The recovery in the Alicante real estate market is now also reaching the office segment. Whilst in recent years, the province has seen a significant number of operations in the residential sector and even in the shopping centre segment, now the interest of funds and other institutional investors has also extended to offices. Demand for office space has also started to recover in the face of the increase in activity, especially in the provincial capital.

In this context, Solvia has just closed the block sale of two office buildings in the city centre for approximately €7.5 million, an amount that is not at all typical in this market, which does not typically see the large figures of Madrid and Barcelona. The buyer is a Spanish family office – in other words, one of the investment platforms that many wealthy families use to manage their real estate portfolios – which has already participated in other similar operations. In fact, these types of companies have become one of the most active players in the market in recent times, in light of the minimal returns currently being offered by the banks on financial investments.

In terms of the assets sold, the larger one is located on Calle Calderón de la Barca, 16. That property has seven storeys and comprises 5,300 m2 for office use and another 1,300 m2 for parking and facilities, which is leased in its entirety to Iberdrola. The electricity company’s rental contract runs until at least 2022, which represents a great incentive in these cases.

The property, constructed in the 1960s, ended up in Sabadell’s hands in June 2015, in the same way as many other assets during the years of the crisis. The entity decided to put it on the market in September, to take advantage of the investor appetite. It shared the sales brochure with around thirty funds, Socimis and family offices known to be interested in these types of assets until it was finally able to close the operation a few days ago.

The operation also included another building in the centre of Alicante, in this case, located at number 46 Calle del Teatro, which is also used as offices. It is a new building with four storeys that houses 1,300 m2 of offices, as well as a commercial premise on the ground floor spanning almost 250 m2 and two basement floors with around twenty parking spaces, which are very sought-after in that area, next to Paseo de Soto and Maisonnave.

Few large premises

Demand for offices has increased significantly in Alicante over the last year and, although there are many empty offices, there is a shortage of spaces spanning more than 1,000 m2. Such spaces are of particular interest to consultancy firms, technological companies, ETT and Call Centre firms looking to expand into the area, according to the sector sources consulted. As such, interest in buying these types of properties has also increased from investors who have traditionally focused only on larger cities such as Madrid and Barcelona.

Original story: Diario Información (by David Navarro)

Translation: Carmel Drake