5 June 2015 – Expansión
The transaction confirms the return of institutional investors to the Spanish market.
International funds are continuing with their commitments in Spain. Whilst the key players in the market were opportunistic funds in 2013 and Socimis in 2014, in recent months, institutional funds, both European and Asian, have burst into the market.
The latest player to make an investment in Spain has been UBS. The Swiss fund management has finalised the purchase of the Zielo Shopping centre, in Pozuelo (Madrid), after several weeks of exclusive negotiations. UBS will pay €70 million for the property to Hines European Value Added Fund, a fund managed by the property developer Hines.
The company invested €100 million in the development of the shopping centre, designed at the height of the property boom, including a loan for €50 million. The property was opened in October 2009 and has a surface area of 50,000 m2, of which 15,555 m2 comprise the retail area.
In the transaction, UBS has been advised by the consultancy firm Knight Frank, whilst CBRE, which also manages the centre, has worked with the vendor. “This transaction shows that prime assets are generating significant interest amongst investors with a more core profile”, explains Gonzalo Senra, Head of Commercial Investments at CBRE.
In 2014, more than €2,000 million was invested in commercial property in Spain, a figure that may be exceeded this year, according to Knight Frank, given that €600 million has already been invested.
Original story: Expansión (by R. Ruiz)
Translation: Carmel Drake