21 December 2015 – Inmodiario
Colonial has completed the purchase of an office building in Madrid’s CBD on Calle Santa Engracia, 120. The property houses the headquarters of several well-known, prestigious companies and has an above ground surface area of more than 13,430 m2, along with 180 parking spaces. CBRE has advised the owner exclusively throughout the sales process.
Currently, the building has an occupancy rate of 95%, which means that it will generate rental income for the Colonial Group from the get-go, at a time when the market for offices in Madrid is experiencing a positive upturn.
The acquisition of this “core” asset represents the inclusion of another high quality office building in a market where there is significant scarcity in Madrid’s CBD. It is worth noting that the morphology of the floors in the building, which measure between 1,500 m2 and 2,000 m2, is very scarce in the market and is in high demand by companies. These characteristics allow Colonial to declare that through this transaction it has acquired a unique and wide-ranging property in the business district of Madrid.
Colonial is planning to refurbish the building with the aim of strengthening its positioning and obtaining a maximum energy efficiency and sustainability rating. Moreover, the building is located in an area that has great tertiary potential over the medium term with the establishment of multinational headquarters.
Through this acquisition, Colonial has completed the purchase of 4 top quality office buildings in the business district of Madrid. The combined above ground surface area of those 4 properties amounts to 40,000 m2. Following this acquisition, the company has a portfolio of 19 office buildings in the centre of Madrid.
The consideration for this transaction amounted to €67 million, which takes Colonial’s total investment in Madrid’s CBD this year to €190 million (including its purchase of Génova, 17 and its acquisitions, including capex-related expenditure, of the Estébanez Calderón, 3-5 and Príncipe de Vergara, 112 projects).
Original story: Inmodiario
Translation: Carmel Drake