Lladó Family Buys Office Building in Madrid from Axiare for €30M

22 December 2017 – Eje Prime

Axiare is ending the year by starting a new divestment phase and the Lladó family is growing its portfolio of assets. José Lladó, President and majority shareholder of Técnicas Reunidas, is exercising his real estate leg with the purchase of a building on Calle Fernando el Santo, owned by the Socimi Axiare, for €30 million. The asset will become the new headquarters of the European investment fund Eurofund Capital Partners.

The Socimi has begun its divestment phase and has decided to get rid of its Fernando el Santo property, a prime building located in the centre of Madrid, for which it will receive proceeds of €30 million.

The property, measuring 3,254 m2 spread over six floors, is located at number 15 Calle Fernando el Santo.  It has 42 underground parking spaces and currently houses the headquarters of the Argentinian embassy and consulate in Spain. It is adjacent to the current residence of the Argentinian ambassador.

The Socimi has obtained a return of 82% from this asset in just three years, after having purchased the property in 2014 for €16.5 million. Moreover, the building’s rent has risen by 43% during the three years that the company has managed it.

The new owner of the building is the Lladó family, which in recent months has opted to acquired assets located in prime areas where the value of those assets may exceed their prices over the coming years. Before acquiring this property from Axiare, the company purchased another building from the Socimi Hispania, which will house the future headquarters of the law firm Uría y Menéndez for €29 million.

In recent years, the owner of Técnicas Reunidas has also purchased a building at number 2 Marqués de la Ensenada, located just a stone’s throw from Plaza Colón in Madrid, for €6 million. In July 2014, the family office also purchased a building from Vía Célere at number 15 Paseo de Recoletos, for almost €20 million. The Lladó family also owns the property at number 33 on the same street.

Axiare starts divesting at the height of its takeover bid

The Socimi Axiare, which on the offensive, after Colonial launched a takeover bid to take control of the Socimi, is beginning a new divestment phase with the sale of this asset.

Axiare’s portfolio appeals to Colonial because it mainly comprises offices (74%), but also contains other types of assets, such as commercial premises, which account for 9% of the total, and logistics assets, which represent 18% of the total. The Socimi is led by Luis Alfonso López de Herrera-Oria.

The main assets of Axiare, whose tenants include companies such as eBay, Cuatrecasas, Konecta, McKinsey&Company and Alantra amongst its clients, are its office buildings on Calle Sagasta in Madrid, measuring 7,054 m2; on Calle Velázquez, measuring 16,816 m2; and on Calle Manuel de Falla, measuring 6,252 m2.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Royal Metropolitan Buys Bancoval’s HQ In Madrid For c. €20M

25 July 2017 – Expansión

The headquarters of Bancoval in Madrid has a new owner. The fund manager Royal Metropolitan has closed an agreement with Inversis to purchase the building, located at number 20 on the Madrilenian street Calle Fernando El Santo.

The operation has been closed for a price of just over €20 million, which is equivalent to around €7,400/m2, according to market sources.

Last year, Inversis – owner of Grupo Banca March – acquired the subsidiary of Royal Bank of Canada (RBC) – later renamed Bancoval – and inherited this asset.

A year later, the financial institution decided to put the building up for sale to take advantage of the good times in the real estate sector and the interest from investors in assets in the best locations. Savills has participated in the transaction, which has been closed in record time, advising the buyer, and Deloitte has advised the vendor.

The building has a gross leasable area of almost 2,700 m2, distributed over seven floors, as well as two basement floors for parking with more than 700 m2 of additional space. The building, constructed in 1967, was renovated in 1998 and received a special mention from the Town Hall of Madrid in 1999 for the urban planning, architecture and public work awards, within the renovated building category.

This property is located in the Almagro district – one of the most-sought after in Madrid for investors due to the scarcity of prime products there -. The location, its renovation potential and the possibility of using it for offices (for one or more tenants) or for residential purposes, since it has licences for both uses, constitute some of the main advantages of the asset.

Investor interest

The office market is still one of the star segments in the real estate sector. In the first half of the year alone, the volume of investment in the office market in Madrid and Barcelona exceeded €1,100 million. Although the growth in rents is still in its infancy, an improvement is starting to be felt in buildings located in the business district and in the best-located areas, and upwards movements are forecast for the second half of the year.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake