Optimum III Acquires Office Building in Madrid for €10.2M

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

Barclays Leases Central Madrid Office From Mutua Madrileña

26 July 2017 – El Confidencial

Last year, just a few months apart, Mutua Madrileña and Barclays starred in two of the most important office transactions in the capital’s recent history.

On the one hand, during the summer, the insurer broke a decade of investment drought when it acquired the property at number 51 on Calle José Abascal, the former headquarters of Fórum Filatélico.

On the other hand, in the autumn, the British bank took the decision to sell its last jewel in Spain with the sale of the property at number 1 Plaza de Colón, an operation that was completed at the beginning of this year.

Now, the paths of these two entities have crossed again with a rental agreement that they have signed for Barclays to occupy the whole, recently refurbished, Mutua Madrileña building.

The property, located just a stone’s throw from the heart of the Paseo de la Castellana, has a surface area of 3,600 m2, spread over seven floors and 62 parking spaces. It has just been renovated in accordance with the latest energy efficiency and sustainability technologies.

Mutua Madrileña acquired the building for €30 million from Credit Suisse, an entity that had, in turn, taken over the property during Fórum Filatélico’s bankruptcy process (…).

Now that the property has restored its past splendour, Barclays will install its investment banking and corporate banking activities there, given that it sold its entire retail business to CaixaBank two years ago for €820 million.

Barclays’ former headquarters on Plaza de Colón was acquired by CBRE GI, which also plans to carry out a comprehensive renovation of that property, which may be used for retail purposes in the future.

Original story: El Confidencial (by R. U.)

Translation: Carmel Drake

Mutua Madrileña Buys Office Building In Madrid For €30.8M

27 July 2016 – Expansión

The insurance company Mutua Madrileña has acquired the former headquarters of Fórum Filatélico from Credit Suisse’s real estate fund for €30.8 million. The operation has been performed entirely using its own funds.

The property in question is an office building in the heart of Madrid’s financial district. Located at number 51 on Calle José Abascal, next to Paseo de la Castellana, the building has a surface area of 3,600 sqm spread over seven floors, and 62 parking spaces.

According to the company, the operation forms part of its strategy to dynamically manage its assets, which also includes the possibility of making acquisitions as and when attractive opportunities arise. On the buy side, Mutua Madrileña has been advised by the law firm Pérez-Llorca and, on the sell side, Credit Suisse has worked with CBRE as real estate advisor and Eversheds Nicea as legal advisor.

The real estate market

The building will be rented out in its entirety and, in order to increase its value, the company will undertake renovation work, to equip it with the latest technology in terms of efficiency and sustainability.

Mutua Inmobiliaria , which includes the company’s property investment area, considers that the office rental market in Madrid is in full recovery.

The insurance company has not acquired any new properties for almost 10 years. The last purchases it made for its real estate portfolio were the so-called Pirámide and the Torre de Cristal, also on Paseo de la Castellana. (…).

Original story: Expansión (by Inma Benedito)

Translation: Carmel Drake