Starwood Capital Seeks to Acquire Las Mercedes Office Park

10 July 2019 – Richard D. K. Turner

The U.S.-fund Starwood Capital is negotiating the possible acquisition of the Las Mercedes business park at Calle Campezo, 1, across from Madrid’s Barajas airport.

The 9-building office park belongs to GreenOak, which acquired the asset from Standard Life Investments for approximately 140 million euros just three years ago.

Las Mercedes has a total surface area of ​​79,000 square meters and the nine-building complex surrounds a garden area with courtyards and fountains. Occupancy currently stands at 84%, and existing tenants include Altran, Xerox and Enaire, with retail stores and food services.

According to market sources, Starwood has offered more than 200 million euros for the asset and is considered the likely winner of the sale.

Original Story: Expansion – Rebeca Arroyo

Socimi Go Madrid Benz Debuts on the MAB with a €60M Valuation

19 September 2018 – Eje Prime

The Socimi Go Madrid Benz, whose only asset is the Las Mercedes business park, is going to make its debut on the Alternative Investment Market (MAB) on Friday with a valuation of €60 million.

The company is going to become the 18th Socimi to start trading on that market. The Las Mercedes business park comprises nine buildings, an underground parking lot and a restaurant and leisure area.

Go Madrid Benz is not planning to access financing to expand its portfolio but is instead focusing its strategy on the management of its only asset to “maximise returns for investors”.

The Socimi expects to close the year with revenues from rental income of €8.59 million and profits of €1.03 million. Go Madrid Benz acquired the complex in 2016 for €131.36 million. The main tenants of the park include the Spanish Medicines Agency, Enaire, Altran Innovación, Applus Norcontrol, Ibermática, and Xerox España.

Original story: Eje Prime

Translation: Carmel Drake

Aena Kicks Off Spain’s Largest RE Project with Public-Private Investment of €3bn

24 April 2018 – El Confidencial

Aena has fired the starting gun for the largest real estate development plan in Spain, equivalent to four times Operación Chamartín or ten times the Retiro Park. It is the Real Estate Plan for the Adolfo Suárez Madrid-Barajas Airport, which will involve a combined public-private investment of €2.997 billion.

This project, which Aena has been working on since before its stock market debut, proposes the development of 562 hectares of new land, which would allow it to place a buildable surface area of 2.68 million m2 on the market over the next 40 years.

The bulk of the land will be allocated to the development of the largest logistics centre in Spain, which will link the airport’s current cargo loading area with the Corredor del Henares, one of the main logistics regions in the country.

The land allocated to this use will span 257 hectares in total and 1.48 million m2 of buildable surface area, most of which will be developed over the next eight years, and which will mean multiplying the space in the airport dedicated to this use by ten-fold.

The rapid growth of e-commerce and the need from giants such as Amazon and Correos to have large warehouses next to Spain’s largest airport, and the gates of Madrid, are behind the business logic for this move, given that Aena is not planning to build any homes in the area.

In this way, this part of the development will be configured into parks with integrated logistics and transport services, as well as loading warehouses and distribution stores; its main objective will be to serve companies in the electronics, biopharma and perishable product businesses, amongst others. Over the next eight years, the second phase of the plan will begin, aimed at completing the logistics uses and, above all, building a new business centre, known as Airport City, to house the headquarters of large companies such as Aena itself and its parent company, Enaire, as well as four hotels that will add 900 rooms to the existing supply in Madrid.

The total surface area reserved for those uses is 62 hectares, with a forecast buildable surface area of 652,000 m2, 90% of which will be dedicated to offices.

These buildings will be located in an area adjacent to T4, which has already been pre-urbanised and which will have pedestrian access to the terminal, and which will also be connected by public transport (metro, suburban train and bus).

There will also be a leisure and shopping centre, covering a total surface area of 57 hectares and a total forecast buildable surface area of 341,000 m2, plus 298,000 m2 of green space.

Aena hopes to turn this leisure space into a magnet in its own right and, to this end, it plans to open a themed recreation area, a shopping centre, a gastronomic space, wellness areas, an aeronautical museum and panoramic observatories.

“It is an ambitious but realistic plan that is perfectly feasible”, said the Minister for Development, Iñigo de la Serna, during the presentation of the plan this morning, where he also pointed out that the urban planning procedures for these plots of land will be agile.

The plots that form part of this plan will be developed under a concession regime, given that Aena will continue to be the owner. All indications are that at its next meeting, the company’s Board of Directors, chaired by Jaime García-Legaz, will formally initiate this process.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake