20 November 2017 – Observatorio Inmobiliario
Arcano’s real estate fund, the Arcano Spanish Opportunity Real Estate Fund (ASOREF), has announced a new operation to purchase two assets in Madrid with a combined value of €12.15 million, which will be used as office space. With this acquisition, the fund is advancing with its strategy of investing in real estate value-added operations in the main cities in Spain.
The objective of the fund is to demolish the existing hotel and construct a state-of-the-art office building on the site, to be designed by the architecture studio Rafael de La-Hoz. The property will have an above ground gross leasable area of 8,100 m2. The new building will be very flexible in its design and will have very high efficiency ratios, as well as a Leed Gold certification to accredit its energy efficiency and construction quality.
The properties acquired in this operation, located on Avenida de Europa, in the La Moreleja Business Park, comprise an attractive real estate complex in a sub-market where several large corporations, such as Pfizer, Acciona and Telefónica have their main headquarters. It is one of the most important business centres in Madrid and one of the most sought-after for office space outside the M-30.
“This is a very significant operation within the capital’s real estate market given the scarcity of land and new build offices in Madrid and, more specifically, in the surrounding area. Meanwhile, the operation will allow us to provide new high-quality spaces at a time of intense demand”, said Pablo Gómez-Almansa, Director of Investments at ASOREF.
Arcano already has committed investments amounting to €173 million for its first real estate fund.
This operation follows the purchase of an office building for its corporate headquarters in Madrid on Calle Ríos Rosas, with an above ground buildable surface area of 3,517 m2; the acquisition of a plot of land with a buildable surface area of 6,029 m2 in Las Rozas (Madrid) for the development of high-end homes; the purchase of a residential building on Calle Divino Pastor, 5 in Madrid, for the construction of 28 new build homes; and the acquisition of a beachfront plot of land in Benalmádena, with a buildable surface area of 12,000 m² , amongst others.
The fund invests in value-added operations across all kinds of properties, with a clear focus towards residential assets in the main Spanish cities and also along the Costa del Sol, without forgetting other assets, including office buildings, logistics assets, retail premises and shopping centres, whenever they represent opportunities to generate value as part of the fund’s investment philosophy. Arcano whereby covers a gap in the real estate sector in Spain by targeting medium-sized value-added operations (between €5 million and €25 million in equity), with a clear local focus.
Original story: Observatorio Inmobiliario
Translation: Carmel Drake