Colonial Divests 7 Office Buildings & 1 Turnkey Project in Madrid for €441M

6 October 2018 – Real Estate Press

Colonial has announced the sale of seven office buildings and a turnkey project in Madrid for a total price of €441 million. The sales have been made under very favourable conditions for the company for a premium of 12% above the most recent valuation.

The assets transacted have a gross leasable area of 106,574 m2 and are located, for the most part (91%) outside of the city’s central business district. They are non-strategic buildings for the company outside of the M-30, mature assets and a project in Castellana Sur / Mendez Álvaro.

Colonial has divested assets, which after a recent real estate transformation have reached high occupancy levels and the maximum point in the cycle for the creation of real estate value. For example, in the case of Alcalá 30-32, the rental contract was recently renegotiated with a +21% increase in the rental price and which is currently 100% occupied by the Public Administration with a long-term contract.

Office project

Colonial has reached an agreement with Grupo Catalana Occidente to sell it a turnkey project spanning more than 20,000 m2 on a plot that it acquired under the framework of the Alpha-III project in January. The project is located in the Méndez Álvaro office market and will allow the consolidation of the Castellana Sur area with the occupancy of the building by a large corporation.

Similarly, Colonial will begin construction of another major project “Méndez Álvaro Campus” over the next few months. That project has an above ground surface area of 90,000 m2 and will house the largest office complex inside the M-30.

Optimal conditions at the right time

This operation has been carried out taking advantage of the good momentum in the office investment market in Spain, which is continuing to generate strong interest amongst institutional and private investors.

Only 4 months have passed since the company identified these assets for sale along with the potential investors, demonstrating the Colonial Group’s capacity to execute this type of transaction under optimal conditions.

The buyers include institutional investors of recognised prestige such as Tristan Capital Partners, Real I.S. and Grupo Catalana Occidente. In the different operations, Colonial has received legal advice from Ramón y Cajal Abogados and Roca Junyent

Reinvestment of capital focused on Prime

The funds received from the divestments will be used primarily to finance the portfolio of high-quality office projects spanning a surface area of 320,000 m2, as well as the company’s acquisition program. The Group’s net indebtedness (LTV) following the divestment of these assets will clearly fall below 40%.

“The company frames these divestments within its strategy to focus on prime assets with maximum added value, where demand and value growth are most notable. With this operation, Colonial increases its flexibility and capacity to continue developing its growth strategy, focused on projects with maximum values and returns”, explained Pere Viñolas, CEO of Colonial.

Original story: Real Estate Press

Translation: Carmel Drake

Atos to Keep Renting From the Land of Bavaria Until 2025

2/09/2014 – Expansion

Atos, a French firm focused on delivery of IT services through Consulting and Systems Integration, has sealed a new rental deal in order to stay in its present headquarters of 7.843 square meters situated in Madrid until 2025.

The building is the number 25 of the Albarracin street. It was raised in 1993 and now it belongs to German property investment fund Real I.S. Group.

The landlord is a branch of a public bank of the Land of Bavaria, managing the property through an investment vehicle called BGV III España 1 SLU.

The operation closes the summertime in the office market of Madrid. Numerous transactions like this one have been reviving the sector since the beginning of the year.

As per calculations by CBRE, year-to-date the total area involved in the rental contract signing spread over 170.000 square meters in Madrid solely. Most remarkable was the rent of a 23.000 sq m office building at 81 Avenida de America avenue by Axa. Owned by real estate company Torre Rioja, the five-storey property includes an underground parking with 380 spaces and a ground level one of more than 100 places. This operation marks a five-year record in terms of volume.

According to JLL, office space availability rate in Madrid presently stands at 12.17 per cent, by 1 per cent less than it was in the first quarter of 2013.

When it comes to the city of Barcelona, the most noteworthy deal of this year involved move-out of Agbar to new premises on the Paseo de la Zona Franca street after having sold its iconic Tower.

  Original article: Expansión (by Rocío Ruiz) Translation: AURA REE