Henderson Park acquires central Madrid retail and office property
Henderson Park has acquired Gran Via 43, a prime high street retail/office property located in the centre of Madrid, Spain, from Mutualidad General de la Abogacia, the Spanish pension fund for lawyers.
Henderson Park secured EUR39 million of senior acquisition financing from La Caixa for the transaction.
The 7,347 sq m high street asset is spread across 11 levels, with the lower two floors comprising retail units and the remainder made up of office space. The asset is multi-let to seven tenants and provides attractive asset management opportunities, capitalising on its strong location.
Gran Via is the single most visited street in Madrid and records the city’s highest footfall levels. The street includes international brands and flagship retail stores and is a dominant area for hotels, restaurants, cinemas and theatres. The ongoing regeneration of the historical city centre of Madrid, including plans to pedestrianise Gran Via, is expected to reinforce its attractiveness.
This transaction represents Henderson Park’s third investment in the Spanish market, and second in Madrid, following the acquisitions of Los Cubos office asset in 2017 and a site to develop a 750-bed student housing scheme in Barcelona earlier this year.
Nick Weber, Founding Partner of Henderson Park, says: “This acquisition presents a rare opportunity to invest in a prime central Madrid location that offers considerable asset management potential. Leveraging both the asset’s prominent positioning and the wider regeneration of the Gran Via area we are reviewing options for both the refurbishment and re-leasing of the existing space, as well as repositioning for alternative uses to fully unlock the property’s potential.
“As illustrated by our investment activity to date, we are confident in the prospects for the Spanish market which has enjoyed a strong economic recovery and continues to draw high tourist numbers, underscoring our confidence in this latest addition to our portfolio.”
Ashurst acted as Henderson Park's legal advisor for the acquisition.