AEW acquires Spanish office portfolio on behalf of EVI II
AEW, on behalf of AEW Europe Value Investors II (EVI II) has acquired a portfolio of four office assets located in Madrid and Barcelona with a total GLA of over 25,000 sq m. This is the second investment for the Fund following the recent acquisition of a Munich office building in May 2019.
Two of the four properties are located in Claudio Coello 124 in Madrid’s Central Business District and in Comte d’Urgell 143 in Barcelona’s Central Business District. Both these assets are core assets with an average occupancy of over 87 per cent. The remaining two assets are located in the Barcelona submarkets of Mas Blau and Sant Joan Despí with an average occupancy at acquisition of 50.3 per cent.
AEW will deploy its local asset management team to oversee light to extensive refurbishments of the assets followed by an intensive hands-on leasing strategy to reposition the portfolio and drive value taking advantage of the asset locations and the local market fundamentals.
After a first close with predominantly German institutional investors, the second fund in AEW’s Europe Value Investors series is targeting total equity of approximately EUR500 million, which will provide a total investment capacity of circa EUR1 billion with leverage. The Fund, which focuses primarily on identifying office properties with upside potential in established and developing locations in Europe's most liquid markets, has acquired an asset in Munich and has a strong pipeline of potential investments.
Carsten Czarnetzki, Fund Manager of EVI II, says: "The acquisition of this portfolio is a unique investment opportunity for EVI II comprising two core Central Business District assets in Madrid and Barcelona as well as two value add assets in decentralised areas. AEW will now deploy an active asset management plan and an intensive leasing strategy in order to add value and attract new tenants to increase the occupancy rate. We will continue to source high quality opportunities for EVI II through our extensive international network of investment teams.”
AEW was advised by Cushman & Wakefield and Baker McKenzie. The vendor was advised by JLL.