PATRIZIA completes on sixth Spanish acquisition for TEP VII
PATRIZIA has completed its sixth acquisition in Spain on behalf of TransEuropean VII (TEP VII), its flagship, Europe-wide discretionary value-add programme.
Located within the Los Gavilanes industrial estate in Getafe, Madrid, the property is being developed speculatively and will provide approximately 29,000 sq m of flexible, grade A floor space across up to 12 units. Practical completion is expected in early 2021.
This latest acquisition complements the Fund’s earlier purchase of a 67,000 sq m fully leased logistics complex in Ontigola, Madrid in July and reinforces the firm’s commitment to the wider Spanish logistics market where PATRIZIA currently manages in excess of 230,000 sq m.
In September, TEP VII’s fourth office redevelopment within Barcelona’s 22@ innovation district was closed – where the fund now has close to EUR100 million invested. Located adjacent to the traditional CBD, this area forms one of Europe’s largest and most exciting urban regeneration zones and is characterised by an acute shortage of Grade A office stock and a thriving occupational market. These four office redevelopments of existing buildings will collectively deliver approximately 25,800 sq m of modern, amenity-focused office accommodation between 2021 and 2022. PATRIZIA has partnered with local group Urban Input on the development of all four projects.
Eduardo de Roda, Country Manager for PATRIZIA Iberia, says: “Spain is fast being becoming the engine of the European economy and this is supporting the growth in occupier demand we are seeing in both Barcelona and Madrid. The quality of these opportunities is reflective of the deep market knowledge available to the Fund, combining the on the ground expertise and deal structuring of PATRIZIA with that of its local partners.”
PATRIZIA has been investing in Spain since 1986 and has transacted on over EUR310 million across all asset classes and investment profiles, from core to value add in the last 12 months since November 2018. The firm’s Madrid based team currently manages AUM of EUR1 billion across Spain and Portugal.
PATRIZIA is currently in the final stages of marketing for TEP VII which launched in 2018 and is expected to have a total firepower of EUR1.5 billion. TEP VII will pursue a cash-flow driven, value-add strategy primarily across the office, industrial and residential sectors in continental Europe and the UK. Since the launch of TEP VII, 11 investments across cities including Madrid, Paris, Barcelona and Berlin, totalling EUR505 million, have been either contracted or placed under exclusivity.