UBS Asset Management acquires premium office property in central Madrid
UBS Asset Management (UBS-AM) Real Estate & Private Markets (REPM) has acquired a prime, recently refurbished office asset in central Madrid, Spain with a total floor space of 3,700 sq m spread across three storeys above ground and 87 underground parking spaces.
The transaction is the latest of several recent acquisitions across Europe.
The property, located at Avenida de Pío XII 44, a stone’s throw from the valuable Paseo de la Castellana business district, offers easy access to public transport, as well as links to national and international transport infrastructure including the Madrid Barajas airport and the A-1 and M-30 link roads. The office is also situated close to the new Madrid Nuevo Norte project, Europe’s largest urban regeneration scheme, which aims to redevelop 2.6m sq m of the Chamartin district of the capital with office and residential units, alongside improved public transport and rail travel links.
The property is currently fully let to three tenants, with an average WAULT of 5.5 years, providing a stable cash flow to facilitate further development. UBS REPM plans to maximise value across the mid to long-term and build on already strong ESG credentials, which include a BREEAM ‘Excellent’ certificate and Gold classification from the WELL Building Institute.
Manuel Hidalgo, Head of Real Estate Iberia at UBS-AM REPM, says: “This is an exciting acquisition for UBS REPM, and the latest in a number of transactions we have completed across Europe in the office sector recently. The asset has industry-leading ESG credentials, and we look forward to continuing its development in line with the forecast recovery of the Spanish economy, allowing strong returns and attractive yields in the mid to long-term.”
This transaction was advised on by RPE, Iberian Real Estate Advisors provided capital markets advisory services, Dentons advised on legal and tax, and EY on the financial aspects of the transaction.