AEW Europe has purchased 240 Serrano, a 7,550 sqm office led property in central Madrid for approximately €26 million. The asset, which is the second acquisition for the Europe Value Investors fund in Madrid in as many months, has been acquired from Continental Property Investment, and brings the total value of assets in EVI to c. €430 million.
240 Serrano, which is currently 83% let, is a well-established asset in central Madrid, comprising eight floors above ground. There are seven floors of office space, as well as a vacant café and restaurant on the lower ground floor, a small bar at ground level and a basement, which is currently let to a luxury gym operator with a full range of facilities, including outdoor tennis courts. In addition, there is a 70-space underground car park.
Located in the Hispanoamerica area of the Spanish capital, 240 Serrano is a short walk from two metro stations and bus stops servicing a number of lines, and Madrid International Barajas Airport and Chamartin Railway station are also easily accessible within 15 minutes. Hispanoamerica is an established office district, close to the AZCA business quarter and the main city artery of Paseo de la Castellana. Businesses in the immediate area include Sony, Canon, Aegon and Ferrovial, while Google, EY and Bloomberg are all also located nearby.
In line with the Fund's strategy, capital expenditure will be implemented to realise the asset's full potential, with asset management initiatives, including the refurbishment of the office and restaurant areas and the addition of conference facilities. The business plan is to lease up the existing vacant space and take advantage of the reversionary rental upside against the background of a recovering occupier market in Madrid.
AEW Europe Value Investors targets value-add offices throughout Europe and has now deployed in excess of €430 million across 13 assets.
Source: Property Magazine