Canadian pension fund enters Spain with major Madrid buy

PSP Investment is understood to have entered Spain with the acquisition of a prime mixed-use asset on Castellana, Madrid's main avenue.

Canada's Public Sector Pension Investment Board has signed a preliminary agreement to acquire the Castellana 200 asset, after negotiations between the vendor and one other bidding group, Rodex and Anchorage Capital Partners fell through due to problems with retrieving the necessary financing. PSP is believed to be paying around €140 million for the property, which consists of two office buildings totalling 21,500 sq m and a 8,500 sq m retail element with tenants including H&M, Media-Saturn and Mediamarkt. The office section, which boasts CBRE as a tenant, is 15% vacant. It also includes 800 parking spaces and a 18,000 sq m hotel which is currently without an operator.

Source: Property EU