In the past two years, investment activity in Spain has increased dramatically. Two separate Spanish property portfolios recently sold for a total of €192 million.
The Spanish property sector has seen increased transaction activity since 2012, according to Real Capital Analytics. In the third quarter of 2012, Spain had €195.4 million in office, retail and industrial transactions. Sales volume soared during the fourth quarter of 2012 to €1.05 billion in sales. During 2013, completed Spanish property transactions totalled approximately €2.89 billion, including €1.35 billion during the fourth quarter as investors became more interested in the Spanish market.
According to RCA, the first quarter of 2014 saw €1.03 billion in transaction volume, and the second quarter closed with €1.42 billion. The third quarter thus far is on track to surpass previous quarters’ sales activity. The quarter has approximately 966 transactions in the pipeline totalling €3.86 billion in sales volume.
The first portfolio of the two recently transacted consists of two retail properties and marked KRR’s entry into Spain. With its joint venture partner, Spanish retail operator Neinver, KRR purchased two retail properties for €91 million. The seller was Pillar Retail Europark Fund, a fund managed by UK-REIT British Land.
The transaction comprises the 50,420-square-metre Nassica Retail & Leisure Park, located in Madrid, which sold for €52.1 million, and the 16,745-square-metre Vista Alegre in Zamora, which sold for €37.94 million.
Neinver will manage the assets. The transactions mark the KRR joint venture’s first real estate investment in Spain. KRR has plans to increase its exposure in Spain.
The second Spanish portfolio consists of two office assets, one industrial property and one retail property, which sold for a total of €100.71 million. The new owner is AXA Real Estate, and the seller was Wereldhave NV.
All four properties are located in Madrid. The 22,580-square-metre property at Avenida de la Vega 15 was acquired for €37.3 million. The 3,254-square-metre building at Calle Fernando el Santo 15 was purchased for €9.53 million. An industrial property located at Calle Mariano Benlliure 1–2 sold for €25.75 million, and the 22,666-square-metre mall Planetocio Collado Villalba sold for €26.92 million.