Madrid December 9, 2014 –
- The properties are located in highly sought-after areas of Madrid and Barcelona and add 57,924 sqm of lettable space and 1,335 parking spaces to the Axiare portfolio.
- In less than five months since it started trading on the stock market, Axiare Patrimonio has invested €425 million and now directly manages a 387,810 sqm property portfolio.
- Following this transaction, 70% of the Axiare portfolio is now comprised of prime office properties, in line with the company’s business plan.
- Axiare Patrimonio has an active investment pipeline and is looking to make additional acquisitions in the coming months.
The Socimi Axiare Patrimonio has acquired a property portfolio comprised of four office buildings located in highly sought-after areas of Madrid and Barcelona and a retail warehouse in Tarragona, in a transaction from Credit Suisse Asset Management Immobilien Kapìtalanlagegesellschaft which forms part of the financial group Credit Suisse, on behalf of the open end real estate fund CS Euroreal. These properties, which were acquired for €180 million, add a total of 57,924 sqm and 1,335 parking spaces to Axiare’s existing property portfolio. Following this transaction, Axiare Patrimonio has now invested 100% of the funds raised from its flotation on the Stock Market on July 9, creating a real estate portfolio with strong upside potential, which it manages directly. 70% of the properties in the portfolio are prime Class A office buildings located in the city centres and financial districts of Madrid and Barcelona, and the remaining 30% comprise logistics and retail space.
“Thanks to the signing of this agreement, we are demonstrating our ability to identify and close large transactions, which will then translate into higher returns for our shareholders” said Luis López de Herrera-Oria, CEO of Axiare Patrimonio. “Two of the defining factors behind the company completing such a significant transaction have been the burgeoning Spanish real estate market, combined with the Axiare team’s in-depth experience and connections in the sector.”
With today’s announcement of this acquisition, Axiare Patrimonio has now invested €425 million in prime properties in just five months since it began trading on the Spanish Stock Market as a blind pool. This is a significant step towards meeting the objectives set out in the company’s business plan. In total, the company has built a portfolio of 387,810 sqm of leased office, logistics and retail space and 3,174 parking spaces. Axiare Patrimonio was assisted by Cushman & Wakefield and Gómez-Acebo & Pombo, and Credit Suisse by Realcis, S.L. and Clifford Chance.
In the words of López de Herrera-Oria, “Following our business plan, Axiare Patrimonio is actively consolidating a prime property portfolio. We are currently studying several potential real estate transactions and looking to make further acquisitions in the coming months.”
Characteristics of the property transaction
The property portfolio acquired from the Credit Suisse group comprises three office buildings, located in the Campo de Las Naciones business district in Madrid, which is situated very close to the airport and has excellent transport links with the city centre; another office building located inBarcelona, close to Torre Agbar, which is one of the city’s main financial districts; and a retail warehouse located in an established retail park in Tarragona.
The first of the office properties, which is located on Calle Ribera del Loira, comprises a total gross lettable area (GLA) of 12,822 sqm for office use and 370 underground parking spaces. The property is let to companies such as BNP Paribas and the education services and content company, Pearson Education. It also includes two office properties located on Vía de Los Poblados, located in the Cristalia Business Park, with a combined gross lettable area (GLA) of 17,338 sqm, as well as 391 parking spaces. Some of their tenants include the logistics company, Chep Ibérica, the specialist video games company, Electronic Arts and the services company, Sodexo.
The fourth property is located at Avda. Diagonal, 197 in Barcelona and comprises a total gross lettable area (GLA) of 15,351 sqm of office space and 222 underground parking spaces. The service outsourcing company, Sellbytel, which is part of the Omnicom Group, is the lead tenant.
Almost all of the space in the four properties is let, which guarantees highly favourable medium to long-term yields.
Finally, the retail warehouse, which is located in the Les Gavarres Retail and Leisure Park in Tarragona, comprises a total gross lettable area (GLA) of 12,413 sqm of retail space and 352 above-ground parking spaces and is fully-let to the DIY company, Bauhaus.
Cushman & Wakefield acted as consultants and carried out the technical due-diligence report, while the law firm Gómez-Acebo y Pombo acted as legal advisers. The acquisition of these four properties was paid for with Axiare Patrimonio equity and bank financing.
Axiare Patrimonio has been actively investing since its incorporation and flotation on the Stock Market. Among some of its latest acquisitions, we would highlight the acquisition in November of an office building in the centre of Madrid, close to the Santiago de Bernabéu stadium, for €31 million; the acquisition of three logistics warehouses for €35 million in October; and the purchase of a property portfolio comprised of five office buildings, a logistics warehouse complex and a shopping and leisure centre, carried out in September for €99.5 million.