Madrid, 20 December 2017
. Axiare Patrimonio completes its first sale in its three-year history, obtaining close to double its 2014 acquisition price. After holding the property in its portfolio for three years, as per the legal requirement for Socimis, the company headed up by Luis López de Herrera-Oria has sold the period property located in Madrid at Calle Fernando El Santo 15 to a national investor for €30 million. The sales price equates to an 82% increase on the acquisition price and is 5% above the last valuation carried out in June 2017. This prime property, which
houses the headquarters of the Republic of Argentina’s Embassy and Consulate, is located in Madrid’s CBD and next to the current Republic of Argentina’s Ambassador’s Residence.
The Company’s active management strategy has allowed it to increase the property’s rental levels by 43% and the occupancy up to 100%.
The Fernando El Santo 15 property retains its original period façade and comprises six floors, with a total area of 3,254 sqm. The property features 42 underground parking spaces, a rarity in this area.
The CEO of Axiare Patrimonio, Luis López de Herrera-Oria, confirmed: “Our company’s first divestment is an unquestionable success for Axiare Patrimonio, whilst the sales price achieved is yet another sign that the market clearly values our active management strategy. When we purchased this property in the heart of Madrid it had very low rents. We renegotiated the lease with an existing tenant at higher rents and signed leases with two new tenants, also at higher rents”. López de Herrera-Oria added: “We identified an excellent purchase opportunity in 2014 and have sold at a time when there is a lack of product in the CBD and a great deal of demand. This is a faultless transaction via which we have created value for the Company and its shareholders”.
A portfolio valued at more than €1,700 million
So far this year, Axiare Patrimonio has let its three most recently repositioned offices at rents 21.4% above initial estimates and 7% above the market rent estimated by the valuers.
Following this divestment, Axiare Patrimonio has a rental property portfolio valued at €1,710 million. 74% of its assets are office buildings – the majority of which are located in the CBDs of Madrid and Barcelona – 18% are logistics assets located on Spain’s main distribution corridors and the remaining 8% are primarily retail warehouses located in areas with high footfall.
The Socimi was advised on the sale by CBRE and EY was the legal advisor.