Allianz has acquired Castellana 200, a prime mixed-use office and retail asset located in Madrid, for circa EUR250 million. The deal is expected to be closed in the second half of 2019.
Allianz Real Estate has purchased the asset from an investment vehicle, majority owned by a subsidiary of the Public Sector Pension Investment Board, on behalf of several Allianz group insurance companies.
The deal represents a rare opportunity to acquire a prime building in Paseo de la Castellana, the most important street in Madrid’s central business district.
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Castellana 200 is made up of two office buildings totaling 20,293 sqm, a 6,415 sqm retail gallery, 844 parking units and a work in progress (“WIP”). Allianz will acquire the stabilized elements; WIP and 150 parking will remain outside the transaction. Castellana 200 has a strong tenancy base, with incumbents currently including CBRE, LinkedIn, H&M, Schweppes and Sony. It also provides tenants and retail customers with excellent access to public transportation.
In 2017, Allianz Real Estate entered the office market in Madrid with a EUR155 million loan to LaFinca Global Assets. Since then, it has closed four lending transactions exceeding EUR 500 million in total. In July 2018, it partnered with US developer Tishman Speyer in a 50/50 joint venture to develop a 56,652 sqm office complex located in Las Tablas Madrid – Allianz’s first value add deal in Spain. The joint venture with Tishman’s value-add fund TSEV VIII acquired 76% of the shares of project Monteburgos, alongside existing landowner Metrovacesa, who retained a 24% interest in the partnership and a key management role as local expert. In its Cities That Work report, published in 2018, Allianz Real Estate ranked Madrid 4th in terms of value-add development opportunities.
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“The planned acquisition of Castellana 200 gives Allianz Real Estate access to a commercially significant building. It underscores our focus on centrally located core assets, our commitment to work with prime partners, and our strategy for additional deals in Iberia, one of Europe’s most dynamic real estate markets,” said Miguel Torres, Head of Iberia for Allianz Real Estate.
“This direct investment deal in Madrid underlines our strategy to build and grow our presence throughout the gateway cities in Western Europe. We remain committed to increasing our exposure to prime assets, working with partners across the region in order to fulfil this mission,” said Alexander Gebauer, CEO of Western Europe for Allianz Real Estate.
Allianz was advised by Uría Menéndez.
Source:Allianz
