Colonial has executed it Alpha II project which includes the acquisition of four assets – three development projects in Barcelona, Madrid and Paris, plus the acquisition of the Spanish headquarters of the Bertelsmann Group in the CBD of Barcelona.
Castellana, 163 is an office building of 11,000 sq m above ground in the middle of the financial centre in Madrid. It is a multi-tenant building with high value creation potential through the transformation into a top quality Colonial product. The acquisition was carried through an off-market transaction and the total investment volume is EUR51 million including the capex for future works.
Travessera de Gracia, 47-49, is an 8,939 sq m building above ground located in the CBD in Barcelona with floors of more than 1,000 sq m. The asset hosts the Spanish headquarters of the Bertelsmann Group and its subsidiaries with a five-year contract. This acquisition increases Colonial’s market share in the prime area of Barcelona with a building of unique characteristics. The total investment amounts to EUR41 million.
Plaza Europa, 46-48 is located in an area of Barcelona that has increased in popularity in recent years, and will comprise a 14,000 sq m 21-storey building. The asset has been sourced off-market, and the total investment amounts to EUR32 million which corresponds to a finished product price of EUR2,200/sq m. This project will be developed through a joint venture with Inmo, real estate subsidiary of the Puig family, the land owner, whose current corporate headquarters is located in the adjacent plot.
112-122 Avenue Emile Zola is in a prime location in the centre of the 15 district in Paris (15th arrondissement). The building has a surface area of approximately 21,000 sq m, and was built in 1966 on a plot of 6,300 sq m with green areas that offer a wide range of options. The Colonial Group will restructure the building to transform it into one of the largest office complexes in the south of Paris. The total amount of the investment including the budget for future works is approximately EUR250 million.
Project Alpha II has been executed in the framework of Colonial’s annual volume of EUR300-400 million for property acquisition and enables the incorporation of 55,000 sq m above ground to the portfolio of the group.
All of the acquired assets offer a substantial real estate value creation potential based on the property transformation of the buildings into top quality assets, and the locations in market segments with solid fundamentals. This positioning will enable the capture of the growth in the rental cycle with a price positioning at the high of the range.
“In an environment of strong investor appetite, this transaction consolidates our industrial strategy and allows us to offer a substantial real estate value creation potential above market average, which translates into an increased profit for our shareholders,” says Juan José Brugera, Colonial’s chairman.
Source: PropertyFundsWorld