UBS Real Estate GmbH has acquired the Titán 8 office asset in Madrid, Spain, on behalf of the UBS (D) Euroinvest Immobilien fund. This transaction represents Euroinvest’s debut investment since the fund’s recent strategic relaunch.
The asset is strategically located in Madrid’s business district of Méndez Álvaro, in the south of the city centre, and benefits from strong transport links, positioned adjacent to the M30 ring-road, providing access to Madrid’s international airport in just 15 minutes and with the capital’s main train station, ’Atocha’, nearby. With highly constrained supply in the area and resilient occupier demand, Méndez Álvaro office rents have demonstrated buoyant performance over recent years.
Titán 8 is a prominent office asset comprising 18 floors spread across 10,633 sqm and including 228 underground car parking spaces. The main tenants of the property, which was completed in 2008, are a financial services provider, an energy supplier and a company from the service sector.
“As the fund’s maiden investment since relaunching, Titán 8 is a perfect illustration of the high quality and resilient assets that we are targeting, benefitting from an excellent location which is proven to generate robust occupier demand and offering further upside as the Spanish economy strengthens,” commented Euroinvest.
Euroinvest was established in 1999 as the first open-ended public fund focusing primarily on institutional investors, with this category of investors currently holding more than 95 percent of the fund’s units. Its investment strategy is focused on core office properties located in the strongest European cities, demonstrating resilient occupational demand. Following a strategic review of the Fund, Euroinvest has strengthened its core-profile through the disposal of non-strategic assets and delivered strong performance of 4.4% for its investors (as of 31 December 2017), outperforming its benchmark (MSCI OFIX Europe) by 260 basis points.
Source: PropertyFundsWorld and Property Magazine