Investing on behalf of a pan European real estate fund, the German manager has paid about 100 million euros to buy the fully-leased Torre Esteve building in Barcelona from Iberdrola Inmobiliaria, a wholly-owned subsidiary of the Spanish power generation company Iberdrola.
“Barcelona has developed into a high-tech location in recent years. With the change in economic structures, Barcelona has also become more attractive to us as a foreign investor,” explains André Zücker, managing director of KGAL Investment Management GmbH & Co. KG.
Built-in 2017 the Torre Esteve building is a multi-tenant property with a total area of 19,400 square metres of office and restaurant space over 14 upper floors. More than 60 per cent of the space is leased to Esteve, the namesake Spanish international pharmaceutical company with a strong credit rating, while the second-largest tenant is the Spanish Registry Office. Due to the high quality of construction and fit-out, the property was awarded a BREEAM rating of very good.
“Due to the lack of available modern office space in the central districts, we also expect rents to rise.”, also said André Zücker.
Colliers (brokerage and rental appraisal), Hill International (technical appraisal) and DLA Piper Spain and NOMOS (Legal and Tax advice) acted as advisers to the buyer, while Iberdrola Inmobiliaria was advised by Garrigues.
KGAL, which operates throughout Europe, is headquartered in Grünwald near Munich. The company manages more than €11bn worth of assets.
Images: KGAL GmbH & Co. KG.