BentallGreenOak and ASG Iberia sold the premises located at 77 Fuencarral Street in Madrid to a private investor managed by Elcano IM. CBRE has advised Mercadona, the new tenant, on the sale and rental process. The operation amounts to between 25 million euros and 30 million euros, according to market sources.
Fuencarral 77 is a building completely refurbished by BentallGreenOak and ASG Iberia for residential and commercial use; the refurbishment has been carried out by the architectural studios of Ruiz Barbarin (Arquimania) and Jesus Manzanares. It stands out for its eight-metre-high, 20-metre-long façade and double entrance from Calle Fuencarral and Calle Corredera Alta de San Pablo; features which, together with the large surface area of the macro shop, make this new premises a unique asset. Savills Investment Management has been the asset manager of the asset and Clifford Chance and Uría Menéndez have been the legal advisors of the transaction.
Juan Alonso, Managing Director of ASG Iberia, said: "In the Fuencarral 77 building we have carried out one of the most important real estate transformation and repositioning projects in the capital. With all the properties already sold, we have successfully completed the project with the sale of the commercial premises which, once inaugurated with the new tenant, will change the face of this commercial artery".
For Javier Zarrabeitia, Managing Director of BentallGreenOak: "The building located at 77 Fuencarral Street is a clear example of our global investment strategy, where thanks to our local knowledge we identified a building that due to its location and potential transformation, we knew we could reposition to what the city and the residents of the area needed".
The commercial premises sold to Elcano IM through one of its LATAM capital managed accounts has 2,800 sqm divided into three floors: a 400 sqm basement, a 1,000 sqm first floor and a ground floor, which distributes more than 1,400 sqm with double height. The commercial premises - which in the past housed a shopping arcade known as the Pasaje de la Mutualidad - has three large skylights that have been completely renovated, respecting the original architecture of the emblematic building.
Miguel Fuster, founding partner of Elcano IM, states that "the high street market continues to have an extraordinary buoyancy among investors, due to its resilience to cycles. Locations such as Fuencarral 77 will always arouse the interest of operators and investors due to its location and characteristics. This operation also has a solid long-term revenue stream with a first class tenant such as Mercadona".