Cornerstone acquires prime retail asset in Madrid city centre for €21.6 million
Frankfurt, 18 July 2016 − Cornerstone Real Estate Advisers Europe (“Cornerstone”), a subsidiary of Cornerstone Real Estate Advisers LLC, one of the largest global real estate focused investment managers, announces that it has acquired a prime retail unit in Madrid city centre from a private investor for €21.6 million, as part of a pan-European core investment strategy. The acquisition is Cornerstone’s first in Spain, following the opening of its Madrid office and the appointment of Adolfo Favieres as Head of Spain in November last year.
The property is located on Calle de Velázquez, which is one of Madrid’s top retail streets and sits in the heart of its most affluent and exclusive neighbourhood, the Salamanca district, and comprises 1,638 sqm of retail space across three floors. It is fully let to Banco Popular, Spain’s fourth largest bank, on a 50 year lease with five yearly break options.
Commenting, Jorge Duarte, Senior Director at Cornerstone, said: “Calle de Velázquez provides us with long term income from a strong tenant covenant that has been in this location for decades. It is therefore exactly the type of asset we are looking to acquire for our pan-European core investment strategy and is the perfect entry point for Cornerstone in Spain."
Adolfo Favieres, Head of Spain at Cornerstone, added: “This asset’s location at one of Madrid’s most desirable and sought after retail locations provides opportunity for both capital appreciation and a number of value accretive asset management initiatives. We continue to look for similarly well located assets in Spain’s main cities for both our core and value add investment strategies.”
Hogan Lovells and Deloitte acted for the Cornerstone while Cushman & Wakefield acted for the vendor.