CBRE Global Investors, on behalf of a Korean institutional separate account client, has acquired 6-8 Carrer de Fontanella, a prime mix use office and retail asset in Barcelona for €64.7m. The deal was secured off market and the seller was Avignon Capital. This acquisition will deliver a very stable and reliable cash flow in the historic centre of Barcelona.
The 8,126 sqm mixed use building is located adjacent to Plaza Catalunya, Barcelona’s historic centre and a popular tourist destination. The property is 100% occupied with a weighted remaining lease term of over 12 years. The building provides prime Barcelona high street retail on the basement, ground and mezzanine levels, which is leased to MediaMarkt, Europe’s largest retailer of consumer electronics. The office floors are fully let to the Catalan Regional Government.
Avignon Capital’s asset management initiative to let the upgraded ground and first floor to an international retailer increased the passing rent and value of the building.
Myles Sanger, portfolio manager, CBRE Global Investors said: “This is another solid asset to add to the portfolio of one of our key global separate account clients. The property possesses strong investment fundamentals, lease covenants providing long term high quality stable cash-flow and we expect steady rental growth due to the prime location and the positive outlook for the Spanish economy.”
“This is the first acquisition in the Spanish market for this Korean client and we believe we have sourced a property that will perform very well for them. The Spanish economy is well positioned and expected to deliver strong growth in the forthcoming years. We continue to see significant transactional activity as international capital flows into Spain” added Antonio Roncero, transactions manager Spain, CBRE Global Investors.
Eric Mounier, CEO at Avignon Capital, said: “The sale of Fontanella 6-8 is another prime example of Avignon Capital’s ability to execute an innovative asset management strategy to significantly increase the value of an asset, as well as secure impressive returns for our investors.”