CBRE Global Investors has partnered with IBA Capital Partners for the acquisition of 18 Gran Vía, a prime retail and office asset in the center of Madrid.
The 5,500 sqm building was acquired from a fund run by TPG Sixth Street Partners.
The building which dates back to the early 1900’s, comprises a basement and seven floors above ground. Through an extensive refurbishment in the popular avenue aimed to be completed by the end of 2018, 18 Gran Vía will be transformed into a flagship retail store on four levels.
As part of Gran Vía’s refurbishment and in order to improve the shopping experience, the area is experiencing a pedestrianisation process, consisting of expansion of the side-walks and reduction from six to four lanes, with traffic just permitted to public transport, taxis and local residents.
Charles Baigler, CBRE value add program fund manager said: “ The business plan for 18 Gran Vía is in line with our value add program’s strategy to reposition assets to create prime space in supply constrained locations which will attract the best occupiers.
“We will be working in a joint venture with IBA Capital Partners to deliver the business plan. This will be our third high street retail transaction in Madrid so it is a market we understand well.”
CBRE Global Investors and IBA Capital Partners are currently developing two prime retail assets in Madrid, ABC Serrano Shopping Centre and a 2,100 sqm GLA retail flagship store on Preciados street pre-leased to an Inditex brand.