Union Investment has acquired a high street property from Thor Equities comprising some 1,320 sq m of rental space in one of Madrid’s main shopping streets. Built in 1900, the five-storey building at Calle de Fuencarral 16 was completely refurbished in 2017.
The parties agreed not to disclose details of the purchase price. The acquisition will be added to the holdings of institutional open-ended real estate fund UniInstitutional European Real Estate. This is the fund’s first retail property in Spain. Union Investment will manage the property from its local office in Madrid.
“Our investment strategy encompasses the full spectrum of retail properties. The purchase of this first-class high street property in the heart of Madrid follows on from the acquisition of Polish shopping centre Magnolia Park with its 241 store units at the end of 2017. The two transactions illustrate the range we cover,” said Henrike Waldburg, head of Investment Management Retail at Union Investment Real Estate GmbH.
Footfall in Calle de Fuencarral is more than 9,000 people an hour, making the street one of the top retail locations in Europe. The approximately 1,320 sq m of rental space in the acquired property is spread over four storeys. The retail space used by COS comprises approximately 910 sq m on the lower three floors, with storage rooms and building services located on the top floor. Calle de Fuencarral 16 is the only property in the immediate vicinity that is used exclusively for retail.
With 53 properties worth some €2.9bn, UniInstitutional European Real Estate is one of the largest institutional open-ended real estate funds in Europe. The fund invests in four segments: office, retail, hotel and logistics properties. Retail properties account for some 30% of the portfolio.