Merlin Properties, the Spanish listed real estate investment trust, has sold a portfolio of eight office parks in Spain to real estate investment firm Cain International for €225 million.
The portfolio, which comprises six office parks in Madrid and two in Barcelona, covers a total area of 133,000 square-metres and is three-quarters let. A Cain International statement said the portfolio offered “significant opportunities to add value through securing additional tenants, refurbishment and redevelopment”.
Cain International’s partner on this transaction is Freo Group, with whom Cain has an existing joint venture for the development of a 15,000 square-metre ‘class A’ office development in the 22@ district of Barcelona.
Cain International and Freo Group were advised by Herbert Smith Freehills, Garrigues and JLL. Merlin Properties was advised by Uría Menéndez. Financing for the transaction was arranged by Starwood Property Trust and Starwood European Finance Partners.
Daniel Harris, head of European investments at Cain International, said: “The Spanish office market is experiencing significant growth, with rents increasing and vacancy reducing, and these well-located assets offer substantial scope for value creation through a granular approach.
“We are pleased to be adding to our portfolio through this deal and are actively continuing to seek out further investment opportunities. With this acquisition, our development in 22@ in Barcelona and our current pipeline, we are aggregating a portfolio of close to €500m which demonstrates our confidence in the current cyclical opportunity in Spain.”