Foreign Property News | Posted by Aye Myat Thu
CDL-sponsored IREIT Global has teamed up with Paris-based Tikehau Capital to acquire a portfolio of office properties in Spain from a Blackstone-controlled REIT, according to an announcement to the Singapore exchange.
The European-focused real estate investment trust has agreed to form a 40:60 joint venture with Tikehau, which holds an approximate 17 percent stake in IREIT, to buy the four freehold offices in Barcelona and Madrid from Coruna Patrimonial SOCIMI for €138.2 million ($153 million).
The proposed transaction would allow Blackstone to complete its liquidation of a REIT that it set up on Spain’s Alternative Stock Market in 2016, as Singapore’s CDL, part of billionaire Kwek Leng Beng’s property-focused empire, continues to indulge its taste for European assets.
IREIT’s target portfolio consists of a pair of office buildings in the northeastern Madrid business hub of Manoteros and another two properties outside of Barcelona.
The properties in Madrid – Delta Nova 4 and Delta Nova 6 – are adjacent to each other and have a combined 24,972 square metres (268,796 square feet) of gross leasable area, with overall occupancy currently standing at 94 percent.
Built in 2005 and fully refurbished four years ago, the two buildings are located a three-minute walk from the Parada Virgen del Cortijo metro station. Delta Nova 4 has a weighted average lease to expiry of 4.3 years, while Delta Nova 6 has a WALE of 2.8 years. Tenants include Clece, Digitex, Gesif and Almaraz Nuclear Power Plant.
The first of the Barcelona properties, Il Lumina – a 1970s office building that was refurbished fifteen years ago – is located in an industrial area five kilometres west of Barcelona’s city centre.
Ref: Property Report
