Pramerica Sells Madrid’s Titán 4 to German Investor
- Nov 28, 2011
November 28, 2011
By Barbra Murray, Contributing Editor
Seven years after acquiring the Madrid office building known as Titán 4 in its development stage, Pramerica Real Estate has sold the 111,000-square-foot office tower in the Mendez Álvaro area to German fund manager Invesco. The price tag was approximately $53.9 million, according to a Bloomberg article. Cushman & Wakefield, the commercial real estate services firm that advised Pramerica in the transaction, calls the trade Spain’s largest single-asset deal of the year.
Titan 4 counts state-owned railway infrastructures administrator Adif as its tenant. The building, developed in 2008 by Nozar, also features parking space for the accommodation of 218 vehicles.
“This transaction has been possible thanks to the excellent quality of the building and its privileged location, despite of Spain’s current difficult market situation,” Jaime Alonso-Allende, head of Office and Industrial Investment of C&W in Madrid, said. “A well-known tenant has also played an important role.”
A premier building leased to a credit-worthy tenant in just about any major city in the world can usually catch the eye of the investment community, and in some cases, even when the office market is struggling. “Unlike other markets in Southern Europe, which foreign investors are avoiding, there are some overseas investors targeting Spain,” CB Richard Ellis notes in a recent report. “Over three quarters of all transactions in [the first half of 2011] involved foreign buyers who are mainly interested in what they see as a one-time opportunity to buy prime Spanish property at yields that are far higher than the long-term average. Buyers are from all over the world.”