Barings Real Estate has made its first investment in the office real estate market of Spain’s capital, Madrid.
The firm has bought five office buildings in Madrid as part of a pan-European investment strategy.
The buildings, which are located within Avalon Business Park in the Spanish capital, were bought on behalf of an unnamed institutional investor and sold by Meridia Capital.
The 24,495sqm space is 97% occupied with more than 20 tenants mainly from the IT/technology and engineering sectors. There is also retail space and underground parking spaces.
Formerly an industrial area, Avalon Business Park has undergone big changes in the past years, Barings said, and is becoming a well-sought after office destination for technological companies.
Adolfo Favieres, Baring’s country head of real estate, Spain, said the Madrid office market is expected to have significant rental and value growth over the coming years.
Barings has already invested in Iberian retail and logistics markets.
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