11 Oct 2018

Tristan Fund Adds Spanish Assets with Madrid Office Portfolio

Source: Tristan Capital Partners Press Release

5 October 2018, London: EPISO 4, a value-add fund advised by pan-European real estate investment manager Tristan Capital Partners, together with local operating partner Savills Investment Management, have acquired a 78,000 sqm office portfolio in Madrid from Inmobiliaria Colonial SOCIMI.

The portfolio consists of six Grade A office buildings located in established submarkets outside of Madrid’s CBD: Campo de las Naciones, Josefa Valcarel (A2) and Arroyo de la Vega (A1) as well as Augustin de Foxa, located in Chamartin. The portfolio provides immediate and large exposure to the Madrid office market and offers a well-diversified tenant mix with the potential to capture rental growth.

Nikolay Velev, Executive Director at Tristan Capital Partners, said: “Years of strong economic growth and job creation and limited new developments have created a supply-demand imbalance in the Madrid office market, resulting in significant net absorption and robust occupational growth. These assets are ideally placed to capture growing demand for quality space outside of the main CBD, proving attractive to a broad range of occupiers."

The local operating partner will be Savills Investment Management, with whom CCP 5 LL (Tristan’s long-life core-plus fund) successfully completed the €103 million acquisition of a business park in Manoteras, Madrid in 2017.

Fernando Ramirez de Haro, Head of Spain at Savills Investment Management, said: “We are very keen to expand our relationship with Tristan with this portfolio. The buildings are of excellent quality, with green energy certificates and offer modern, flexible accommodation and therefore are well positioned to capture the growth we anticipate in Madrid."

Tristan Capital and Savills Investment Management were advised by Savills Aguirre Newman, Uria Menendez, Currie & Brown and PwC.