Real estate trust IREIT Global seals office deal in Barcelona
IREIT Global, a Europe-focused real estate investment trust, has announced that subsidiary Sadena Real Estate, S.L.U. has agreed to acquire an office building in Barcelona for 27.2 million euros.
The office building, known as “Parc Cugat” located in Sant Cugat del Vallès, is a modern Grade A freehold office building with a gross lettable area of approximately 15,510 sqm and is located within a business park in Sant Cugat del Vallès.
Currently leased to five large blue-chip companies, the property has a committed occupancy rate of 64.0% (76.5% for office space only), a weighted average lease expiry by gross rental income of approximately 6.8 years and generates an annual GRI of approximately 1.5 million euros.
The price paid for the asset represents a discount of approximately 4.5% to its independent valuation with rental guarantee, the company said in a statement.
“This (deal) enables us to offer modern Grade A space at competitive rents to any occupiers. Its quality asset features and long leases with blue-chip tenants will complement well with IREIT’s portfolio, as we continue to execute our strategy to grow and diversify IREIT’s tenant and geographical exposure,” says Louis d’Estienne d’Orves, Chief Executive Officer at IREIT Global.
IREIT currently owns four freehold office properties in Spain, two of which are located in Madrid and the other two in Barcelona. Despite the COVID-19 pandemic, these quality properties have continued to remain resilient, with 100% of IREIT’s contractual rents collected in the first half year ended 30 June 2021 and over 99% collected in FY2020.
The acquisition will add another quality asset to IREIT’s portfolio and enhance its footprint in Spain. This is in line with IREIT’s focus to pursue assets located in well-established secondary areas of key western European cities such as Barcelona. Parc Cugat is located in Sant Cugat del Vallès, which is 20 minutes from the financial district of Barcelona (Avenida Diagonal) and is considered to be one of the most sought-after areas in the metropolitan area of Barcelona.
The area is also home to a large number of international blue-chip companies such as HP, Grifols, Roche, Sabadell Bank, Ricoh and Catalana Occidente. Notably, the property is located near Sant Cugat Green, one of IREIT’s four existing properties in Spain, and is accessible within a seven-minute drive by car.