CBRE Global Investors, in a joint venture with IBA Capital Partners, has acquired Gran Via 18, a 5,500 sq m prime freehold asset in Madrid City Centre. The vendor was a fund managed by TPG Sixth Street Partners.
The asset comprises a basement and seven floors above ground. Gran Via is dominant retail and tourist thoroughfare in the heart of the city centre and one of the busiest high street retail locations in Spain.
Dating back to the early 1900’s, Gran Via 18 will undergo an extensive refurbishment to be completed by the end of 2018, which will transform it into a flagship retail store on four levels. The upper levels will be refurbished to provide high-quality modern office premises. Upon completion, the property will achieve a LEED GOLD certification.
In order to further enhance footfall and improve the shopping experience, Gran Via is undergoing a pedestrianisation process consisting of expansion of the side-walks and reduction from six to four lanes, with traffic being limited to public transport, taxis and local residents.
Charles Baigler, Fund Manager of CBRE Global Investors value add program said: “The business plan for Gran Via 18 is in line with our value add program’s strategy to reposition assets to create prime space in supply constrained locations which will attract the best occupiers. We will be working in a joint venture with IBA Capital Partners to deliver the business plan. This will be our third high street retail transaction in Madrid so it is a market we understand well.”
CBRE Global Investors and IBA Capital Partners are currently developing two prime retail assets in Madrid, ABC Serrano Shopping Centre and a 2,100 sq m GLA retail flagship store on Preciados pre-leased to an Inditex brand.
TPG Sixth Street Partners was advised by Clifford Chance and JLL.
CBRE Global Investors and IBA Capital were advised by E&Y, Jones Day, Arcadis and PWC.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $86.5 billion in assets under management* as of March 31, 2017. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 75,000 employees in approximately 450 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
About IBA Capital Partners
IBA Capital Partners is an independent real estate fund and asset management company founded in 2013, with presence across the principal Spanish real estate market sectors.
In the Value-added segment, IBA has established a strategic alliance with CBRE Global Investment Partners with the aim of promoting investment opportunities in the tertiary real estate sector, focused on High Street retail.
Since inception in 2013, IBA has invested in excess of €1.4billion in commercial real estate in Madrid and Barcelona.
About TPG Sixth Street Partners
TPG Sixth Street Partners (“TSSP”) is the global credit and credit-related investment platform partnered with TPG. Co-founded in 2009 by Managing Partner Alan Waxman, TSSP has approximately $20 billion in assets under management. TSSP has a long-term oriented, highly flexible capital base that allows it to invest across industries, geographies, capital structures and asset classes, in distressed assets but also healthy and growth companies. TSSP’s investments are typically complex to source, analyze and execute. For more information, please visit www.tpg.com