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31 May, 2023
by Europi Property Group

The joint venture between Swedish real estate company Europi Property Group, the Arié Family Office and Kefren Capital Real Estate has acquired its second office building in Barcelona.

The JV has recently completed the acquisition of its second office building in Barcelona, located at Carrer Lluís Muntadas 5, Cornellà. The building has been acquired from Siemens in a partial sale and leaseback transactionThe 13,088 square meter, grade A, multi-tenanted office asset is strategically located, close to local, national, and international transport infrastructure as well as nearby amenities. At acquisition, the building has an occupancy ratio of 86% and is partially occupied by Siemens group companies as well as other blue-chip tenants such as Nexeo Solutions, ISS, TDK, and Atos.

With this acquisition, the JV consolidates its presence in Barcelona, where it has owned the nearby building Esplugues 225, since December 2021. This allows synergies to emerge that will provide its tenants with better services and resources. The JV plans to optimise the asset from an ESG perspective and achieve BREEAM ‘Excellent’ certification, aiming to deliver a world-class space that is sustainability-oriented, ready to meet the present and future demands of existing and future occupiers alike, and at an attractive price point.

During the acquisition, the buyer was represented by: Buigas, as legal advisor, and Dress & Sommer as technical advisor. The seller was represented by: Deloitte Legal, as legal advisor, and BNP Paribas as advisor on the sale.

Europi and Kefren formed a JV in 2021 intending to invest EUR 150 million in high-quality and strategically located office buildings in Madrid and Barcelona, cities recognised for their strong market dynamics and attractiveness for both tenants and investors. The JV looks to acquire assets that allow for active management focused on improving ESG credentials, occupancy, technical specifications of the building, and the environment for tenants.

In the short term, the JV aims to selectively add one or two more assets to its portfolio. Both Madrid and Barcelona are highly attractive destinations for occupiers looking to locate or expand within these cities. The high quality of life, highly skilled labour force, strong (inter)national transport links, and relative affordability are all factors indicating that employment and population growth in these cities will outpace other European peers. In addition, recent changes in work patterns have led multinationals and SMEs to reconsider their office presence due to new and accelerating trends such as “working local” and decentralisation of office space. This is expected to continue generating interesting investment opportunities in the submarkets of both cities.

Jonathan Willén, CEO of Europi, comments:

“This is our second direct investment in Spain and demonstrates our continued high conviction in the strategy and our partner Kefren Capital Real Estate. We believe it’s possible to find attractive investment opportunities in Barcelona and Madrid even in the current macroeconomic environment and continue to look for appropriate new opportunities in these markets.”

Pelayo, CEO of Kefren Capital, comments:

“We are proud to continue to expand our JV with Europi Property Group and the Arié Family Office with the addition of this building to our portfolio. In a context of uncertainty in the real estate market, we have managed to close the acquisition and financing of this grade A, high yielding asset in a gentrified urban location of Barcelona. This represents an important step in our strategy as Value-Add investors in Spain. Our main objective is to create attractive workspaces for occupiers, with a focus on environmental sustainability. We strive to obtain the highest ESG certifications for our assets.“

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