IVG Sells Office Asset in Madrid
IVG Institutional Funds has sold a five-storey office building in Madrid for €28 million to local private investors. The property, located between Plaza de Colón and Plaza de Cibeles, totals 4,000 square metres of space and is fully let.
Savills advised IVG on the transaction. Manuel Santos, head of national investment of capital markets at Savills, notes: “This transaction demonstrates the high level of interest currently being shown by investors for buildings of this type located in Madrid’s CBD. The recent downward pressure on rents and the lack of decent product has led to an aggressive yield being paid for this building. To the contrary, if we look at current capital values per square metre, these now seem reasonable in comparison to historic figures for properties of this type located in this area.”