KanAm consolidates its investment position in Barcelona by leaps and bounds. The German firm has closed the purchase of five properties owned by AXA rented to the Generalitat, as announced by the Economist , and has also acquired a property in the 22 @ area. All these investments add up to an amount of almost 350 million euros.
The AXA portfolio, baptized as Pentagon, has finally been closed at a price of almost 280 million euros , which means that it has been sealed with a profitability of 3.8% and at a price that is well above the price of operation exit.
This portfolio includes five assets that are the dependencies of the Department of Digital Policies and Territory (Aragó, 244), the headquarters of the Department of Education of the Generalitat (Via Augusta, 202), the dependencies of the Department of Justice (Aragó, 332 ), the headquarters of the Statistical Institute of Catalonia (Via Laietana, 58) and the headquarters of the Department of Climate Action, Food and Rural Agenda (Gran Via, 612).
In addition to the high liquidity that is currently flying over the Spanish real estate market, which is generating upward pressure on operations, what has played in favor of this specific transaction is the fact that the five properties leased to the Generalitat have with a long-term rental contract that was agreed in 2013, when the Catalan government got rid of these buildings by auction after several unsuccessful attempts.
In this process, AXA was the winner of the bid for a portfolio of 13 properties for which it paid 172 million euros, which represented a reduction of 16.5% compared to the price of the first auction. The sale agreement contemplated that the Generalitat would continue as a tenant of these buildings for a maximum period of 20 years and for an annual rent of 16.26 million. Thus, there are still 12 years of contract ahead.
AXA divested part of this portfolio in the summer of 2019 with the sale of eight buildings for around 100 million euros. The buyer of this portfolio was also KanAm, who now wants to take over the rest of the portfolio made up of the largest properties such as the Ministry of Education or the headquarters of the Statistical Institute of Catalonia, among others.
On the other hand, KanAm has also acquired the office building located at 36 Tangier Street , in the 22 @ area, for almost 70 million. It is a property owned by a family office where Amazon is expected to expand its offices.