MERLIN Properties Annual Report 2017 / English

ı 32 ı OFFICE Acquisition of Torre Glòries On 12 January, MERLIN completed the acquisition of Torre Glòries. Torre Glòries is one of the most iconic buildings in Barcelona, located in the prime area of Avenida Diagonal junction with Plaza de Les Glòries, in the heart of the Barcelona techoriented business district known as 22@. The building was originally designed by prestigious arquitects Jean Nouvel and Fermín Vázquez and opened in 2005. It comprises a gross area of 37,614 sqm, in ground level plus 34 above ground floors, plus an auditorium with over 350 pax seating capacity. It also benefits from 300 parking spaces located in four below ground levels. The total constructed area amounts to 51,485 sqm. 22@ business district is the most dynamic area in the Barcelona office market and is now consolidated as the reference business area hosting tech oriented and innovative companies such as Cisco, Ebay, Yahoo, Deutsche Telekom, Sage, Sap, Capgemini and Indra. The acquisition price amounts to € 142 million (plus € 4.1 million of transaction costs), representing a capital value of € 3,775 per sqm. MERLIN will invest approximately € 15 million for multi-tenancy reconversion works to own one of the most attractive office buildings in Barcelona. MERLIN targets annual recurring revenues of € 10.3 million, representing an ERV yield of ca. 6.5% after completion of works. ACQUISITIONS Torre Glòries Acquisition Price of the asset (1) (€ thousand) 142,000 Asset debt outstanding as of the date of purchase (€ thousand) - Equity disbursement (€ thousand) 142,000 % Debt to acquisition Price of the asset - Estimated Capex (€ thousand) 15,000 ERV (€ thousand) 10,346 ERV Yield (2) 6.5% Total G.L.A. (sqm) 37,614 (1) Excluding transaction costs (2) Calculated as ERV divided by acquisition price plus estimated Capex