MERLIN Properties acquires five office buildings in Madrid for 130 million euros
• The portfolio comprises a total of 5 modern, efficient class-A buildings with a gross leasable area (GLA) of 34,175 sqm let to blue chip international tenants such as Philips, Vestas and Neoris.
• The purchase price has been paid in full with equity.
• With this purchase, MERLIN has invested ca. 1,250 million euros of the 1,292 million euros raised in its stock market listing, and has now put to work more than 95% of its capital.
The portfolio has a total GLA of 34,175 sqm and includes 5 office buildings, one with total GLA of 10,856 sqm and 281 parking places fully let to Vestas, an office complex with 3 buildings with total GLA of 17,139 sqm and 392 parking places let to Philips and Neoris and an empty building with a total GLA of 6,180 sqm and 98 parking places.
The acquisition price reflects an initial net yield of 7.07% (“EPRA Net Initial Yield”) that will provide MERLIN with additional annualized gross rental income of 9.8 million euros and an estimated NOI of 9.2 million.
All the properties are built to the highest standards and are highly visible from the A1 highway, very close to Plaza de Castilla.
This acquisition represents an important milestone for MERLIN since it becomes its first office acquisition in Madrid, a strategic market for the company. Moreover, it further reinforces its strategy, based on the acquisition of high quality assets in consolidated locations like the A1 corridor, the best prime decentralized office area in Madrid.
With this investment, MERLIN has deployed ca. 1,250 million euros from the 1,292 million euros the company raised through its stock market listing. Investments to date include assets within the four property types identified by the company as part of its core/core+ strategy at IPO (high-street retail, shopping centres, offices and logistics facilities).
Following this acquisition, MERLIN’s portfolio boasts a GLA of over 575,000 sqm and generates gross rental income of more than 122 million euros per annum.