Deutsche Bank has provided a loan to investment manager Henderson Park to fund the acquisition of the Los Cubos office building in central Madrid, Real Estate Capital can reveal.
The debt package, understood to have a loan-to-value ratio of around 65 percent, will finance Henderson Park’s €52 million acquisition from Realia Inmobiliaria – its first in the Spanish market.
Comprising 18,000 square meters over nine storeys, Los Cubos is one of the most recognisable office buildings in Madrid.
“The property is in a great location in a capital city where growing demand for grade A space is not being met by supply”
– Nick Weber
The building is located at the crossroads of M-30, the main ring road of Madrid, and A2, the direct highway between the city centre and the airport, in an area favoured by large domestic and international corporate occupiers.
Los Cubos is currently vacant and Henderson Park plans to fully refurbish the building. Work is expected to start in Q1 2018, with delivery expected in mid-2019.
Roman Kogan, head of Deutsche Bank’s European commercial real estate group, confirmed that the bank had written debt financing to support the “acquisition and repositioning” of the iconic building, but declined to provide further details of the loan.
“The property is in a great location in a capital city where growing demand for grade A space is not being met by supply,” said Nick Weber, founding partner of Henderson Park.
Weber also noted the firm is confident that it will find further investment opportunities in the Madrid region, on the back of Spain’s economic recovery, increasing growth in employment and job-creation prospects.