(LONDON) – Hines, the international real estate firm, has acquired a prime retail asset in Madrid from Spanish real estate company Grupo Baraka for €39.50 million.
The building is leased to the restaurant chain Five Guys, which recently signed a long-term lease on what will become their flagship outlet in Spain when they open this summer. Five Guys is the fastest growing restaurant business in the U.S. and has quickly built up a cult following. The opening in Madrid will represent their first location in continental Europe.
Acquired on behalf the Hines Pan-European Core Fund (HECF), the asset represents Hines’ second acquisition in Spain for the HECF this year, closely following the recent purchase of the Arcs 10 asset in Barcelona for €38.50 million. Additional acquisitions in this market are expected to be completed in 2016.
Sebastian Huergo, managing director, Hines Spain, said: “Spain currently represents an attractive market with continued economic growth and strong performance of retail sales. Consequently, we are seeing both existing retailers and newcomers committed to making a presence in the country’s major cities.”
Peter Epping, managing director, Hines Europe and manager of the fund, said: “These two acquisitions in Barcelona and Madrid will increase the fund’s exposure to retail and expand its geographical reach across Spain. This is a market on which we will be placing considerable emphasis across our European platform this year, alongside further diversification of our asset class base.”
HECF is a Euro-denominated, Luxembourg-based investment fund set up in 2007. Managed by the Hines group, its aim is to build a large portfolio of commercial real estate across Europe.
Hines was advised by legal firm Ashurst LLP, and specialist Spanish real estate consultancy, Aguirre Newman.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 199 cities in 19 countries. Hines has $87 billion of assets under management, including $43 billion for which Hines provides fiduciary investment management services, and $44 billion for which Hines provides third-party property-level services. The firm has 104 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,100 properties, totaling over 346 million square feet. The firm’s current property and asset management portfolio includes 531 properties, representing over 186 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.