UBS buys Albufera Plaza for €30M

According to Spanish newspaper, Expansion, UBS has agreed to purchase nº 153 Avenida de la Albufera for €30M, below 6% NIY.

Located in the district of Vallecas, 3.5km southeast of Madrid city-centre, the mixed retail and office property comprises a three-storey shopping centre with a total GLA of 8,561m² situated beneath a 7-storey office building with a total GLA of 7,435m². It also includes 2 floors of underground car parking with 224 parking spaces.

The retail component is anchored by a 2,697m² Mercadona supermarket and a 3,692m² Media Markt store complemented by a service gallery, gym and various restaurant operators including Burger King, Foster’s Hollywood and La Sureña which have direct access from terraces on the high street. Albufera Plaza enjoys an urban central location in the densely populated Puente de Vallecas district and serves a catchment of over 335,000 people in up to a 10 minute drive time (INE, 2018). The main office occupiers are Henry Schein España, Schweppes and Tecsidel distributed accross rectangular open-plan floor plates with a central core formed by the 4-lift elevator shaft.

The vendor, Meridia Capital, had acquired the asset from General Electric for €21M in 2014 and carried out a full refurbishment and tenant engineering. In fact, the vendor leased the first floor to Media Markt in 2017 boosting foot fall figures which are reported to have grown 30% during 2018.