Starwood negotiates purchase of Las Mercedes Business Park

Featured in the photo is San Fernando Business Park bought owned by Drago & Starwood since June 2018. Source: Dragocapital.com. 

Following the acquisition of the «Heritage» Spanish office portfolio from FREO & Oaktree Capital, Starwood Capital Group has made an offer to buy GreenOak’s Spanish REIT “Go Madrid Benz Socimi” (“YGOB”), which listed on the MAB in 2018 and holds the Mercedes Business Park.

The REIT started trading at price of €12 per share and a market cap of €60 million and is now trading at €13.7 per share, its highest level since IPO.

Having bought the Mercedes Business Park from Standard Life in 2016 for circa €140 million, GreenOak’s decision to sell coincides with the 3-year minimum holding period required for Spanish REITs to enjoy fiscal benefits.

Parque Empresarial Las Mercedes, is a 78,500m² complex comprised by nine office buildings located in the northeast of Madrid overlooking the A-2 motorway in one of the fastest growing areas of the Spanish capital where new company headquarters have been located in recent years including the former HQ of Banco Popular (now owned by Santander), the Clínica Universidad de Navarra or Vodafone’s HQ.

Having improved the property’s rents and brought lease-up to a 90% occupancy level, GreenOak has hired CBRE to lead the sale process and offers are expected to reach c. €200 million.