Chilean investor buys Madrid WeWork office for €40M

The coronavirus pandemic can’t stop Madrid’s property market and a Chilean has been the latest to prove investor demand for assets in Spain. Advised by Swiss bank, UBS, a Chilean ultra high net worth investor has purchased WeWork‘s headquarters in Madrid for over €40 million.

The vendor, Royal Metropolitan España, S.A., is said to have sold the property at a net initial yield of 4% and a net rent per sqm of €35 thus doubling the amount it paid just three years ago, when it acquired the asset from Inversis for around €20 million. Inversis, owned by Banca March since 2013, had inherited this property following their acquisition of the Spanish subsidiary of Royal Bank of Canada (RBC).

The building, on Fernando el Santo nº20, was built in the sixties and renovated in 1998 receiving a special mention in Madrid’s City Council awards for its architecture and planning. Royal Metropolitan, in turn, has hired Allende Arquitectos for a further refurbishment of the property to adapt it to WeWork.

Fernando el Santo 20 has a GLA of 3,798 square meters distributed across nine stories (ground floor, attic and seven office stories) and three underground parkings. The building’s main tenant is WeWork although there is still space available for lease.

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