HIH Invest has sold the “Canalejas” building at Calle Alcalá 6 in Madrid to a buyer financed by Spanish private capital. The property comprises 1,013 square metres of lettable space, which is fully leased on a long-term basis to Banco Santander, which operates a flagship branch in this location. Extensive renovation work on the historic building from 1902 was completed in 2020. HIH Invest acquired the building at the time as part of a forward deal for one of its institutional real estate funds.
Matthias Brodesser, Head of Transaction Office International, commented: “We originally acquired the property as part of the wider redevelopment project in Canalejas, which has been instrumental in revitalising the surrounding area. As the fund nears the end of its term, this sale allows our investors to achieve an excellent return through a well-timed and strategically executed exit. At the same time, the new owner will benefit from the property’s high attractiveness, prime location and the security of a long-term lease with a first-class tenant.”
“The transaction underlines the continued strong demand for high-quality retail and office properties in central locations in Madrid,” says Sebastian Pende, who is responsible as transaction manager. “The Spanish real estate market remains robust, especially in the prime segment, driven by solid demand from tenants and investors while supply is limited.”
The property is located close to Puerta del Sol, the geographical, economic and retail center of Madrid. The location is one of the absolute top addresses in the Spanish capital and offers excellent connections, high visibility and a prestigious environment. The immediate surroundings are characterized by historic architecture and serve as an established financial and administrative center.
HIH Invest was advised by CBRE, which acted as the exclusive sales broker and carried out the technical and environmental due diligence of the seller. Andersen advised on all legal matters, while KPMG provided tax advisory services.
