HIH Invest divests office building in Madrid

HIH Invest has sold Madrid's historic "Canalejas" building to a Spanish private capital investor for an undisclosed amount.

Canelas building, Madrid - HIH Invest

Located at Calle Alcalá 6, the 1,013 m2 property is fully leased long-term to Banco Santander, which operates a modern flagship branch there.

HIH Invest originally acquired the building, which was extensively refurbished in 2020, through a forward deal for one of its institutional real estate funds.

The "Canalejas" building enjoys a prime location near Puerta del Sol, Madrid's central hub, offering excellent visibility and connectivity within a prestigious financial and administrative district.

Matthias Brodesser, head of Transaction Office International, commented: “We originally acquired the property as part of the broader Canalejas redevelopment scheme, which has contributed significantly to the renaissance of the surrounding area. As the fund reaches the end of its lifecycle, this disposal enables our investors to realise an excellent return through a well-timed and strategically executed sale. At the same time, the new owner will benefit from the property’s strong curb appeal, prime location and the security of a long-term lease with a blue-chip tenant.”

Sebastian Pende, responsible as transaction manager, added: “The transaction underlines the continued strong demand for high-quality retail and office properties in central locations in Madrid. The Spanish real estate market remains robust, particularly in the prime segment, driven by solid tenant and investor demand versus a limited supply on the other hand.”

CBRE, Andersen and KPMG advised on the transaction.