Colonial presents the Alpha II project with an investment of almost €400 million
The Alpha II project includes the acquisition of four assets, one in each market in which the Company operates: two properties in Barcelona, one in Madrid and one in Paris.
The Alpha II project is part of the Colonial Group’s acquisitions programme, with an annual volume of €300-400 million in real estate purchases and enables the inclusion of 55,000 metres squared in the Group’s portfolio.
In Barcelona, Colonial has acquired a property of 9,000m2 in Travessera de Gracia, 47-49 with floors of more than 1,000m2. This building houses the Spanish head office of the Bertelsmann Group and its subsidiaries with a 5 year long-term contract. This transaction supposes an increase in Colonial’s market share in Barcelona’s prime zone.
On the other hand, Colonial has also bet to reinforce its position in Barcelona with a project to construct a building with 21 floors and 14,000m2 located in Plaza Europa, 46-48, one of the areas with significant commercial activity in Barcelona. This project will take place through a Joint-Venture with the company, Inmo, a real estate subsidiary of the Puig family, owner of the plot of land and whose current corporate head office is located on the adjacent plot.
In Madrid, the property acquired is situated at Paseo de la Castellana 163 and is a multi-tenant building with a lot of value potential through its transformation into a first-class Colonial product.
Finally, Colonial bet in Paris for a property in a prime location, at 112-122 Avenue Emile Zola, in the centre of Paris’ 15th arrondissement. The property has a surface area of approximately 21,000m2, which will be restructured to transform it into one of the largest office complexes in Paris. The total amount of the investment, including the budget for future works, is approximately €250 million.
All of the assets acquired offer a substantial real estate value creation route based on (1) the property development company’s transformation of the properties into first-class products and; (2) their location in market segments with solid fundamentals.
“In an environment of strong investment pressure, this transaction consolidates our industrial strategy and enables us to offer a remarkable route to the creation of property value above the market average, which translates into a greater benefit for our shareholders," explains Juan José Brugera, President of Colonial.
