Calle Serrano 55, which won the City of Madrid's prize for best new commercial development in 2000, is 100% leased to Morgan Stanley and serves as their Spanish headquarters.
The name of the joint venture is GLL Real Estate Partners GmbH. The property was acquired from Spanish developer Lar Grosvenor on behalf of GLL Office Fund, an investment fund comprised of European institutional investors.
The joint venture will be in charge of the investment and asset management of the property. The term of Morgan Stanley's lease was not immediately available, but GLL did say the investment is expected to achieve a yield slightly above 6% per annum.
Currently focused on the major commercial business districts in Spain, France, and Italy, GLL offers both commingled funds and separate account portfolios, and also structures single asset syndications in Europe and the US for European investments.
GLL executives believe the medium-term prospects for such modern office buildings in central locations will remain strong despite the current weak economic conditions. "Serrano 55 is a perfect fit for this fund because it provides strong cash flow as well as substantial capital growth potential," says Barry McGowan, GLL's Chief Investment Officer.
"We see Spain as one of Europe's strongest economies," adds GLL's Managing Director Rainer Göbel. "We will continue to seek other investment opportunities in the region on behalf of our investor clients utilizing Lend Lease and Generali's substantial transaction pipeline, in this case Lend Lease España."
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