Just as in 2019, the office segment was the one that took the larger share of investment – around 26.5%. This represents a total of 856 million euro, as a result of concluding large operations, such as the purchase of the Helios building, part of Kiwoon’s fund, for 190 million euro. Another relevant operation was the acquisition of the Castellana Norte Business Park by American fund Harbert Management for 127 million euro.
The retail segment ranked second in terms of investment with 797 million euro, three times as much as the amount invested yoy, according to the consultant. One of the operations that stood out was the acquisition of Parque Principado by German fund ECE from Intu for 290 million euro.
Despite the good results during this period, CBRE assumed that the closedown of retail spaces across the country due to the Covid-19 pandemic «will affect in an even more negative way a segment that was already debilitated due to e-commerce». On the other hand, it is expected that there will be «a great interest from investors in food chain assets for long term sale&leaseback operations».
Housing, Hotels and Logistics show growth
According to these results, housing investment was also significant reaching 597 million euro. The purchase of 400 houses destined to the rental market by American investor Hines from Acciona for 110 million euro is one of the operations that stood out.
In terms of the hotel segment, during the year’s first three months, a total of 467 million euro were invested. The acquisition of the Edition hotel in Madrid for 220 million euro by Archer Hotel Capital, owned by APG – ABP’s investment subsidiary, Dutch pension fund – and GIC -Singapore sovereign fund was one of the most relevant operations in this segment.
Investment in Logistics also increased 80% yoy, reaching 390 million euro. This amount includes the transaction of 11 units by German fund Patrizia with GreenOak- Eastdil.
Uncertainty changes future investment predictions
Despite the good results registered during the year’s first quarter in terms of commercial real estate investment, director of Research at CBRE España, Lola Martínez-Brioso revealed that «it is almost certain that the investment volumes predictions carried out at the beginning of the year will not become a reality, due to the fact that the high uncertainty will slow down activity in the investment market in the coming months».
Now, she explained «investors have mostly adopted a wait and see attitude, expecting to know more about the duration and the impact on the real economy the sanitary crisis will have. Investors are certain that this is a temporary situation, more or less long, but circumstantial and remain alert to any opportunity».