Benson Elliot completes early exit in Madrid

Benson Elliot, the UK-based private equity real estate fund manager, on behalf of its pan- European fund Benson Elliot Real Estate Partners III L.P. (“BEREP III” or the “Fund”), has completed the sale of a c. 6,000 sqm office asset in Madrid to a Spanish family office, achieving a c. 25% IRR.

The grade A, modern office building, which is located on Calle Valle de la Fuenfria in the Mirasierra area of northern Madrid, was acquired by Benson Elliot in 2015. At the time, the property was 77% let to two tenants. Benson Elliot subsequently implemented a capex programme to improve the building’s occupier appeal and, ultimately, its income profile.

Benson Elliot completed a lease with an international school operator, and extended leases with two existing tenants, increasing the in-place NOI by c. 20% and the building’s WAULT to 4.7 years. The disposal was completed 12 months ahead of plan, crystallising the value created and capitalising on a strong Spanish investment market.

Trish Barrigan, Benson Elliot Managing Partner, said: “This sale is a strong example of our ability to source high quality but undermanaged properties, and conceive and deliver value-add programmes in a cost efficient and timely manner. Benson Elliot was an early entrant into the Spanish market, and this exit enables us to crystallise significant value for our investors.”

ENDS

For further information:

Benson Elliot
Trish Barrigan, Managing Partner
Matilda Williams
+44 (0) 20 7808 8900
Matilda.Williams@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com Claire.turvey@fticonsulting.com

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