AXA Real Estate adds to Spanish lettings portfolio

AXA Real Estate manages about 200 assets with a total of 615,000 sqm of lettable area in Spain on behalf of 11 funds and separate accounts.

Of the 23 new lettings, offices accounted for 2594 sqm across six leases while 8113 sqm across 17 leases was for retail.

Regarding lease renewals, logistics was the largest sector by space accounting for 83,208 sqm across eight leases, followed by retail and office with 16,654 sqm in 32 leases and 2782 sqm in five leases respectively. The total 102,644 sqm of leases renewals secured euros 8.1 million of rental annual income.

Some 38% by lettable area of AXA Real Estate’s 615,000 sqm Spanish portfolio comprises logistics / industrial properties while 31% is offices, 21% is retail and the remaining 10% is across other sectors.

So far for 2012, one of the most important lease transactions was the pre-let signed with Decathlon for 41,800 sqm in a logistic platform being developed in Getafe, Madrid that will be delivered in the first semester of this year.

Hermann Montenegro, Local Head of Asset Management, Spain and Portugal, at AXA Real Estate, said: "2011 was a very strong year for AXA Real Estate in terms of lettings in Spain and this high number of new lease agreements demonstrates our ability to asset manage properties on behalf of our clients despite tough market conditions.

"Our large internal network across Europe and our strong relationships with international tenants, together with our local team presence and expertise in Spain, in combination with the quality of the assets we manage are fundamental to us recording such strong results. A good example is the transaction with Decathlon.

"We expect to undertake similar levels of leasing activity in 2012 and, at the same time we are keen to acquire large properties in prime locations where we can identify an opportunity to add value. By applying our asset management and development skills we will look to create core, institutional quality product from properties which are currently positioned slightly further up the risk curve due to a requirement to secure new tenants, for example, or where some refurbishment or redevelopment work is necessary to reposition the asset."

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