IGIS Asset Management Co. Ltd. has acquired an office building in Barcelona used as Nestle Corporation’s Spanish headquarters for 95.6 million euros ($110 million), the South Korean asset manager said on Oct. 10, for which it launched its first retail fund for global investment.
Seoul-based IGIS Asset raised 55.6 billion won ($49 million) from the public fund with a five-year term in September, which was fully subscribed just in three days.
It was reportedly the first retail fund in South Korea launched for Spanish property investment.
IGIS paid 90 million euros to Meridia Capital Partners which bought the property in March 2016 for an undisclosed sum, and closed the acquisition on Oct. 5.
The total acquisition cost includes other expenses.
For the transaction, IGIS Asset borrowed 52.7-million-euro senior loan with a five-year term from Germany’s Postbank at an interest rate of 1.63%, according to a statement from the company.
The 27,606-square-meter property consists of two office buildings and three annexes which were renovated throughout between 2013 and 2015.
Nestle uses 94% of the space and has a remaining lease term of nine and a half years, according to a report of edaily, a South Korean news outlet, in September.
Limited supply in Barcelona’s commercial property market raises expectations for steady rental income and capital gain from the Spanish property, as South Korean investors are diversifying into gateway cities in Europe.
The address of the property is Avenida De Los Paises Catalanes, 45 Esplugues de Llobregat, Barcelona, according to IGIS Asset.
<Edited by Yeonhee Kim>
(Updated on Oct. 11, 2018 to add the property’s seller.)