CB Richard Ellis completes sale and leaseback of DTS Headquarters in Madrid for €80 million
Madrid, 29 December 2010 – CB Richard Ellis (CBRE) today announced that it has advised Madrid-based Distribuidora de Television Digital S.A.U. (DTS), the largest provider of digital pay television in Spain, on the corporate sale and leaseback of its headquarters in Tres Cantos in Madrid, Spain, for a total consideration of €80 million.
DTS is a subsidiary of Promotora de Informaciones S.A. (PRISA) and operates the group's pay TV production and distribution activities. PRISA is listed on the Madrid Stock Exchange, and is the largest media company in the Spanish and Portuguese speaking world. CPA®:17 – Global – an affiliate of WP Carey, the global investment management company that provides long-term sale and leaseback and build-to-suit financing – acquired the building.
DTS’s headquarters in Madrid comprises 41,000 sq m and is located in Tres Cantos (Madrid), housing prestigious firms such as Price Waterhouse Coopers, Regus, Caja Madrid and Gomez Acebo y Pombo, among others. Constructed in 2008, the building comprises both office and television production space.
DTS will remain as tenants for a period of 20 years.
Adolfo Ramirez-Escudero, Executive Managing Director, Capital Markets, CB Richard Ellis, Spain, said: “Despite a difficult year for the investment and financing of real estate in Spain, this transaction confirms institutional investors’ interest in these kinds of deals in the Spanish market and is a reminder of the special place that sale and leasebacks hold in Spain.
“The banks have sold over €8.5 billion of property via sale and leaseback in the last three years in Spain, of which CBRE has advised on almost €5 billion. WP Carey had been out of the Spanish market over the past 10 years but decided to return last year and is now very active. We will see more sale and leasebacks from corporates, just as we saw Eroski, Mercedes-Benz and FCC active this year.
"Why Spain now? There is a good incentive for the seller and also a competitive return for specialised buyers. It is true that the fundamentals of the market are still weak and rents will adjust further, but these deals have the security of long leases and therefore are immune to short-term adjustments; they also benefit from competitive yields and low capital values as capitalised rents are at a historic low. It is true that finance is restrictive, but that is also triggering corporates to accept better prices for the few buyers that can source non-conditional finance."
"This transaction, together with other key deals signed in December, seals CBRE's leading market share position, having advised on more than half of the total commercial real estate investment turnover in Spain in 2010.”
CBRE also advised PRISA in 2008 on the sale and leaseback of its three most emblematic assets: PRISA’s headquarters in Madrid; the editorial office of El País; and Cadena Ser’s headquarters in Barcelona. The assets were sold to Drago Real Estate for €315 million.
Uría Menéndez acted as the legal advisor for PRISA.