LONDON | Asset manager company AXA Real Estate said Monday it signed 68 leases on behalf of its clients representing a total of 113,350 sqm of space across its Spanish portfolio in 2011. This marks an increase of around 90% compared to 2010, when 60,855 sqm of space was let across 42 leases. Of the 68 lettings, 23 representing 10,707 sqm, were new leases, while the remaining 45, accounting for 102,643 sq m of space, comprised lease renewals and extensions.
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, most have commercial use. Offices accounted for 2,594 sqm across six leases while 8,113 sqm across 17 leases was for retail.
According to Hermann Montenegro, head of asset management in Spain and Portugal at AXA Real Estate, 2011 has been a very strong year for AXA Real Estate in terms of lettings in Spain.
“This high number of new lease agreements demonstrates our ability to asset manage properties on behalf of our clients despite tough market conditions,” Montenegro commented. “Our large internal network across Europe and our strong relationships with international tenants, together with our local team presence and expertise in Spain […] are fundamental to us recording such strong results.”
“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.”
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 2,782 sqm in five leases respectively. The total 102,644 sqm of leases renewals secured €8.1 million of rental annual income.
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.
AXA Real Estate, a wholly-owned subsidiary of AXA Investment Managers, is the largest real estate portfolio and asset manager in Europe, with €42 billion of assets under management.
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