Axa Real Estate Investment Managers, on behalf of one of its clients, is to undertake an extensive redevelopment of over half of the 60,000 sq m Prado office complex in Madrid, which was acquired in 2005.
Acciona, one of Spain's largest construction companies, has been commissioned to act as construction manager on this project.
The landmark seven-storey asset, one of the largest office developments in central Madrid, is 45% let; the remaining 55% will be extensively redeveloped to deliver 35,000 sq m of grade A office space, plus a further 6,000 sq m of underground parking and storage facilities. The project aims to capitalise on the lack of modern office space in central Madrid.
Axa Real Estate, the leading real estate portfolio and asset manager in Europe, according to the Inrev Survey 2014 published in May 2015, has a strong track record in development across Europe, with a total of €9.9bn ($11.1bn) of projects under management in eight European countries at the end of June 2015.
Hermann Montenegro, head of asset management & transactions in Spain at Axa Real Estate, said Prado "has enormous potential" and "presents a compelling investment opportunity."
Separately, Axa has acquired an 18.6% stake in Eranove, a leading West African utility company, which operates primarily in Ivory Coast and Senegal. Axa bought the stake from French company Bouygues.
Axa said the investment would allow it "to increase the exposure of its asset portfolio to the fast-growing African utilities sector and confirms the group's decision to increase its infrastructure investments through Axa Investment Managers."
"The combined factors of a severe shortage of power generation capacity in Africa and high rates of GDP and population growth give Eranove a significant opportunity to build a leading energy platform across the continent", commented Laurent Clamagirand, chief investment officer of Axa.
"Axa Real Estate is already a diverse investor which now has operations in 24 countries and investments across direct property and infrastructure", said Pierre Vaquier, CEO of Axa Real Estate. "Our investment in Eranove is another milestone."
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