Core-plus mixed-use commercial asset in Andorra's capital — long-lease income from blue-chip tenants with a value-add repositioning angle.
The opportunity
Andorra la Vella Commercial Plaza is an established mixed-use office and retail asset on Avinguda Meritxell — the principal commercial thoroughfare of Andorra's capital. The acquisition includes the freehold building, ground-floor retail frontage, and four floors of office space. The business plan is a light value-add repositioning: upgrading the façade, modernising the lobby and common areas, rolling to market rents on lease expiry, and securing a long-lease covenant with a blue-chip anchor tenant. Post-repositioning, the asset is targeted as a core-income holding for institutional capital.
Why invest
Andorra la Vella is structurally undersupplied with grade-A commercial space. The capital continues to attract international corporates, legal firms, and family offices drawn by Andorra's tax regime and stable jurisdiction. Rental tone on Avinguda Meritxell has moved up materially in the last 24 months, yet the subject asset is currently 38% under-rented relative to market. The acquisition basis reflects the in-place rent roll — not market — allowing investors to capture rental reversion as leases roll. A contracted exit at stabilisation provides predictable return visibility.
Deal strengths
Capital deployment
Capital structure
MoraBanc — 60% LTV, 10-year fixed
Timeline
Heads of terms signed
Q3 2025Due diligence complete
Q4 2025Investor financing open
Q1 2026Acquisition close
Q4 2026Repositioning works complete
Q1 2028Full stabilisation
Q2 2029Exit to institutional buyer
Q1 2031Liquidity
Sale as a stabilised core-income asset to a European institutional investor or pension fund in Year 5, once the full rent roll has been rolled to market and the anchor tenant's 10-year lease is in place. A refinance-and-extend option is available if macro conditions or yield markets favour it at the stabilisation point.
Risk disclosure
Documentation
Compliance & structure. Acquisition via an Andorran SPV with investors holding proportional equity. Equity Partners serves as asset manager under an investment management agreement. All investors subject to KYC, AML, and source-of-funds verification. Suitable for professional and sophisticated investors.