M&G Real Estate has spent €175m on a central Madrid office asset, its first deal in Spain.
The investment manager bought the building for its open-ended, core European strategy, which is backed by UK and European pension funds.
The purchase is the fifth for the fund since March, taking capital deployed to €360m. The firm has also bought in Denmark, Italy, Germany and France for the fund.
Fund manager Simon Ellis said that, despite Spain’s high unemployment levels, capital values and rental levels in Madrid’s office market had reached their low point.
Source: IPE Real Estate