M&G heads to Spain with €175m core deal

The real estate fund manager has made its first foray into Spain for its European core property strategy with the acquisition of a Madrid office property.

M&G Real Estate, the real estate arm of UK investment fund manager M&G Investments, has acquired an office property in the central business district of Madrid in a deal worth up to €175 million.

The 377,000-square-foot property is located on Calle Ríos Rosas, an established office location in central Madrid. M&G will substantially refurbish the property before its anchor tenant WPP, the global marketing group, moves in on a long-term lease.

This transaction is M&G’s fifth purchase on behalf of its European core property strategy since March. The firm has put around €360 million of capital to work in deals in Denmark, Italy, Germany and France.

“This deal takes the strategy into a new jurisdiction, providing further diversification for our investors and increasing the number of countries in the portfolio to eight,” says M&G fund manager Simon Ellis. “Investor appetite remains strong for core assets of this nature. We have further capital to deploy and will continue to target core locations in major European cities.”

M&G Real Estate is one of the world’s largest international property investors, with £21.2 billion of assets invested across North America, the UK, Europe and Asia. It offers institutional investors open-ended pooled funds, as well as segregated mandates with a focus on generating long-term income-driven returns.