This investment was made by the M&G European Property Fund, managed by David Jackson and Simon Ellis.
The two commercial acquisitions include the H&M building on Reyes Católicos street in Granada and two commercial stores on Gran Vía 68 in Madrid. With a total of 3,668 m2, both assets are located in the main commercial districts of their respective cities, leased to successful national and international brands; the H&M fashion brand in Granada, and the Tony Roma's and Banco Sabadell restaurant in Madrid.
M&G Real Estate has also acquired two logistic-industrial assets in Madrid: the Teka Logistics Platform near the A2 highway in the Henares corridor, and an additional asset in one of the main logistics corridors in Getafe, south of the capital. With a combined size of 55,092 m2, each asset is suitably located to meet the growing demand for last mile logistics in the metropolitan area of Madrid.
David Jackson says: "Our recent research suggests that the Spanish economy will continue to perform well, with a recovery that accelerated in 2017. This extends to the commercial real estate market, where we predict that the average growth of both industrial and commercial rents will vary between three and four percent per year during the next three years in Madrid These new acquisitions fit perfectly with our strategy to increase our presence in Continental Europe by investing in “core” assets in high growth markets. We see a strong link between the level of rental growth and tourist expenditure in the main tourist destinations throughout Europe, Madrid and Granada are very good examples of this trend."
Optimus Global Investors was intermediary in the acquisition of Gran Vía 68, on behalf of the buyer, and CBRE represented M&G Real Estate in the acquisition of Platforma Teka Logistics.