M&G REAL ESTATE INVESTS IN €175 MILLION OFFICE SCHEME IN CENTRAL MADRID
- Latest acquisition brings core European strategy to over €1 billion
- Acquisitions since March total circa €360 million
Stockholm 4, August 2015 – M&G Real Estate, the real estate fund management arm of M&G Investments, has acquired a 35,000 sq m office property in the central business district of Madrid in a deal worth up to €175 million. The acquisition was made on behalf of the global real estate fund manager’s core European property strategy, managed by David Jackson and Simon Ellis.
The property is located on Calle Ríos Rosas, an established office location in central Madrid, and will be substantially refurbished to a very high standard with environmental accreditation. Upon completion of the refurbishment it will be occupied by WPP, the leading global marketing and communications group on a long term lease.
This is the fifth purchase on behalf of the European core property strategy since March, accounting for circa €360 million of capital deployed, with acquisitions also made in Denmark, Italy, Germany and France.
Commenting, Simon Ellis says: “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. 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.”
Robert Heaney, Director of Institutional Distribution in Stockholm, says: “European real estate offers Swedish institutional investors attractive returns as they continue to search for yield. This important acquisition demonstrates M&G Real Estate’s experience and ability to source high quality assets.”
In December 2012, the portfolio acquired a SEK 224 million logistics facility which is let on a long-term lease to Amring (Amerikanska Ringdepoten AB) at the Port of Gothenburg in Sweden.
For further information please contact:
Irene Chambers, phone +44 (0)20 7004 4132. E-mail: irene.chambers@mandg.co.uk
Notes to Editors:
About M&G Real Estate’s core European property strategy:
Invests directly in core European property markets to optimise long-term total return for institutional investors
A diversified pan European commercial property portfolio in prime locations across 8 European jurisdictions and in all three sectors of retail, industrial and offices
David Jackson and Simon Ellis together have 46 years of experience in UK and international commercial property investment
M&G Real Estate provides asset and investment management services for the strategy.
About M&G Real Estate
M&G Real Estate is the real estate fund management arm of M&G and is one of the top 25 real estate fund managers in the world by assets under management, with over £21.2 billion invested in a broad spread of properties across Europe, North America and the Asia Pacific region (as of 31 March 2015). M&G Real Estate has a sector leading approach to responsible property management, and is committed to assessing and improving the sustainability performance of funds under management.
M&G is the investment arm of Prudential Plc in the UK, Europe and Asia. For more information please visit www.mandg.com/realestate
About M&G
M&G is an international active asset manager, investing on behalf of individuals and institutions for over 80 years. At 31 March 2015 the firm manages over £269 billion of assets through a wide range of investment strategies across equities, bonds, property and multi asset.
This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.
The services and products provided by M&G Investment Management Limited are available only to investors who come within the category of the Professional Client as defined in the Financial Conduct Authority’s Handbook. They are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.
M&G Real Estate is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R OHH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. M&G Real Estate Limited is registered in England and Wales under number 3852763 with its registered office at Laurence Pountney Hill, London EC4R 0HH.