A Korean institutional investor has acquired real estate in Germany and Spain through a separate account.

The acquisitions of the grade-A office building in Hamburg and the mixed-use property in Barcelona, were announced by its fund manager CBRE Global Investors.

The 20,246sqm Fleet Office II in the City Süd area of Hamburg was built in 2016 by developer Becken. It has 11 floors nad is occupied by eight tenants.

Myles Sanger, portfolio manager at CBRE Global Investors, said: “This quality asset offers our client secure diversified income with a favourable lease expiry profile.

“The investment market and economy in Germany is the strongest in Europe, and Hamburg is one of its largest, stable and most liquid office markets.”

The mixed-use property at 6-8 Carrer de Fontanella in Barcelona was bought in an off-market deal for €64.7m from Avignon Capital.

CBRE Global Investors said it is the first acquisition in Spain for the Korean investor.

The 8,126sqm building, which includes office and retail space, is adjacent to Plaza Catalunya, Barcelona’s historic centre.

The property is 100% occupied with a weighted remaining lease term of more than 12 years.

It provides prime Barcelona high street retail on the basement, ground and mezzanine levels, leased to MediaMarkt, Europe’s largest retailer of consumer electronics. The office floors are fully let to the Catalan Regional Government.

“This is another solid asset to add to the portfolio of one of our key global separate account clients,” Sanger said.

“The property possesses strong investment fundamentals, lease covenants providing long-term, high quality, stable cash flow, and we expect steady rental growth due to the prime location and the positive outlook for the Spanish economy.”

Avignon Capital reconfigured the retail space during its ownership, signing a new 10-year lease with annual CPI indexation with Media Markt in 2015.

Avignon, which bought the property in 2013, said the investment produced a 135% return on equity.