M&G Real Estate’s capital solutions business has marked its entry into continental Europe with the acquisition of a Spanish logistics development.

The company has bought the 191,000sqm multi-storey logistics development in Seville on behalf of a Korean institutional investor for an undisclosed sum.

The manager said the asset, which has been pre-let on a long term lease contract, will provide a secure income stream for investors upon practical completion.

Peter Riley, head of capital solutions, M&G Real Estate, said: “Our dedicated capital solutions team provides bespoke solutions, customised to the needs of our larger clients, who wish to invest in real estate through joint ventures, segregated mandates or club deals.

“With an experienced and growing Continental European investment management platform, we are ideally placed to help cross-border investors access compelling relative value opportunities in the region, complementing our capability and track record in the UK and Asia.”

Federico Bros Tejedor, director M&G Real Estate Spain, said: “The macro-economic fundamentals point strongly in favour of this deal.

”A healthy economic outlook and increased consumer spending will drive demand for e-commerce, reinforcing demand for prime logistics assets.”

Tejedor said development activity in Spain has remained relatively limited which, combined with increased demand, will support attractive rental growth.