AEW has acquired an office building in Barcelona on behalf of its European value-add property fund and reaffirmed its commitment to the Spanish city.

The AEW Europe Value Investors II (EVI II) fund’s acquisition of the Carrer d’Avila 48-50 and Badajoz 49-51 asset in central Barcelona will enable the fund to undertake the development of a new 8,400sqm office building, the manager said.

Financial details were undisclosed.

AEW said the latest investment represents the manager’s third investment in the Barcelona office market, adding that Barcelona remains an important target market for AEW given its “stability and affordability in the European context as well as its strong long-term growth prospects”.

The EVI II Fund, which focuses primarily on identifying office properties with upside potential, has previously acquired assets in Munich, Stuttgart, Brussels, Madrid and Rotterdam.

Carsten Czarnetzki, EVI II’s fund manager, said: “We remain firm in our conviction that regardless of the impact of COVID-19, the fundamental need to bring people together to interact and learn face-to-face remains.

“Ultimately this means that, while the way offices are used will change, they will remain integral to our working lives. We also believe that the pandemic will accelerate demand for prime modern office space at the expense of older secondary projects which are unable to meet the stringent requirements of the modern occupier.”

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