Barings Real Estate has made its first investment in the Madrid office market with the acquisition of five buildings from Meridia Capital.

Barings said it bought the assets in Avalon Business Park as part of a pan-European value-add investment strategy on behalf of an institutional investor.

The five office buildings comprise 24,495sqm and are 97% occupied. Additionally, there are 1,291sqm of retail space and 421 underground parking spaces.

No financial details were disclosed.

The Avalon Business Park comprises in total nine office buildings with 46,952sqm.

Adolfo Favieres, the head of Barings real estate in Spain, said: “We are delighted to announce our seventh acquisition in Spain and our first investment in the Madrid office market, where we see significant rental and value growth over the coming years.

“This is a new milestone in the development of our investment strategy in the Iberian Peninsula after a significant capital deployment in both the retail and the logistics markets. As our local team grows, we continue broadening our investment horizon, not only across different asset classes but also in terms of risk profile, from core product to value-add and opportunistic transactions.”