Europa Capital’s fifth pan-European value-add fund is acquiring a 15th-century palace in Mallorca.

The real estate manager said the €716m Europa Fund V fund has agreed to buy the palace in the centre of Palma Old Town, ahead of restoration and residential reconfiguration. Europa plans to invest €22m.

The asset is being bought from a private individual.

Europa Capital intends to restore the palace and reconfigure the internal space to create 14 homes. The manager is partnering with local developer Bonavista Developments.

Jason Oram, a partner at Europa Capital, said: “The acquisition of this 15th-century palace provides us with a very rare and exciting opportunity to take a highly attractive, and well-located building of historic importance and breathe new life into it with a much needed and thorough restoration, as well as a reconfiguration into new unique houses.”

The restoration of the palace also reflects the fund’s strategy of targeting prime residential assets within structurally supported and improving international cities, not least in Spain where Europa has a strong track record, Oram said.

”This opportunity is also in line with our strategy of working with an experienced partner to deliver a high-quality residential product in attractive locations.”