Spanish insurance group Mapfre has joined forces with GLL Real Estate Partners to establish a €300m office fund to invest in key Eurozone markets.

Mapfre said the real estate vehicle with the Munich-based fund manager is expected to achieve returns of between 4% and 6% annually, while at the same time diversifying the portfolio against other types of financial assets. 

The vehicle plans to invest up to €300m in prime office space within two or three years.

The investment focus will be large cities in Germany and France, as well as other nearby markets such as Amsterdam, Brussels, Milan and Luxembourg.

This move is part of Mapfre’s strategy to gradually increase its portfolio of alternative investments, it said.

The vehicle, which is open to other institutional investors from the insurance world, will be managed by GLL.