PIMCO Prime Real Estate, manager of Allianz Group’s €84bn real estate mandate, is to invest €40m to create a prime, mixed-use destination in Madrid’s Nueva España neighbourhood by integrating the adjoined commercial, residential and office areas currently managed by the firm.
The project will be branded NUGA Castellana and is set to complete in the second quarter of 2025.
NUGA Castellana will extend to 66,000sqm to include 21,000sqm of prime office space and 271 homes for rent, integrated with 4,620sqm of restaurants and 6,600sqm of retail, leisure and wellness facilities. In addition, office tenants will have access to 1,600sqm of green spaces and roof terraces.
Retailer MediaMarkt, already present in the asset, has signed a long-term lease for NUGA Castellana. Corporate tenants include Sony, Spaces and CBRE, while the Michelin-starred restaurant Ugo Chan is set to be one of the fine dining options.
The assets managed by PIMCO Prime Real Estate which make up NUGA Castellana have already received the firm’s smart upgrade platform, which optimises energy usage and tenant wellbeing. They now meet some of the highest technical and sustainability standards – including LEED Platinum and SmartScore Platinum certification at Castellana 200-208 – and the repositioning will use this existing infrastructure to maintain these benchmarks.
Miguel Torres, head of Iberia at PIMCO Prime Real Estate, said: “These top, centrally-located prime properties are already a landmark in the city and, with the creation of NUGA Castellana, we will establish a differentiated space in an area increasingly in demand.
“We have tapped into our deep in-house expertise and external network of specialist partners to create and manage a modern mixed-use destination for the center of Madrid, both for today and the long term. As such, it should also create additional, attractive value for our investors.”
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