The real estate arm of Principal Global Investors has acquired a mixed-use office and retail building in Lisbon, Portugal for a European fund.

Principal Real Estate, on behalf of the Principal European Office Fund, has bought Dom Luis I from Patrizia’s TransEuropean VI fund for €45.3m.

The fully-let asset comprises 8,100sqm of office space over seven floors and 2,200sqm of retail and leisure space on the ground floor.

Sebastian Lietsch, head of fund management, Germany, for Principal Real Estate, said: “The Dom Luis building is a good fit for our office fund strategy. As our second asset in Portugal, it provides further balance to the geographic distribution of assets across Europe.

Irina Va, senior transaction and asset manager for Principal Real Estate, said the building’s proximity to one of Lisbon’s prime residential areas is also an attractive characteristic, given the new hybrid working approach many businesses are adopting as a result of the pandemic.”

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