M&G Real Estate has deployed €190 mln in prime office and retail properties in Paris, Barcelona and Copenhagen on behalf of its core European property strategy.

3 avenue hoche in paris

3 Avenue Hoche in Paris

The acquisitions include: 3 Avenue Hoche in Paris, a 4,646 m2 office acquired for €48 mln; the NAO Building in Barcelona, an 8,331 m2 office acquired for €30 mln; Kalvebod Brygge 47 in Copenhagen, a 13,434 m2 office acquired for €82 mln; and Vimmelskaftet 30 in Copenhagen, a 1,831 m2 high street retail asset acquired for €29 mln.  The office properties are fully let while the retail asset is home to Zara's new flagship store in Copenhagen.

Commenting on the deals, fund manager Simon Ellis said they were aligned with M&G's strategy to acquire prime assets in core locations across Europe. 'Investor appetite for prime offices and retail in these locations remains strong as rental growth continues, driving long-term income prospects. We have successfully raised significant capital in 2015 and 2016, and deployed it across several jurisdictions and asset classes, providing further diversification for our investors. With further capital to deploy, we will continue to target core locations in major European cities.'

The new acquisitions follow a circa €164 mln deal, announced in February, between M&G Real Estate’s core European strategy and the M&G European Secured Property Income Fund. The deal saw M&G’s first foray into Portuguese real estate through a portfolio of supermarkets, which have been sold by and leased back to Sonae, Portugal’s leading food retailer.
 
M&G Real Estate is the real estate fund management arm of M&G and is one of the top 25 real estate fund managers in the world by assets under management, with over £25 bn (€28.8 bn) invested in a broad spread of properties across Europe, North America and the Asia Pacific region.