Schroder fund buys Madrid cinema for €25m

Schroder Real Estate has completed a €25 mln acquisition in Madrid, Spain on behalf of Immobilien Europa Direkt, an investment unit of Zurich Investment Foundation.

Schroders said it has completed the purchase of a freehold property in Calle Fuencarral in the city centre of the Spanish capital.

The asset provides over 5,700 m2 of accommodation and is currently let on a long term lease to Cinesa, Spain’s main cinema operator.

'The investment is fully in line with our strategy to acquire assets in growth cities and in locations where there is a combination of constrained supply and competing demands for different uses. This adds further diversification to the portfolio and is expected to deliver strong, long-term performance,' commented Tony Smedley, head of Continental European Investment at Schroder Real Estate Investment Management.

Immobilien Europa Direkt is an euro-denominated fund targeting a size of €800 mln. The vehicle is largely invested by Swiss pension funds and focuses on commercial assets in Western Europe.