Real IS has acquired a 5,400sqm office building in Barcelona for its open-end European real estate fund.

The manager’s Real IS BGV VIII Europa fund has acquired the fully-let Diagonal 67 office building from a local family office for an undisclosed sum.

The fully building, which was erected in 2009, offers office space of between 340 and 680sqm over eight storeys.

The Diagonal 67 office asset is situated at the 22@ submarket, Barcelona’s new business district as well as its innovation and technology location.

Axel Schulz, global head of investment management of Real IS, said: “The office property market in Barcelona is generally developing very well. Prime rents have risen sharply in the last five years and display further upside potential.

“The acquisition will enable us to increase our exposure in Spain and develop the possibilities of participating in a diversified portfolio within Europe, as planned.”

Juan Jiménez-Hevia, head of country Spain of Real IS, said: “Barcelona is one of Europe’s leading start-up hubs and in 2018 alone registered an increase of new start-ups of around 30%. This fuels the demand for contemporary office space.

“Established companies such as eBay, Microsoft, Facebook, Amazon and SAP create synergy effects for start-ups most especially in 22@.”

The Real IS BGV VIII Europe alternative investment fund targets office and retail properties supplemented by mixed-use real estate, logistics real estate and hotels.

The fund’s investment strategy is geared to core and core-plus investments and, if appropriate, complemented by properties with a manage-to- core strategy