Rockspring has bought two Spanish theatres for €58m for its TransEuropean Property Limited Partnership VI (TEP VI).

The fund will co-own the Teatro Coliseum and Teatro Lope de Vega on Madrid’s Gran Via with Stage Entertainment.

The assets were sold in an off-market deal at a 7.5% yield.

Rockspring Iberia will manage the real estate and Stage Entertainment will operate the theatre entertainment businesses.

John Thompson, director at Rockspring Iberia, said: “This investment provides a compelling mix of excellent real estate fundamentals, secure long-term income secured on a first-class covenant and appealing upside potential which we intend to exploit to the full with our in-house asset management expertise.

“Opportunities of this quality are rare, so it is particularly pleasing to have sourced it off-market, all the more so given the weight of capital currently scouring Spain for precisely this type of high-calibre opportunity.”

Teatro Coliseum and Teatro Lope de Vega house 1,440 and 1,456 seats respectively.

The assets also include 1,419sqm of retail space and 43 short-term let apartments. New 10-year leases have been secured with Stage Entertainment on the theatres.

TEP VI held a final close earlier this year with €430m. The fund has committed €539m in Geneva, London, Birmingham, Lisbon, across France and now Madrid.