M&G Real Estate’s capital solutions business is tapping into the European market with the acquisition of a Spanish logistics development. M&G Real Estate is the property investment arm of M&G Investments.
The company purchased a 191,000sqm multi-storey logistics development in Seville for an undisclosed amount, according to local media reports.
Peter Riley, head of capital solutions, M&G Real Estate, told the media that, “Our dedicated capital solutions team provides bespoke solutions, customised to the needs of our larger clients, who wish to invest in real estate through joint ventures, segregated mandates or club deals.”
The company with a robust Continental European investment management platform aims to support cross-border investors access various opportunities in the region.
According to Director M&G Real Estate Spain Federico Bros Tejedor, development activities in Spain are quite limited. However, the country will have an attractive rental market when its rate of development is combined with increasing demand.
Two factors that might uplift the Spanish real estate market are increased consumer spending and a positive economic outlook. This in turn will reinforce demand in ecommerce and logistics sector.
In June, Invesco sold a logistics warehouse to M&G’s European Property Fund for €32 million. The sale will add to M&G’s property portfolio, which also includes Teka’s Logistics Platform.
The logistics warehouse is located in Getafe, a city in Madrid. Last year, M&G’s Property Fund was valued at €3 billion. In September, the fund entered into the French residential sector with a €47 million office acquisition.