The PCP European RE Fund I, managed by Swiss real estate investor Propreal Capital Partners, has acquired two fully-let prime office buildings totalling 12,000m² from the Zurich insurance group. The buildings are located in the heart of Barcelona’s historic old town and in a prime office location just off the Avenue Diagonal.
The transaction is the second for the closed-end PCP European RE Fund I, which recently raised €150m from investors through Propreal’s partnership with multi-asset advisory firm Triatlum Advisors. The fund targets core and value-add investments across the office, hospitality, logistics and retail property sectors worldwide.
Cedric Vivien, Head of Investment and Portfolio Management at Propreal, said: “This transaction reflects our continued appetite and confidence towards the Spanish office sector, owing to strong capital investment and occupier demand. Our acquisition of these two fully-let office buildings contributes to a stable long-term income profile for the fund, with further anticipated capital growth supported by the overall scarcity of high-quality space across prime central locations, and buoyant demand from occupiers. We remain confident in the office sector and are looking for further investment opportunities in key cities across continental Europe."
The first building is located on Via Augusta 18, at the heart of Barcelona’s City Centre, next to the Avenue Diagonal. The 6,000m² office building is fully occupied on a long-term lease by Mutua Asepeyo, one of the largest Spanish non-profit health insurers for associations of business owners, with an excellent credit rating.
The second building, located on Via Laietana 2, is centrally situated in Barcelona’s oldest neighbourhood, the ‘Ciutat Vella’ historical district, which houses some of the city’s most renowned and iconic public buildings. This is reflected in the building’s unique architecture, which differentiates it from the usual contemporary style of most office blocks. It has 6,500m² of office and public space fully let to the Catalan Government, Generalitat de Catalunya, under a long-term lease.