MAPFRE is set to launch a co-investment real estate vehicle to invest in prime offices in a number of Europe’s main markets. The objective is to achieve returns of between 4% and 6% annually, while at the same time diversifying the portfolio against other types of financial assets. This move is part of the company’s strategy to gradually increase its portfolio of alternative investments.
MAPFRE has partnered with real estate expert GLL to invest up to 300 million euros in prime office space in the Eurozone’s key markets within two or three years. The investment focus will be large cities in Germany and France, as well as other nearby markets such as Amsterdam, Brussels, Milan and Luxembourg.
The vehicle, which is open to other institutional investors from the insurance world, will be managed by GLL, which is one of the main investors in office buildings for insurance companies. The company has an asset volume of €7 billion, and a team of more than 110 professionals, with offices in 12 countries.