King & Wood Mallesons (KWM) has advised AEW Europe, on behalf of the City Retail Fund, on the acquisition of a 750 sqm high end retail asset in central Madrid.

This transaction is the first investment in Spain undertaken by the Fund, which launched with a €125 million first close in November 2015.

AEW Europe’s City Retail Fund has a total target fund raise of up to €400 million in equity commitments which, with a maximum loan-to-value ratio of 50%, will provide the Fund with a total investment capacity of up to €800 million. Over the coming months the fund will continue expand their core high street retail portfolio in Europe’s leading city centres.

Enrique Isla, Head of Real Estate in Spain at King & Wood Mallesons, said: “In the last few months, international investors have actively increased their investment interest in prime retail assets in Spain which requires specialised management.”

The deal was led by partner Enrique Isla with the assistance of Senior Associate Marta Orce