Real-estate investor and manager Pimco Prime Real Estate will transform a group of buildings located on Madrid's Paseo de la Castellana into a mixed-use, first-class property unit, in which it plans to invest 40 million euros. The company has named this project Nuga Castellana, and the complex will cover a total surface area of 66,000 square metres.

The assets to be integrated with the new investment make up a large part of a block on the arterial road running very close to Plaza de Castilla, in the Nueva España district, which includes the Castellana 200 shopping centre. When completed, it will comprise 21,000 square metres of office space, 272 rental apartments, 4,620 metres of restaurants and a 6,600-metres shopping centre. Office tenants will in addition have access to 1,600 square metres of green space and roof terraces.

High-sustainability standards
Pimco is part of the Allianz group, for which it handles a portfolio that includes $90 billion  in real-estate assets. It already manages the buildings that it now intends to transform and integrate, as well as ensuring they comply with high-sustainability standards. According to the company, tenants like MediaMarkt, the Sony offices, Spaces coworking space, real-estate investor CBRE and Michelin-starred restaurant Ugo Chan will continue to be part of the future Nuga Castellana unit.

The new space is expected to be completed by the second quarter of 2025. Pimco already has a long track record of renovating buildings and turning them into world-class assets. It also has experience in regenerating urban spaces to attract blue-chip clients and create long-term value for investors, tenants and local communities.

Courtyard for the building
The company acquired the different assets that make up the project during the period between 2019 and 2022. The real-estate investment and development group Eurofund Group will be responsible for transforming the retail and restaurant area, and will use the space provided by the building’s courtyard to create open-air terraces, wellness areas and shops.

Pimco's Head of Iberia, Miguel Torres, explained, “These perfectly-located properties, situated in the heart of the city centre, already form a focal point and, with Nuga Castellana, we will create a unique space in an area that is increasingly in demand. We have leveraged our extensive in-house expertise and our external network of specialist partners to create and manage a modern mixed-use destination for central Madrid, both for today and in the long term. As such, the complex should also create attractive added value for our investors.

^{Photo: Pimco Prime Real Estate}