Pimco Prime Real Estate, manager of the Allianz Group's real estate portfolio with assets totalling more than $84 billion, has announced a €40 million investment to develop a mixed-use project on Paseo de la Castellana, Madrid. This project, called ‘NUGA Castellana’, will integrate retail, residential and office space in one location and is expected to be completed in autumn 2025.
The company has a notable track record in Europe in the transformation of buildings and the regeneration of urban spaces. Notable projects include the renovation of 7 Avenue George V in Paris, Santa Sofia in Milan and Droogbak in Amsterdam.
From 2019 to 2022, Pimco Prime Real Estate acquired the assets that are now part of ‘NUGA Castellana’. The space, which covers 66,000 square metres, will include 21,000 square metres of office space, 271 rental homes and 4,620 square metres of restaurants, as well as 6,600 square metres of retail, leisure and wellness space. More than 1,600 square metres of outdoor terraces with green areas will also be available for office tenants.
Eurofund Group has been contracted to lead the transformation of the retail and restaurant areas. NUGA Alley', the heart of the project, will feature a diverse gastronomic offering, a wellness space and retail outlets. Confirmed tenants include MediaMarkt, which has signed long-term leases, and offices of Sony, Spaces and CBRE. In addition, Michelin-starred restaurant Ugo Chan will be added to the on-site dining options.
In terms of digitalisation and sustainability, the ‘NUGA Castellana’ buildings are adapted to Pimco Prime Real Estate's smart upgrade platform, optimising energy use and improving tenants' wellbeing. The buildings meet high sustainability standards, including LEED Platinum and SmartScore Platinum certification at Castellana 200-208.
Miguel Torres, Head of Iberia at PIMCO Prime Real Estate, says: ‘These spaces are already a benchmark in the city and, with “NUGA Castellana”, we will create a distinctive block in an increasingly sought-after area. Our experience and that of our strategic partners are key to the creation and management of this unique mixed-use project in the city centre. In addition to creating additional value and attractiveness for our investors, we are creating a project for Madrid and for the north of the capital.
The biophilic design of the project aims to connect people with nature, thus improving their health and well-being. In addition, the renovation project will include the transformation of 29,000 square metres for residential use, including 60 of the 271 flats for corporate use.
