ActivumSG Capital Management is investing €82m in a Spanish residential plot for its Iberia fund.

The Jersey-based firm, which operates as a turnaround specialist, will develop a 2.2-hectare site in Alcal de Henares near Madrid.

The land was purchased by ActivumSG for its Iberia Fund I.

Planning consent is in place for 450 apartments.

Saul Goldstein, founder and managing partner of ActivumSG, said: “There’s a shortage of new housing in Alcal, where there is strong demand from families wanting to move into a city that is a short travel distance to Madrid and also has a lot going on itself.

“These local market dynamics are highly supportive of prices, making the development an attractive investment.”

Goldstein said the site has similar characteristics to a residential development site that the fund purchased in the greater Madrid area earlier this year.

The five-phase development will begin in the second half of next year.

The investment takes investment by the firm’s Iberia Fund I to €200m, having raised the capital last year.

Other assets owned by the fund include a mixed-use building in Madrid, a hotel development in Malaga, a 15-hectare residential development site near Madrid, and three shopping centres.