Allianz Real Estate has added a portfolio of nine buildings in Madrid worth €185m to its Spanish residential assets.

Allianz Real Estate said the portfolio, located in the Chamartín district of Madrid, comprises 245 residential units and retail space. 

Eight of the assets were acquired from Testa Residencial, a Spanish residential real estate investment trust owned by Blackstone. Testa also sold units in the ninth asset and the remaining were acquired from private owners.

Allianz Real Estate said the portfolio is located next to Castellana 200, a mixed-use office and retail asset Allianz Real Estate acquired in 2019.

The latest transaction is Allianz Real Estate’s second private rented sector (PRS) deal in Spain. In June last year, Allianz Real Estate bought its first PRS portfolio in Spain through the acquisition of a controlling stake in Spanish residential real estate platform Elix Vintage Residencial Socimi Elix Vintage, from KKR, Altamar Capital Partners and other investors.

Miguel Torres, the head of Iberia, Allianz Real Estate, said: “This latest deal, in one of the best residential locations in Madrid, illustrates our strong desire to expand in Spain and build our PRS exposure.

“It represents a unique strategic means to consolidate ownership of the Castellana 200 block, potentially creating additional value through synergies. The location, quality and concentration of the assets adds further diversification and scale to our portfolio, and we remain focused on additional opportunities in the residential as well as other sectors in Spain.”

Alexander Gebauer, CEO West Europe, Allianz Real Estate, said: “We’re delighted to have worked once again with Blackstone, a trusted and long-term institutional partner, to realise this latest opportunity. Such relationships sit at the heart of the Allianz Real Estate business model.

”Residential as an asset class has escalated in significance for us in Europe given the attractive fundamentals, and our focus remains on centrally located assets where we see the highest tenant demand and broader mix of residential uses.”

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