Allianz Real Estate has bought its first private rented sector (PRS) portfolio in Spain in a deal worth approximately €251m.
Allianz, acting on behalf of several Allianz Group companies, has acquired a controlling stake in Spanish residential real estate platform Elix Vintage Residencial Socimi Elix Vintage, from KKR, Altamar Capital Partners and other investors.
Allianz said it acquired the stake via a tender offer.
IPE Real Assets understands that the equity price published in the tender offer is €140m. Including debt, pending investments and other costs, the total value of the stake is expected to be around €251m, according to a source.
The Elix Vintage platform was launched in 2017 to invest in the Madrid and Barcelona residential real estate markets through an aggregation strategy. The current portfolio comprises 21 residential assets including 421 units, with 13 properties in Madrid and 8 properties in Barcelona.
Miguel Torres, the head of Iberia, Allianz Real Estate, said the assets being acquired underscore the importance of sustainability as a competitive differentiator and a means to attract tenants.
”Madrid and Barcelona are exhibiting strong fundamentals, and we see an opportunity to offer professionally refurbished, maintained and managed residential units, creating value for our tenants and investors.”
Donato Saponara, the head of transactions West Europe at Allianz Real Estate, said this transaction is the first time that Allianz Real Estate has structured a PRS acquisition in Spain.
“The structure offers attractive benefits to investors increasing the possibility to escalate our exposure and its application highlights the strength and technical capabilities of the Allianz Real Estate team.”
Alexander Gebauer, the CEO of West Europe at Allianz Real Estate, said the European PRS sector has accelerated in importance, offering investors diversification across asset classes and geography.
“As evidenced by a number of recent deals, Allianz Real Estate is focused on further growing its PRS book through the acquisition and development of prime assets and working with prime partners.”
Guillaume Cassou, partner, head of real estate Europe at KKR said: “Our investment thesis has been realised and we welcome Allianz as a new owner of the portfolio. The residential sector continues to be a priority for us, building on our track record of working with expert local managers and developers.”
KKR’s investment in Elix Vintage was made through its Real Estate Partners Europe I fund.
Fernando Olaso, a managing partner at Altamar Capital Partners, said: “We have deployed a very hands-on value-add strategy in building this great portfolio. Throughout, we have created significant value, factoring ESG principles into the refurbishment and significantly improving the energy efficiency across the portfolio.”
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