Aware Super has agreed to buy an interest close to 50% in Spanish multifamily platform Vivenio Residencial Socimi for “approximately €400m”.
Australia’s second-largest pension fund will also invest a further €200m into the business, which was established by Dutch pension investor APG and listed real estate group Renta Corporación in 2017.
The platform now owns 6,000 apartments, some of which are under development mostly in Madrid and Barcelona. The portfolio will have an estimated completion value of €1.6bn.
APG will retain an equal stake in the business, and will match Aware Super’s additional investment of €200m to finance Vivenio’s growth plan.
The capital injection would fund acquisition of operating assets and allow Vivenio to build up in-house developments and turn-key projects in major cities across Spain to become the leading private rental sector player in the Spanish market, the company said.
Alek Misev, Aware Super’s portfolio manager – property, told IPE Real Assets that Vivenio’s plan was to increase its presence across Spain outside Madrid and Barcelona.
He said Aware Super had been working with APG, which was its partner in a serviced apartment platform in Europe, for about six months on its plans to enter the Spanish market.
“We are attracted to the multifamily sector because it has proved to be quite stable during the pandemic,” he said. “It was the least impacted of all property sectors.”
Damien Webb, head of incomes and real assets said the investment was part of the super fund’s overall residential strategy, which included multifamily, serviced apartments and others. Today, some 20% of its total portfolio of listed and unlisted property of A$10bn was in residential related sectors.
Daniel Loureda, chief executive officer of Vivenio, said: “The additional commitment from both shareholders will allow us to grow further our quality portfolio.”
“As founding partner of this company,” said Robert-Jan Foortse, APG’s head of real estate Europe, “we are delighted that a like-minded investor, Aware Super, is joining us and committing to work with us to grow the platform through an additional capital injection.
“Vivenio matches our strategy to deliver stable, long-term returns in prime real estate worldwide on behalf of our pension fund clients.”
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