Private equity real estate manager Azora has partnered with a global institutional investor to invest over a billion euros to develop residential assets in Spain.

Azora has teamed up with the unnamed investor to create BRISA, a new vehicle focussed on build-to-rent residential developments.

Including leverage, BRISA will have an implied total investment capacity of comfortably over €1bn and will target the development of more than 8,000 units over the next five years, Azora said.

The capital will be deployed across a number of strategic micro-locations in Spain including locations in and around Madrid, Barcelona, Seville, Malaga, Palma de Mallorca and Valencia, amongst others.

Concha Osácar, founding partner of Azora, said: “There is still an acute shortage of good quality rental housing in Spain, most notably for affordable accommodation targeting middle-income earners.

“BRISA aims to help alleviate that issue through the delivery of more than 8,000 sustainably developed new homes in the most supply-constrained micro-locations across Spain over the coming years.

“The success of this capital raise demonstrates that international investors continue to recognise Azora as a market leader in Spain in general and in the residential sector in particular.”

Javier Rodriguez Heredia, senior partner of Azora and responsible for the real estate vertical, said: “We’re very excited to continue investing in a segment with such a high social impact and which is so important for the wellbeing and development of the younger generations and families in Spain.

”The affordable rented residential space is key in providing solutions to the real housing needs of this segment of the population, which is having great difficulties in accessing good quality housing and which constitute the social backbone and future of Spain. It’s a major challenge which we believe we can address through the collaboration and strategic partnerships with the top Spanish developers.”

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