AXA IM Alts has bought a 740-bed residential portfolio in Spain from funds managed by Blackstone for €285m.

The 67,000sqm portfolio in Madrid comprises six assets developed between 2004 and 2008.

The new owner said it intends to pursue a ”significant capex and asset management programme to optimise the portfolio and upgrade its ESG credentials”.

Esther Escapa, the head of transactions in Iberia at AXA IM Alts, said: “This transaction presents a rare opportunity to acquire a prime residential portfolio in a highly competitive market characterised by strong demand.

“At the same time, it aligns well with our strategy of utilising our asset management expertise to add value, through upgrading the portfolio’s quality and sustainability credentials.”

The acquisition forms part of AXA IM Alts’ wider long-term strategy to invest in residential asset classes which it believes are supported by strong demographic drivers.

AXA IM Alts has a €25bn global portfolio of residential assets under management spread across 15 countries.

To read the latest edition of the latest IPE Real Assets magazine click here.