Greystar’s European value-add residential vehicle has added an asset in Spain to its portfolio.

Greystar said it has acquired a build-to-rent residential project in Madrid’s city centre, in the Arganzuela district.

Acciona, the owner of the 24,795sqm plot and in charge of its development, plans to start construction in the second half of next year. The 13-storey building will comprise 455 one and two-bedroom apartments.

Greystar’s new pan-European value-add strategy was announced in June as the manager raised an initial €725m for the vehicle which targets €1bn of equity commitments.

The latest deal is the strategy’s first secured deal in Spain. The strategy’s portfolio has already closed deals in Ireland, the UK and the Netherlands, the manager said.

Greystar said it has other build-to-rent projects in the Madrid greater area, and currently has a total of 2,500 rental units in Spain.

Juan Manuel Acosta, managing director in Spain at Greystar, said: “In our view, the Madrid rental market is recovering rapidly after the pandemic and there is hardly any residential sites for new construction, which lays the groundwork for excellent fundamentals for this asset.

“This transaction not only reflects our growing interest in the burgeoning build to rent sector but extends our commitment to the Spanish market.”

Andrés Pan de Soraluce, CEO of Acciona’s real estate business, said: “This agreement is an important step in Acciona’s strategic plan to generate value in real estate segments through differentiation and institutional alliances, in iconic and high potential locations.

“Following our standard across all real estate projects, we will develop the apartments to the highest levels of environmental sustainability, targeting the BREEAM label certification.”

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