Patrizia has added a €52m build-to-rent turnkey development to its residential portfolio in Spain in a forward funding deal.

Patrizia said it has invested the capital in Badalona and Esplugues de Llobregat, in the greater Barcelona area, on behalf of its institutional clients.

The development, expected to complete by end of 2023, will provide 128 residential units.

The Esplugues de Llobregat building, located in the Finestrelles neighbourhood, will comprise 69 units. The Badalona building, located on Avenida d’Eduard Maristany, will comprise 59 units.

The latest deal lifts the value of Patrizia’s residential portfolio to over €250m. The company’s assets under management in Iberia is valued at around €1.45bn.

Eduardo de Roda, Patrizia’s country manager for Iberia, said: “We are convinced that residential, especially multifamily housing, will continue to deliver cash-flow stability and diversification benefits if underwritten properly, helping our clients to generate their required returns to meet pay-out obligations.

“And with this latest investment, not only are we following our conviction but we are helping to build vibrant communities where residents will have enhanced quality of life thanks to easy access to the centre of Barcelona and to nearby beauty spots such as beaches and green spaces.”

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