A fund focused on Spain managed by ActivumSG Capital Management is investing €82 mln to develop a residential complex in Madrid.
ActivumSG Iberia Fund I is buying a a 2.2-hectare site in Alcala de Henares, a historic city within commuting distance of Madrid. Planning consent has already been secured to build 450 apartments, underground parking and amenities including a communal swimming pool.
'There's a shortage of new housing in Alcala, where there is strong demand from families wanting to move into a city that is a short travel distance to Madrid and also has a lot going on itself. These local market dynamics are highly supportive of prices, making the development an attractive investment with similar characteristics as the other residential development site that the fund purchased in the Greater Madrid area earlier this year,' commented Saul Goldstein, founder and managing partner of ActivumSG.
The site acquired by the fund is a short walk from the railway station, from where the journey time to central Madrid is 35 minutes. The international airport is a 15-minute drive away, while the planned development is also close to La Garena, a popular shopping centre.
The targeted start of the five-phase development is the second half of 2017, subject to construction permits. The fund is planning to build three- and four-bedroom apartments in a 46,500 m2 complex that will feature terraces overlooking landscaped gardens, sports facilities and a swimming pool.
The investment in the project means that ActivumSG Iberia Fund I has committed all of the €200 mln of equity that it raised by the final close in 2015. Other assets owned by the fund include a mixed-use building in Madrid, a hotel development in Malaga, a 15-hectare residential development site in San Sebastian de los Reyes near Madrid, and a recently purchased portfolio of three shopping centres.
