Global real estate investment manager AEW has acquired a residential property in Palma de Mallorca, Spain, on behalf of a separate account mandate backed by a German pension fund.
The 103-apartment property, known as Joan Miro 36, was purchased from Banco Sabadell for an undisclosed amount.
AEW said it plans to carry out several asset management initiatives to modernise the asset and bring it in line with ESG commitments.
The six-storey building comprises 10,000 m2 offering predominantly one- to three-bed apartments, as well as 940 m2 of ground floor retail space and 186 parking units. The residential component of the asset, which represents 96% of the total income, is currently 91% let.
Originally constructed in 1978, the apartments have all been recently renovated.
Lars-Henning Pylla, executive director of fund management at AEW, explained: 'We continue to see a lack of affordable, decent quality housing for the local Mallorcan population – particularly in areas close to the city centre. With current forecasts that the number of the city’s inhabitants will increase by more than 15% to 485,000 by 2030, we expect the supply/demand balance that exists in the housing market in Palma de Mallorca to persist. Against this background, the acquisition of residential schemes with the potential for further modernization, such as Joan Miro 36, represent a cornerstone within the fund's strategic investment rationale.'
AEW was advised by Fabregat Perulles Sales (legal), CBRE/Zittus (commercial) and ATP Proyectos (technical & environmental).
