Allianz Real Estate has increased its residential exposure in Spain with the acquisition of a portfolio of nine prime buildings in the Chamartín district of Madrid for €185 mln.
The assets are located next to Castellana 200, a mixed-use office and retail asset already owned by Allianz Real Estate, thereby consolidating the firm’s ownership of the wider block in the north of Madrid’s city centre.
In total, the nine assets include 245 residential units plus retail space. Eight of the assets were sold by Blackstone-controlled SOCIMI Testa Residencial, and are located in the streets Felix Boix 4, 6, 8 and Doctor Fleming 39, 41, 43, 45 and 57. In a ninth asset located in Carlos Maurrás 7, Testa Residencial sold selective residential units, with the balance being owned by private owners.
The units will be upgraded to bring them in line with Allianz Real Estate’s ESG programme, in particular Carbon Risk Real Estate Monitor decarbonisation pathways. The firm aims to reduce carbon emissions across its portfolio by 25% by 2025 and be carbon net-zero by 2050.
The acquisition is Allianz Real Estate’s second private rented sector (PRS) deal in Spain to date: in June last year it acquired 21 assets in Madrid and Barcelona through the purchase of a controlling stake in a joint venture vehicle from an investor consortium led by global investment group KKR and Altamar Capital Partners.
Miguel Torres, head of Iberia, Allianz Real Estate, said: ‘This latest deal, in one of the best residential locations in Madrid, illustrates our strong desire to expand in Spain and build our PRS exposure. It represents a unique strategic means to consolidate ownership of the Castellana 200 block, potentially creating additional value through synergies.’
Alexander Gebauer, CEO West Europe, Allianz Real Estate, commented: ‘We’re delighted to have worked once again with Blackstone, a trusted and long-term institutional partner, to realise this latest opportunity. Such relationships sit at the heart of the Allianz Real Estate business model.’
He added: ‘Residential as an asset class has escalated in significance for us in Europe given the attractive fundamentals, and our focus remains on centrally located assets where we see the highest tenant demand and broader mix of residential uses.'
Castellana 200 was acquired by Allianz Real Estate in 2019. Located in Paseo de la Castellana, the most important street in Madrid’s central business district, the asset comprises two prime office buildings with a gross lettable area of over 20,000 m2. It also incorporates a 6,500 m2 shopping centre.
