AXA Investment Managers - Real Assets (AXA IMRAs) has completed the forward purchase of a 919-unit affordable housing for rent portfolio in the Madrid region of Spain for €150 mln.
The portfolio’s vendors are Tectum Real Estate, a dedicated build to rent company, and Locare Real Estate, a development company with expertise in affordable housing.
The portfolio is spread across seven different assets which are at various stages of their development processes, with one asset already complete and fully occupied, three currently under construction and the remaining three due to imminently commence having already obtained building permits.
Due to be delivered between 2020 and 2022, each asset will be transferred to AXA IMRA upon completion and fully leased. All the units in the portfolio, which will be one of the largest portfolios of affordable housing to be built in Spain, will be offered under the Madrid Community official protected housing regime.
This transaction adds to AXA IMRA’s Iberian residential portfolio, which will now comprise of 2,700 apartments located across Madrid, Barcelona and Lisbon. The acquisition forms part of the company’s wider long term strategy on behalf of clients to invest into residential asset classes which it believes are supported by strong demographic drivers, and adds to its €20 bn portfolio of residential assets under management spread across 15 countries.
Esther Escapa, head of transactions and development (Spain & Portugal) at AXA IMRA, commented: ‘This transaction provides us with a unique opportunity to support the provision of much needed high-quality yet affordable housing in the Madrid region, a market which has historically had low levels of such suitable stock. Despite the current uncertainty caused by the Covid-19 pandemic, we are confident in the resilience of the economic and demographic trends that have underpinned the demand for this type of residential accommodation, allowing us to generate stable long term income on behalf of our clients.’
