Catella Real Estate has inked a deal for the 10,080 m2 residential property dubbed Vallecas in the southeast of Madrid.
Financial details were not disclosed.
The property, recently completed by project developer Activitas Inversion Inmobiliaria, comprises 148 socially funded micro apartments, all of which are already rented.
The residential complex is located on Avenida de la Gran Vía del Sureste 10-12 in the Villa de Vallecas district, one of the most rapidly developing districts of Madrid over the past two decades.
The eight-storey property has a total constructed area of 10,080 m2 and includes 148 subsidised apartments, of which 74 are one-bedroom and 71 are two-bedroom apartments, all of which have an additional storage room in the basement. The scheme also features 152 parking spaces and 300 m2 of commercial space.
During the construction of the residential complex, Vallecas was awarded the Spanish BREEAM Good certification and is classified in energy efficiency class A overall.
On-site asset management is provided by Catella Asset Management Iberia, which has a portfolio of more than 2,300 properties in Madrid, Barcelona, Valencia, Seville, Pamplona and Vitoria in Spain and is supported from Germany by Catella Residential Investment Management.
Jaime Sarrà, senior investment manager at Creag, said the deal marked the 29th acquisition for the Sarasin sustainable properties - European cities fund.
He added: 'With the acquisition on the Iberian Peninsula, we are not only building diversification of the fund, but can also further increase the allocation quota in the area of housing. We are pleased to be making a positive contribution to social housing construction in Spain with the Vallecas property.
'This shows once again that investing in properties that meet our high ecological and social standards enables our investors to make an impact and at the same time secure an attractive return.'
Eduardo Guardiola, CEO of Catella Asset Management Iberia, added: 'Vallecas is the third socially funded project that we have launched and made a success for our investor partners.
'Catella AM Iberia and its clients will continue to help address the lack of affordable and quality rental housing in Spain while delivering value to our tenants, communities and our investors.'
