CBRE Global Investment Partners (CBRE GIP) and Madison International Realty (Madison) have announced the acquisition of a 6,458-unit portfolio of Spanish residential properties valued at €870 mln.
The portfolio has been purchased as part of the recapitalisation of a fund managed by Azora, which had come to the end of its life.
Azora, a specialised investment and asset manager, will continue to manage the assets and has a minority stake in the venture.
The portfolio comprises 65 primarily mid-market apartment block buildings of which approximately 70% are located in and around Madrid, with the balance in other key cities.
In a statement, CBRE GIP and Madison said that they intend to grow the venture and seek further opportunities to invest in the Spanish multi-family housing market.
'The residential rental market in Spain is very fragmented making this portfolio and its critical size unique to act as a major consolidator in the sector,' said Alexander van Riel, head of Continental Europe at CBRE Global Investment Partners. 'This investment is in line with our key strategy – to focus on urbanisation and demographic trends in supply constrained markets – and increases the CBRE GIP residential sector exposure in Europe.'
Derek Jacobson, co-chief investment officer at Madison International Realty, commented: 'This investment represents a rare opportunity to acquire a large scale, high quality residential portfolio located largely in the Spanish capital. We have a track record of residential investment and management in the US from which to draw on as we look to grow this joint venture.'
Javier Rodriguez-Heredia, partner of Azora and head of residential, explained: 'We have kept this 6,458-unit portfolio under rental for 15 years, providing living solutions to thousands of families. Instead of liquidating and selling these units, with this strategic partnership, we have not only found a way to keep the units available for the families, but we will also increase the supply by continuing to invest in new rental product. We have created a unique investment platform to lead the future of the Spanish residential rental market by combining CBRE GIP and Madison’s robust investment capabilities with Azora’s leading skills in investing, managing and operating residential portfolios.'
CBRE GIP and Madison were advised by Jones Day, Perez Llorca, PwC, Howden, Arcadis, CBRE and Knight Frank, while the vendor was advised by Kempen, Freshfields and Deloitte.
