German fund manager DWS has acquired a residential scheme in Barcelona from local developer Culmia for €80 mln.
The off-market transaction represents a forward purchase on behalf of one of its German retail real estate funds.
The build to rent (BtR) development is located in the Zona Franca district of Barcelona and will comprise 210 affordable homes, to be delivered over two phases in 2021 and 2022.
Ronen Ribak, head of real estate transactions, Europe at DWS said: 'With this new project, DWS continues to strengthen its commitment to the build to rent segment in Spain and Europe.
'In the future, we will continue to invest in high quality, sustainable housing in excellent locations and, above all, affordable.'
This follows DWS’s investment in late 2020 of almost €100 mln in its first BtR development in Madrid and Barcelona’s metropolitan area comprising 320 residential units.
Both transactions are part of an alliance between DWS and its management partner, Urban Input. This brings DWS’s total ‘Build to Rent’ portfolio in Spain to around €416 mln.
Having commenced construction, the Zona Franca project communal areas will include a swimming pool, library, green areas, multipurpose rooms and concierge, among others. As a net zero energy building, it will target a BRREAM very good certification.
Located in La Marina del Prat Vermell, it is the largest land development in Barcelona currently undergoing significant development and urbanisation. It benefits from excellent connectivity with the centre of Barcelona through public transport and by road.
Matthias Naumann, chief investment officer real estate, concluded: 'The dynamic location of this investment, along with buoyant residential drivers and limited BtR opportunities in Barcelona support the fund’s strategy to expand its residential portfolio in Spain.'
