Global rental housing specialist Greystar has acquired a build to rent (BTR) residential project in Madrid’s city centre, in the Arganzuela district, from developer Acciona.
Financial details were not disclosed.
The 13-storey asset is set to rise on a 24,795 m2 plot, with construction slated to start in the second half of 2022. The property has been designed by the L35 architecture studio and will comprise 455 one and two-bedroom apartments.
In addition to a central location in Madrid, just a 15-minute walk from the Atocha Station, the asset will have a wide range of amenities and shared areas, including a large lobby/lounge, gym, co-working spaces, a theatre, leisure and dining areas for residents, a community terrace, a children’s play area, a swimming pool and 455 storage rooms and parking spaces.
Upon completion, the asset will form part of the growing portfolio of Greystar’s new pan-European value-add strategy, which was announced in June 2021 with capital commitments of €725 mln at first close.
The strategy’s portfolio has already closed deals in Ireland, the UK and the Netherlands, and will continue to grow across Greystar’s seven European markets.
Juan Manuel Acosta, managing director – Spain, Greystar, said: 'In our view the Madrid rental market is recovering rapidly after the pandemic and there is hardly any residential sites for new construction, which lays the groundwork for excellent fundamentals for this asset.
'This transaction not only reflects our growing interest in the burgeoning build to rent sector but extends our commitment to the Spanish market.'
Andrés Pan de Soraluce, CEO of Acciona, said: 'This agreement is an important step in Acciona’s strategic plan to generate value in the real estate segments through differentiation and institutional alliances, in iconic and high potential locations. We will develop the apartments to the highest levels of environmental sustainability, targeting the BREEAM label certification.'
Greystar has other build to rent projects in the Madrid greater area, and currently has a total of 2,500 rental units in Spain.
Jones Day, PwC and Knight Frank advised Greystar in the transaction.
