Global asset manager LaSalle Investment Management has acquired a six-storey residential property in the Azca financial district of Madrid from Optimum III Value Added Residential Socimi, on behalf of a LaSalle client.
Financial details were not disclosed.
Located at Calle Edgar Neville 7, the property comprises 40 one-, two- and four-bedroom apartments, a ground-floor retail space under long-term lease to a supermarket and two levels of underground parking.
Francesco Coviello, head of investment CEE and Southern Europe at LaSalle, said: 'Calle Edgar Neville 7 is situated in a robust submarket of Madrid where we forecast continued high demand for rental housing, particularly among upper-middle-income occupiers.
'We’re pleased to have secured this attractive investment opportunity on our client’s behalf and look forward to further building out our exposure to high-quality Spanish residential assets in prime city-centre locations.'
Following a refurbishment and expansion of the property between 2006 and 2009, LaSalle said it would invest in further improvements to enhance the building quality and support a strategy of leasing out vacant units in the short term.
According to the firm, despite the current challenging macroeconomic environment, Madrid’s rental market continues to experience high rental demand and low institutional supply, particularly in central locations, and the city is projected to remain the best-performing Spanish city over the next five years.
Concluded Coviello: 'We are targeting significant investment in Spain in the coming year, with a main focus on the residential sector as we see the Build-to-Rent sector undersupplied and with a lack of quality residential units.'
