A Morgan Stanley-managed fund is investing in a major residential property development project in Madrid.
EuroProperty, the weekly bulletin published by PropertyEU Group, reports that a joint venture between the fund and Spanish developer Gestilar have signed an agreement to buy three land plots in the north of Madrid where the new vehicle is planning extensive residential development.
The joint venture purchased the parcels of land in the Valdebebas area from Baraka Group, the company owned by entrepreneur Trinitario Casanova.
Financial details have not been disclosed, but it is understood the deal is being backed by the North Haven Real Estate Fund IX, which Morgan Stanley manages. Baraka Group acquired the sites last year, when it bought the company Parque Empresarial El Olivar out of liquidation.
The land acquired by Baraka comprises 114,000 m2 for residential development and a 46,000 m2 industrial site.
Morgan Stanley and Gestilar announced their joint venture in September and are reportedly putting €100 mln into the venture which is thought likely to double Gestilar’s output.
Initially, 200 homes will be built with retail, but the development will be phased with final completion in 2021.
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The full story appears in EuroProperty, the weekly wrap of real estate news and analysis published by PropertyEU Group.
