AEW has acquired a residential property, Joan Miro 36, in the Santa Catalina district of Palma de Mallorca, Spain, on behalf of a separate account mandate backed by a German pension fund. The asset has been acquired from Banco Sabadell.
The six-storey building comprises 103 apartments across 10,000m² offering predominantly one to three bed apartments, 940m² of ground floor retail space and 186 parking units. The residential component of the asset, which represents 96% of the total income, is currently 91% let. Originally constructed in 1978, the apartments have all been recently renovated, with almost all of them providing outside space via balconies or terraces.
AEW has identified several asset management initiatives to enhance the asset, including the creation of a workspace, a fitness center and a cafeteria. Furthermore, in line with its investment strategy and commitment to ESG, AEW will seek to optimize the BREEAM credentials of the asset, including an improvement of the EPC level through the installation of solar panels, the creation of a green patio with rainwater irrigation, the installation of water saving taps and other measures to enhance tenants’ well-being and reduce environmental impact.
Joan Miro 36 is located just over half an hour from the city centre by foot and is in an idyllic setting between the seafront, marina and green space of Castell de Belver. The immediate area also offers excellent amenities, including supermarkets and schools. The property has strong public transport links, including several bus lines, and easy access to the Ma-1 and Ma-19 motorways. Additionally, it is located 1.5km from Mallorca’s only ferry terminal and just a 15-minute drive away for the airport, providing access to direct flights from a number of major European cities.
Lars-Henning Pylla, Executive Director of Fund Management at AEW, commented: “We continue to see a lack of affordable, decent quality housing for the local Mallorcan population – particularly in areas close to the city centre. With current forecasts that the number of the city’s inhabitants will increase by more than 15% to 485,000 by 2030, we expect the supply / demand balance that exists in the housing market in Palma de Mallorca to persist. Against this background, the acquisition of residential schemes with the potential for further modernization, such as Joan Miro 36, represent a cornerstone within the fund's strategic investment rationale.”
Carsten Czarnetzki, Country Head of Spain at AEW, added: “Project Marina is situated in one of the most attractive locations in Palma de Mallorca, close to the international port and marina. We are confident that quality residential assets with an attractive offering and the enhanced amenities which we have planned will continue to perform well and provide sustainable returns for our investors going forward. Together with the Nou Llevant acquisition, AEW now manages in excess of 300 apartments in Mallorca.”
