AXA IM - Real Assets has completed the acquisition of an 850 unit Spanish residential portfolio from Goldman Sachs and B Capital, for around €170m, on behalf of clients.
The 65,000 m² portfolio comprises 28 high-quality residential buildings which are located primarily within or close to the city centres of Madrid and Barcelona, Spain’s two largest cities. 14 of the assets have been built since 2005 and have been maintained to an excellent standard while the majority of the remainder have been refurbished since 2002.
Although the portfolio is of the excellent state of use and almost fully let, AXA IM - Real Assets is planning a number of asset management initiatives intended to create further value. These include specific actions in order to further enhance the overall quality of the portfolio.
Spanish residential letting market is showing very strong improvements in fundamentals. The further rental upside, driven by structural rental sector growth, such as increase of the demand and capital values, are expected for the coming years, especially in Madrid and Barcelona.
Hermann Montenegro, Head of Asset Management & Transactions in Spain at AXA IM - Real Assets, commented: “The acquisition of this high-quality portfolio of residential assets reflects our firm belief in the residential markets in Madrid and Barcelona, where rental growth is beginning to gain momentum, and more widely where both demographic drivers and supply-demand drivers are highly supportive.”
