CBRE Investment Management (CBRE IM) has acquired two newly built, affordable residential assets in Madrid, Spain.
The first is in El Canaveral, acquired from Neinor through a forward purchase structure. The state-of-the-art scheme comprises 8,932m2 across two adjacent buildings and includes 94 dwellings, 123 parking units and 52 storage units. Due to be completed in December 2023, the asset has been built under a free rental regime with amenities such as a garden, green areas, children’s area, gastro bar and swimming pool and is targeting energy label AA for the EPC rating and BREEAM-in-Use certification Very Good.
The second, located in Torrejon de Ardoz and acquired from Prygesa, similarly encompasses two adjacent buildings with 7,708m2 lettable space, including 102 homes, one retail unit, 108 parking spaces and 102 storage units. It was completed in March 2023 and its location, near Madrid’s city centre, provides great connectivity to main highways and public transport systems, as well as close proximity to a range of services such as restaurants and supermarkets, a newly built shopping centre, schools and hospitals. The asset is also targeting BREEAM-in-Use Very Good.
Spain has an unconsolidated rental market in comparison to other EU countries, with 25% of households living in rental accommodation, but it faces both a supply-demand imbalance as well as much of the existing housing stock being outdated. Both assets will target middle-income households, from young professionals and key workers to seniors, offering them an affordable and sustainable place to live.
Antonio Roncero, Head of Transactions Iberia at CBRE Investment Management said: “These were fantastic opportunities to acquire high-quality assets, that will deliver affordable and sustainable homes in two excellent locations in a market with strong demand2. Whilst demand for rental accommodation is increasing, the availability of stock is still limited, worsening housing affordability as a result. These acquisitions allow us to capitalise on those demands, making it an attractive opportunity to our investors whilst at the same time making a positive social impact.”
CBRE IM has been advised by Elix and CMS.
