Advero advanced with the purchase of its second asset in Madrid

Advero advanced with the purchase of its second asset in Madrid

Calle Teresa Maroto | Photo Collected From Google Maps

The asset is a residential building located at Calle Teresa Maroto, within Madrid’ Puente de Vallecas neighbourhood. It has a total of 16 dwellings and 11 parking spots, which Advero intends to start marketing immediately.

According to a release from the company, the asset cost 1.8 million euro. This amount originated from «the company’s recently raised equity», in particular from the 6.8 million euro capital increase concluded in June, which may still reach 10 million euro during the second round of negotiations.

Advero acquired its first asset in Madrid at the end of last year. The residential building is located within the capital’s Tetuan district, it has 17 dwellings and 17 storage spaces and it cost 1.7 million euro. The company’s portfolio has 7 assets, 5 of which are located in Barcelona, for a total of 109 dwellings.

The Spanish REIT’s vision for the future includes growing even more. In the same document, Advero revealed that its «net financial debt represented only 14% of the company’s gross asset value» and, as such, «the total new equity resources, together with the possibility of additional bank financing, will provide Advero with an investment capacity of 15 million euro, which will allow it to more than double its size».

This is a strategy highlighted by Pau Corbera, Chairman of Advero, who further added that «the low risk of Advero’s business model has been key to successfully concluding a capital increase in the middle of Covid-19 and being able to take advantage in the coming months of the investment opportunities generated by the pandemic. This will allow us not to interrupt the company's expansion plan in a key year after the listing on the Spanish MAB stock exchange at the end of 2019. We will continue to actively work to increase the supply of rental housing in middle-income areas in Spain, where demand has even grown by the uncertainty of the moment».

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