CBRE Investment Management (CBRE IM), on behalf of one of its investment funds, has acquired a new affordable rental residential asset in Madrid from Compañía Europea de Arrendamientos Urbanos S.S.Reyes S.L. as part of the strategy initiated with Elix to develop up to 1,200 homes.
The asset, located in San Sebastián de los Reyes, has a gross leasable area (GLA) of 12,174 square metres. It was built in 2009 and consists of two adjacent buildings, with 82 apartments, 123 parking spaces and 82 storage rooms, and is fully leased.
It also has excellent transport links to the city centre of Madrid by both private and public transport, as well as a variety of services in close proximity, such as restaurants, supermarkets, schools and hospitals. The development also includes residential units to appeal to a full spectrum of middle-income household affordability.
This acquisition has been made in partnership with Elix, in line with the recently signed agreement to develop a portfolio of approximately 1,200 affordable and sustainable homes, thereby facilitating access to housing for middle-income households.
Antonio Roncero, Head of Iberia Transactions at CBRE Investment Management, said: "Around a quarter of households in Spain currently live in rental housing, and that number is expected to rise to the highest European levels by 2035. Demand has also outstripped supply, with transaction volumes and capital values rising steadily since the global financial crisis of 2008. In particular, there is a strong demand for affordable and sustainable housing.
In this regard, the new acquisition "is a unique opportunity to add an affordable asset, which we can upgrade to meet today's sustainability criteria, allowing us to capitalise on what we believe are strong market drivers".
CBRE Investment Management has been advised by CMS (legal), EY (financial, tax) and Savills (valuation).