The investment, management and development company for residential rental assets Greystar has announced the purchase of a portfolio of 2,500 flexible accommodation units in Madrid, from the US fund King Street Capital Management. Greystar, King Street and Momentum REIM launched the strategy in 2019. Such investment has been made from Greystar's pan-European discretionary fund.
The highly innovative concept will have three buildings in the north and south of the Madrid metropolitan area, in Rivas, San Sebastián de los Reyes and Valdebebas, and will operate under a new brand.
The proposal consists of providing welcoming communities in which residents can benefit from a wide range of included services, such as a gym, coworking space, swimming pool, garden areas and concierge service, among others. The properties, currently under construction, aspire to obtain the BREEAM environmental certification, Very Good level.
For Juan Manuel Acosta, Managing Director of Greystar in Spain: "Madrid is a market characterized by a significant shortage of rental product offerings, including flexible and affordable solutions. This investment allows us to access a portfolio with scale with the objective to offer a housing solution for residents who require a place to stay in Madrid".
Paul Brennan, Managing Director and Head of European Real Estate at King Street, said: “The sale of this portfolio underscores King Street's ability to successfully execute our strategy of offering BREEAM Very Good environmental certified alternative assets in Spain, where we still see an important opportunity for growth given the limited supply in the market of properly designed institutional products”.
Since 2010, King Street has committed more than $4 billion of capital in 60 real estate transactions. The firm has been investing in the Spanish real estate sector since 2012. To date, it has directly and indirectly invested more than $1 billion in capital in the Spanish real estate sector.
King Street has been advised by Eastdil, Linklaters and Cuatrecasas. Greystar has been advised by Jones Day, EY, Arcadis and Deloitte.