HIG Capital has announced that one of its subsidiaries has closed the acquisition of a real estate portfolio located in Arturo Soria, a residential area in the centre of Madrid. This portfolio consists of two office buildings and a hotel, totalling 20,000 square metres. These buildings are planned to undergo intensive renovation to convert them into a high quality residential complex with important environmental features, in response to the sustained growth in demand for housing in Madrid.
Authorisation has been obtained to transform these three buildings into a residential development that will offer 267 units available for both rental and sale. In addition, this new residential complex will provide various services and amenities to its residents, such as swimming pools, gymnasium, restaurant areas, cinema, terraces and rooftop dining spaces.
Riccardo Dallolio, Managing Director and Head of HIG Realty Europe, said: "We believe that the current residential market in Madrid benefits from strong fundamentals due to a lack of quality housing and high demand. This transaction demonstrates our ability to access sizable assets in undersupplied markets, with the potential to become a highly liquid institutional product as a result of our value-add initiatives.
Esteban Caja Samboal, Managing Director of HIG Realty in Europe, added: "We plan to deliver a high quality project that meets the demand from young professionals and families for new homes with luxury amenities in an exceptionally located district of Madrid. Given the strong market dynamics, we continue to look for opportunities in this sector, including the conversion of obsolete office assets into state-of-the-art residential properties.