Allianz Real Estate, acting on behalf of several Allianz Group companies, has acquired in an off-market transaction its first Private Rented Sector (PRS) portfolio in Spain. The assets have been acquired through a purchase of a controlling stake of a joint venture vehicle, Elix Vintage, owned by global international investor KKR, the private markets specialist Altamar Capital Partners, and other investors, via a tender offer.
Gran Via, Barcelona
Comprised of 421 prime residential units in 21 assets located centrally in Madrid and Barcelona, the acquisition further builds upon Allianz Real Estate’s PRS exposure globally and fully supports its strategy of investing in new or newly refurbished, high-quality assets with strong sustainability criteria in prime urban locations targeting the mid-market segment.
Most of the assets already meet Carbon Risk Real Estate Monitor (CRREM) sustainability standards, with the aim to render the entire portfolio CRREM 2040 compliant through a dedicated investment program over the next 18 months. CRREM’s decarbonization pathways are aligned with the Paris Climate Goals of limiting global temperature rise to 2°C, with ambition towards 1.5°C.
Just under two thirds of the portfolio (63%) is in Madrid, with most of the units conveniently located in the mid-South of the metropolitan area of the capital city. All of the assets, including those in Barcelona, are positioned as best in class in their micro locations and of a higher quality than competing products in their respective neighborhoods.
The portfolio, which equates to c. 41,000 sqm of residential space in total, will continue to be managed by ELIX, a leading Spanish asset manager. ELIX has a 17-year track record in residential sector asset management primarily in Madrid and Barcelona, where it has more than 1,300 residential units under management.
Miguel Torres, Head of Iberia, Allianz Real Estate, said: “The assets being acquired in Spain represent the finest PRS units in their micro-locations, redeveloped to very high standards with tenants, the community and the environment in mind. They underscore the importance of sustainability as a competitive differentiator and a means to attract tenants. Madrid and Barcelona are exhibiting strong fundamentals, and we see an opportunity to offer professionally refurbished, maintained and managed residential units, creating value for our tenants and investors. We look forward to continue to grow our exposure in the residential market in Spain.”
“This transaction is the first time that Allianz Real Estate has structured a PRS acquisition in Spain and we are happy to have ELIX as a partner here. The structure offers attractive benefits to investors increasing the possibility to escalate our exposure and its application highlights the strength and technical capabilities of the Allianz Real Estate team,” said Donato Saponara, Head of Transactions West Europe, Allianz Real Estate.
Alexander Gebauer, CEO West Europe, Allianz Real Estate. “The European PRS sector has accelerated in importance, offering investors diversification across asset classes and geography. As evidenced by a number of recent deals, Allianz Real Estate is focused on further growing its PRS book through the acquisition and development of prime assets and working with prime partners. This rare, off-market transaction in Spain underscores the sophistication of our local network and provides a strong platform for further market growth.”
