In total, the nine assets include 245 residential units plus additional retail space. Eight of the assets have been sold by the SOCIMI Testa Residencial, a listed corporation for investing in real estate, and the properties are located in the streets Felix Boix 4, 6, 8 and Doctor Fleming 39, 41, 43, 45 and 57. In a ninth asset located in Carlos Maurrás 7, Testa Residencial sold selective residential units, with the balance being owned by private owners.
The block is located in a highly desirable location in the north of Madrid’s city centre, benefitting from significant local amenities and excellent transport links. It also sits near one of Europe’s largest regeneration projects, Madrid Nuevo Norte, the redevelopment of a 5.6km long and 1km wide plot which will result in 1.6m sqm of commercial and 1.1m sqm of residential assets.
The units will be upgraded to bring them in line with Allianz Real Estate’s ESG program, in particular Carbon Risk Real Estate Monitor decarbonization pathways. The firm has a target to reduce carbon emissions across its portfolio by 25% by 2025 and be carbon net-zero by 2050.
The acquisition fully supports Allianz Real Estate’s strategy of investing in new or newly refurbished, high-quality assets with strong sustainability criteria in prime urban locations targeting the mid-market segment. It is the second PRS sector deal in Spain: in June last year it acquired 421 prime residential units in 21 assets located in Madrid and Barcelona through the purchase of a controlling stake in a joint venture vehicle owned by several prime investors.
Castellana 200 was acquired by Allianz Real Estate in 2019. Located in Paseo de la Castellana, the most important street in Madrid’s central business district, the asset is comprised of two prime office buildings with a gross lettable area of over 20,000 sqm. It also incorporates a 6,500 sqm upmarket shopping center.
Miguel Torres, Head of Iberia, Allianz Real Estate, said: “This latest deal, in one of the best residential locations in Madrid, illustrates our strong desire to expand in Spain and build our PRS exposure. It represents a unique strategic means to consolidate ownership of the Castellana 200 block, potentially creating additional value through synergies. The location, quality and concentration of the assets adds further diversification and scale to our portfolio, and we remain focused on additional opportunities in the residential as well as other sectors in Spain.”
Alexander Gebauer, CEO West Europe, Allianz Real Estate, said: “We’re delighted to have worked once again with Blackstone, a trusted and long-term institutional partner, to realise this latest opportunity. Such relationships sit at the heart of the Allianz Real Estate business model. Residential as an asset class has escalated in significance for us in Europe given the attractive fundamentals, and our focus remains on centrally located assets where we see the highest tenant demand and broader mix of residential uses.”
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