CBRE Investment Management (CBRE IM) has acquired, on behalf of one of its investment funds, two new build residential rental assets in Madrid.
The first asset is located in El Cañaveral and has been acquired from residential developer Neinor through a forward purchase structure. This project has 8,932 square metres distributed in two buildings and includes 94 homes, 123 parking spaces and 52 storage rooms. Construction is expected to be completed in December 2023, and the homes will be offered on a rent-free basis, with amenities such as green areas, gardens, children's area, gastrobar and swimming pool. The aim is to obtain the AA energy label and BREEAM In-Use certification at "Very Good" level.
The second property is located in Torrejón de Ardoz and has been acquired from Spanish developer Prygesa. This asset offers 7,708 square metres of leasable area distributed in two adjacent buildings, with 102 residential units, one commercial unit, 108 parking spaces and 102 storage rooms. Construction was completed in March 2023 and the location is well connected to motorways and public transport networks, as well as being close to a range of amenities such as restaurants, supermarkets, a newly built shopping centre, schools and hospitals. BREEAM In-Use certification at "Very Good" level is also being pursued.
According to CBRE IM, the rental market in Spain is not as consolidated as in other EU countries, with only 25% of households in rental housing. The main challenges facing this market are the imbalance between supply and demand, as well as the age of much of the existing housing stock. Both assets acquired by CBRE IM will target middle-income households, including young professionals, essential workers and seniors, to provide them with a sustainable and affordable home.
Antonio Roncero, CBRE IM's Iberia Transaction Director, highlights that they have taken advantage of two unique investment opportunities to acquire high quality assets, "which will provide affordable and sustainable housing in two excellent locations and in a market with rising demand and very limited quality supply. While demand for rental housing is increasing, the availability of purpose-built housing of high quality standards remains limited, further exacerbating the shortage of affordable housing supply. This acquisition allows us to contribute to addressing that societal need, while representing an attractive investment opportunity for our investors, with positive social impact."
CBRE IM has been advised by Elix and CMS on these transactions.
