Allianz Real Estate, acting on behalf of several Allianz group companies, has acquired a portfolio of nine prime residential buildings in the Chamartín district of Madrid for EUR185 million. Located next to Castellana 200, a mixed-use office and retail asset already owned by Allianz Real Estate, the transaction consolidates the firm’s ownership of the wider block and expands its exposure to the highly attractive Spanish PRS sector, particularly in Madrid.
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 5.6kilometres long and 1 kilometres wide plot which will result in 1.6 million square metres of commercial and 1.1 million square metres 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 per cent 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 square metres. It also incorporates a 6,500 square metres upmarket shopping center.
Source: allianz-realestate.com on the 17th of March 2022
https://www.allianz-realestate.com/en/newsroom/press-releases/22-03-17-allianz-expands-spanish-prs-exposure-with-acquisition-of-prime-portfolio-in-central-madrid